BETTER CONTROL OF THE PURCHASING FUNCTION

The cost of purchases from Suppliers often represents the largest single cost item. It is therefore vital for management to have total control of that entire process. The Info-Logic Purchase Order Processing System enables the purchasing function to be controlled from the placement of the order through to the receipt of the correct quantities at the ordered price. The various stages of the Order, placed, acknowledged, shipped, received and complete can be recorded and maintained by the System. By permitting optional separation of the stock receipting and invoicing processing activities, the System is suitable for most operating environments.
Amongst the benefits to be realised from using the System are:

Computer Printed Purchase Orders

Orders are precisely and accurately printed by the System in the User's own format. Notes can be printed on the order and the computer record of the order enables its progress to be closely monitored. Purchase Orders can be automatically generated from the Inventory replenishment process.

Control of Receipts

All incoming shipments must relate to a valid Purchase Order. Only the items on the order can be received and tolerance levels can be set with respect to over receipts.

Shipment Costing

Shipments are automatically costed by the system with the procurement costs, insurance, freight and cartage being pro-rated and allocated to the initial product costs. A shipment costing audit trail is automatically produced to serve as a hard copy of the Costing.

Management of Orders

By making use of the follow-up date, shipment date, ETA dates and due date, the order progress can be monitored to ensure timely arrival. The information necessary for evaluating Supplier performance is available in the System.

Inventory Management

Outstanding order quantities are reflected on the Inventory balance records and are taken into account during replenishment, ensuring correct stock levels.

Accuracy of Data

The immediate on-line validation of transaction details together with the 'Control Totals' facility incorporated in the transaction processing function help to ensure the data entered is complete and correct.

Order Interrogation

The System provides on-line access to up-to-date information on all Purchase Orders, including transactions, Stock balances, Supplier balances, etc.

Purchase Order Receipting

All the lines on a purchase order can be easily received in full or the order quantity can be changed. Multiple receipts can be made against the same purchase order.

Purchase Price Variance

Invoices are matched to the receipts and the purchase price variance recorded for analysis.

THE INFO-LOGIC PURCHASING ORDER PROCESSING SOLUTION

Every purchase order contains multiple status's and dates which enable the progress of the order to be closely monitored to ensure timely procurement. Differences between ordered and invoiced prices are highlighted and can be automatically reflected in a General Ledger purchase price variance account.
In addition to the standard purchasing functions the Info-Logic System provides a number of useful, but less common features:

MULTI-FACETED

Multi-Entity - purchase order processing can be controlled at any level in the User defined Structure

Multi-Shipments - multiple shipments can be received against the same purchase order.

SHIPMENT COSTING

Depending on the pricing type indicator on the Purchase Order, different input screens will be presented when the Supplier invoices is processed to the purchase order.

Procurement Costs - provision is made for the capture of Insurance, Cartage, Freight and any other costs incurred in procuring the shipment.

Allocation of Costs - the total procurement costs are allocated proportionally to the line items in the shipment.

Composite Product Cost - the composite product cost is updated as the last cost and used in the calculation of the new average cost.

Audit Trail - the shipment costing audit trail is automatically produced as a record of the shipment costing.

PURCHASE ORDER RECEIPTS

A System value can be set indicating that the Supplier's invoice will be processed at the time of receipt of the goods, or after the goods have been received.

Invoice/Receipt Processed Simultaneously - The actual costs are known exactly and can be taken into stock at the correct value.

Invoice/Receipt Split Function - The goods are taken into stock at the purchase order price with the Supplier being credited with the invoice value. Any difference is reflected in a price variance account.

Purchase Order Returns - unsatisfactory goods can be returned and controlled against the original purchase order.

PARAMETERS

System Generated Numbers - The system can generate and maintain all references including the purchase order numbers.

Over Receipts - Purchase orders can be over received by a user specified amount.

Full Costs - Full supplied costs can be entered when stock is received or at a later stage when all the invoices are available.

ADDITIONAL FUNCTIONALITY

Foreign Currency - Purchase orders can be placed on suppliers in any currency.

Non Stock Items - Items for which inventory balances are not kept can be ordered and controlled.

Purchase Requisitions - can be entered and co-ordinated.

Suppliers Price Lists - can be kept showing pricing history by effective date.

Order Numbers - can be automatically allocated by the system or manually entered.

User Notes - Unlimited lines of user notes can be recorded against a purchase order and an individual line item.

Order Acknowledgement - Order acknowledgements can be printed.

Purchase Order Returns - Purchase order returns can be easily automatically generated.

Purchase Order Requisitions - Can be entered as a forerunner to placing a purchase order.

Supplier Quotations - Can be recorded for historical analysis.

Overdue Order Reports - Can be run by supplier, by product, and by date with user selection criteria.

Order Inquiries - Orders can be viewed by supplier, by product, by due date and by order number.