Purchasing Management in MRPeasy

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Transcript:

Hi,

In this video, we’ll demonstrate the seamless and effective Procurement management features in MRPeasy.
The “Procurement” section of MRPeasy is designed for the purchasing manager.

The “purchase orders” tab shows an overview of all purchase orders: the status, when it’s expected, when it was ordered, if paid, and more.

Plus, the report can be viewed in terms of purchased items to get an overall line-by-line summary.
There are various methods for determining material demand.
One approach involves assessing inventory stock levels through the critical on-hand report.
Another method entails considering the requirements of scheduled manufacturing orders using the Requirements report.

A quick calculation of the necessary materials for making certain products can be made using the forecasting functionality.

Finally, a fourth option involves evaluating medium- and long-term production plans by utilizing the Procurement Schedule tab within the Master Production Schedule.

The “critical on-hand” report shows total demand for all items, which are below “reorder point” value and need reordering.

Creating a purchase order from this report auto-populates purchase terms, streamlining the process.

Additionally, other items from the same vendor are conveniently added to the order.

After saving the purchase order, demand is satisfied causing items to be automatically removed from the report. If items are needed in some orders they will be automatically booked to them.

The “requirements” report shows, line-by-line, how many parts are required by a certain source of demand, when they are required, and when is the last date the purchase must be placed.

This helps to time phase your purchases. Again, when we save the purchase order, the items disappear from the report.

For a quick calculation of the necessary materials to make certain products, one can create a forecasting report. Purchase orders can also be created directly from this report.

Another powerful tool for planning purchases is the Master Production Schedule. If your company uses it for production planning, the procurement schedule tab provides a comprehensive overview of what materials you need to purchase and when.

Let’s start a new purchase order from the “purchase orders” section. After selecting a vendor, MRPeasy highlights all the items that are associated with this vendor.

Or conversely, if you first choose an item, MRPeasy will auto-fill its vendor, or highlight them, if there are several.

The prices of items and the expected date of the PO will be automatically filled, according to the saved purchase terms, which contain the lead time and price information.

If item has multiple purchase terms, open the vendor part number field to see them all.

To ensure purchaser comfort and efficient production planning, saving item purchase terms in MRPeasy is vital. Enter and manage these terms on the item’s details page.

At each vendor’s reports, it is possible to manage the vendor’s purchase terms and update them in bulk if necessary.

And also, in the “Procurement –> Vendors” section, it is possible to import purchase terms from a spreadsheet.

Both for creating new purchase terms or updating existing ones.

Just make sure to check the user manual for detailed instructions.

To send the purchase order, download the PDF, or have MRPeasy open your email client with a pre-filled email.

In the top part of the purchase order, it is possible to track the progress in detail. By saving the “order date”, the status of the purchase order is changed to “ordered.” By saving the “shipment date”, the status of the purchase order is changed to “shipped”.

There are three alternative ways to report goods receipt, based on settings:

By entering the “Arrival date” on the Purchase Order.
By adding an Invoice to the Purchase Order.
By adding a Delivery to the Purchase Order.

By default, for reporting a full receipt, just fill in the “Arrival date” field, and click save.

In case you need to report a partial receipt, change the quantities in the “expected quantity” fields to what was actually received, enter the “arrival date” and save. Repeat the same process until all items are received.

If you have enabled the “Several invoices per PO” functionality without separate deliveries, follow these steps to report receipt in this configuration:

Open the purchase order.
Scroll to the now visible invoices section
and click ‘+’ to record a new invoice.
Fill in the invoice details, check the items and quantities that have been received, and save.

Now, these items on the purchase invoice are taken into stock.

If you have enabled several invoices together with separate deliveries from invoices, in this case for reporting receipt, open the purchase order and navigate to the Deliveries section. Click on the ‘+’ button to create a delivery.

Fill in the Delivery details, review and mark the received items and quantities, then save.

This action will promptly update the stock for the items specified in the Delivery.

If you are procuring items for certain orders, please consider how the system books, or reserves, goods.
If the PO was created manually and Tracing is disabled, items are automatically booked to where demanded.

If a PO was created manually and tracing is enabled, the software does not automatically book items to their respective orders.

To book the materials where they are needed, there are the following options:

Automatically Book Items in the Purchase Order:
Click the “Book Items ” button. The software will attempt to book the items, prioritizing those needed earliest.

Book Materials from Within the Manufacturing Order:

For automatic booking by the FIFO method, click the “Book All Parts” button at the top of the materials section.

For manual booking, click the “+” button on the materials row.

Book Materials from Within the Customer Order:

For automatic booking by the FIFO method, click the “Book All Items” button on the booking page of the customer order.

For manual booking, click the “Book Manually” button.

There are different options for entering invoices in MRPeasy, which can be chosen in Settings -> System Settings -> Software Settings.

By default, the setting “Several Invoices per PO” is set to “No”

In this case, the main PO form is used for entering invoices.

If the setting “Several Invoices per PO” is set to “Yes”, invoices should be entered in the Invoices section of the PO.

This setting allows you to enter multiple invoices for the current PO, including invoices from different vendors.

For example, you can choose a different vendor to enter an invoice from a transportation company. In this case, enter the transportation cost in the additional fees field.

If “Several Invoices per PO” and “Separate Invoices and Deliveries” are enabled, it is possible to handle prepayments to vendors by selecting the appropriate invoice type during creation.

It is also possible to handle credit invoices from vendors by selecting the right invoice type during creation.

Check out our User Manual for more information.

If the “Several Invoices per PO” setting is disabled, payments for the purchase invoice can be entered on the Purchase Order page in the Payments section.

If the “Several Invoices per PO” setting is enabled, payments for the purchase invoice can be entered on the Invoice page in the Payments section.

If the “Several Invoices per PO” setting is set to “No,” then enter other costs, such as transportation costs, on the “Purchase Order” page in the taxable or additional fees fields. These costs will be divided among all purchased goods.

If the “Several Invoices per PO” setting is set to “Yes,” and “Separate Invoices and Deliveries” is set to “No”, then enter other costs, such as transportation costs, on the “Invoice” page in the taxable or additional fees fields. With these settings, additional fees will be divided among the invoice items.

If “Separate Invoices and Deliveries” is set to “Yes”‘ additional fees will be proportionally divided among the ordered items, regardless of which invoice they were entered on.

To request a quotation from your vendor, go to the Procurement tab and click the “+” icon to create a new purchase order. When creating a quotation request, you have two status options:

One is “New PO”. Use this when expecting future stock arrival. Useful for sales and production planning.
The other possible status is “RFQ”. If you need to request quotes from multiple vendors without expecting immediate stock arrival, choose this option. It allows easy duplication for multiple vendors.

To send the request for quotation, download the PDF, or have MRPeasy open your email client with a pre-filled email.

To send the RFQ to another vendor, just click the “copy” button, change the vendor on the new RFQ, save and send.

To turn the request for quotation into a purchase order, change the status from “RFQ” to “New PO” and save. Now, these items are expected into stock and can be used for production planning and sales.

Thanks for watching!