Procurement

Good control on your purchasing can provide you better financial results. People focus more on sales to increase revenue which is correct but sometimes keep procurement on low priority. That could result in higher cost of purchasing and slow moving inventory.

Procurement module of PIMS is beneficial in this area. Based on business processes and GST tax laws, we have made it simple to manage these purchases.

It starts with purchase order creation process. You can create Purchase Orders from Purchase Requests or without any reference. You can define your purchase for Inventory, Services, expense, or Asset. All tax calculations will happen as per existing GST laws. System can propose you different vendors based purchase history of the item you selected. You can accept the proposal or add a use a different vendor for Purchase Order creation.

In the process you can add multiple items, assign them to various warehouses and save the purchase order. You can send such created PO as a PDF link and send it to the vendor or Print it and mail it to the vendor.

Contract Purchases

You can create annual contract with your supplier and create a schedule to receive the items on periodic basis. The price remains constant for the period of contract and you will be billed based on receipts of the materials. Vendor will have to bill you based on his shipment ( your Receipts). By creating contracts, you get fixed assured price for a duration of contract and vendor gets the assured business.

KANBAN Purchases

You can create KANBAN system for replenishment. You can define KANBAN for an item and system will automatically create KANBAN Purchase Orders. On Goods receipt, KANBAN quantity will go up and on Goods Issue or shipments, KANBAN quantity will be reduced. Once you do the KANBAN setup, system will automatically take care of creating purchase orders as soon as stock goes below the defined limits.

Purchase Pricing:

We have used standard price methodology in purchasing. Meaning, every time you purchase an item, we store its purchase price. Over a period of time, you can see different purchase prices for same item from same supplier and you can see price variations.

You can add freight cost while creating the purchase order itself. When material is received, its freight is added in the material cost. If Freight vendor is different and freight cost is not known at the time of material goods receipt, then its added later the inventory account. In short, you can see all purchase price variations for an item and then system also shows average cost for a period so you can have good control on your purchasing process & pricing.