Purchasing Management in MRPeasy

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The “Procurement” section of MRPeasy is designed for the purchasing manager.

The “purchase orders” tab shows an overview of all purchase orders: the status, the cost, 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.

Seeing the demand for items that need to be purchased.

Two important reports that show what items need to be procured: “critical on-hand” and “requirements.”

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

When creating a purchase order here, then if purchase terms for items are entered, the purchase order will be fully pre-filled. Plus, other items on the report from the same vendor are added.

Once we save it, the items are booked to where they were demanded, and they disappear from the report.

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 are booked to where they were required, and they disappear from the report.

Sending and tracking purchase orders.

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.

Different lines can also have different expected delivery dates.

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”.

Receiving purchased goods and purchase invoices

If one purchase order corresponds to one invoice

By default, one purchase order corresponds to one purchase invoice, which details can be saved in the PO header.

For reporting a full receipt, just fill 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.

In the taxable and additional fees fields enter other costs, that will be divided among all purchased goods, for example, transportation costs.

Payments for the purchase invoice can be entered at the bottom of the PO.

If one purchase order corresponds to several invoices

If it is needed that several invoices correspond to one purchase order, then at software settings the “several invoices per PO” functionality should be turned on.

In this configuration, for reporting receipt, open the purchase order, scroll to the now visible invoices section, and click ‘+’ to record a new invoice.

Fill the details, check the items and quantities that are received, and save. Now, these items on the purchase invoice are taken into stock. When creating a purchase invoice, it is also possible to choose another vendor, which is useful for example when paying to a logistics company.

In the taxable and additional fees fields enter other costs, that will be divided among purchased goods:

• If there are items on the invoice, then the fees are divided among these items only.
• Or if there are no items on the invoice, then the fees will be divided among the whole purchase order.

Payments for the purchase invoice can be entered on the invoice page.

Booking items automatically to where they are demanded.

If you manually create a purchase order to buy items for a specific manufacturing order or a customer order, then you must know that the software automatically does not book the items to their respective orders.

It does not do it, because it does not know what your order of priorities is. To book the materials where they are needed, there are two options:

Option one: In the purchase order, click on the “book items automatically” button. Then the software will automatically try to book these, starting from where the items are needed earliest.

Option two: Book the materials from inside the manufacturing order or the customer order. These options are discussed in depth in the videos for the sales manager and the production manager.

Sending a request for a quotation.

To send a request for a quotation to your vendor, click “plus” to start a new purchase order.

There are two alternative statuses to choose when creating a request for a quotation. Which one to choose depends on your specific situation. The options are:

• “New PO”
• and “RFQ”

With status “new PO,” the software expects these items to arrive into stock in the future. This can be very useful for the sales and production managers for better overview and planning.

However, this method is not effective if you need to send a request for a quotation to several vendors.

If you choose status “RFQ,” then the software will not expect these items to arrive in stock yet, and you can easily duplicate it for several 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 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 booked for manufacturing and sales.

Managing purchase terms.

For the comfort of the purchaser, and fast and effective production planning, lead-time, and cost estimation, it is crucial to save the purchase terms of items into MRPeasy.

For individual items, the purchase terms can be entered and managed in 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.

Keywords: Purchase order (PO), request for quotation (RFQ), order tracking, vendor pricelist, purchase terms, shortage reports, critical on-hand, requirements, purchasing software, procurement software, purchasing management, supply chain management