Purchase Cycle User Guide

End-to-End Procure-to-Pay (P2P) Standard Operating Procedure

Here is a clean, step-by-step workflow for the entire procurement cycle within the ERP system. By following these four interconnected modules, you ensure accurate tracking, proper management approvals, and correct financial accounting from initial request to final payment.

1. Purchase Requisition (PR)

The initial internal request. Used by departments to ask for permission to buy goods or services before any external commitment is made.

Initiate: Open the Purchase Requisition module. A unique PR number and today's date will automatically generate.
Header Details: Select your Department, choose the Priority level, and specify the destination Warehouse.
Add Items: Click "+ Add Line". Select the necessary items (Description and SKU Unit will auto-fill) and enter the required quantities.
Justify & Submit: Enter a reason for the request in the text box. Click Save Requisition to route it to the approver. Track the status on the right-hand panel.

2. Quotation From Vendor

Recording the vendor's proposed pricing. This module links the vendor's bid to your internal request.

Select Parties: Open the Quotation From Vendor module. Select your company name and the target Vendor from the dropdowns.
Link the PR: Click the Purchase Requisition dropdown and select the approved PR. This auto-populates the grid with the requested items, saving you from manual entry.
Enter Pricing: Input the vendor's quoted Price (Excl GST), Tax (%), and any applicable discounts. The system will auto-calculate the Taxable and Gross Amounts per row.
Attach & Submit: Upload the physical quote file in the "Acknowledgement Image" section and click Submit for management review.

3. Purchase Order (PO)

The legally binding contract. The PO commits the company to buy the goods at the agreed-upon rates from the approved quotation.

Setup Document: Open the Purchase Order module. Verify the date and select the target Warehouse for delivery.
Link Quotation: Select the Vendor. Then, use the Quotation From Party dropdown to select the approved quote. All line items, prices, and tax calculations will lock in exactly as approved.
Review Terms: Check the auto-populated Term Condition text (e.g., GST details, warranty policies) and adjust if needed.
Authorize: Review the final auto-calculated totals at the bottom and click Submit. The PO is now active and ready to be sent to the vendor.

4. Purchase Invoice

The final financial step. Recorded after goods are received, this links the vendor's actual bill to the PO to authorize payment.

Initiate: Open the Purchase Invoice (or Purchase Bill) module and select the Vendor.
Link PO/Receipt: Select the relevant Purchase Order (or Goods Receipt Note). The system will pull in the items actually received and their approved PO prices.
Enter Bill Details: Enter the exact Vendor Invoice Number and Invoice Date found on the physical bill provided by the supplier.
Reconcile Totals: Verify that the system's total matches the vendor's bill. Apply manual rounding if there are minor decimal differences.
Submit to Accounts: Click Submit. This transitions the liability to Accounts Payable, completing the functional procurement loop.

Pro Tip: Three-Way Matching

The flow from PR → Quotation → PO → Invoice ensures strict data integrity. Always link the previous document rather than manually typing items to prevent errors and ensure seamless audits.

5. Procurement Reports & Tracking

The analytical hub. Used by management and procurement teams to monitor the health of the purchasing cycle, track vendor performance, and maintain budget visibility.

Access the Reports Module: Navigate to the Reports or Dashboard section of the procurement module to view real-time, aggregated data from your daily operations.
PR & PO Status Tracking: Run the Open Requisitions or Pending POs report. This allows you to quickly identify bottlenecks, such as requests stuck in the approval queue or approved PRs waiting for vendor sourcing.
Vendor Quotation Analysis: Use quotation reports to compare historical vendor pricing side-by-side, review accepted versus rejected quotes, and ensure your company is consistently securing the best market rates.
Open Order Monitoring: Generate an Open Purchase Orders report to track items that have been ordered but have not yet arrived at the warehouse. This is critical for keeping the production department informed about raw material ETAs.
Financial Reconciliation: Run Purchase Invoice and Procurement Spend reports to track outstanding liabilities to vendors, helping the accounts team prepare for upcoming payment cycles.