June 2011 V6.2. Training Course. OPE201: Fundamental Purchasing

June 2011 V6.2 Training Course

Sage ERP X3 Fundamentals Sage ERP X3 Advanced Sage ERP X3 Expert CB 101 102 Introduction & Functional Overview (3 days) TEC102 You Are Here FIN201 - Finance (4 days) OPE201 - Distribution (3 days) OPE202 - Inventory (2 days) Development (4 days) TEC103 Installation (4 days) OPE203 - Manufacturing (3 days) TEC101 - Common Tools (3 days) Distribution Contracts (Purchasing and Sales) Loan Orders Packaging & Shipment Preparation Purchasing Signature Management Sales and Purchasing Prepayments Sales Reps and Commissions Sourcing: RFQs, Responses Carrier Management Inter-Site and Intercompany s Invoice Elements (Purchasing & Sales) Kits, Options & Variants Price List Management (Advanced) Manufacturing (4 days) Advanced Global Manufacturing Production Costing Finance Bank Communication & Reconciliation Budget Control/ Analytical Budget Financial Data Extraction Statements & Reminders Automatic Journals & Dimension Defaults Advanced Payment s Month and Year End Processes Fixed Assets Inventory (3 days) Allocation Rules (Advanced) Stock Counts Serial Number Management Reodering Replenishment Storage Plan Valuation Methods and Price Adjustments and cost calculations Quality Control & Sampling Tools & Development Advanced Common Tools Advanced Development Distribution and Inventory Purchasing Subcontracts Pre-Allocations (Pegging Function) Radio Terminals Manufacturing (5 days) Configurator Weighing Optimisation ILOG Finance Multi-Legislation Set Up Operating Budgets Analytical Allocations Factoring Tools & Development Using BI in Sage ERP X3 Java Bridge Serveur Components EDM Version One Web Services Crystal Reports Course Map 2

Objectives Introduce the core purchasing processes supported by Sage ERP X3. Review the integration of purchasing with the sales, stock, manufacturing and accounting modules At the end of this course you will be able to: Execute the key purchasing transactions Initialize the purchasing processes and follow them to completion Generate reports Understand and set up key parameters and common data required for purchasing in Sage ERP X3 3

Introduction This course provides an introduction to the fundamental purchasing functionality. Additional purchasing capabilities are included in the following advanced courseware. Inter site and Intercompany s. Purchasing Signature Management... Contracts (Purchasing and Sales)... Invoice Elements (Purchasing and Sales). Price List Management (Advanced).... Sales and Purchasing Prepayments.. Purchasing Subcontracts.. (Course DIS311) (Course DIS302) (Course DIS303) (Course DIS309) (Course DIS301) (Course DIS312) (Course DIS402) 4

Course Content Overview Reminder of previous course Purchase requests Purchase request flow Closing purchase request Request for quotes Request for quote flow Responses Reminders and price list generation Planning/ordering Planning/ordering Grouping Purchase orders Item & supplier features Flow Buyer planning Back to back orders Receipt Flow to generate a receipt Returns Flow to generate a return Invoices & Credit notes Invoice methodology Invoice controls Utilities Utilities Inquires 5

Overview All purchasing transactions are associated with a site. The site must be marked as a purchasing site for use during purchasing activities. Purchasing in Sage ERP X3 includes purchase requests (requisitions), quotes, planning, orders, receipts, returns and invoices All purchasing are linked to suppliers Each purchase document must include at least one product line The purchasing process can be initialized from many different starting points: purchase request, order, receipt or invoice 7

Overview The different purchasing steps/flows Purchase request (GESPSH) Request for quote Purchase order (GESPOH) Receipt (GESPTH) Invoices (GESPIH) Purchase request (GESPSH) Purchase order (GESPOH) Receipt (GESPTH) Invoices (GESPIH) Purchase order (GESPOH) Receipt (GESPTH) Invoices (GESPIH) and Purchase order (GESPOH) Invoices (GESPIH) Supplier Product Prices Receipt (GESPTH) Invoices (GESPIH) 8 Invoices (GESPIH)

Overview Purchases normally pass through a sequence of request, order, receipt and invoice. Purchases can be for stocked or non-stock managed product. Unexpected receipts can be performed. Invoices can be created for non-stock managed products (ex : electric bill) 9

Overview Exercise nº 1 10

Purchase requests Used to manage and control the purchasing requests of an organization. The requests are used for all types of purchases such as offices supplies (expensed), services from outside companies or normal materials needed to supply production or customers.. Each purchase request may contain several lines. 12

Purchase request Purchase request flow Product Pre commitment Commitment Supplier and Purchase request (GESPSH) Purchase order (GESPOH) Prices Signature process PR approval process 13

Purchase requests Purchasing > Requests > Requests Prerequisits Category Purchased item Life end date Empty or after the PR Active Yes Requester and site Product selection Quantity and unit Misc. Activities Request date Receipt site and date Other Info 14 Price automatic search Supplier Project Order date Prices Dimensions Purchase type Signatures External reports Purchase request notes (BONDA) Reports Purchase request list (PREQUISE) Reports Detail purchase request list (PREQUISL) Queries Purchase request to process (ACH009) Queries Late Purchase request (ACH029) Queries Purchased requests not ordered (ACH030) Queries Purchase request not signed (ACH031)

Purchase requests Closing purchase requests Once closed, it can no longer be used. Two ways to close a purchase request: Purchasing > Requests > Requests Using the button close that will close the entire request Using the right click on the lines in order to close just the selected line Purchasing > Requests > Close Batch function that enables to close all the purchase requests meeting the specified selection criteria 15

Purchase requests The following settings should be carried out for this function : All the general parameter set on groups ACH and BUD The sequence number PSH The activity code PSH that defines the maximum number of lines that a purchase request may contain 16

Prices Price entry is dependant on parameterisation. In Sage ERP X3, it is not necessary to enter prices for a conventional pairing of Product/Supplier Prices can be based upon any attributes which relate to the context of a Purchase Price entry screens are built using any criteria we like. Prices are entered into a Price code using the parameterised screen. Look at an example. Purchasing > Prices > Price Entry This is a conventional entry by Product/Supplier Parameters > Purchasing > Prices > Parameters Code T20 Code T20 This is the parameterisation which defines this Price Code This topic is covered in more detail in the Advanced Distribution training 17

Purchase requests Exercise nº 2.1. Purchase request 18

Requests for quotes Purchasing > RFQ s > RFQ Used to look and evaluate a supplier or a group of suppliers by collecting key sourcing data such as price, quantity, delivery leadtimes... Text may be used to denote special conditions or terms Quotes can contain many lines. A line consists of either an existing product or a new one (undefined). Each request for quote (RFQ) has a unique number. Activities with the different suppliers are recorded concerning the RFQ and the line. This allows result comparison and analysis of the responses. 20

Purchase request for quote Purchase request flow Purchase request (GESPSH) Request for quote (GESPQH) BONAOF2 - RFQ notes Reminder Responses (GESPPD) Price list generation (FUNPPD3) Send Reminders (if required) 21

Requests for quotes Purchasing > RFQ s > RFQ Misc. info Receipt date Order request is existing Product, unit and quantity Quantity and unit Request for quotes notes (BONAOF2) Suppliers to quote selection 22 Supplier type Responses number Reminders number and date Printing status

Requests for quotes Purchasing > RFQ s > Responses Responses Used to record the supplier responses to a RFQ There are several objectives in collecting responses: Compare the responses of the suppliers Use these responses to generate price lists automatically Create a purchase order 23

Requests for quotes Purchasing > RFQ s > Responses Responses Site & supplier Response date Price information RFQ number and line Supplier Product number & description Price reason Purchase unit Quantity ranges Delivery lead time Receipt date Currency Price converter Unit price Validity date Discounts and charges according to the price list structure 24

Requests for quotes Purchasing > RFQ s > Responses Reminders Used to record the number of reminders and the last reminder s date for each supplier on the quote. Price list generation Used to generate lines on existing or new price lists or to generate new price lists from the RFQ responses provided by a supplier. This processing can be initiated once responses have been entered and are deemed satisfactory. 25

Planning/Ordering A useful tool for material managers and/or buyers to view and act on requirements/demands generated by the organization. Enterprise planning: A multi-site, multi-product view of the events referenced over a given period. Highlights critical events of user s activities Takes into account suggestions (MPS, MRP and statistical reordering) Generates orders for restocking Consumes POP on a purchasing contract Purchasing > Ordering > Enterprise planning Planning workbench: View of the projected stock of a product over a given site and time period Takes into account suggestions (MPS, MRP and statistical reordering) View/Edit requirements Generates firm or planned orders. Purchasing > Ordering > Planning workbench 27

Planning/Ordering Exercise nº 2.2. Planning/ordering 28

Planning/Ordering Grouping allows the consolidation of many requirements (demands) for one or more suppliers into one or more replenishment orders. Key features: Select the orders to be converted to either purchase requests or purchase orders Can generate purchase actions for one or many suppliers at once A global processing equivalent to the enterprise and planning workbenches Differentiate the internal requirements (internal vs. external) Purchasing > Ordering > Grouping PR Supplier A Purchase Order Supplier A Receipt Supplier A Invoice control PR PR Grouping of requirements automatic generation Supplier B Purchase Order Supplier B Receipt Supplier B Invoice control 29

Planning/Ordering Exercise nº 2.3. Grouping 30

Product features required for purchase Mandatory fields for purchasing Category Type of flow = Bought Status = Active or not stocked Service life end Empty or within range Stock managed Product-site controls (optional) Quality control & sampling Buyers & planner management Lots management Location management Purchase Unit Input Tax level Input Accounting code Input Product Controls (optional) Quantity based fields Delivery tolerance % Mandatory PO request Crossed coded product - supplier Received product (choice for non-stock only) Direct orders Package Unit Purchasing lead times Receipt cost factor Line document control Supplier based fields Price settings Minimum order quantities Product supplier attributes Parameters : POHMINQTY ITMBPS 32

Supplier features required for purchase Attributes linked to addresses Order address Invoice address Payment address Financial attributes Currency Tax rule Accounting code Payment terms Attributes linked to controls Other Attributes Price structure Type of supplier Document global controls Minimum amount order Multi-line order Credit control & Dispute status 33

Purchase orders This function manages: Different types of orders (classic, inter-sites, inter-companies, Backto-Back PO, sub-contracting) Revisions and the receipt acknowledgment Prepayments

Purchase orders Main features of a purchase order Purchasing > Orders > Orders Site. Product Possible to be picked from a RFQ,POS and POP Quantity & Unit Accounting Information Supplier Receipt site & address & location Price & discount s Misc. Information Defaulted information: Addresses Shipping rules Invoicing rules Credit control rules Order type: intercompany Inter site normal Defaulted by the price list Quality control; Origin country; Intrastat factor; Product tax code; Invoicing elements Approval External reports Fixd footer purch order notes (BONCDE2) External reports Tx-inc fxd f purch order notes (BONTTC2 ) Reports PO listing/receiving worksheet (PORDERE) Reports Detail purchase order list (PORDERL) Queries Orders to receive / supplier (ACH018) Queries Orders to sign (ACH020) Queries Late orders (ACH021) Queries Prepayments not paid (ACH023) Queries Orders not invoiced (ACH039) Queries Ending today s receipts (STO001) Queries Order to receive lines (STO006) 35

Purchase orders Functions available from purchase order maintenance : Signatures: Possibility to approve if the right user Signatures history Signature management Header and footer text Address: Order address Shipment address Settings that should be completed/review prior to purchasing Options: Customs information Prepayments Order status Order enquiry s Journal traceability Default sequence counter POH All the general parameter set on group ACH and BUD. These same modules contain also the parameter values for the purchase requests. Activity code : ANA, DEB, POH, PPR, STI and STS They control the way the POs are managed 36

Back-to-Back orders Back-to-Back orders are typically used for products which are subject to special orders, purchased on demand or where the order quantity makes it logistically advantageous. Two styles of Back-to-Back purchase orders exist: Received and Shipped. Direct These are managed in a conventional way by Receipt, which automatically allocates to the Sales Order, and Shipment. These are delivered Direct to the Customer by the Supplier. The definitions for the situations leading to Back-to-Back orders are managed in Sales This topic is covered in more detail in the Sales module of this course 37

Inter-Site and Inter-Company orders According to the parameterisation, a Purchase Order created for a Supplier, who is another Site in the Folder, can automatically create the mirror Sales Order. The Site can be part of the same, or another, company We use the descriptions Inter-Site (within the same company) Inter-Company (between sites of different companies) Inter-Site orders have no commercial conditions and can not be Invoiced The flows of Shipments/Receipts, Invoices, Returns, Credits and Contract orders, and the Invoicing of Stock transfers, are also managed. This topic is covered in more detail in the Advanced Distribution training 38

POs in Buyer Planning Purchasing > Orders > Buyer Planning Buyer planning a workbench-style function that allows the processing of lines for different suppliers, into multiple orders, using the parameterization of the PO Entry Site, date, etc By right-click Product Dimensions Location reference Quantity & units Supplier Planned receipt date Price inform. Dimensions inform. O R D E R S Requirements to Consider 39

Prerequisites for back to back orders Purchase orders Exercise nº 2.4. Purchase orders and Buyer Planning 40

Receipts Receipt is the physical flow of stock entry. Sales deliveries => inter site transferences Direct receptions PTHDIR Direct receipts Receipts Stock management Purchase Orders Signature process Stock entry if applicable PO must be approved Authorized status in stock management rules 42

Receipts Site. Receipt date and packing slip The product must be flagged as received Product Product status Purchasing > Receipts > Receipts Receipt cost factor Purchase cost & company currency group Accounting information Purchase type Origin country Tax code; Standard or a subcontracting receipt Invoicing elements Miscellaneous stock data (lot) Other info. Supplier Dock location Quantity & Unit Price & discounts Defaulted information: Currency Rate type Receipt type: Intercompany Inter site normal All these fields are defaulted if the line is not direct Report Receipt notes (BONRCP) Reports Purchase receipt list (PRECEIPTE) Reports Detail purchase receipt list (PRECEIPTL) Queries Receipt not posted (ACH032) Queries Receipt not invoiced (ACH033) Queries Invoices to declare (ACH038) Queries Detail receipts not invoiced(ach040) Queries Receipt not closed today (CPT007) 43

Receipts Functions available from the receipts Header and footer text Address: Shipment address ADD INFO. Pay-to-supplier address, shipping mode and packing Options: Selection criteria Customs information Dimension header Receipt situation Receipt inquiry Journal traceability CLOSE. The receipt is closed and it will be no longer available for invoicing Settings that should be carried out for this function Sequence counter PTH Activity Code PTH It controls the maximum number of lines in the receipt screen 44

Receipts Exercise nº 2.5. - Receipt 45

Returns Returns flow PRTNQTY Return in status A For products not managed in stock Direct returns PNHDIR Direct returns Returns Return validation PURRMA Return authorization Purchase receipts Stock issue Authorized status in stock management rules for products managed in stock 47

Returns Site. Default information: Currency Rate type Supplier Receipt type: Intercompany Inter site Normal Product Product status group Accounting information Destination country Tax code Invoicing elements Purchasing > Returns > Returns Credit on hold Return date + buyer Return reason Quant. & Unit Price & discounts Other info External reports Return picking tickets (BONPRERET ) External reports Fixed footer return notes (BONRET2 ) Reports Purchase return list (PRETURNE) Reports Detail purchase return list (PRETURNL) Queries Returns not validated (ACH024) Queries Returns / supplier (ACH025) Queries Returns pending Credit Memo (ACH027) Queries Returns not posted (ACH034) Queries Returns to declare (ACH041) Queries Returns not closed today (CPT008) These fields default when the line is not direct 48

Returns Functions available from returns Header and footer text Address: Shipment address ADD INFO. Pay-to-supplier address, shipping mode and packing Options: Selection criteria Customs information Dimension header Receipt situation Receipt inquiry Journal traceability CLOSE. The receipt is closed and it will be no longer available for invoicing Settings that should be carried out for this function Sequence counter PNH Activity Code PNH It controls the maximum number of lines in the returns screen 49

Returns Exercise nº 2.6. Returns 50

Invoices and Credits Parameters> Purchasing > Invoice Types 52

Invoices and Credits Invoice and Credit flows Invoice/credit notes intercompany Purchase receipts Inv. Type = STD invoices or credit memos Inv. Type = STD invoices PIHQTYAQR Billable quantity Activity code KIT = Active Accruals Purchase returns Inv. Type = credit memos on returns Invoices Posting Invoice Purchase orders Inv. Type = STD invoices Invoice control ACCIFA Stock account interface * Stock adjustments Purchase invoices Inv. Type = STD invoices and complementary invoices PIHCPR Adjustment invoices prices * Issue cost adjust-ments PIHACCDAT Accounting date modification allowance 53

Invoices and Credits s Invoice type: Intercompany Normal Defaulted information: Currency Rate type Pay to Payment terms Discounts Tax rules Invoice elements Accounting information Tax code Purchasing > Invoices> Purchase invoices Site. Accounting date Approval to Pay Quantity & Unit Other info Invoice type Supplier Product Price & discounts These fields default when line is not direct Reports Invoice control notes (PBONFAC ) Reports Purchase invoice list (PINVOICEE) Reports Detail purchase invoice list (PINVOICEL) Queries invoices not posted (ACH035) Queries Purchase invoice not posted (CPT002) Queries Purchase accruals in progress(cpt010) Queries Purchase invoice not posted (TRS004) 54

Invoices and Credits Functions available from a purchase invoice Header and footer text Address: Billing address Payment address Options: Selection criteria Customs information Invoice enquiry Journal traceability Zooms: Accounting document Functions: Accounting cancellation POST Invoice. No longer modifiable and it will be posted in accounting OPEN ITEMS management where the payment terms and status can be inquired Settings that should be carried out for this function Default sequence counter INP and INPC Activity Code PIH It controls the maximum number of lines in the invoice screen 55

Invoices and Credits Exercise nº 2.7./2.8./2.9 Invoices & Credit notes 56

Utilities Purchasing > Utilities Resynchronize BP balances Function that reviews supplier related transactions and recalculates totals that are used in various inquiries. Totals of the following information can be corrected with this utility. Suppliers movements Open Orders Open receipts Unposted invoices Commitment Resynchronization This function synchronizes the purchase commitments or precommitments created by the purchase request or purchase orders. This process can be executed in either simulation mode or update mode. Inter-site contract control This utility verifies the database coherence and the inter-site contracts setup from previous Sage ERP X3 releases. A log file is generated with any errors detected. 58

Inquiries Requests Orders List of orders Order lines Sub-contract orders Order per period Receipts List of receipts Receipt lines Receipts by period Invoices List of invoices Invoice lines Invoices by period Invoice hitlist Returns List of returns Return lines Returns by period Returns chart Purchasing > Inquiries Purchase journal traceability 59