Purchases Module

Overview

Purchase orders are the contract initiated by an organisation with it's suppliers (vendors). Since, purchase orders commit the business to expenditure it is important to ensure that the committment is not made without the proper authority. TopsoftERP forces certain procedures to be followed to ensure proper authorisation. The sequence is:

  • An operator with access to the purchase order creation creates the purchase order.
  • It is possible if this user has access to authorise the purchase order to have it authorised automatically. This requires a configuration setting to be enabled to allow this. Normally, another user with appropriate authorisation levels is required to authorise the order. Authorisation levels can be set by user and currency and by the amount of that currency. For example a user maybe able to approve purchase orders up to $1000 in USD. Orders cannot be printed and sent to a supplier until they are authorised.
  • Users who are valid authorisers have a special screen to see which orders require authorisation - they can authorise the orders from there.
  • A trail of who initiated the order, who changed an order and who authorised an order with dates is maintained in the status comments
  • Once an order is authorised it must be printed - it is not possible to receive any stock against an order that has not been printed
  • Once printed it is now possible to receive stock against the order

It is necessary to create purchase orders to receive stock. Stock cannot be received in without an order - except by entering a stock adjustment. The receiving of stock creates a GRN - Goods Received Note that can be printed and signed off by the person entering the receipt of stock. The system retains records of the GRNs and these must be matched off against purchase invoices to ensure that only those goods received are paid for.

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