One of the accounting systems that many companies
fail to implement is Purchasing. This module, which works in conjunction with
Libra’s Inventory and Accounts Payable modules, has a number of distinct
features that can be of benefit to any company that wants better control over
various Inventory and Accounts Payable issues.
The program starts with the entry of a Purchase
Order. This entry is then used to either print or e-mail a purchase order to
their supplier. The quantities ordered and the prices quoted are recorded for
later comparison to quantities received and the final pricing on invoices.
The program allows you to print reports for
outstanding Purchase Orders to aid in expediting product orders that may impact
manufacturing schedules or customer order deliveries.
The next stage in Purchasing involves receiving the
goods and is usually entered from the suppliers packing slip. The goods
received are match up with the original purchase order and the quantities
received are compared with those ordered. Minor short shipments can be tagged
as complete or remain on back order as required.
Once the receiving data has been entered and proofed
it is transferred to the inventory module, which updates the status of the
purchase orders affected and creates receipt transactions in the inventory.
Reports can be run for goods received but not yet invoiced to form the basis of
accruals accounting. This is especially useful at year-end.
The next phase in purchasing is the entry of
invoices, which are match to the original purchase orders to see if the
quantities and prices on the invoice match that on the PO. The quantity
invoiced can be compared to the quantity received and quantity already
invoiced. This process often catches situations where you are invoices for more
items than you ordered. It also indicates situations where you have been
invoiced a second time for the same goods. Once you have checked your invoice
entries they are transferred to the Accounts Payable Module. This again updates
the status of the purchase order.
PURCHASING BENEFITS
The main benefit of the Purchasing module is the
additional control that it provides to manage Inventory and Accounts Payable.
The file inquiry and reporting allows you to easily determine the status of any
purchase order and the related inventory. Questions like “Have I ordered
product X?” or “Has it arrived yet?” or “Was the pricing the same as quoted?”
are easily answered.
The normal operation of the system also provides a
historical database to allow you to determine where you have ordered products
from, when and at what prices over the years.
This can be a useful reference if the normal supplier
is out of stock at the moment.
Some of the other useful features that the Purchasing
System provides are:
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Currency conversion
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Data Export To Excel
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Multiple Ship To/From Locations
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Vendor Specific Notes Feature
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Product Specific Notes Feature
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Supplier Unit of Measure conversion
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Automated Order Creation
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Based On Inventory Levels
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Based On Customer Orders
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Job Cost Reporting
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Customs Import Analysis
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Supplier Analysis Reporting
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Job Based User Security Controls
For more detailed information on Purchasing please
contact Visual Accounting directly.