The Purchase & Procurement module manages the complete supplier lifecycle from material request to supplier payment.
It helps organizations:
Control purchasing process
Compare supplier quotations
Track goods receipt
Record supplier invoices
Manage payables
Monitor supplier performance
This module integrates with:
Inventory (stock increase)
Accounting (payables & expense booking)
Manufacturing (raw material supply)
Quality (inspection at receipt)
Material Request
→ Request for Quotation (RFQ)
→ Supplier Quotation
→ Purchase Order
→ Purchase Receipt (GRN)
→ Purchase Invoice
→ Payment Entry
Before transactions, create Supplier Master.
Navigate to:
Purchase → Supplier → New
Enter:
Supplier Name
Supplier Group
Contact Details
Default Currency
Payment Terms
Tax Details
Save.
Default Price List
Credit Days
Bank Details
Tax Category
Supplier-specific items
You may classify suppliers as:
Raw Material Supplier
Service Provider
Subcontractor
Capital Goods Supplier
This helps reporting and analysis.
Material Request is an internal request raised by:
Store department
Production team
Maintenance team
It initiates procurement.
Navigate to:
Purchase → Material Request → New
Select:
Request Type: Purchase
Item
Quantity
Required Date
Warehouse
Submit.
Organizations may configure:
Department head approval
Budget approval
Management approval
Before purchase order creation.
Pending Material Requests
Item-wise Requirement Report
RFQ is used to invite price quotations from multiple suppliers.
Navigate to:
Purchase → Request for Quotation → New
Enter:
Suppliers
Items
Quantity
Required Date
Submit.
System may email suppliers automatically (if configured).
When suppliers respond:
Create Supplier Quotation for each vendor.
Enter:
Quoted Rate
Delivery Time
Payment Terms
System allows comparison of:
Rates
Taxes
Delivery terms
Select best supplier based on evaluation.
Purchase Order confirms commitment to supplier.
It legally authorizes purchase.
From Supplier Quotation
OR
Purchase → Purchase Order → New
Enter:
Supplier
Items
Quantity
Rate
Taxes
Delivery Schedule
Warehouse
Submit.
Budget check (if configured)
Approval workflow
Tax validation
Duplicate PO warning
Draft
Pending Approval
Submitted
To Receive
To Bill
Completed
Cancelled
Purchase Receipt records physical receipt of goods.
From Purchase Order → Create → Receipt
Enter:
Received quantity
Warehouse
Batch/Serial number (if applicable)
Submit to:
Increase stock
Update inventory value
If inspection required:
Create Quality Inspection
Accept or Reject goods
Rejected goods can be returned to supplier.
System allows:
Partial receipt
Multiple receipts against one PO
Pending Receipt Report
Received Goods Report
Purchase Invoice records supplier bill and creates payable.
From Purchase Receipt → Create → Invoice
OR
Purchase → Purchase Invoice → New
Enter:
Supplier
Invoice Number
Invoice Date
Taxes
Payment Terms
Submit to:
Record expense
Increase payable
Update accounting
On submission:
Debit: Expense / Inventory
Credit: Supplier Payable
System supports:
2-way matching (PO vs Invoice)
3-way matching (PO vs Receipt vs Invoice)
Ensures control against overbilling.
From Purchase Invoice → Create → Payment
Enter:
Payment Mode
Bank Account
Reference number
Submit to reduce payable.
System allows:
Advance payment to supplier
Adjustment in future invoice
If goods are defective:
Create Purchase Return.
System:
Reduces stock
Reduces payable
Creates debit note
System can restrict purchase if:
Budget exceeded
Approval not granted
Use:
Price Lists
Supplier-specific pricing
Rate approval workflows
System validates:
Supplier invoice number
Duplicate entry
Finance should monitor goods received but not invoiced.
Purchase Order Summary
Pending Receipt Report
Pending Invoice Report
Accounts Payable
Supplier Ledger
Aging Report
Supplier-wise Purchase
Item-wise Purchase
Monthly Purchase Trend
Price Variance Report
Key metrics:
On-time delivery
Price consistency
Rejection rate
Response time
Helps strategic procurement decisions.
Always raise Material Request before PO
Compare multiple quotations
Use approval workflow
Perform 3-way matching
Review aging regularly
Track supplier performance
Creating PO without approval
Skipping goods receipt step
Recording invoice without verifying receipt
Ignoring quality inspection
Not closing completed POs