Purchasing process

The steps in the purchasing process include creating purchase requisitions, creating purchase orders, receiving services and items, and recording vendor invoices.

The following example illustrates the purchasing process from requisitioning through invoicing.

Step 1: Create the purchase requisition

You can create and approve a purchase requisition 98074 for the following services and related materials:

Two contract programmers (1,000 hours each)
Two personal computers
A software package
Rental furniture (desks, chairs)

Step 2: Create the purchase orders

You can create the following purchase orders, one for each vendor by using the Copy PR Line Items to PO action in the Purchase Orders application:

Purchase order 98105 that contains two contract programmers (1,000 hours each)
Purchase order 98106 that contains two personal computers
Purchase order 98107 that contains a software package
Purchase order 98108 that contains rental furniture (desks, chairs)

Step 3: Receive the services and items

When you record receipts from each vendor, you must use the appropriate receipts tab in the Receiving application and the Select Ordered Services and Select Ordered Items actions.

Step 4: Record vendor invoices

After you purchase materials and services, your company receives bills, or invoices, from the vendors. You use the Invoices application to record vendor invoices as you receive them. When you create invoice records you can list purchase order details on the invoice when it is appropriate.

You use the Copy PO Lines action to copy lines from either the receipts or the purchase order to the Invoice Lines tab. You can also view lines that are not on the invoice for items or services received, and add the lines to the invoice.