Purchasing
Purchase Requisitions & Purchase Orders
Purchase Requisitions are converted to Purchase Orders through an approval process (N.B., there are two Record Types on the Purchase Order object: Requisition and Order). Purchase Order Lines can be created for both Stock (Product Items) and Service (N.B., there are two Record Types on the Purchase Order Line object: Stock and Service).
Purchase Product Items for inventory replenishment
The Stock type Purchase Order Line requires a reference to a Product Item. You can specify an Order Quantity, Unit Cost, Purchase Unit of Measure, Purchase Pack Quantity, and Vendor Part Number on a Purchase Order Stock Line. PO Stock lines are ordered and received in the purchase Unit of Measure. All transaction quantities are automatically converted to the Product Item stocking Unit of Measure as are the Unit Costs. If a Product Item is designated as Serialized, Asset records are created during the PO Stock Line receiving process, and the user is required to enter Serial numbers.
Purchase services and non-stock items
The Service type Purchase Order Line only requires a text string definition. Since a Product Item is not referenced, there is no integration to inventory. The Service lines are considered consumed upon receipt.
Figure 1 – Purchase Order with one Service PO Line (highlighted) and three Stock PO Lines
Track vendor specific case pack configurations and pricing
A Vendor Case Pack is created from the Product Item record and defines a Vendor, Vendor Part Number, Purchase Unit of Measure, Purchase Pack Quantity, and Purchase Price. A Product Item can have many Vendor Case Packs, one of which is specified as the Primary. If Purchase Requisitions are created automatically as part of the inventory replenishment process, the Preferred Vendor Case Pack is used to create the Stock PO Lines.
Figure 2 – Available Vendor Case Packs for a Product Item
Automatically create Purchase Requisitions based on inventory replenishment needs.
A Purchase Requisition can be generated when the inventory levels for a Product Item falls below its Minimum Stocking Quantity. These Purchase Requisitions can be manually created from the Product Item list view or automatically created via a scheduled batch APEX job. The vendor and order quantity are automatically derived in the following manner.
Figure 3 – A list view of Product Items below their Minimum Stocking Quantity
The Quantity Available for a Product Item is defined as the Quantity On Hand minus the Quantity Reserved. When the Quantity Available plus the Quantity On Order falls below the Minimum Stocking Quantity, a Quantity to Reorder is calculated. The minimum Quantity to Reorder will be the Economic Order Quantity. These quantities are specified in the Product Item Quantity Unit of Measure. The Quantity to Reorder is then compared to the Case Pack Quantity on the Preferred Vendor Case Pack to calculate a Case Pack Quantity to Reorder.
A Purchase Requisition will be created for each Location and Vendor permutation. A PO Stock Line is created for the Case Pack Quantity to Reorder using the Purchase Price, Purchase Unit of Measure, Purchase Pack Quantity, and Vendor Part Number on the Preferred Vendor Case Pack.