Purchase Order & Receiving

The procurement function is critical to ensure the necessary materials, supplies, and services are available when required. Maintaining strong vendor relationships, negotiating for favorable pricing, and analyzing vendor performance can make the procurement function a profit center in your business. By implementing Progression's Purchase Order & Receiving module (P/O), you get an efficient, time-saving tool for automating your procurement functions. P/O enables you to analyze the quality, accuracy, and timely delivery of all purchased materials. P/O's capabilities make it a must within both the manufacturing and distribution environments.

It predicts cash requirements, monitors vendor performance, and allows you to keep inventory levels low while alerting you to material shortages. And when you combine P/O with Progression's Accounts Payable (A/P) and Inventory Management (I/M) packages, you have a comprehensive system that optimizes timely purchases with the dynamics of inventory control. Progression's P/O allows you to record, maintain, and generate three types of purchase orders: normal, drop shipment, and blanket.

Once you enter data to generate purchase orders, P/O secures the data and keeps it on file until you release it. Modify or cancel purchase orders at any time, and once you're ready to release the PO, generate the hard copy of the purchase order through the Print Purchase Orders option. New to Progression's V7.6 Purchase Order and Receiving package is the Landed Costs System. This function supports companies dealing with international vendors and others who require comprehensive inventory costing along with all landed costs. The Landed Cost capability* enables you to calculate all costs normally associated with purchasing and receiving and any additional costs of the product, such as freight, import duties, customs, and brokerage fees to be included in an item's valuation (cost).

P/O immediately updates the quantity on hand and quantity on order amounts in the Inventory Management module for each receipt entered. The receipt date and quantity are entered, along with any rejected quantity and a reason for rejection. After default unit cost is displayed for verification, the General Ledger (G/L) distributions are recorded. Job numbers may also be entered, if applicable, along with Serial/lot,** and bin* numbers for the purchased item.

Inspecting for Quality

When material arrives at your dock, not all of it may be in acceptable condition. This may not be immediately apparent and the possibility exists that you won't know this until you perform an inspection of the newly received goods. Progression provides a process to handle these situations. The Receiving Inspection application allows you to enter receipts as you normally would, thus recording the receipt date necessary for updating receipt and vendor delivery performance data. The goods are then quarantined until they pass through a multi-step inspection and disposition process.

Analyzing Vendor Performance

Progression P/O's Vendor Performance Analysis Report provides a very clear idea of the vendor's ability to deliver quality products on time and within budget. Vendor performance statistics include purchase order line items that were late this year and last year, the percentage of cost variance between expected and billed prices and percentage of delivered items rejected. Finally, the report presents the average lead time and the average days late for each vendor.

Item/Vendor File

Today, purchasing can be one of your company's most important operations. You need control at a detailed level. Progression's Item Vendor File gives you ultimate control by allowing you to maintain many key parameters by item. Information in each Item Vendor record includes:

• Manufacturing - which manufacturer the part should or should not be purchased from and the specific manufacturer part number
• Contract - contract pricing with effectivity dating and quantity breaks
• Performance Tracking - cost variance percentage, the number of line items that had a cost variance, reject percentage, the average number of line items on invoices that arrived late for the vendor item number, the average number of days required to receive a shipment from the vendor, and the average number of days that a shipment arrived late
• Receiving Tolerances - to ensure that each vendor complies with delivery requirements you have specified

Projecting Cash Requirements

The Cash Requirements Projection Report enables you to predict what future cash requirements will be, even before your vendors invoice your company. As soon as you extend commitments, the report can be printed based on the expected costs and required delivery dates of items ordered. Unpaid invoices on file in Accounts Payable are automatically added to allow complete prediction of actual cash requirements for your defined periods.