Introduction

In any business that deals with physical goods, the buying process is a critical component of operations. Efficient procurement ensures that you have the right products at the right time, in the right quantities, and at the right price. iVendNext, a comprehensive business management solution, streamlines the buying process, making it easier for businesses to manage their procurement workflows effectively.

This article will guide you through the core buying process in iVendNext, breaking down each stage to help you understand how to implement and use the system for seamless procurement.

1. Material Request: Initiating the Procurement Process

The buying process in iVendNext begins with a Material Request. This document is created when there is a need for specific goods or services within the organization. It serves as a formal request to the procurement team to source the required items.

Key Features of Material Requests:

• Purpose: Material Requests can be created for various purposes, such as purchasing, material transfer, material issue, or manufacturing.

• Item Details: Users can specify the items needed, along with quantities, required dates, and the warehouse where the items should be delivered.

• Automation: Material Requests can be automatically generated based on stock levels, sales orders, or production plans.

How to Create a Material Request:

1. Navigate to Home > Stock > Material Request.

2. Click on Add Material Request.

3. Fill in the required details, including item codes, quantities, and required dates.

4. Save and submit the request.

2. Supplier Quotation: Comparing Offers from Suppliers

Once a Material Request is approved, the next step is to obtain Supplier Quotations. This involves requesting pricing and terms from potential suppliers.

Key Features of Supplier Quotations:

• Quotation Details: Suppliers provide detailed quotes, including item prices, terms of sale, payment terms, and warranties.

• Comparison: iVendNext allows you to compare multiple supplier quotations to select the best offer.

• Conversion: Approved quotations can be directly converted into Purchase Orders.

How to Create a Supplier Quotation:

1. Go to Home > Buying > Supplier Quotation.

2. Click on Add Supplier Quotation.

3. Select the supplier and enter the item details, including quantities and rates.

4. Save and submit the quotation.

3. Purchase Order: Formalizing the Agreement

After selecting the best supplier quotation, the next step is to create a Purchase Order (PO). A Purchase Order is a legally binding document that formalizes the agreement between your business and the supplier.

Key Features of Purchase Orders:

• Item Details: The PO includes item codes, quantities, rates, and delivery dates.

• Taxes and Charges: Additional costs like shipping, insurance, and taxes can be added to the PO.

• Tracking: The system tracks the status of the PO, including items received and pending.

How to Create a Purchase Order:

1. Navigate to Home > Buying > Purchase Order.

2. Click on Add Purchase Order.

3. Select the supplier and enter the item details.

4. Apply taxes and charges as needed.

5. Save and submit the Purchase Order.

4. Purchase Receipt: Confirming Goods Received

When the supplier delivers the goods, a Purchase Receipt is created to confirm that the items received match the Purchase Order.

Key Features of Purchase Receipts:

• Item Acceptance: Users can specify the quantity of items accepted and rejected.

• Stock Update: The system automatically updates the stock levels based on the received items.

• Rejected Items: Defective or incorrect items can be sent to a rejected warehouse.

How to Create a Purchase Receipt:

1. Go to Home > Stock > Purchase Receipt.

2. Click on Add Purchase Receipt.

3. Select the Purchase Order and enter the received quantities.

4. Save and submit the receipt.

5. Invoice Booking: Recording Supplier Invoices

After receiving the goods, the supplier will send an invoice. This invoice needs to be recorded in iVendNext for payment processing.

Key Features of Invoice Booking:

• Linking to Transactions: Invoices can be linked to Purchase Orders or Purchase Receipts.

• Taxes and Discounts: The system automatically calculates taxes and applies discounts.

• Payment Tracking: The invoice status is tracked, ensuring timely payments.

How to Book an Invoice:

1. Navigate to Home > Buying > Purchase Invoice.

2. Click on Add Purchase Invoice.

3. Link the invoice to the corresponding Purchase Order or Purchase Receipt.

4. Enter the invoice details, including taxes and discounts.

5. Save and submit the invoice.

6. Payment Entry: Processing Payments to Suppliers

The final step in the buying process is to record the payment made to the supplier. This is done through a Payment Entry.

Key Features of Payment Entries:

• Payment Modes: Payments can be made via bank transfer, cash, or other modes.

• Advance Payments: Partial or advance payments can be recorded.

• Reconciliation: Payments can be reconciled with outstanding invoices.

How to Create a Payment Entry:

1. Go to Home > Accounting > Payment Entry.

2. Click on Add Payment Entry.

3. Select the supplier and enter the payment details.

4. Save and submit the payment entry.

7. Stock Update: Automating Inventory Management

Once the goods are received and the payment is processed, iVendNext automatically updates the stock levels in the system. This ensures that your inventory is always up-to-date, helping you avoid stockouts or overstocking.

Key Features of Stock Updates:

• Real-Time Updates: Stock levels are updated in real-time as goods are received.

• Warehouse Management: Items are allocated to the correct warehouse based on the Purchase Receipt.

• Stock Reconciliation: Periodic stock reconciliation ensures that physical stock matches the system records.

Conclusion

The core buying process in iVendNext is designed to simplify and streamline procurement workflows. From creating Material Requests to updating stock levels, each step is integrated to ensure efficiency and accuracy. By understanding and implementing this process, businesses can improve their procurement operations, reduce costs, and maintain optimal inventory levels.

For first-time users, mastering the buying process in iVendNext is essential for effective day-to-day operations. With the right knowledge and tools, you can ensure that your procurement activities run smoothly, contributing to the overall success of your business.

Important Sections to Note:

• Material Requests are the starting point of the buying process.

• Supplier Quotations help in comparing offers and selecting the best supplier.

• Purchase Orders formalize the agreement with suppliers.

• Purchase Receipts confirm the receipt of goods and update stock levels.

• Invoice Booking ensures accurate financial records.

• Payment Entries track payments to suppliers.

• Stock Updates keep your inventory levels accurate.

By following these steps, you can effectively manage your buying process in iVendNext, ensuring a seamless and efficient procurement workflow.