Overview

iVendNext streamlines inventory procurement with a structured workflow — from Material Request to Purchase Receipt. This article explains the end-to-end procurement process in iVendNext.

1. Overview of the Procurement Workflow

The procurement workflow in iVendNext follows these key steps:

1. Material Request (MR) → 2. Purchase Order (PO) → 3. Purchase Receipt → 4. Purchase Invoice

Each step ensures proper documentation, stock updates, and financial entries. Let’s break them down.

2. Step 1: Creating a Material Request

A Material Request (MR) is the first step in procurement, identifying what items are needed and why.

Types of Material Requests

• Purchase: For buying new stock.

• Material Transfer: For moving stock between warehouses.

• Material Issue: For internal use (e.g., manufacturing).

• Manufacture: For production-related requirements.

• Customer Provided: When materials are supplied by the customer.

How to Create a Material Request

1. Go to Home > Stock > Material Request.

2. Click "Add Material Request."

3. Fill in details:

• Purpose (Purchase, Transfer, etc.)

• Items (with quantities and warehouse)

• Required By Date

4. Save & Submit.

Best Practice: Automate MRs by setting reorder levels in the Item Master to avoid stockouts.

3. Step 2: Generating a Purchase Order (PO) from MR

Once an MR is approved, the next step is converting it into a Purchase Order (PO).

How to Create a Purchase Order from MR

1. Open the submitted Material Request.

2. Click "Create" → "Purchase Order."

3. Verify supplier, rates, and quantities.

4. Save & Submit.

Key Features of a Purchase Order:

• Links to the supplier for procurement.

• Tracks ordered vs. received quantities.

• Can include terms like payment conditions and delivery dates.

4. Step 3: Receiving Goods via Purchase Receipt

When the supplier delivers goods, a Purchase Receipt is created to update stock levels.

How to Create a Purchase Receipt

1. Go to Home > Stock > Purchase Receipt.

2. Click "Add Purchase Receipt."

3. Link it to the Purchase Order (or create manually if PO is not required).

4. Enter:

• Accepted Quantity (good stock)

• Rejected Quantity (defective items, if any)

• Warehouse (where stock is stored)

5. Save & Submit.

Accounting Impact of Purchase Receipt

• Stock-in-hand account is debited (stock increases).

• "Stock Received but Not Billed" account is credited (temporary liability until invoiced).

Note: If items are defective, they can be moved to a Rejected Warehouse for further action.

5. Step 4: Handling "Stock Received but Not Billed"

When goods arrive before the supplier’s invoice, iVendNext uses "Stock Received but Not Billed" to track pending bills.

How It Works

1. At Purchase Receipt:

• Warehouse Account (Debit) → Stock increases.

• Stock Received but Not Billed (Credit) → Temporary liability.

2. At Purchase Invoice:

• Stock Received but Not Billed (Debit) → Clears the liability.

• Supplier Account (Credit) → Records payable amount.

This ensures accurate financial reporting without double-counting expenses.

6. Step 5: Completing the Process with Purchase Invoice

The final step is billing the received goods via a Purchase Invoice.

How to Create a Purchase Invoice from Purchase Receipt

1. Open the submitted Purchase Receipt.

2. Click "Create" → "Purchase Invoice."

3. Verify billed quantities and taxes.

4. Save & Submit.

Why This Matters:

• Updates accounts payable.

• Matches inventory records with financial statements.