Purchase Requisition

A Purchase Requisition is generated before a purchase order is raised to notify the Purchasing team of the items that need to be ordered and their quantities. It provides detailed information on the desired goods and services for the organization.

For Example, John works at a warehouse and notices that some items have low inventory levels and need reordering from the vendor. He then requests the purchasing team to create purchase orders for these items by generating a Purchase Requisition to replenish the inventory.

How to Create a Purchase Requisition:

From the App launcher go to ‘Create Purchase Requisition’ Tab.

The Purchase Requisition page opens. Enter all the details on the page, such as the purchasing organization, expected date, delivery details, status, channel, and distribution channel.

Click on the ‘Add’ button to add products. Search for the products, enter the required quantity, and specify the unit price. Similarly, add more products by clicking the ‘Add’ button again.

• From the App launcher go to ‘Create Purchase Requisition’ Tab

• Click ‘Save’ to create the Purchase requisition.

How to Create a Purchase order for purchase requisitions:

• Search for the ‘Requisition to Purchase order’ Tab from the ‘App launcher’.
• Select the items that need to be added to the purchase order and click the ‘Purchase order’ Button.

The next screen shows Products selected, Quantities and prices. Enter the vendor details and purchasing details and click ‘save’. The purchase order will be created.

Now, follow the same procedure to inbound the logistics as mentioned for creating a purchase order.

How to Inbound Purchase Order Logistic:

• From the App launcher, go to the ‘Inbound Logistics’ tab.
• Select the purchase order logistic and click on the ‘Receive’ tab

• You can see the product and name quantity that has to be received.
• Under the ‘Receive’ Box enter the quantity that needs to be received from the vendor.

Click the ‘save’ button.

Accounts Payable:

• Go to the ‘Accounts Payable’ tab.
• Under the ‘Vendors’ section, you will see a list of all vendors. Select the vendor and then choose the corresponding purchase order related to that vendor to create a bill.

• You can also directly select the purchase order from the Purchase Order tab to create a bill against it.
• Select the purchase order, then choose the ‘New Bill’ option from the dropdown to create bill against it.

• The ‘Create Bill’ page will appear. Enter the vendor bill date and bill number. You can also add more products to the same bill by clicking the ‘Add’ button.
• For each product line item, add taxes and a description if required, and select the account to capture the amount paid. Finally, click the ‘Save’ button.

• When the bill is created, it will appear in the Bill tab. To match the bill, select it and click the ‘Match Bill’ button at the top right.
• On the ‘Match Bill’ page, select the line item to match and click the ‘Save’ button.
• To post the bill, select the ‘Post’ option from the dropdown list next to the bill.

• Once it is posted, the ‘New Voucher’ option will appear. Click ‘New Voucher’ to create a voucher.

• Click the ‘Save’ button to save the voucher.
• Now, approve the voucher by selecting ‘Approve’ from the dropdown menu.
• Click on the ‘Make Payment’ option from the dropdown to make the payment for that voucher.

In the ‘Pay Voucher’ pop-up, select the payment account, date, reference number, and payment method, then click ‘Save.’ Your payment is now complete.

How to create Advanced Bill to Vendor:

An advance Bill to a vendor can be created if you need to make an advance payment to the vendor.

• Go to the Accounts Payable tab.
• Click on the Bills section.
• In the top-right corner, click the Create Bill button.
• A pop-up window will appear. In this pop-up, select the Advance to Vendor option.

• After selecting the ‘Advance to Vendor’ option, you will get the Create Bill page.
• Enter all the details mentioned on the page and click on the ‘Add’ button to add products to your bill.

• Select the Product, Quantity, Amount, and choose the ‘Inventory’ account. Add any necessary Description.
• You can add more products by clicking the ‘Add’ button again.
• Click the ‘Save’ button.
• A bill will be created, and you can view it in the Bills tab.
• From the drop-down menu of that bill, select ‘New Voucher’.

To create a voucher against that bill, click the ‘New Voucher’ button.

• Click the ‘Save’ button. A voucher will be created.
• Now, from the Voucher tab, select the ‘Approve’ button to approve the bill. It will change from red to green when approved.

• Now, from the dropdown, select the ‘Make Payment’ button to pay the voucher created.
• Enter the details like the payment account, method, and reference number (if required), then click the ‘Save’ button.

• A payment for that voucher will be processed.

How to create Advance to Vendor Bill:

• An advance Bill to a vendor bill can be created if you need to make an advance payment to the vendor.
• Go to the ‘Accounts payable’ tab
• Then click on ‘bills’ Section
• On the top right corner, you will see a button called ‘Create Bill’
• When clicking Create Bill. A pop-up comes up. Select the Advance to Vendor option from the pop-up.

• After selecting the ‘Advance to Vendor option’. You will get a create Bill page.
• Enter All the details mentioned on the page and click on the ‘Add’ Button to add products to your bill.

• Select Product, Quantity, Amount and Select ‘Inventory’ Account and Add any Description required.
• You can add more products by clicking on the ‘Add’ button again.
• Click the ‘Save’ Button.
• A Bill will be created and you can view it on the bills tab.
• From the drop-down of that bill select ‘New voucher’

• To Create a voucher against that bill click on the ‘New voucher’ Button

• Click the ‘Save’ button. A voucher will be created.
• Now from the voucher tab select the ‘Approve’ button to Approve the Bill. It will change from Red to green when approved.

• Now from the dropdown select the ‘Make a payment’ Button to pay the voucher created.
• Enter the details like payment account, method, and Reference number if required and click the ‘Save’ Button
• A payment to that voucher will be done.