Supplier quotes provide the means for requesting prices from various suppliers. After a quotation document is prepared it is sent or emailed to the supplier. Quotes can be for a one-off quantity, a quantity to be purchased over the next number of months or for ongoing price arrangements. Following the receipt of prices from the supplier the document is amended manually or via a spreadsheet. Prices can be discarded, used to update supplier price records or to build a supplier contract that will be drawn down against over time. Reminders can be created via Abel CRM that will notify the user when to review the quote status in the future.
A supplier contract is an agreement between you and the supplier for the supply of goods and services over time. Contracts of course may specify a guaranteed quantity that must be purchased to obtain the quoted price or alternatively a price that will be held over time with no minimum quantity. The exact contract confirmation may be emailed or printed. When a supplier contract is in place, purchase orders can be raised against the contract which will reflect the drawn-down quantity. Review reminders can be created via Abel CRM.
When you have contracted with a supplier that they will provide you with a minimum quantity of goods each week or month, a supplier forecast document may be created or copied from a supplier contract to reflect the quantity to be receipted each period. Its purpose is to create an ongoing on-order quantity against the inventory item so that the auto-reorder process will recommend only reorder quantities that are in excess of supply. Supplier forecasts can also be used to accommodate regularly scheduled manufacture of sub-assemblies or finished goods.
Buffer orders are normally only used within companies that have contracted manufacturing or production responsibilities. These contracts may be short or long term, but require you to hold a minimum quantity of raw materials during the term of the contract. Buffer orders are usually built by exploding the Bill of Materials for the finished goods specified in the contract removing any machine or labor components. When the buffer order is posted it serves to increase the minimum and maximum stocking quantities used in the auto-reorder process. When the buffer order is no longer required it may be closed or removed which immediately reduces the reorder quantities appropriately.
Supplier orders, commonly known as purchase orders, are either manually created, or automatically created from the supplier reorder process, or from customer orders that contain back-to-back requirements, or from manufacture or production orders that require direct raw material purchases. Like most Abel documents, purchase orders are built in local or foreign currency according to the trading arrangements with the supplier. Purchase orders can be emailed or printed.
Purchase orders raised against associated internal or externally specified companies, either in the same Abel database or at a remotely located Abel database, can automatically build the resulting customer order within the supplying company’s trading databases.
The purpose of a supplier delivery is to provide an inwards goods document for the warehouse receipting process. The line item details may be for inventory stocks, items purchased for manufacturing or production, or items that are to be onwards dispatched to customers. The supplier delivery is also used to record serials and batch numbers and provides the specific warehouse and bin location for goods going into stock. Supplier deliveries can be built manually, built from single, multiple or part purchase orders, or can be built as a result of an external Abel company processing a customer dispatch in the same database. (Customer dispatches in external Abel databases are handled via the inter-company invoice and transfer process). Freight and other goods related expenses may be added to the supplier delivery, apportioned across the line details so that goods being receipted into inventory stock or consumed by manufacturing or production or dispatched directly to customers are costed correctly.
The supplier return is similar to a reversed supplier delivery with the addition of the supplier’s return authority number and the reason for the return. Other printed text can be attached to the document or to any of the line details. Goods may be returned prior to being placed into stock or following the receipt of inventory items into stock. The supplier return can be built manually, from a customer return, a supplier delivery or a purchase order. When built from a supplier delivery, serials, batch numbers, warehouse locations and bin locations are retained to ensure the same stock is removed from the same location for the return.
Shipping deliveries are designed to provide the documents for overseas inventory receipts where bills of landing, freight, duty, demurrage and other fees are invoiced via multiple suppliers. It is normal for the company accountant to receive the shipping documentation prior to the goods being receipted, usually from the freight forwarder. It becomes a cost accounting function to prepare the shipping delivery prior to passing it to the warehouse inwards goods for receipt processing. Freight, duty, demurrage and fees can be apportioned across the line item details according to loadings on each inventory item or by the cost value of the line item. These costs can then be altered manually if required. The user may also enter serials and batch numbers and provide the specific warehouse and bin location for goods being receipted into stock for dispatching items to customers or for items moving directly to the manufacturing or production process.
A supplier invoice may be built manually, from supplier deliveries, supplier returns or purchase orders. Frequently a supplier’s invoice can contain a mixture of the above documents. In this case the detail lines can be pulled on to the invoice as appropriate. Sometimes part of a supplier’s invoice is to be charged to different cost centers, either within the same company’s accounts, or across company bounds within the database or within an associated external database. When inter-company processing is required the details of the individual lines will be automatically added to appropriate inter-company invoices.
When the supplier’s invoice details are built manually or from purchase orders, and it contains inventory items that are to be receipted into stock, the supplier invoice performs the processing of the supplier delivery and the invoice. When the supplier invoice details are built from the supplier delivery or return, the invoice processing will attempt to adjust inventory stocking values or adjust the manufacturing or production work in progress values. Variances that cannot be managed because stock has already been sold or consumed are posted to an account specified by the user during the set up of the system.