Our PROMAN-erp system has a purchase order system, as any ERP system for manufacturers should. The purpose of this document is to show you how easily you can produce a purchase order.
A purchase order is your commitment to a supplier to pay an agreed upon price for goods or services and at what lead time. Line items on your purchase order fall in three general categories
- Parts – components and/or raw material that you intend to put into stock. These items are defined in your system. These dollars end up in inventory (different classes of inventory can have different ledger accounts).
- Sub-contracting – these are line items purchased directly to a work order. They may reference a specific sequence (or operation) on your work order. We can alter this a bit for job shop environments and put the cost in a material bucket (for components that do not have a part number in your system, but you want the cost in the work order). Otherwise, the cost are treated as sub-contracting (we also call this outplant cost). These dollars end up in WIP (Work-In-Process)
- Expense Items – these line items purchase a service or goods that are expensed directly to the general ledger. These might be services, maintenance, support services, supplies, etc.
The request to purchase something may come from many different sources, so PROMAN-erp gives you a variety of ways to convert these requests into purchase orders.