Documentary cycle for purchases and stores and its application to the Logistic Module

Procurement cycles are all stages of the procurement process, starting from the need for competent departments and even the supply of goods received from suppliers.

What are the stages of the procurement cycle? What are the scenarios for the procurement cycle, and will the stages of the procurement cycle differ if you are working on an accounts and warehouse program?

In principle, we agree that the procurement cycle is a set of unified steps and stages that differ if you are working on a Manuel system or on a warehouse management program, but the difference is due to multiple considerations, including the size of the company, as well as the internal control system applied in the company, and if the warehouse management program used in the company will have an indirect effect on the company's procurement cycle through the flexibility to fully implement the procurement cycle and the ability to start from any of these stages.

And ascertain the capabilities of the system and its support for the procurement cycle

Because the procurement cycle may differ from one company to another, we wanted to clarify the details of the entire scheme, and each possible stage could be completed and applied to the warehouse management program

What are the stages and types of the documentary cycle of procurement (with application in the accounts and warehouses program of Accflex?)

1- Purchase requisition in the procurement department of the warehouse accounts program

This is the first stage of the procurement cycle and it is a statement provided by the concerned department (such as the warehouse department, the IT department, or the production department). The Procurement Department asks it to provide its requirements in specific quantities. After this purchase order is approved, whether it is all or some of it, the Procurement Department communicates with his suppliers to send him quotations in the required quantities.

The attached picture is a statement of some requirements required by the warehouse department in preparation for sending them to suppliers by the procurement department in the warehouse accounts program.

The attached picture is a statement of some requirements required by the warehouse department in preparation for sending them to suppliers by the procurement department in the warehouse accounts program

2- Price Request in the warehouse accounting program.

As we have agreed, the second phase of the procurement cycle, and from the first here, the role of the warehouse program that is running on it is very important in that your hands are the option that you can receive more than one price offer from suppliers and install them on the system in paving to compare between them.

The warehouse management program will be important in that it compares you between the offers and some of them received from the suppliers, regardless of the quality of the items, the warehouse accounting program will financially assess you the offers and you can choose the right offer for you, and of course this step should be done if you do not have an accounts and warehouse program.

This is a picture from the Accflex warehouse management program that shows the stage of comparing the quotations received from suppliers

3-Sending supply orders to the warehouse management program.

This is the third stage of the procurement cycle in which the Procurement Department sends supply orders to suppliers by informing them of the items to be purchased, and we explain in the supply order the required products or items, the date of supply and the branch on which the supply is to take place, as well as the item prices based on the price offer received from the supplier.

Accflex accounts and stores program is distinguished by the fact that based on the financial evaluation of suppliers' offers, more than one supply order is sent to each supplier according to the least expensive item in each price offer

A picture from the supply order report in the warehouse program.

4-Receipt's permission for accounts and stores program.

The fourth stage in the procurement cycle is the stage that the suppliers send the goods and it is done according to the receipt permits stating that the goods have been received in the controlled quantities and that they are in conformity with the specifications and standards and signed by the storekeeper or the person receiving the goods. Issuing one invoice combined with the total of the receipt permission. If you are working on the warehouse program, the system must have flexibility in implementing the procurement cycle with different followed scenarios

. A picture from Receipt's permission as a report that appears in the warehouse accounting and management program.

5-permission for addition; Invoice of purchase in the warehouse management program

This is the last stage of the procurement cycle, which is the accounting proof of the purchase invoice and proof of entitlement to the debtor on the supplier, and we have to take into account not some technical considerations in the accounting guidance for the purchase invoice from it.

The cost of the items, materials or assets purchased in general is not limited to the purchase price that you pay from the supplier. It is also possible to include additional costs, such as transportation, shipping, unloading, gratuities, customs and other costs that are not refunded.

. Sometimes it happens that the service supplier, such as freight and transportation, cannot be the same as the supplier of the material commodity. Consequently, we must take into account in the accounting directive that we enter the material item at its cost in addition to the shipping cost and on the other hand we prove the entitlement of each supplier with his indebtedness and in most cases the entry will be in this form

From inventory and purchases account (at total cost)

  To those mentioned

 Vendor account (at purchase price)

 Service supplier account (at service cost)

Of course, taking into account the tax movements that are made on the invoices.

Flexibility of the accounts and stores program from Accflex

the Accflex accounts and stores program has led the user with sufficient flexibility in that he creates the service items that you don’t have in stock quantities, and from here the user estimates that the product will enter the item in the addition permit at its actual cost in addition to the cost of other services, he can also carry the entitlement of other services to other suppliers in the same screen of the purchase movement

If any return takes place in the receiving permission stage, it will not affect the accounts, but the accounting effect will be after issuing the purchase invoice, and the return if an entitlement is fixed on the supplier with the value of the purchase price he received while the cost of other services, I will not be able to return it to the suppliers because I have already benefited from it.

Therefore, the item will enter the store at a cost and it will come out at a second cost, and with the multiplicity of items, we will find that the process is very complex and therefore the warehouse management program will be able to deal very efficiently with all the scenarios that are possible in the procurement cycle and with the utmost accuracy in accounting guidance.

In the end, we must note that the procurement cycle is not a bit static steps. The procurement cycle in one company can be limited to the last stage, which is the issuance of a purchase invoice, and it is possible in another company that starts from the supply order, and in other companies it is possible to start receiving permits.

Thus we have been able to fully explain the procurement cycle and all the scenarios that can be carried out on it with its application to the warehouse management program and the important considerations at each stage, whatever the warehouse program you operate on.