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Purchases was and still one of the most important and essential managements of the company because of its great role in buying what the company needs with the best quality and least price by comparing the price offers from the suppliers and constructors and signing the contracts that guarantee for the company a flow of materials needed with the least price and for a long period . This leads to expenses saving and increase in gains of the company . Purchases management plays a great role in bringing out gains for the company which is not less important than any other management in the company such as sales management . How can the company achieve as mush purchases as possible if it couldn’t get the materials for the least prices . This creates a competitive advantage for the company to be able to obtain a big marketing share in business . Therefore companies pay an extreme concern for organizing and developing purchases management starting from choosing the best trained individuals to work in it and trying to develop their efficiency to achieve its targets . With the technological development in business and the increase in trade exchange between countries , it has been necessary for companies to depend on modern technology in purchases management which is indispensable in order to buy the best materials and get the best contacts for the least price through buying locally or importing from abroad . In this way the company saves a great amount of cost and increases gains . To cope with this technological development the company has to use an accounting program in purchases management . Before talking about the best accounting program , we will know the typical purchasing cycle followed by companies.
purchases management cycle
The cycle of purchases management depends on some important steps that must be followed in order to buy materials with the best quality for the least price , as follows :
First the cycle starts with a demand statement from the site or responsible officer who asks his direct manager to sign the form to send it to purchases management . The latter reforms the statement as a price offer then sends it to the suppliers in order to get more than one price . After that the suppliers send their offers to the purchases management that makes sure the offers match the wanted technical description , then compares between them and chooses the least prices . Finally purchases management sends a supplying order to the constructor offering the least price who supplies stores with required materials by delivery permission then he attaches it to the purchase novice . The accountant makes sure that the material is added to the store or site then he reviews the cost of the bill and payment conditions and the tax file of the supplier for the payment .
That was the typical purchases cycle which companies must follow in order to get the best materials prices . In addition purchases management is responsible for signing contracts with suppliers and constructors to satisfy its constant needs for a specific necessary item or material for the production activity which lack can hold up work in the company .Purchases management looks for the best suppliers through bids and practices in order to import the greatest possible amount of the item or material with the highest quality for the least price and best terms that save a lot of costs .Purchases management has a great role in the success or failure of any company . It is considered the main factor in attaining gains so it is necessary to provide all possible ways that achieve the targets of purchases management and of course these ways are headed by using an accounting program to manage clients’ or suppliers’ accounts .
The importance of purchases management program for companies :
The Purchases management program has a great importance in managing processes of buying . So a lot of advantages can be obtained as follows :
1 – Recording and coding purchases items to facilitate searching for any item starting from the demand statement , price offers , supplying order and ending with adding the item to the store and forming a buying invoice . All of this is performed automatically in a part of a second without the need to write the name of the item each time it is needed which decreases time and effort in buying processes and minimizes chances of mistakes as a result of repeated recording of the item because of a human mistake .
2 – Attachment of items to the suppliers facilitates searching for the item suppliers and acknowledges the purchases officer with the previous history of buying from this supplier such as the last buying price to reduce searching for price offers and speed up the chance to get the item as soon as possible .
3 – Attaching the item to more than one measuring unit makes it easy to add the items to the store . The program permits adding the item to any of the attached measuring units and letting it out with another unit . Moreover the program transfers the amount of item units on letting out or adding without user interference .
4 – Having more than one code for the item facilitates addition and using a bar code reader to permit adding and an infinite number of items at the same time .
5 – Attach every item to an alternative to enable the purchases management look for the alternative item in case of the lack of the main item in the market to reduce wasting time and satisfy the company needs in the least possible time .
6 – Connect purchases management to warehouse management and financial management or other company managements makes buying processes and suppliers’ accounts management as easy and accurate as possible . Purchasing cycle is completely electronic starting from demand , passing by price offers and supplying order then receiving materials electronically through warehouse management . The financial management connects receiving invoice from stores to the supplying order from the purchases management in an electronic way then forms a buying invoice and pays it as well . This cycle takes place and is completed in as least time as possible and accurately without a single chance for a human mistake .
7 – Managing suppliers’ accounts through matching them electronically and opposing payment to suppliers invoices is very important in order to avoid payment repetition as a result of manipulation or mistake .
8 –The property of adding prices lists from suppliers to the program enables to acknowledge the administration with the latest prices electronically .
After getting to know the importance of purchases management program for the company , we will review one of the best purchasing processes and suppliers’ accounts management program in Egypt and the Arab world which is Accflex
Accflex purchases management program :
We will review tme most important advantages of Accflex purchases management program by reviewing the program cycle :
First : purchasing cycle
In Accflex purchases management program purchasing cycle is flexible and ideal . The program presents an ideal documenting cycle for the purchasing cycle beginning with a demand from the site or department then the purchases management receives price offers from the suppliers , passing by the supplying order to the chosen supplier . After that comes the delivering order to the stores and issuing a buying invoice . Accflex Purchasing cycle is so flexible that a bill can be formed directly from a supplying order without sticking to price offers or a bill can be issued without observing any of the previous stages for the cycle . The Accflex purchasing invoice is easy to input as its data can be imported or added by using a bar code item reader device or directly by clicking the icon of item search in the program. Also all the documents can be attached to the invoice . The Accflex purchasing invoice can calculate the tax value automatically . As soon as the supplier is chosen and connected to the applied taxes , the program calculates the tax value of the invoice and adds it to items values . In addition the invoice can be issued with more than one currency . As for deductions , we can add more than a discount and as a total discount of supplier’s bill and a discount on the level of each item . When the store is selected to add the items to it , the program increases the store balance with the value of added items . Meanwhile the program computes the exact values of the added items cost on the basis of addition activities and disposal automatically to present the as accurate cost as possible .The program transforms the invoice into accounting entries in an automatic way by connecting purchases management program to general accounts . Consequently purchases management program completes the purchasing cycle accurately and easily in a part of a second .
Returned purchases :
It is easy to return any item in the purchases invoice using the returned to supplier interface .On selecting the returned invoice or just one included item , the program automatically sends a payment order to the stores with the returned item or invoice amount . Also it deducts the returned item value from the supplier’s account and performs an accounting entry in the general accounting program to reverse the purchasing process . This is performed automatically once the invoice or the item is selected .
Purchases reports :
Accflex purchases management program presents a distinguished group of reports to provide the company with all required information about purchasing processes beginning with demand , selection of a department or date to identify its demands . In addition price offers of a certain supplier or item can be considered . The delivery order to a specific store or of a certain date can be reviewed using search determiners which help to follow up all procedures of purchasing cycle . Purchasing invoices , of a particular supplier , item , site or even date can be reviewed including the item code , invoice serial number , supplier’s name and code , tax data of the invoice and other data that enables purchases management and all other managements of the company to follow up and make decisions .
Second : suppliers’ accounts
Suppliers’ accounts are considered one of the important accounts related to purchasing cycle . It is the other side in purchasing process . Suppliers are divided into ( cash and credit )so the program of managing accounts of purchases and suppliers ( Accflex ) includes a special part concerning with suppliers’ accounts using suppliers interface through which an infinite number of suppliers can be coded and tax data of the supplier is added ( tax file – supplier’s tax accounts ) . Also determining if the supplier will be cash or credit in addition to the allowed credit limit to buy from him , the payment period and the supplier’s current balance is reviewed through the interface .
The supplier can be connected to a group of items that he supplies and add deductions or prices offers . The program can carry this out in purchases invoice interface to select the supplier . Furthermore the program allows mistake correction if you creates more than one code for the supplier by using the suppliers merging icon without deleting and renter the supplier’s activity to save time and effort in managing suppliers’ accounts . The program sends to the supplier a debit or addition note of his balance through supplier notice interface .
Suppliers’ accounts reports :
Supplies’ accounts represent a great part of company liabilities so all information to help follow up and manage the accounts must be available Accflex suppliers accounts like Felix program includes a group of a group of reports that provide all information about the suppliers’ accounts such as suppliers account at last list which reviews all balance or balance to follow up the balance supplier also the supplier debits to follow up the delay in paying his debts and determining the types of items to buy from the supplier through authentication of his accounting list to do a written authentication between his actual account and records .The applied suppliers bills report help to follow the short term liabilities and report profits of suppliers items to decide the resulting profits from buying them through these reports it's easy to know the suppliers who achieve gains on dismiss who causes loss so the purchases management and the suppliers accounts program act Felix is the best program in Egypt and the Arab world because of his advantages that aren't included in any other program .
