🟨 Procurement

With the Procurement module, you can handle your merchandise management processes with the help of Scopevisio's integrated business software - from ordering from the supplier, through delivery of the goods, to processing the invoice from your supplier. All of this in the complete context of your customers' orders, deliveries and invoices to your customers. This means that you can always see how your inventory is changing: in terms of value and quantity per product.

To be able to work with Scopevisio Procurement, you should have already created products and suppliers, delivery terms and payment terms in the master data.

If you want to switch from a third-party system to Scopevisio, you can simply import your existing master data into Scopevisio.

The functions are described in more detail below.

For a better overview, we present the procurement process model as an introduction.

Notes:

Overall, care should be taken to ensure data economy when creating products and, if possible, to establish consistent naming of products in order to avoid creating multiple products.
In order to maintain an overview of the process at all times, the down payment invoice type must be used when processing orders for deliveries and invoices with the prepayment payment type.

General topics:

Procurement process model

The following graphic shows the Scopevisio procurement process flow.

Procurement is a separate module, integrated into the processes within the overall ERP software. In principle, Scopevisio supports the approach of a division of labor and thus creates the basis for process acceleration. The process model presented shows the sequence in which processes can be carried out quickly and reliably within the company. If you can display your entire process in Scopevisio, we achieve the greatest effect; if you can display sub-processes, we have the full flexibility to enter the process at will. The individual sub-processes and the overall picture are explained below.

Determination of requirements

You enter your customer orders and these are transferred directly to order control with the Save command or you use the Scopevisio requirement report or "internal requirement" and receive approved requirements from the internal organization.

In order management , we determine your entire product requirements in two ways:

Classic approach

Reorder point and maximum stock, which we can manage for a single product and a single location, warehouse or storage bin.

New approach

Orders (internal requirements and customer orders) add up to a requirement for products that we cannot yet cover from stock and/or incoming orders. For example: We have 100 units of a product on order, but only 40 units in stock, i.e. we have a shortfall to fulfill all orders of 60 units. The order proposal calculates all quantities of all products that are not currently in stock and available or have already been ordered from the supplier. In this way, we always ensure that you can fulfill all your orders and that all required goods are procured. This can also help to reduce stock levels controlled by reorder and maximum stock levels and thus cut costs. This system works dynamically, so for my example above: 100 items in the order, 40 in stock, and 10 already ordered, then the order proposal here to cover all known requirements is: 50 items.

To follow this approach, no entry is required as reorder level and maximum stock and therefore minimal maintenance effort.

You can combine both approaches to determine requirements: a reorder point can trigger an order proposal and also take into account the quantities in orders.

An order proposal is executed for every shortage, which enables us to fulfill all currently open orders.

Order can be fulfilled from stock	Order cannot be fulfilled from stock
We list all orders that can currently be fulfilled from stock, write a reservation and transfer a delivery date.	Order proposal is generated for orders minus stock, i.e. for the shortage. The user has a lot of freedom to modiﬁcate the calculated quantity and the price drawn from the master data and to add products.
We start picking for orders that can be fulfilled.	The result is transferred to the order . This documents the purchase contract with the supplier.
We output the pending, picked delivery in a delivery bill.	We run a goods receipt against the order as soon as the delivery arrives.
We generate an invoice, automatically pre-assigned, which is transferred to financial accounting.	All posted deliveries flow directly into the stock. Order control always distributes stock to all existing orders, always according to the same principle.
	We have the information about which product is ordered and delivered from the supplier at what price and in what quantity, i.e. we know in advance what information will be on the invoice . This means that the invoice no longer has to go through the approval process. The system takes care of the factual check. Simplify your daily business.
	Payment can be triggered automatically, possibly with a discount. Posting can also be automated. be automated.

The process flow

Create customer order

An order can be transferred from an offer (sales license required and link to transfer offer) to an order, or a new order can be created:

You open the Orders tab (Organization area) this opens the overview of orders

Further down you will ﬁnd an area with various tabs; the Items tab is open. Use the Add button to enter order items.

Here you specify the product and the quantity. The system retrieves the sales units, prices, tax rate and other details from the master data. You can also enter different details.

We use a rule to set a requested date, which can be changed manually, on which the customer would like to have the goods, or alternatively the date on which you would like to have all elements of the order ready in the warehouse in order to be able to manufacture the product or deliver the order collectively. The requested date is not used for communication to the customer, but remains a communication anchor for us as an organization, which is passed on. For example, we have 61 orders in the system that are to be delivered in the next week; now we receive a new order that is to be delivered in 3 months. We automatically pass on the requested date in 3 months information to the order proposal. This allows us to control whether we send this order to the supplier today, specifying the desired delivery date, or whether the supplier's reordering time gives us the option of placing the order in 2 months' time and thus probably fulfilling several orders. this date is primarily used for your internal company communication.

You can also specify a location where the order is to be issued. In a setup with only one location, this entry is not necessary. If you have qualified a location as the default location, this will be drawn automatically on a regular basis, but can be changed.

Save your entries.

All entries are automatically included in the order control.

Order control

Here you can see all customer orders that are currently in the system, all orders that we can deliver today are indexed in green, thus providing a clear answer to the question: what can we deliver today?

Order control is the heart of your procurement. Here you can see three sections (from top to bottom): Orders, Order Items and Reservations.

Based on your stock data, the system shows you a feasibility status for each order. You can see at a glance that you can execute this order (green).

Fully pick executable orders

The green tick means: Everything is available, the order can be fully executed. You can prepare orders marked in green for dispatch by clicking on Pick . You can also do this using mass processing by selecting several rows in the Orders table and clicking on Pick .

Executable orders Partial picking

Your customers' orders can also be delivered in partial quantities if there is a corresponding contractual basis. On the one hand, this results in higher operating costs (several picking orders for the same order and several consignments and therefore higher transport costs in case of doubt), which are offset by faster order fulfillment and therefore earlier payment.

Technically, we allow partial picking as soon as order items can be fully fulfilled.

Orders that cannot be fulfilled immediately

A red signal means that there is not enough stock to fulfill the order in full.

In this case, we calculate with a planned date: the order can be executed on this date, provided that the order is placed with the supplier promptly and the delivery time on the product corresponds to the actual delivery time at the supplier.

With the overview, we create a clear picture of which orders can already be delivered, i.e. which orders will be paid for by your customers shortly, and which are currently not being delivered.

The orange signals indicate orders or order lines for which more than one allocation of goods is possible. By changing the priority: basically all orders arrive with the same priority 1, a change for the order that you would like to bring forward to 2 changes the reservation logic and ensures a change in priority. The order proposals are not affected by this in terms of the quantity of products to be ordered.

We calculate an order proposal for these orders so that they can be executed as quickly as possible.

Order proposals

Overview of order proposals:

In the example, order proposals were calculated for seven suppliers.

The number of products and the net amount are specified for each supplier so that it is immediately clear to the processor what they need to process first. Filters can be set here or sequences can be set via the corresponding header.

An order proposal was created based on the reservation status:

Reservation status

The associated order with the quantity to be ordered, which is currently not fulfilled from stock, is displayed under Reservations . We show the quantities that are still missing in the above example from order AU-23-60, i.e. that cannot be reserved in sufficient quantities in the warehouse or incoming order.

Important: Scopevisio always calculates the quantity that needs to be ordered in the order proposal, therefore the reservation does not show the order quantity, but the required quantity (invoice: order quantity-available stock=required quantity)

This applies to all products and quantities that are reserved in orders and add up to a requirement quantity.

It also makes sense to use the general filter option in the yellow header in the reservations view and to filter by desired date and product number in order to calculate the optimum quantity for the current order, taking into account the replenishment lead time.

Here it can be useful to order only part of the suggested quantity if the desired date is further in the future than the supplier's delivery time.

The logic of the general order proposals means that you no longer have to look in detail at the order and the stock of an individual product, Scopevisio Procurement does this for you automatically. In the Product suppliers section, you can see which products have an entry in the product supplier table, i.e. which products have a current entry for a source of supply. We display the product supplier entries from the master data on the order proposal and order so that you can quickly and easily add individual products to your order at the moment you are dealing with the order with the supplier, without having to search for options in the product data overview. In addition, the data can be extended, edited or adopted here straight away.

The order proposal must be checked in terms of quantity and product and is converted into a formal order with the Transfer to order command.

Click on Send to send the order to the supplier. This is sent to the e-mail address stored at the supplier for sending orders (procurement).

Important: Scopevisio automatically calculates an order proposal for you based on all currently available information, but does not automatically send purchase orders. Please check here which investments you would like to make and when.

The process bar with the process model helps to control the sequence sustainably.

You can see all orders in the order overview. These can be converted into deliveries in the next step.

Similar to all overviews in Scopevisio, orders can be provided with a quick filter and stored as an individual work list. You can then assign the goods receipts to the incoming invoices in the invoice receipt book (link).

Overview of the entire warehouse stock

You open the details page for a product, select the Stock tab and see the total stock over the specified period, in this example: 20 days.

You can view all products that have stock by clicking on Stock overview. The individual views from the products are combined here to form the current stock level.

Collection of terms

Procurement

Term	Deﬁnition
Order	The order a customer places with us, we manage internally as an order, order is a legally binding document that documents a purchase contract.
Order	is sent to our supplier and determines which product is to be delivered and invoiced by this supplier, in what quantity and at what price. Legally binding document that documents a purchase contract
Order control	Planning run of the reservation according to FIFO, requested delivery date, execution and confirmation by the 'Picking' command. All orders are ranked according to their requested date and the order in which they were created, stock and goods are reserved by the supplier and a corresponding delivery date is calculated. This will be transferred to the order in later versions.
Order control	Selection of order items, marked products in the reservation view (table below) to be able to estimate the eﬀect of a redistribution via prioritization and thus recognize which orders are put on hold
Reorder point	Stock that triggers an order proposal if it falls below this level. If the stock in the storage location reaches this value, an order proposal is created that fills the quantity up to the maximum stock level.
Maximum stock	The maximum stock to be held of this product. Maximum stock minus reorder point is the quantity and value that will be ordered regularly. The maximum stock level is not exceeded per order, but can be exceeded if there is a corresponding demand from orders that are still understocked. A note is then issued that the maximum stock level must be checked. is to be checked. This system can be permitted or restricted globally via the settings.
Available quantity	Quantity of the product that is immediately available for dispatch after deducting the current reservations from orders.
Storage location/location	Location is described by a postal address; a location can have several warehouses for which individual stock limits can be defined. A company can have several locations. Routing between locations is currently not supported by the process.
Warehouse	Designation of the warehouse: cold storage/wood storage/hazardous goods storage, warehouse 1, 2, 3
Storage bin	Lowest level of the warehouse or location, information can be stored with the product so that the product can be stored. Storage bin is displayed with the delivery and output when picking. Fixed storage locations per product create order and speed up picking.
Shelf aisle	Area in the warehouse used for orientation on the way to the storage location.
Shelf bay	Area in the warehouse used for orientation on the way to the storage bin.
My warehouse	Main warehouse, if no different warehouses are required, everything can run to this one main warehouse. Can be renamed.
Partial picking	Extended to pick partial quantities of the order and thus transfer them to delivery and invoice.

	Calculation for goods fully implemented so that a 6-pack can be bought in a crate or pallet, sold as such, and sold as a bottle.
Sub-unit	Unit below the base unit that can be determined by means of a factor and may be 1 level below the base unit, hence sub-unit.
Sales unit	Unit that can deviate from the base unit for sales.
Purchasing unit	Unit that deviates from the base unit for purchasing and could be calculated in base units using a factor. Example I buy a pallet of cola bottles, 20 in a crate, 20 crates on the pallet, is the purchase unit pallet, base unit crate or bottle, sales unit crate or bottle.
	Units help to stock products accordingly without the need to create, manage and stock individual products, which would then always have to be posted and reposted.
Order proposal	Order proposal calculated on the basis of all available information: Quantity in order, quantity in warehouse/location, quantity in order, quantity stored as reorder point: the quantity that would need to be ordered based on the information stored. In addition, the quantities from the orders for which the reservation is empty and which therefore need to be ordered can be found under the Reservation tab. In the case of stock under reorder point, this is filled up to the maximum stock level. Reservations only play a role if they would exceed the maximum stock level. We expect the user to check these quantities and, if necessary, adjust them in the delivery quantity column if his experience or other findings so require. For maximum freedom and speed, we also allow the price for this one order to be changed at this point without adjusting the master data. The overview of the products assigned to this supplier can be found on the right-hand side of the screen. This allows us to add other products to the order proposal at the time of dealing with the requirement for this supplier in order to save work steps and to transfer the order proposal collectively into an order and send it to the supplier. A different procedure: Transferring the order proposal into a purchase order, editing the purchase order again and adding further products is still possible.
Purchase order	The purchase order is one of the 3 most important documents in the organization. The purchase order documents the purchase contract that is sent to the supplier. The supplier normally issues an order confirmation for this order, which must be checked by the user. Any deviations from the transmitted order must be changed accordingly in the order if accepted. If the supplier only confirms 300 of the 1000 units originally ordered supplier only confirms 300, we will receive a further order proposal if there is a corresponding demand situation, i.e. a shortfall from orders or a shortfall in the reorder level. Orders can be managed in different statuses, which are updated with corresponding actions. Partial deliveries for order quantities show a remaining quantity on the order accordingly.
Incoming delivery/goods receipt	Recording of the goods according to the physical check for a purchase order according to the method, from the purchase order to the goods and from the goods to the purchase order. The delivery bill document serves as a reference entry for the fully automatic processing of the supplier's invoice and therefore represents a mandatory entry, the correct entry of which at this point speeds up all subsequent processes. The booking date of the goods receipt must be entered. Here you must take into account when the goods arrived in your area of availability.
Invoice received	The supplier is recognized with a document scan of the supplier's invoice PDF, identified by characteristics such as name, address and VAT ID number and assigned to the master contact. The delivery note number is read from the document and can be linked to the booked delivery. This ensures that we can carry out factual checks and assign deliveries as clearly and quickly as possible.
Product groups	Product groups can be used to summarize several products. This means that all characteristics in the product group are inherited by all products in the assigned product group and can then be further refined at the lower level and overwritten with an individual entry. Nevertheless, the values from the product group remain visible, but not effective, as the individual entry takes precedence. Product groups help to speed up product creation in order to enrich new products with identical characteristics without having to re-enter them each time.
Goods receipt	The goods are posted to a purchase order sent to the supplier. From the purchase order, the goods that have arrived are posted accordingly. The document number field is used as a reference; the number of the supplier's delivery bill must be entered here so that the factual check can be carried out via the invoice receipt book (Rebu). Individual items from the order can be posted or the entire order can be posted as a delivery. This increases the stock level accordingly and the data record: Product ordered at price from supplier, of which currently delivered, can be compared with the invoice.
Parts list	Parts lists can be created in several forms and can show which individual parts make up a sales product and at what cost. Parts lists can have sub-parts lists and thus represent sequences in the composition of individual products.
Stock price	Calculated unit price at which an individual base unit was purchased. The type of calculation depends on the valuation method (average, FIFO, LIFO) for the product/product group. The calculation takes place from the first posted goods delivery. Inventory prices for a product with a bill of materials are calculated from the individual components and components and parts to form an inventory price for the target article
Valuation method	The inventory price can be valued using different methods: Moving average, FIFO, LIFO. A valid valuation method can be set for each product group or for all product groups.
Base unit	The base unit of a product is usually the most common unit of a product in your company. We will usually store pieces as the unit. This entry cannot be changed as it is linked to the calculation of the stock price, i.e. the price at which a product is valued with its stock in quantity. The base unit is often the smallest unit in which the product is to be sold, but can also be consumed in a smaller sub-unit to be determined. See also units.