OBJECTIVES
- What is the concept of “procuring”?
- When to procure an item
- How to use the Schedule screen to “procure/tag and item
- How to use the Procurement screen
There are three levels in which to obtain product for your customer
Level 1: Leave the item on an open sales order, thereby using the normal means of replenishment.
Each time an item is committed on a sales order, if none are available to sell, the purchasing department is automatically notified. Every night a “phantom” process runs to update the purchasing department of committed material.
This method is typically used if the customer can wait until the “plenty” date. The “plenty” date can be seen when using the Earliest Avail order entry view
The level of emergency is very low. The purchasing department can add this item to their normal “buy” which means no additional freight will be incurred.
Example of item showing up to purchase after “phantom” program has run
When the item is purchased and then received, it goes into inventory as “stock.” The system will display, in this example, one on-hand, yet zero available, because the systems know the item is “committed” to your order.
Below is an example of what it looks like in the history ledger
Below example of what Inventory Inquiry looks like, notice there is “0” available
Below example of what the Future Ledger looks like
When the item is purchased and then received, it will be placed into “stock”, yet not available to sell because the system knows it’s for your order (soft tag). In turn, depending on what “call status” you used, it will then appear in your Customer Calling Queue to advise you the items is now available for your customer
Level 2: Request the material from another branch that has it.
In the below example, the item is not available, the system calculated a “plenty” date of 3.25.20, but the customer needs it before the “normal” stock buy.
After checking if any other branches have the item, via Inventory Inquiry, we can see that BR1 has the item
To “procure” the item from the other branch, position cursor on item, then ALT “S”, this will take you to the Line item Scheduling program.
Since you can’t procure an item when in a “B” status, move the shipqty to the “Plenty“ Date
Then do ALT “P”, the following screen will appear
Enter “Proc Qty,” and then escape out, and escape again to take you back to the body of the order.
In this example, we are getting the item from BR1, since it was procured via transfer, the system is set up where transfers have a one day lead time, so once back to the body, you will see that the “plenty” date has changed from 3.25.20 to 2.26.20
The end result is, the item is placed on a transfer and then received into your branch, it will be called a “TAG”. The item will NOT appear in the History Ledger as being available for stock for any other customer but yours. You can only ship the item to your customer from the order you procured it on. The transfer and the sales order are linked together by this “tag.”
Below example shows how the transfer is linked to YOUR sales order, you can see the link via Line Item Schedule screen
Below example shows the link form the sales order Line Item Schedule screen
Below is an example of what the History Ledger looks like at the receiving branch, you will notice , since the item is “tagged”, there is no on-hand value and the item is NOT available to sell to anyone else because it is “tagged” to your order.
Below is what the inventory Inquiry will show, notice “0” available
Below is what the Future Ledger will show
Level 3: The material is to be purchased from an outside vendor, bypassing the normal means of replenishment (Level 1).
This process should be used when no other branch has the material and you need it before the system calculated “plenty” date.
When using this process, it is very possible that there will be a Freight change, which you may have to pass on to the customer, so before you do this process, the question is “will your customer be willing to pay the freight?“
The item is procured, and then you must confirm the procured item to a PO. This process works the same as procuring from another branch, to which a “tag” is created. The sales order is linked to the po and vice versa.
The most cost-effective way to procure material purchased for you customer is Level 1. The most expensive is Level 3.
If your customer is close to another branch, instead of procuring the item from that branch, you can always change the shipping branch on your order, in which case this is just another way to handle a back order.
Note: Level 3 is also to be used for the items that GPS has put into BUY/SELL lines
The same process to procure the item is the same as Level 2, but in this case, you would procure the item from “Enter Correct Vendor”
Once you are done with order and are at the status screen, you must remember to do a “ALT C”
To confirm the procured item to a PO
The following screen will appear, here you will enter the Vendor in which you are getting the item from
Once that info is entered, alt “C” to create the PO.
Once the PO is created, you MUST adjust the Unit Cost, if necessary. The cost that comes up is the cost if you were to purchase the item on a “stock” buy, it is very possible, that the cost could be different when using this process.
If the vendor is charging your freight, you must enter the GPS FREIGHT PRODUCT with an attached comment stating what item is being charged freight.
