Purchase Order Management
Rootstock Purchase Order Management provides for the entry and tracking of purchase orders for direct and indirect materials and services. This is supported throughout the entire purchasing process, from generation of the requisition through receiving of materials or approval of service provided including accounts payable integration. Rootstock also maintains all vendor information and reporting required by buying organizations to make better-informed purchasing decisions.
Purchase Requisitions for Direct Materials
Requisitions for direct materials can be manually entered or automatically generated by the Material Requirements Planning (MRP) or the Requirements Planning (RP) application as it identifies demands that are not being met by scheduled supply orders. Requisitions created by MRP or RP are based on the part’s purchasing parameters (i.e. lead times, planning policies, safety stock level, etc.) and entered in ‘planned’ status. A material planner or purchasing agent must firm these requisitions before becoming available for conversion to purchase orders once approved.
Purchase Requisitions for Indirect Materials and Services
Purchase requisitions for indirect materials and services are also supported by Rootstock Purchase Order Management. An employee manually enters requisitions for indirect materials or services. Once approved, these can be converted to either a purchase order or can be designated as an employee reimbursable expense.
Purchase Order Control
Rootstock Purchase Order Management provides critical, centralized control over direct material, indirect material, and service tracking as well as vendor performance. Inventory and non-inventory purchased items and services can be consolidated on a single purchase order. Purchase requisitions can be converted to new purchase orders or placed as line items on existing orders. Additional items can be added to open orders, providing purchasing flexibility and efficiency. Buyers can make decisions on purchase order quantities and due dates supported by price and delivery history for approved vendors. Comprehensive purchase revision control management capabilities are also included as well as Purchase Order approvals.
PO – AP Match Process
The Rootstock PO–AP Match Process begins with the matching of PO Receipts to Vendor Invoices. Once this matching is completed, Payable Invoices will be created when a batch is closed.
With Rootstock, buyers can easily associate vendors with purchased parts. This allows for the retrieval of all open requisitions for an item and simultaneously reviews the approved vendors. Buyers can then make their decisions on purchase order quantities and due dates, having considered the lead times and delivery history of the vendors.
Material receiving capabilities include complete order access/review, receiving history for each item, including quantity ordered, outstanding and due. The application provides an automatic warning if a transaction will cause an over receipt or if the material arrives early. Parts can also be received to an inspection or other inventory locations. Receipts are then automatically posted to an accrued Accounts Payable account.
Rootstock delivers full purchasing reporting and analysis capabilities including purchase requisition, open purchase order, shortage, expedite and vendor performance reports. This provides the information needed by the buying organization to communicate effectively with vendors and make better business decisions on vendor selection, pricing, delivery dates, and quantities.