Introduction to Buying Module

The Buying module of ERPNext is designed to manage the whole process of procurement and develop a long-term relationship with the suppliers. The Buying module helps businesses with the tools to deliver on time availability of materials and management of costs and adherence to agreed terms. The Buying module, which is also integrated into the stock, accounts and supplier management, facilitates a smooth and efficient purchasing operation.

Requests for Quotation (RFQs)

RFQs help businesses reach out to multiple suppliers and provide price and delivery estimates on needed items.

RFQ can be created using material request or purchase requisitions.
Suppliers can submit their quotes that are stored and followed in ERPNext.
You can use tools to compare multiple quotes on basis of price, delivery schedule and terms.
This assists in making buying decisions in an open way and with clear cost benefit analysis.

Supplier Management

The Buying module stores complete records of all suppliers.

Supplier records include contact numbers, tax numbers, payment terms, default currency, and bank accounts.
ERPNext records historical transactions with suppliers, including orders, invoices, and payments.
Supplier performance measures like reliability of delivery, pricing trends, and quality complaints can be tracked.
This information assists companies in assessing consistency of suppliers and negotiating improved terms in the future.

Purchase Orders

Purchase Orders (POs) legalize the purchasing from suppliers.

You may create POs from approved supplier quotes or directly against material requisitions.
You can prepare POs based on approved supplier quotes or you may do it based on material requisitions.
Each PO specifies the sequential items, quantities, fixed rates agreed, delivery date and payment terms.
ERPNext helps keep track of the status of individual PO draft, submitted, received, billed, or closed. They ensure proper fulfillment of orders, prevent unnecessary order purchases, and also promote communication with suppliers.

Purchase Invoices

Purchase Invoices are the documentation of the bill against supplied goods or services by the supplier.

Depending on Purchase Receipts or Purchase Orders, they can be prepared.
All invoices have information about goods, supplier tax, and payment dates.
ERPNext can automatically estimate appropriate taxation and charges, support taxation requirements, and enter into accounts receivable.
Invoices can be linked to payments in order to track outstanding balances and avoid data entry.

Stock Control

Purchasing module connects well with the stock and inventory.

Automatically, when goods are sold and delivered, inventory in the warehouse is updated.
Purchase Receipts are documents used to record goods delivered on Purchase Orders to check quantity and quality.
To automate stock replenishment, the reorder levels can be specified such that ERPNext can make material requests and place buy orders when inventory reaches minimum quantities.
This ensures maintenance of optimum stocks and ensures continuity.