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General System Functions


Purchasing Management (SRM)
Supplier Resource Management

The Info.Net Purchasing Module controls all purchasing and receiving functions.

The functions covered are:
- Preparing for Procurement Activities
- Maintaining Vendor Information
- Maintaining Indirect Item Definitions
- Adding and Maintaining Purchase Requisitions
- Add and Updating Requests for Quotation (RFQs)
- Adding and Maintaining Purchase Orders
- Receiving Purchase Order Items
- Scrapping or Returning Parts to the Vendor(RTV)
- Using Subcontract Purchase Orders
- Purchasing Distributor Control
- Purchase Order Release Control
- Purchasing Interface to MRP
- Create Prepaid or Partially Prepaid Purchase Orders
- Purchasing Contracts

Whitepapers are listed at the bottom of this page that further explain these areas.
Placing your cursor over any of the features listed below, will give you more information about the subject.

Shipping / Remit Vendor DefinitionsVendors are used to designate suppliers of goods or services. There are two basic definitions of vendors in the INFO.NET system – ship vendors and remit vendors. Before purchase orders or Accounts Payable invoices can be created and the Purchasing module or Accounts Payable module run in a normal fashion, vendors must be defined.

Both types of vendor (which will have identical definitions in many, or most cases) include names, address and any number of communication entries. The shipping vendor definition primarily includes data related to the purchase and delivery of material or services. The remit vendor definition primarily includes data on vendor payments and other vendor financial information.

One remit vendor may be assigned to any number of shipping vendors.

Approved Vendor Part Number DefinitionsThe approved vendor data includes individual records for each item that a vendor is authorized to supply. If the purchasing parameters so specify, only the approved vendors will be authorized to supply inventory material.

The data in the approved vendor entries also includes volume-pricing data, vendor-supplied warranties and optional attribute specifications for the item being defined.

When a purchase order is created, this same information is written into the P/O below the item being purchased.

Approved Manufacturer Part Number DefinitionsIf an inventory item from a single manufacturer can be purchased from multiple distributors, a manufacturer approval record can be entered linking the inventory item to the manufacturer, rather than to a specific vendor.

Subsequent purchase orders will then reference the manufacturer and the manufacturer’s part number under the item being purchased.

Purchase Order / Purchase Requisition DefinitionsPurchase requisitions are a request from an employee for purchasing to buy material or services. The purchase order is a document created in purchasing that converts the requisition into a legal external document that authorizes a vendor to deliver products or to perform a service.

Requisitions are similar to purchase orders except they can be missing two basic pieces of data found in purchase orders; a vendor and prices on the individual line items. These two pieces of data (plus some others) will be added when purchasing creates a purchase order from the purchase requisition.

Both purchase orders and purchase requisitions will handle three types of orders:
· Direct material – defined by a part number and destined for inventory or drop shipped to a customer.
· Subcontract material. This type of order can be for a vendor to create an entire item either using their own components or your own supplied material – or it can be for one or more operations within a manufactured item routing.

· Indirect material or service. Defined by a description only.

Purchase requisitions can be rolled into one or more purchase orders in a controlled manner, on a line item basis.

Purchase Order Release ControlRather than basing purchase order deliveries purely on user defined schedule dates, release codes can be assigned to direct material purchase orders. When a vendor receives a Release Code, he is authorized to ship the item shown on the P/O.

A release code will tie any number of purchase order line items together into a single group, or may tie line items in multiple purchase orders together (assuming the purchase orders are assigned to the same vendor).

The entering of release type purchase orders is controlled by the use of a ‘Release’ type of purchase order class code. When defining a purchase order with a ‘release’ type of purchase order class code, the program’s line item entry form will be revised to permit the entry of an (optional) release code on each scheduled delivery.

Direct Material Purchase OrdersDirect material purchase orders are for items defined by part numbers and destined for inventory or drop shipping. This type of purchase order can also purchase miscellaneous and freight charges.

This is one of the three types of purchase orders handled by the INFO.NET procurement system: the other two types being indirect material or services and subcontract labor.

The purchase order items themselves may require (based on a user specified parameter):

- That the vendor supplying the items be authorized to supply the item.

- That the purchase order be approved.

Indirect Material / Services Purchase OrdersAny number of indirect material items of any type, or services of any type may be placed on an INFO.NET purchase order. The receipt of items from this type of purchase order will result in a relief of the purchase order and accounting transactions to track the financial aspect the receipt.

If required, indirect material items or services can be predefined with authorized vendor and anticipated prices among other data elements.

Subcontract Labor Purchase OrdersSubcontract labor is often used with vendors that will assemble product from user supplied material.

It can also be used to control and track outside operations such as plating, painting or printing of partially completed assemblies within production.

INFO.NET subcontract purchase orders can also account for subcontracted assemblies with vendor supplied material.

Purchasing ContractsPurchasing contracts can be assigned a variety of items which will be ordered under the contract based on existing part numbers, indirect catalog identifiers or purchased item class codes. If a purchasing contract is referenced in the purchase order edit programs, the programs will ensure that the items being ordered fall within the purchasing contract parameters.

The purchasing contract definition also contains a possible vendor rebate definition and the creation of rebate debit memos for vendor payment based on purchasing quantities or values over a user defined period of time.

Line Item (Attribute) SpecificationsWhen buying items that require unique specifications (referred to as attributes in the INFO.NET documentation) such as color, dimensional tolerances, chemical levels, etc, any number of these types of previously defined specifications) can be linked to an item being purchased. Every inventory or indirect catalogue item can be assigned any number of attributes, each of which can be defined by limits or by specific values.

When defining the P/O, the user can specify the limits or specific value for each of the item’s attributes, and when the units are received, the system will ensure that the units meet the order’s requirements.

Line Item Document AssignmentsIn purchasing, the user will have the ability to assign documents to individual purchase order line items. These document codes, having been previously defined in the document system may refer to multiple individual documents.

The documents themselves might consist of graphics, videos, web sites or a number of other types of objects, as well as pure text.

Indirect Item DefinitionsNon-inventory items can be predefined, specifying their approved vendors or suppliers. If indirect items are defined in this system, the purchase order entry program will verify entered items for vendor approvals. With the indirect item definitions, a customized indirect catalog can be created that can be used when entering indirect purchase orders.

Line Item JIT SpecificationsBased on the purchase order class code, the purchase order entry routines will, optionally, request exact delivery locations and delivery times.

The delivery location can be predefined in purchasing address definitions which include a description of the exact delivery location.

Through the vendor work bench, the vendor has the ability to generate a shipment from their point of view, and a purchasing receipt from the user’s point of view. This function would provide the ability to generate an accounts payable payment to be available when the physical receipt of the material is made.

Purchase Order / Requisition AuthorizationIf required, both, or either, purchase orders and purchase requisitions may require authorization before they can be processed. In the case of purchase orders, no receipts can be made against a purchase order that is not authorized, and in the case of purchase requisitions, no purchase order can be created using the purchase requisition if the requisition is not authorized.

The authorization system assigns individuals to authorization groups and any member of the authorization group can perform the authorization, although the exact individual performing the authorization will be noted in the resulting data.

Request for Quotation (RFQ)An RFQ is essentially an external purchase requisition with the ability to record vendor responses as to price, quantities and schedules.

The INFO.NET system permits the authorized vendors to respond to ‘Requests for Quotation’ on line through the vendor work bench, or the vendor responses can be manually entered by the user.

For the vendor selected for the actual purchase order, the vendor data can be directly rolled over from the RFQ data to the purchase order. A record of the RFQ responses will be maintained by the system.

RFQs can be created for both direct (inventory) material and for indirect material and services.

Multiple Currency Definition and ControlThe INFO.NET system provides for multiple currencies in accounts payable.

The system will maintain a history of conversion rates from a user’s home currency to any other defined currency. Each rate entry will include the time and date of the entry, the date on which the rate became effective, the user login id making the entry and the conversion rate from the home entity currency to the currency being defined.

Every remit vendor will have their currency identified and the purchase order will include the currency code as a part of the purchase order data. This currency identifier will be rolled into both the accounts payable vouchers for use in external documents.

A gain / loss account is available to record the gain or loss due to currency changes between original data entry and final payment.

Company Issued Credit Card ControlThe company credit cards held by employees are defined in a data table in the human resources module. These credit cards can be used when adding purchase orders, however the purchase order edit programs will ensure that the single P/O dollar limits defined on the credit cards are not exceeded.

An alert is available that will list those employee with credit card values exceeding a total value specified by the user creating the alert.

Vendor Warranty DefinitionsIf a vendor is supplying one or more warranties for an inventory item, the available warranties can be defined as a part of the item’s vendor approval record. If a separate payment is required to maintain the warranty, the A/P payment vouchers can be automatically created.

Vendor Rebate Definitions and ControlThe vendor rebate is defined as part of a purchasing contract definition. The creation of rebate debit memos for vendor payment will be based on purchasing quantities or values over a user defined period of time.

Purchase Order HistoryNone of the records associated with purchase orders, purchasing requisitions or receiving transactions will be deleted from the database except through the manual use of the data purge routine, which works on the basis of maintaining as many months of historical data as the user wishes to hold on line.

Automatic Purchase Order Definitions From Sales Order RequirementsIn a distribution environment where a sales order can be passed directly to an approved vendor, the INFO.NET system will review all current sales orders and will find the vendor that has been approved to supply the sold items.

A or many purchase order(s) will be automatically created with instructions for the vendor to drop ship the material directly to the customer. The vendor can complete this shipment through the vendor workbench. This shipment will also automatically invoice the customer and will create the basis for a payment to the vendor.

This will provide an environment in which the user will be left to taking orders, creating payments to vendors and receiving cash from customers.

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