Sage X3 ERP Purchasing covers the purchasing process from end to end, starting with the management of Requisitions, Requests for quotes (RFQs), document uploads, email-based approvals, orders raised and monitoring of deliveries. It also helps manage Material Requirement Planning through a Planners Workbench. There are full budgetary controls through approval hierarchies and lists of authority, signature management, and audit trail. It finally links to incoming goods receipts and verification of vendor invoices. After the vendor’s invoice has been validated (three-way match), it can be further processed for payment. This entire cycle I sometimes referred to as an Order to Pay processes by ERP vendors
Order to pay is thus merely the process of requisitioning, purchasing, receiving, paying for and accounting for goods and services. It gets its name from the ordered sequence of procurement and financial processes, starting with the first steps of procuring a good or service to the final steps involved in paying for it. Sage ERP X3 accelerates your entire business in the Order to Pay cycle
Sage ERP X3 requisition management is the process of creating, processing, authorizing, and tracking purchase requests within an organization. The purchase request is then validated by the initiator’s manager and the procurement team to control spend and prevent potential frauds.
Sage ERP X3 Purchase Requisitions Highlights;
- Requisitions may be entered manually or automatically generated from the MRP or DRP processes
- Requisition processing can utilize signature approvals
- Preferred vendors and pricing may be specified for individual products
- Purchasing representatives can select and convert requisitions into purchase orders
- Converted requisitions can generate blanket purchase order releases
- Requisitions can include service-related items
- Requisitions can initiate inventory transfers between multiple facilities
Purchase Request to Purchase Orders
Purchase Requests can be converted to Purchase Orders with or without the intermediate steps of RFQ management. Sage ERP X3 supports the entire RFQ process, including entering products, issuing RFQs to vendors, sending follow-up notices, registering responses, and automatically generating pricing records to use on purchase orders. Purchase orders can also be entered directly (manually) or created automatically from sales orders and buyer work-plans (MRP run) Supplier contracts can be defined and releases scheduled for both fixed and long-term planning horizons. Sage ERP X3 also supports encumbrance accounting, which allows companies to pre-commit at the time of request and formally commit at the time of purchase expenditures against predefined budgets.
With “Sage ERP X3, companies can easily sustain supplier prices, terms, and promotions. vendor quotes, Catalog prices, and contracted prices can be used automatically on purchasing documents, while discounts and charges can either be factored into the net price or broken out separately”. Order groups of related products that can be attained pre-defined thresholds like financial benefits professional freight.
Sage ERP X3 Purchasing accesses the latest parameters set up in the product master – Buy-from, pay-to, and bill-from information are defaulted on purchasing documents, while specific product-level information can be used for sending documents to suppliers using their own nomenclature to facilitate error-free transactions.
Goods Receipt Note (GRN)
Sage ERP X3 Goods Receipt Note is a document used to record the inward entry of any goods received at the premises of the organization. The order of making GRNs is important as it promotes accurate inventory control and confines the unwanted, unauthorized entry of goods in the organization. The Additional Costs are also recorded at the time of preparing the GRN in order to calculate the Landed Cost of Goods received.
We have meaningful reports in Sage ERP X3 and some specific ones created against customer requests. One such report helps in printing the details for each PO Receipt.
Sage ERP X3 delivers the ability to schedule an order quantity for multiple receipt points and delivery dates on one purchase order, thereby dropping the number of POs and allowing price breaks for total purchase quantities. A receipt entry function offers to record carrier information, assign inventory to warehouse locations based on pre-defined put-away rules, and move quality-controlled products to and from Quality Control areas based on user-defined review rules. Approved quantities are readily available based on orders. It is possible to record and track lot numbers and serial numbers with their final destination and expiration date. Rejected products can be scheduled for supplier return with the option to reinstate the PO or request credit. Supplier invoices can be encumbered from POs or receipts and three-way-matched prior to acceptance and payment.
In Sage ERP X3 we can control transaction creation by specifying the duration for which creation should be allowed. In order to prohibit the entry of invoices/credit memos, Sage ERP X3 provide a parameter level control where we can specify the duration for which sales transaction should be active. These parameter set up is available for Sales, Purchase and Accounting modules. Sage ERP X3 provides a special functionality called Matching tolerance which allows the user to set up and maintain tolerances, especially in the purchase module.
When it comes to managing or overseeing payments, Sage ERP X3 gives several options like record the payment or payments against a specific invoice or apply it to the Business Partner account and let Sage ERP X3 automatically handle the matching.
The posting of the payment of invoices coming from the Purchase, Sales or AP-AR Accounting modules is the generation of the payment. Using this function we can automatically generate the payment proposal.
Not all the invoices/credit memos are managed by the automatic proposal:
- when open items (invoices or credit memos) must be recorded on a statement, the automatic payment proposal does not take into account the open items that are not on the statement yet.
- open items with an unknown payment approval status (“payment approval” field different from “payment approval”) are not taken into account by the processing.
Purchasing Management domain will get a fully comprehensive application that will cover the entire supply chain process including purchase planning, ordering, delivery, scheduling and receiving.
Supporting information such as supplier performance metrics, notes, previous purchase prices, and current promotions can be displayed automatically or by user request. Buyers can easily access product information supporting a variety of purchasing needs related to raw materials, non-stocks, supply items, and services. A special purchase order work-plan facility is available for buyers to pull in all open purchase requirements from MRP and other purchase requests, make any adjustments, and automatically create purchase orders.