Enterprise Resource Planning Systems Course Overview PDF

Department of Industrial Engineering and Engineering Management University of Sharjah 1 0405452: Enterprise Resource Planning Systems Course Overview...

Department of Industrial Engineering and Engineering Management University of Sharjah 1 0405452: Enterprise Resource Planning Systems Course Overview Fall 2024-2025 Dr. Ali Cheaitou Course developed in Collaboration with  Procurement and 4 Purchase 2  What To Expect Understand Procurement: Differentiate between procurement and purchase, comprehending their roles in business operations. Relate Supply Chain and Procurement: Recognize the relationship between supply chain management and procurement processes, and how they optimize organizational efficiency. Grasp Procurement Processes: Gain a comprehensive understanding of the procurement process, from identifying needs to evaluating vendors. Recognizing Odoo's Role: Examine how Odoo integrates procurement processes, enhancing purchase efficiency. Achieve Proficiency in Odoo's Workflow: Understand Odoo's purchase workflow, covering requisition, order creation, communication, receiving, invoicing, and associated configurations. 3  What is Procurement? Procurement refers to the process or the act of sourcing or obtaining services or goods for a business. 4  Procurement vs Purchasing Purchasing focuses on the cost of the order. Purchasing aims to minimize the cost of an order. Procurement focuses on value creation and Total Cost of Ownership. Procurement aims at other objectives like risk mitigation, contract compliance, cost savings, ongoing supplier relationships, etc. 5 Procurement vs Supply Chain Procurement is the process The supply chain starts that starts from the with procurement as the identification of the need first process. to purchase the item right it extends beyond the step up to the actual purchase, of procuring raw materials delivery, and payment for right through the the same. manufacture and supply of It does not extend beyond the finished goods all the obtaining and paying for way up to the final step the items received. when it reaches the end customer or consumer. 6  Types of Procurement Direct Procurement Indirect Procurement Service Procurement Acquisition of goods, materials, Procuring and managing Sourcing and purchasing materials, and/or services for contingent workforce and goods, or services for internal use manufacturing purposes consulting services Ex: Raw materials, machinery, and Ex: Utilities, Facility Management, and Ex: Professional services, resale items travel software subscriptions, etc Benefit: Drives external profit Benefit: Takes care of day-to-day Benefit: Used to plug process and continuous growth in operations and people gaps revenue Comprises of stock materials or Used to buy consumables and Used to purchase external parts for production perishables services and staff With supplier relationship: Resort to short-term transactional Maintain one-off, contractual Establish long-term relationship with suppliers relationships with suppliers collaborative supplier relationships 7  Can you provide some examples of procurement? 8 Procurement Process In Accounting (Accounts payable), 3-way matching: compares orders, 9 received items, and invoices.  Automate your purchasing workflow: Automatically send RfQs to your suppliers based on the stock levels Select different replenishment policies (depending on the delivery and manufacturing strategies) → Improve inventory performance with procurement rules depending on stock levels, logistic rules, sales orders, forecast manufacturing orders, etc. Manage supplier’s pricelists Purchase and Make smart purchase decisions using the best prices. Easily import suppliers' price lists and references to make smarter purchase decisions Procurement based on promotions, quantities, and special contract conditions. Keep track of product availability in the supplier’s stock and check the order status from in Odoo within the app. Define the sales price of a product based on the supplier's prices. Get the best offer with purchase tenders Get the best price by negotiating with several vendors. Launch purchase tenders, integrate vendor's answers in the process, and compare propositions. Choose the best offer and send purchase orders easily. Use reporting to analyze the quality of your vendors afterward. You can also use a Blanket Order Agreement to buy goods from a supplier at a negotiated price, on a recurring basis during a specific period of time. 10 How to Create a new product Creating a new product Either using Sales, Purchase, or Inventory apps. Let us use the Inventory App 12  General Information Hoover on the “?” to learn the meaning of each option in a drop list. 1 In the purchase tab, add the vendor 8 information. 2 The vendor will be 5 added to the “Purchase” and 3 6 “Contacts” Apps. 4 7 Once you finish filling all the required information, you may leave. The system autosaves. 13 Purchase App What’s Included… Create RFQs, send RFQs to vendors and confirm to purchase order. Create bills depending on the billing policy. Able to do blanket orders and call for tenders. Analyze reports related to previous/current purchases 14  Purchase Invoicing and fully integrated with: 1- Purchase highly depends on the Accounting app to receive, record, and pay the bills after the purchase. Please note that the Purchase app can’t fully operate without billing since the flow will be missing the financial part. 2- The Purchase app is also connected directly to the inventory. A lot of functions can be used from the integration between purchase and inventory, such as receiving items in the inventory after purchasing them. In addition, if there are any replenishment rules, the inventory will automatically send a command to the purchase app to create a new RFQ depending on the need. 3- Since Purchase and bills (invoicing) are connected, then accurate accounting entries will occur in the accounting module. 15  Workflow Summary 1. Create New RFQ. 2. Fill the necessary information. 3. Send RFQ to vendor. 4. Update the quotation received from the vendor and confirm the RFQ. 5. Receive the purchased products. 6. Create a bill. 7. Register the payment. 16 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Create New RFQ 17  Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Fill the Required information Send the RFQ to the vendor after filling the information 1 3 In the email attachment of the 2 RFQ, there is no 4 price. There is only the quantity. This is normal!! 5 Why? There is a tracking log for any action taken. For example, 1- Vendor: The field is filled with the desired vendor that we want to purchase from. You can create a new vendor below the email or use an existing vendor added in the contacts app. sent, we can track 2- Currency: We can select which currency we want to use for the purchase. 3- Order deadline: The date when the RFQ will expire. the progress. 4- Expected arrival: The expected arrival of the requested products from the vendor. 5- Products list: The requested products. Please note to fill product name from the existing list of products or 18 add new products, and add the desired quantity and the cost from the vendor if available.  Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 After sending the RFQ, the status will change to RFQ sent. Wait from the vendor to provide the updated costs on the products and then update the cost and confirm the order. 1- The vendor might send a quotation with unacceptable costs, so we might go into negotiations with the vendor until we get an acceptable cost, or we find another vendor. Please note that the same applies to the expected arrival date. 2- Note that the system automatically assigned a sequenced reference on the order. 3- Have a look on the bottom right side where we can see the total amount for the purchase. 19  Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 After Confirming the order, the status will change to purchase order. When the vendor deliver the purchased products, we use receipt operation to receive products in our inventory. We can use either the button on the left to access the receipt operation, or the smart button on the right side. 20  Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 The exact received quantities should be recorded in the done quantity (Quantity in the new version) then validate the operation to receive the quantity in the inventory. If we go to the inventory application, before we validate, we will retrieve the same document. However, the procurement team cannot see the document in the Inventory applications. Everything depends on the use of access rights. 1- If the received quantity is less than the ordered quantity (demand), then we assign to quantity (not to demand) in the inventory receiving operation. 2- the system will ask you if you want to create a backlog. You either create a new backlog to create another receipt operation with the remaining quantities or don’t create a backlog where the system will ignore the remaining quantities. 2- Please look at the connection between the operations on the top (Requests for Quotations / P00005 / WH/IN/00010) 3- Please look at the right side where the tracking mentioned that this operation was created because of P00005, and it is also mentioned in the source document. 21 4- Also note that the other information such as the dates mentioned in the operation.  Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Last step is to create a vendor bill. The vendor bill will be handled by the accounting team. We can go a see it in the Accounting App→ The BILL/2024/08/0001 Vendors →Bills. bill document is created by the Purchase App but in the Accounting App. It is the link between procurement and finance/accounting. 22 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Last step is to create a vendor bill. The vendor bill will be handled by the accounting team. 23  Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Last step is to create a vendor bill. The vendor bill will be handled by the accounting team. We can register the payment here also (but we will leave it to later). The procurement cycle has ended. We can go to the “Inventory” App → “Reporting” → “Stock”, you will see the related information. 24 Configurations to Look at Purchase order Approval: It will add the access point on confirming the RFQ to be limited for managers (check access rights) depending on the purchase amount Warnings: It will allow adding warning messages when selecting a vendor or a product. Purchase Agreements: It will allow you to be able to do blanket orders and do alternatives (call for tenders) Bill Control: Select to create bill on the ordered quantities or the received quantities 25 Purchase App Training Purchase Course 26 Thank you