In this issue of Back to Basics we are going to look at the material ordering processes.

Why do we need a procedure for ordering?

The basic process for ordering materials and services is to raise an order, select the goods you wish to be supplied or enter the service to be performed and then give the order to the supplier. In doing this the supplier has a clear understanding on what they are to supply to you and also you have a clear indication on what you have asked for and expecting. The order is also optionally raised against a job to help ensure parts are not missed/forgotten or simply not costed against anything and lost! Items bought for stock also helps ensure accurate stock control. Information about stock control can be found in one of my previous articles titled “Stock Control for Year End”.

How do I order materials?

Though there are many ways an order can be created and different types of orders that can be made, I am going to stick with three situations as examples.

1. Raising an order from scratch and choosing parts I wish to order for an upcoming job

2. Raising and order for materials quoted for on a job

3. Creating an order number for a technician that needs to drop into a supplier whilst on the road

Situation 1 – Raising an order from scratch

To create a purchase order, go to Projects > Orders > Create Order > Catalogue

When entering the details of the order in the top section, the two most important items to fill in is the supplier and assigned to (see Figure 1). This means ‘Who are you buying it from? And ‘Where is it going to?’ Optional items include a reference number or maybe you might want to have a due date on it for the supplier to deliver it to the office the day before the job. If you are running multiple stock control (that is, have more than one storage device) you will also need to selection a ‘Default Location’.

Once these details are entered, go to the ‘Catalogue Tab’

Figure 1

Once in the ‘Catalogue Tab’ (see Figure 2) search for the part you wish to order using the search terms field or alternatively you can click through the categories and sections of parts to locate the correct part. Once you have located the part you wish to order, put in a quantity (you can just tick for just 1) then click the include button. You can continue to search and include until you have all the parts you wish to order.

Figure 2

Once you have selected all the items you wish to order, click back on the “Order” Tab you can now see the part has been added to the order. Near the bottom on the order you can select a delivery address or even add a script (Admin > Setup > Scripts) for things like “To be ready by 8am for Pick Up”

Figure 3

When happy all you need to do is click submit then you can print or email the order to the supplier!

Situation 2 – Ordering the materials that were quoted on a job

To order materials from within a job go into the department of the job that you wish to order materials for and click on the “Materials Tab” on the right hand side. Under this tab you can see the list of materials required for the job. You can also see if the parts have been ordered or assigned to the job where the yellow arrow is pointing. To create an order for these parts click “Order Materials”

Figure 4

Next you can select what type of order you would like. These options basically mean what would you like to do with the parts on the job? `Blank’ means don’t bring them across onto an order, `Stock Still Needed’ will order the materials you need minus the items you already have in stock, `PO Number’ will just create a PO number to give to a supplier, and the option we will use is `All Stock’ meaning bring all the parts required across onto an order.

Figure 5

You can now see all the parts have automatically been added to a purchase order (see Figure 6). The default supplier for the parts has been selected against each part and the order has been locked to that job. All that needs to be done is add a storage location, maybe a due date or some delivery notes then click submit.

Figure 6

Back on the job you can now see the parts are assigned.

Figure 7

Situation 3 – Quickly creating a PO Number

Lastly I want to show you how to quickly be able to create a purchase order number while the technician is en-route or at the wholesaler picking up some parts to get the job finished. You don’t want to record the parts or prices – just give him a number to tie to the job.

For this go to Projects > Orders > Create PO Number

Figure 8

Here I can again select the two most important parts of a PO. The supplier and the job. So the questions to ask the technician are, “Where are you going?” And “What’s it for?” I have also added a few notes to the order for when later I add the parts to the order when I get the supplier invoice.

Once the deliver docket or invoice comes in, then I can the parts & prices to the PO which will update into the job.

Easy!

Sum it up

With purchase ordering, not only do you get control of who is buying what on accounts but also assurance that parts and costs are correctly going to jobs. Also a good purchasing ordering procedure will help in getting that stock under control and provide accurate information on what is sitting in the van and warehouse.

For more information or to arrange onsite training on purchase ordering please contact simPRO on 1300 139 467