Purchasing Guides

Master the art of procurement with flexible workflows designed for real-world business scenarios.

🚀 Get Started / Setup

New to purchasing in BigLedger? Start with the standard workflow to learn the full procurement cycle.

Before you begin, ensure:

• Supplier master data is configured in Supplier Maintenance
• Inventory items are set up in Item Maintenance
• Chart of accounts includes purchase expense and tax accounts
• Approval workflows and limits are defined

📝 Daily Tasks

Guides for everyday purchasing operations your team performs.

Standard Workflows

Special Scenarios

⚠️ Common Scenarios / Pitfalls

Watch out for these frequent purchasing issues:

📊 Reporting Usage

Track your procurement performance and spending health.

Key Purchasing Reports:

• PO Status Report — All POs by status (Draft, Approved, Partial, Complete)
• GRN Pending Report — Outstanding goods not yet received
• Invoice Aging Report — Unpaid supplier invoices by age
• Purchase by Supplier — Spend analysis by supplier
• Purchase by Item — Item-level procurement analysis
• Three-Way Matching Report — Match status across PO, GRN, and Invoice

Reporting tips:

• Check GRN Pending weekly to follow up on late deliveries
• Review Invoice Aging to manage cash flow and payment scheduling
• Use Supplier Spend analysis quarterly for contract negotiations
• Monitor three-way matching rate to identify process issues

Core Purchasing Concepts

Three-Way Matching

The standard procurement process uses three-way matching to ensure accuracy:

1. Purchase Order (PO) - What you ordered and the agreed price
2. Goods Received Note (GRN) - What you actually received
3. Purchase Invoice - What the supplier is charging you

The system automatically compares these three documents to identify:

• Quantity discrepancies (ordered 100, received 95)
• Price differences (agreed $10, invoiced $12)
• Missing items or over-deliveries

Document Flow Overview

Standard Flow:
Purchase Requisition → Purchase Order → Goods Receipt → Purchase Invoice → Payment
     (Optional)          (Required)       (Required)        (Required)      (Required)

Simplified Flows:
Direct GRN: Goods Receipt → Purchase Invoice → Payment
Direct Invoice: Purchase Invoice → Payment

Key User Roles

Different team members handle different parts of the purchasing process:

Purchasing Admin

• Creates and manages purchase orders
• Coordinates with suppliers
• Manages supplier relationships
• Monitors procurement compliance

Warehouse Staff

• Receives goods deliveries
• Verifies quantities and quality
• Scans serial numbers
• Updates stock locations
• Creates goods received notes

Accounts Payable

• Processes supplier invoices
• Performs three-way matching
• Handles payment processing
• Resolves invoice discrepancies
• Maintains supplier accounts

Essential Setup Requirements

Before processing purchases, ensure these are configured:

1. Supplier Master Data

• Supplier accounts with complete information
• Payment terms and conditions
• Tax registration details
• Bank account information
• Contact persons and communication channels

2. Inventory Items

• Item master data for purchased goods
• Default suppliers and lead times
• Reorder points and quantities
• Standard costs and price history
• Storage locations and bin allocations

3. Chart of Accounts

• Purchase expense accounts
• Asset accounts for capital items
• Tax accounts (input tax/VAT)
• Accrual accounts for goods-in-transit
• Prepayment accounts

4. System Configuration

• Approval workflows and limits
• Document numbering sequences
• Default tax codes
• Tolerance levels for matching
• Notification settings

Integration with Other Modules

Purchasing integrates seamlessly with:

• Inventory Module - Stock updates and warehouse management
• Financial Accounting Module - Purchase accounting and AP
• Fixed Assets Module - Capital equipment purchases
• Project Accounting Module - Project-specific procurement

Document Management

Every purchasing transaction requires proper documentation:

Documents to Upload

• Purchase Orders - Original PO sent to supplier
• Delivery Orders (DO) - Supplier’s delivery note
• Packing Lists - Detailed item listing
• Purchase Invoices - Supplier’s invoice
• Quality Certificates - For regulated items
• Inspection Reports - Quality control documentation

Common Purchasing Scenarios

Scenario 1: Regular Inventory Replenishment

Workflow: Standard Procurement Process: Create PO from reorder point → Receive goods → Match invoice → Pay supplier

Scenario 2: Emergency Purchase from Local Supplier

Workflow: Direct GRN Process: Purchase goods → Bring to warehouse → Create GRN → Enter invoice → Pay

Scenario 3: Professional Services

Workflow: Direct Invoice Process: Receive service invoice → Review and approve → Process payment

Scenario 4: Import with Prepayment

Workflow: Invoice-First Process: Receive proforma invoice → Make prepayment → Track shipment → Receive goods → Settle final invoice

Scenario 5: Consignment Stock Agreement

Workflow: Consignment Purchasing Process: Receive consignment goods → Use items as needed → Process monthly consumption invoice

Approval Hierarchies

Configure approval limits based on purchase value and type:

Key Performance Indicators

Track these metrics to optimize purchasing:

Efficiency Metrics

• PO Processing Time - Time from requisition to PO issuance
• Receipt Accuracy - Percentage of GRNs matching PO
• Invoice Matching Rate - Percentage of clean three-way matches
• Approval Cycle Time - Average time in approval workflow

Financial Metrics

• Cost Savings - Negotiated savings vs. list price
• Payment Terms Compliance - Early payment discount capture
• Invoice Error Rate - Percentage requiring adjustment
• Supplier Performance - On-time delivery and quality metrics

Compliance Metrics

• PO Coverage - Percentage of spend with PO
• Contract Compliance - Purchases under contract
• Audit Trail Completeness - Documents attached to transactions
• Approval Compliance - Purchases within approval limits

Common Issues and Solutions

Issue: Partial Deliveries

Solution: Use the Standard Procurement Workflow. Create GRN for received quantity, keep PO open for balance.

Issue: Price Changed Since PO

Solution: If within tolerance, accept invoice. If significant, get approval before processing.

Issue: Goods Damaged in Transit

Solution: Create GRN for good items, reject damaged items, request credit note from supplier.

Issue: Invoice Lost or Delayed

Solution: Track outstanding GRNs, follow up with supplier, accrue for month-end close.

Issue: Urgent Purchase After Hours

Solution: Use Direct GRN workflow, document reason, get retrospective approval.

Next Steps

For Daily Operations

Explore the detailed daily task guides:

• Purchasing Overview - Quick reference for daily purchasing
• Creating Purchase Orders - Detailed PO creation guide
• Goods Received Note - GRN processing procedures
• Purchase Invoice Processing - Invoice matching and approval

For Implementation

Review the module documentation:

• Purchasing Module Overview - Complete module capabilities
• Supplier Maintenance - Supplier master data setup
• Inventory Item Maintenance - Item master for purchasing