Purchasing Guides

Master the art of procurement with flexible workflows designed for real-world business scenarios. Not every purchase follows the same path, and BigLedger supports multiple purchasing approaches to match your business needs.

Understanding Purchasing Workflows

Different businesses require different purchasing approaches based on their industry, supplier relationships, and operational requirements. BigLedger provides flexibility to handle:

• Full procurement cycle with purchase orders, goods receipt, and invoice matching
• Simplified workflows that skip unnecessary steps
• Special scenarios like consignment stock and prepayments
• Emergency purchases requiring expedited processing

Available Purchasing Workflows

Standard Workflows

Special Scenarios

Workflow Selection Guide

Choose the right workflow for your situation:

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