With the application, you can register goods purchases from various suppliers, track delivery time, control cash outflow and timely payments to suppliers.
The application also allows you to register discrepancies on goods receiving, analyze reasons of supply failures, and consider additional services and expenses in case of goods supply.
Purchase registration process can be shown as follows.
This diagram shows all the purchase registration steps from purchase condition registration (supplier prices, payment conditions, etc.) to possible return of low-quality goods to supplier.
With the application, you can use simplified purchasing schemes. For example, you may not register purchase conditions and a preliminary purchase order in case of a one-time goods delivery but register goods delivery to a warehouse using the Purchase of goods and services document.
Registration of purchase terms and conditions allows you to solve the following business tasks:
- Keep information on suppliers up-to-date
- Store, analyze, and compare terms and conditions of work with suppliers
- Limit the authority for variance from approved goods purchase conditions
- Store supplier prices
- Select the best prices and purchase conditions
- Keep records of supplier products (mapping the supplier products and own products manually or automatically)
- Register contracts concluded with suppliers
- Drill down accounts payable: summary analysis (by orders, contracts) and detailed analysis (by invoices).
Purchase terms agreements
To view the list of suppliers (partners filtered by the Supplier attribute, click Purchases –Suppliers. Enter documents on the basis to register contracts with suppliers and purchase documents from the list of suppliers.
Supplier conditions are recorded in the agreement with supplier (Purchases – Purchase master data). You can enable usage of agreements with suppliers in Master data and settings – Master data and sections – Purchases – Agreements and contracts with suppliers – Agreements with suppliers.
Purchase terms and conditions are registered on the matching tab in the agreement.
Purchase conditions specified in the agreement with supplier are used to automatically fill in source documents and control purchase conditions variance from those agreed with the supplier. It is optional to use agreements and specify them in the source documents. For example, you can register one-time goods delivery without specifying the agreement.
You should determine payment terms and procedure in the agreement with supplier.
The supplier can deliver goods on the terms of prepayment, on credit basis for a specified period of time, or with an option of stage payments. The following payment options are used by default: Prepayment and/or credit. To use stage payment, select Arbitrary number of payment steps in Master data and settings – Master data and sections – Purchases – Purchase documents – Payment terms and procedure.
Payment terms specified in the agreement are used as default values when registering purchase documents under the agreement and can be changed directly in the purchase documents.
Supplier price policy is defined in the agreement. You should specify the price type (supplier price list column) that will be used when registering documents under the agreement. Supplier prices (supplier price list) are registered regardless of the agreement.
To control prices in the purchase documents, select agreement with Prohibit purchases for higher prices than those specified in the agreement attribute. Maximum discount and markup rate specified in the agreement allows you to manage the rate of variance from supplier prices. You can post a delivery with different prices, discounts, and markups either if you are authorized to vary from purchase conditions, or after approval of purchase price conditions.
You can also control purchase prices in accordance with maximum purchase prices. You can select any price type as a maximum purchase price, for example, average price of purchase from the supplier or goods cost. You should define the maximum purchase price and its calculation formula. To do so, click CRM and marketing – Settings and catalogs – Prices and discounts – Price types). In the Price types list, click Configure range of allowable prices to set the selected price as a maximum purchase price.
In the agreement with supplier, you can specify the goods delivery time. Delivery time must be set in days. Delivery time is used to calculate expected delivery date (Required receipt date) when registering a purchase order.
Warehouse specified in the agreement defines a warehouse to which the goods receipt from supplier is registered. Information on the warehouse is filled out in the documents registered under the agreement. If the warehouse is not registered in the agreement, specify it when registering a purchase document.
After you fill in all delivery conditions, the agreement is approved by management and supplier. After that, a Valid status is set and validity period is specified.
In most cases, you should specify products when registering source documents you got from the supplier (purchase invoice, price lists, etc.) Sometimes goods name in the supplier documents does not match the goods name in the Products list. It is particularly relevant when EDI is used.
To resolve a conflict, use the Supplier products list which is subordinate to the Partners (Suppliers) list. To use this list, enable Supplier products by clicking Master data and settings – Master data and sections – Products – Additional information – Supplier products.
The list is available in the supplier profile by clicking More – Supplier products. In the Supplier products list, you can define correspondence between the information on product item according to supplier and those of the company.
When entering products according to supplier information, you can select a matching substitute product from the Products list. After the item of the Supplier products list is saved, it will be synchronized and you can use it later.
Information on supplier products is used when registering supplier prices and delivery documents. You can map company products and supplier products in the delivery documents.
In the Name field and Supplier data field group, specify goods information in terms of the supplier. Data is registered in the Supplier products register.
In the Products field of the Product correspondence group, information on goods in the infobase is specified. Data is registered in the Products catalog.
You can use another mapping option. In the delivery document, in the Supplier products and Product fields, information is filled in from corresponding lists independently.
After the delivery document is saved, supplier products will be automatically mapped with infobase products of the company (information will be written to the Compliance with products fields).
If there is no need to carry out mapping automatically, select the Do not check mapping check box in the More command group.
Using supplier products allows you to select goods according to names used by supplier and generate print forms of purchase documents in the terms of the supplier.
In the application, you can register any number of price types (supplier price list column) for each supplier. New price types (supplier price list column) are added during supplier price registration.
There are several ways to register supplier prices in the application:
- Supplier prices (price lists) workplace. Supplier prices are registered with the Supplier price registration document.
- Automatically when posting delivery documents (Purchase of goods and services or Purchase order).
Registering supplier prices using the "Supplier prices (price lists)" workplace
To register supplier prices, click Purchases – Purchase master data – Supplier prices (price lists).
To view and register prices, select a supplier, and then click Generate.
On the Product filter tab, you can set filter parameters for price registration. If supplier products are used, you can quickly filter by supplier product groups.
Filter by separate items and parameters (for example, by product ID) is available if you use advanced filter mode (Advanced view).
You can view and edit prices manually in the Supplier prices (price lists) workplace. The icon is displayed for the edited price.
For each selected line, you can see a status bar (markup rate, markup amount).
To display additional columns by markup amount and markup rate, click Customize.
You can import prices from an external file by clicking Import from external file. Files are imported with using a wizard.
At the first step of the wizard, copy prices, names and product IDs specified in the external file to the corresponding columns. Click Select price types to refine the list of imported supplier price list columns and add new price types (price list columns).
When importing supplier product items, new items are automatically mapped with the product items in the infobase.
Automatic mapping is performed as follows:
- If there is a product registered in the infobase for the supplier product or the products are already mapped, the product item will be filled in automatically.
- If no mapping was carried out, the search by product ID and product name will be performed in the infobase. If there is 100% match for at least one field (product ID or name), the item mapping will be carried out.
Skipped during registration will be indicated for unmapped items.
You can leave only unmapped items in the list and map these items manually. Without closing the wizard, you can create new product items and map them with supplier product items.
Supplier prices will be registered only for product items that were mapped with infobase product items.
With the application, you can import prices from the price list published on the supplier website. To do this, use an external data processor. You can find an example of such data processor in the demo database included into 1C:ERP delivery set by clicking Purchases – Additional data processors. Import of goods information from 1C Company price list is given as an example.
When you import supplier price list again, use the mode showing previous prices. In this case, you can see change rate of supplier prices.
To register supplier prices, click Apply changed prices. The Supplier price registration document will be generated automatically. To view the previously created Supplier price registration documents, run the Supplier prices (price lists) workplace, and then click Price change history.
In the Price change history list, you can view existing documents and enter a new Supplier price registration document.
You can register several supplier price types (price list columns) in one Supplier price registration document. To change price type list, click Proceed to change the content of price types.
Automatic supplier price registration when posting delivery documents
To register supplier prices automatically when registering goods delivery in the Purchase order and Purchase of goods and services documents, select the Register supplier prices automatically check box. This check box allows you to set prices form delivery documents as new values of purchase prices.
You can select the check box of automatic price registration in the agreement. The check box will be selected automatically in documents registered under this agreement.
Price values specified in the delivery document will be registered during document posting. The prices will be registered by price type specified in the tabular section of the document. If you register prices for the first time, you can add the price type (price list column) during delivery document registration.
Registering competitor prices
In the application, you can register not only prices of your suppliers, but also prices of competitors.
Enable competitor price registration in Master data and settings – Master data and sections – CRM and marketing – Marketing – Competitive intelligence.
Competitor prices can be registered in the CRM and marketing – Marketing – Competitor prices (price lists) workplace the same way as supplier prices.
Select the Competitor check box for the partner who is a competitor. Select the Available for customers (supplier is a competitor) check box for the price types used for competitor price registration.
Contracts with suppliers
To use agreements with suppliers in the application, select Master data and settings – Master data and sections – Purchases – Agreements and contracts with suppliers – Agreements with suppliers.
The Contracts with suppliers list (Purchases section) is for keeping contracts with suppliers.
The contract includes information about the parties who signed it (company, counterparty, bank accounts) and settlement parameters. In the contract card, you can keep the text of the contract and other related data in electronic form.
The main difference between a contract and an agreement is that the agreement stipulates overall rules of work with supplier whereas the contract contains parameters of a specific legally binding document that already exists.
It is required to fill in a contract in the source documents if it is specified in the agreement, and if the Use uninvoiced deliveries or Goods on the way option is enabled. There is no direct connection between agreements and contracts, which means that you can specify any contract of relevant type within the agreement.
In the contract with supplier, specify goods receiving conditions at advanced warehouse (issue of purchase invoices and goods receiving to warehouse are separated). Select respective radio buttons to configure the setting: Receipt registration is available and Goods receiving.
When entering a new contract, the After goods receipt registration receiving option is set by default with division by documents. For more information on receipt registration scenarios at advanced warehouse, see chapter "Warehouse".
Accounts payable procedure
Accounts payable procedure as well as other purchase terms and conditions are defined in the agreement. If you select that contract is required, payment terms will be defined by contract parameters. If the agreement is not specified in the source documents, the delivery document becomes a settlement object.
Depending on the user needs or purchase conditions set by partners, settlements with suppliers can be made with details till the following accounting objects:
- Purchase order
- Purchase invoice
You can use settlements by contract if there is enough general information on settlements under the certain contract.
If you use purchase orders, you can use them as a settlement object. In this case, you will have exact information on settlements under each purchase order.
If purchase orders or contracts are not applied or you allocate payments and inpayments by documents manually, you can use settlements "by invoices". If you select settlements by contract or purchase order, payments will be allocated to invoices within the settlement object automatically using the FIFO method. Payments are allocated automatically with the help of the Execute deferred movements of settlements with partners scheduled job. The job is processed automatically when accessing debt control reports or running Month-end closing data processor.
If you do not know what payment method is used when recording payment documents, settlement object can be left blank (available advance payment). Further on you can use payment offset against previously paid available advance payments when registering purchase orders and invoices.
All reports that help analyze and compare goods purchase conditions are available in Purchases – Purchasing reports - Purchase conditions.
The Purchase conditions report is used to compare and analyze price terms of the goods purchase.
The Product price indexes report shows information on the change of supplier prices and company prices during the specified period of time. The report is used to evaluate effectiveness of purchasing price regulation and estimate cost cutting by optimizing the price policy during purchases.
You can calculate product price indexes drilled down by suppliers from whom the goods were purchased by using the Supplier price indexes report.