In this program, Ehors will advise how much quantity you should order, and the calculation is based on the stock locations that have a status count in PA “Yes” (refer to the program stock location management under item management). Count in PA “Yes” is a stock location that behaves as a distribution center, stock in that location will be counted in the column actual stock when you run the purchase advice). If the actual stock is lower than the minimum stock, even if there are no requisition Ehors will still show this item in the Purchase advice to take care that the minimum stock level will be reached. Only approved items that need to be purchased will be displayed in the purchase advice program.
Purchase Advice Formula: MIN Stock - (actual stock - SR requested+SR Rec+ PO Ordered - Po Receive)/PM = equal to PA qty
Items used in the example
| Item Name | PM | SM | CM |
|---|---|---|---|
| Coca-cola | Case (24) | Can (1) | Can (1) |
| Body Lotion | Btl(1) | Btl (1) | Btl(1) |
| ITEM NAME | ACTUAL STOCK | SR REQ | SR REC | PO ORDERED | PO RECEIVE | MIN. STOCK | PM | ADVICED PURCHASE QTY | EXPLANATION |
|---|---|---|---|---|---|---|---|---|---|
| Coca Cola | 24 | 24 | 12 | 24 | Case(24) | 1 | Formula: 24-(24-24+12+0-0)/ 24 = .5 In this example, Ehors advice is to order 1case as most of the suppliers do not allow you to order half. So PA qty is always a whole number. | ||
| Body Lotion | 12 | 15 | 12 | 2 | 1 | 20 | Btl(1) | 10 | Formula: 20-(12-15+12+2-1)/ 1= 10 |
The purchaser can always order higher than the Purchase Advice quantity. The purchaser is not allowed to increase the qty from the EDIT SR button but is allowed to decrease the qty.
To Create PO
Create PO is not the generation of the PO yet. This is the draft that still requires approval before you can finally process the PO.
- In purchase advice, you have 3 options to find the items that need to be purchase. You can search for all items, category or By Item. The items will be shown based on the selected filter.
- Select the item that you want to purchase. The selected item doesn't have SR req qty, but it shows in the Purchase advice automatically. This means that the item reached the min par stock level.
- If you want to check who requested the item, click on the "Edit SR" button. From the "Edit SR" the purchaser is allowed to decrease the requested qty and is allowed to change status or remove the item. If the item is removed by the purchaser the status of the item will change to refused.
- If the item is removed from the edit SR button and the item is partially ordered and partially distributed send and received. That SR will no longer appear in the stock distribution program.
- If you want to see the overview of the stock location of the requested item, click on the "stock location" button.
- The purchaser can add or check any document linked to that item by clicking the "external directory". Files can be added through links only.
6. Create PO: When everything is okay, click the button "Create PO".
7. Tick the box, enter the exact qty, change the currency if needed. Change the price if the price is incorrect. Click submit when done. Follow the same flow for the next item.
