Procurement Module Guide

The Complete Procurement Process

Understanding the procurement workflow helps streamline purchasing and maintain control over spending.

Standard Procurement Flow:

1. Purchase Requisition: Employee requests items needed
2. Approval: Manager/Department Head approves requisition
3. Request for Quotation (RFQ): Send RFQ to potential vendors
4. Vendor Quotations: Collect quotes from multiple vendors
5. Quotation Comparison: Analyze and compare vendor offers
6. Purchase Order: Create PO for selected vendor
7. Order Tracking: Monitor delivery status
8. Goods Received Note: Record receipt of goods
9. Quality Check: Verify quality and quantity
10. Invoice Processing: Match invoice with PO and GRN

Creating Purchase Requisitions

Purchase Requisitions are internal requests for items or services needed by employees or departments.

Steps to Create a Requisition:

1. Navigate to Procurement → Requisitions → Purchase Requisitions
2. Click + New Requisition
3. Enter requisition details:
   • Requisition Title
   • Requesting Department
   • Required Date (when items are needed)
   • Purpose/Justification
4. Add items:
   • Item Name/Description
   • Quantity Required
   • Unit of Measure
   • Estimated Unit Price
   • Budget Code (if applicable)
   • Specifications or requirements
5. Add multiple items if needed
6. Attach supporting documents (specs, images)
7. Review total estimated value
8. Click Submit for Approval

Requisition Approval Workflow:

• • Requisition goes to Department Head for approval
• • Large amounts may require additional management approval
• • Once approved, procurement team can process
• • Rejected requisitions return to requester with comments

Tracking Requisitions:

• • View status: Draft, Pending Approval, Approved, Rejected
• • Track conversion to RFQ or PO
• • Monitor fulfillment status
• • Generate requisition reports

Creating and Managing RFQs

Request for Quotation allows you to solicit competitive quotes from multiple vendors.

Creating an RFQ:

1. Go to Procurement → Sourcing → Request for Quotations
2. Click + New RFQ
3. Option to create from approved requisition or start fresh
4. Enter RFQ details:
   • RFQ Number (auto-generated)
   • RFQ Date
   • Quote Submission Deadline
   • Delivery Required By Date
5. Add items required:
   • Item Description
   • Quantity
   • Unit of Measure
   • Technical Specifications
   • Quality Standards
6. Select vendors to send RFQ:
   • Choose from registered vendor list
   • Add multiple vendors (minimum 3 recommended)
   • Add vendor contact details
7. Add terms and conditions
8. Attach technical specifications or drawings
9. Review and Send RFQ to vendors

RFQ Features:

• • Email RFQ directly to vendors from system
• • Track which vendors received RFQ
• • Set automatic reminders before deadline
• • Monitor response status
• • Download RFQ as PDF

Recording Vendor Quotations

Capture quotations received from vendors in response to your RFQs.

Entering a Vendor Quotation:

1. Navigate to Procurement → Sourcing → Vendor Quotations
2. Click + New Quotation
3. Link to corresponding RFQ
4. Select vendor
5. Enter quotation details:
   • Vendor Reference Number
   • Quotation Date
   • Valid Until Date
6. Enter item pricing:
   • Unit Price for each item
   • Tax details (GST, etc.)
   • Delivery charges
   • Lead time/delivery period
   • Payment terms offered
7. Add special conditions or notes
8. Upload vendor's quotation document
9. Calculate total quoted amount
10. Click Save

Managing Multiple Quotations:

• • Link all quotations to same RFQ for easy comparison
• • Track quotation status (Received, Under Review, Selected, Rejected)
• • Set validity dates to avoid expired quotes
• • Maintain vendor communication history

Comparing Vendor Quotations

Analyze and compare multiple vendor quotations side-by-side to make informed purchasing decisions.

Using Quotation Comparison:

1. Go to Procurement → Sourcing → Quotation Comparison
2. Select the RFQ to compare
3. System displays all received quotations side-by-side
4. Compare key factors:
   • Unit Prices
   • Total Cost (including taxes and delivery)
   • Lead Time/Delivery Schedule
   • Payment Terms
   • Warranty Offered
   • Vendor Rating/Past Performance
5. System highlights lowest price for each item
6. Add weighted scoring criteria (price, quality, delivery)
7. Select winning vendor
8. Mark quotation as "Selected"
9. Generate comparison report for approvals
10. Proceed to create Purchase Order

Evaluation Criteria:

• ✅ Price: Total cost including all charges
• ✅ Quality: Meets specifications and standards
• ✅ Delivery: Can meet required timeline
• ✅ Payment Terms: Favorable payment conditions
• ✅ Vendor Reliability: Track record and reputation
• ✅ After-Sales Service: Warranty and support

Creating and Managing Purchase Orders

Purchase Orders are formal documents sent to vendors to order goods or services.

Creating a Purchase Order:

1. Navigate to Procurement → Orders → Purchase Orders
2. Click + New Purchase Order
3. Or create from selected vendor quotation
4. Enter PO header details:
   • Vendor Selection
   • PO Date
   • Expected Delivery Date
   • Delivery Address
   • Billing Address
5. Add line items:
   • Item Name/Code
   • Description
   • Quantity Ordered
   • Unit Price (from quotation)
   • Tax Rate
   • Line Total
6. Review totals (excluding tax, tax amount, grand total)
7. Add terms and conditions
8. Set payment terms
9. Add special delivery instructions
10. Attach supporting documents
11. Submit for approval (if required)
12. Once approved, send PO to vendor (email/print)

PO Status Tracking:

• • Draft: PO being prepared
• • Pending Approval: Awaiting management approval
• • Approved: Ready to send to vendor
• • Sent: PO sent to vendor
• • Confirmed: Vendor acknowledged PO
• • Partially Received: Some items received
• • Completed: All items received
• • Cancelled: PO cancelled

Managing Purchase Orders:

• • View all open POs
• • Track delivery schedules
• • Send reminders to vendors
• • Amend POs if needed (before delivery)
• • Cancel POs with vendor agreement
• • Close completed POs

Recording Goods Receipt

GRN is created when you receive goods from vendors, verifying quantity and quality against the purchase order.

Creating a GRN:

1. Go to Procurement → Receiving → Goods Received Notes
2. Click + New GRN
3. Select the related Purchase Order
4. System auto-populates PO items and quantities
5. Enter receipt details:
   • Receipt Date
   • Delivery Note Number (from vendor)
   • Vehicle/Transport Details
   • Received By (employee name)
6. Verify each line item:
   • Ordered Quantity (from PO)
   • Received Quantity (actual count)
   • Accepted Quantity (after quality check)
   • Rejected Quantity (if any defects)
   • Rejection Reason (if applicable)
7. Perform quality inspection
8. Note any damages or discrepancies
9. Take photos if there are issues
10. Upload inspection reports
11. Click Submit GRN
12. Update inventory automatically (for accepted items)

Partial vs. Complete Receipt:

• Partial Receipt: When vendor delivers in batches
  • Create multiple GRNs against same PO
  • Track pending quantities
  • PO remains open until fully received
• Complete Receipt: All ordered items received
  • GRN matches PO quantities
  • PO status changes to "Completed"
  • Triggers invoice processing

Handling Rejections:

1. Record rejected quantity in GRN
2. Select rejection reason (Damaged, Wrong Item, Quality Issue)
3. Take photos of defective items
4. Notify vendor immediately
5. Create Purchase Return document
6. Arrange for return pickup
7. Request replacement or credit note

Using Procurement Quick Actions

Quick Actions provide shortcuts to frequently used procurement tasks.

Available Quick Actions:

• • New Requisition: Create purchase requisition quickly
• • New RFQ: Start request for quotation process
• • New PO: Create purchase order directly
• • New GRN: Record goods receipt