Overview

The scenario covers the processes of purchasing goods that are not normally used in manufacturing as materials or in sales as trading goods but stored to use them later for general and supporting activities. Numerous consumable goods are purchased and not immediately transferred to the consuming unit but put away into a warehouse and consumed over a period of time.

The cost of goods may include purchasing costs as well as procurement costs, such as custom fees, transportation, storage services, and other.

The goods are normally consumed as an indirect expense, charged to the expense item and dimension: a business unit, a cost center, a line of business, and other.

This scenario can be applied for purchases of office supplies, IT equipment (if not an asset), or for maintenance materials and spare parts.

Purchase indirect materials stored in warehouses flowchart

Links to User Guide

• Maintain inventory replenishment parameters
• Generate replenishment-driven purchase orders
• Define delivery terms
• Fill in vendor prices
• Fill in vendor payment terms
• Carry out internal approval
• Follow up purchase order progress
• Process purchase order confirmation
• Process vendor invoices by purchase orders

Links to Setup Guide

• Items
• Distribution warehouse structure
• Basic warehouse operations
• Transport delivery
• Basic purchase operations
• Basic material supply
• Assigned material supply
• VAT accounting