Why “Purchase Module” in ERP Software is Important..?
The ERP software has several modules and each module is important in its own functions. Now coming to the Purchase Module in ERP, for any Manufacturing Industries the purchase department plays a very vital role. The main concept behind the functionalities of a purchase module is that all the purchase made is official and transparent with necessary documents. Hence it eliminates any fraud or disputes between the employees and the organization.
Not only is it transparent but also follows the exact requirements needed to be purchased. The employees can raise the request for a raw material only when it has reached its minimum quantity level. They have the option to negotiate with several suppliers and get the quotations. But only the person in charge of the department has rights to approve it. This eliminates any unnecessary expenditures over buying more than required.
Now let us see some of the features under the purchase module in ERP.
Purchase requisition : The employees can request for any new purchase to be made through this feature, which is to be approved by the department head.
Supplier quotation : If the employee feels paying higher for the materials bought, he has the option to go for a different vendor and get the best quotation.
Purchase order : Purchase order is a document containing the information about the quantity of raw materials and the respective supplier details.
Inward Outward Analysis : This analysis gives the details of raw materials quantity, the amount that has been used for production vs the remaining in the stock.
Quotation Comparison : Since all the purchases and transactions are transparent, you can analyze various quotations helping you to make cost effective decisions the next time you purchase.
Purchase – Target Vs Actual : This report gives you the details of the overall quantity of items purchased vs the pending quantity from the target assigned.
Non Moving Item : Some raw materials can be available in stock for a long period without selling. These can be recycled and used for any other productions.
Using these features can benefit your organization in many ways. Let me list down a few,
- Since all the purchases are done through the software, there is no chance of fraud or duplication of materials.
- The documents are electronically generated and easy to cross verify instead of searching the hardcopy of bills and documents.
- The minimum quantity of raw materials are maintained avoiding any last minute hassles.
- The employees can go for various supplier quotations to check for best pricing thus saving cost.
- The cloud software makes it easy for the department head to give approvals on the go. This saves time and the employee need not wait for a long period.
- Since this module assists with the right amount of purchase to be made at the right time, it helps the organization in seeing good profits.