In this chapter, we talked about how to perform procurement activities using ADempiere. There are six points regard procurement activities. They are Purchase Requisition, Purchase Order, Receiving Material, Managing Vendor Invoice, Performing a Vendor Payment, and Reconciling a Vendor Payment.
A standard business process in company, there are activities which need to be done in sequences. For examples, the purchasing staff making a purchased order document based on purchased requisition, the warehouse staff receiving material from the vendor, the accounting staff registering the incoming vendor invoice and making a payment, the production staff creating finished good from the available material, the shipping staff performing the shipment of finished good to the customer, and the accounting staff creating an invoice document for the customer.
But in the other hand, the accounting department has some additional responsibilities, such as entering manual general ledger journal entries for all of documents, recording account payables for existing vendor invoices, and recording account receivables for existing customer invoices.
And from above activities ADempiere creating simplify through the use of the existing ADempiere document. The ADempiere document encapsulates the complexity of each of the business process and provide a window or form to enter data related to the business process.
To know exactly what goes on behind the scenes related to the accounting facts/GL journal activities, we have performed manual document postings. Using this approach, in return, we have learned exactly what the accounting facts/GL journal entries generated are, and when these accounting facts are generated.
Prior to creating a Purchase Order document, we have seen that it’s quite common to first create a Purchase Requisition document. There is an option provided to create the Purchase Requisition document automatically. We have seen that this task can be done by setting up a replenish configuration. We have also seen how to set up the replenish configuration.
We have learned that one of the replenish configuration’s requirement is the availability to set a default price list. With all of this information, we have then created our first requisition document by running the replenish report. Based on the replenish document, we could then generate a Purchase Order document.
Next, we performed a material receipt, vendor invoicing and payment to our vendor and reconciled this payment with our bank statement. These activities generated an accounting fact, and with this, we learned about exactly how and when accounting fact occur.Doc File
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