Rootstock Purchase Order Management provides for the entry and tracking of purchase orders for direct and indirect materials and services. This is supported throughout the entire purchasing process, from generation of the requisition through receiving of materials or approval of service provided including accounts payable integration. Rootstock also maintains all vendor information and reporting required by buying organizations to make better-informed purchasing decisions.
Purchase Requisitions for Direct Materials
Requisitions for direct materials can be manually entered or automatically generated by the Material Requirements Planning (MRP) or the Requirements Planning (RP) application as it identifies demands that are not being met by scheduled supply orders. Requisitions created by MRP or RP are based on the part’s purchasing parameters (i.e. lead times, planning policies, safety stock level, etc.) and entered in ‘planned’ status. A material planner or purchasing agent must firm these requisitions before becoming available for conversion to purchase orders once approved.
Purchase Requisitions for Indirect Materials and Services
Purchase requisitions for indirect materials and services are also supported by Rootstock Purchase Order Management. An employee manually enters requisitions for indirect materials or services. Once approved, these can be converted to either a purchase order or can be designated as an employee reimbursable expense.
Purchase Order Control
Rootstock Purchase Order Management provides critical, centralized control over direct material, indirect material, and service tracking as well as vendor performance. Inventory and non-inventory purchased items and services can be consolidated on a single purchase order. Purchase requisitions can be converted to new purchase orders or placed as line items on existing orders. Additional items can be added to open orders, providing purchasing flexibility and efficiency. Buyers can make decisions on purchase order quantities and due dates supported by price and delivery history for approved vendors. Comprehensive purchase revision control management capabilities are also included as well as Purchase Order approvals.
PO – AP Match Process
The Rootstock PO–AP Match Process begins with the matching of PO Receipts to Vendor Invoices. Once this matching is completed, Payable Invoices will be created when a batch is closed.
Payables Invoice Process
The Rootstock Payables Invoice Process begins with the Rootstock PO–AP Match process. Once receipts are matched to Vendor Invoices as a batch, the PO–AP Match Close will create the Payable Invoices.
With Rootstock, buyers can easily associate vendors with purchased parts. This allows for the retrieval of all open requisitions for an item and simultaneously reviews the approved vendors. Buyers can then make their decisions on purchase order quantities and due dates, having considered the lead times and delivery history of the vendors.
Material receiving capabilities include complete order access/review, receiving history for each item, including quantity ordered, outstanding and due. The application provides an automatic warning if a transaction will cause an over receipt or if the material arrives early. Parts can also be received to an inspection or other inventory locations. Receipts are then automatically posted to an accrued Accounts Payable account.
Rootstock delivers full purchasing reporting and analysis capabilities including purchase requisition, open purchase order, shortage, expedite and vendor performance reports. This provides the information needed by the buying organization to communicate effectively with vendors and make better business decisions on vendor selection, pricing, delivery dates, and quantities.
Rootstock Replenishment Planning (RP) is the software engine that will use the sales order and forecast demands in conjunction and by reviewing item inventory balances will generate planned supplies in a time phase manner to offset the outstanding demands for Products being sold (or forecasted sales).
Specifically, RP generates what are termed planned purchase requisitions for purchase or subcontract items. For firmed (or greater supplies) it generates reschedule or excess messages when, and if, appropriate.
Rootstock Replenishment Planning (RP) uses information from Sales Order Management to drive the Product level demands. Forecast demands, for not only these end items can be entered as well. A forecast demand for an item denotes the start period date and the end period date and the quantity forecasted for that period. RP will perform the traditional ‘netting’ and plan to the greater of the Sales Order Demand and Forecast demand (by period).
The RP Engine uses the typical algorithms in the industry and review the demands and safety stock requirements netting out the inventory and firmed (or greater) supplies and first suggest reschedules for firmed (or greater) supplies and then create planned supplies as appropriate.
RP can be planned by division (P&L entity) and by site (DC) as well as by project (in those divisions where project control is applicable). It uses planning policies such as ‘lot for lot’ or days cover. For a requisition it will determine the scheduled firm date, purchase order place date, date it is due on the receiving dock as well as the due date it is to be stocked. For those parts identified as items to be planned using “re-order” point logic, the RP engine can also perform re-order point computations rather the balancing of demands and supplies.