Procure to Pay Process

Procure to Pay Process

The procurement process in Sandbox is essentially 4 steps.  Other internal steps may be added for sourcing, quoting, and approval, but this is how the base process flows.

Purchase Order
▶
Receiving
▶
Purchase Invoice
▶
Payment


Purchase Order

The supplier Purchase Order (PO) is the event/document that will order product to fulfill stock requirements or customer orders.  Supplier POs can be created by three different methods;  
  1. direct entry from Purchase Order screen 
  2. from a Work Order where at least one line item is set to source from purchase
  3. through Inventory Replenishment 

Once created, the products on the PO will show as on order.  Any procured POs from Work Orders will show as sold and reduce the Available To Promise (ATP).  For example, two POs are created for a particular product;
  1. 5 purchased for stock - added to On Order
  2. 3 purchased from a work order - added to On Order, but marked as sold and reduce the ATP - essentially reserving the product

When all POs are received On Hand will be 8, sold will still be 3, on Order will be 0, and ATP will be 5.  When the work order is processed, then On Hand will go to 5, sold to 0, and ATP will also be 5.


Purchase Order Receipt

When the product arrives from the above Purchase Orders, it will need to be received into inventory.  This is done by creating a receipt for the product based off the packing slip.  This will allow you to confirm product and quantity to the delivery.  You are likely to be billed the same as what is on the packing slip so make sure this is accurate and discrepancies are noted.  If you are short shipped only receive what was delivered and the purchaser will need to follow up with the supplier. 

Once the PO is fully received it will go into close staged.  If only partially received it will stay open for future receipts or in the case above  (short shipped) waiting for discrepancy to be dealt with.


Purchase Invoice


When the supplier invoice arrives a purchase invoice can be created in the system.   This will be generated from the receipt for full shipments or when the supplier invoices partial shipments according to their packing slip.  Invoices that cover multiple shipments/receipts can have the purchase invoice created from the purchase order.  

Any changes to the costs and freight can be updated on the receipts and the tax, if slightly off due to calculation methods, can be adjusted on the purchase invoice.  Once saved this will add an entry into payables for payment.



Payment

All supplier invoices that have been generated by the above step will listed in Payables for payment by preferred method (EFT, Cheque, etc.) within agreed upon payment terms.



 


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