Centralized Purchasing |
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Activities ... Accounts Payable ... New Purchase Order
Activities ... Inventory ... New Inventory Transfer
About Centralized Purchasing
Centralized purchasing is an advanced feature used by large companies who have a central or hub-based purchasing system. Once it has been activated (in Setup Accounts Payable), you can then select the particular items you wish to purchase in your main location, by specifying that location on the supertrack inventory record. A process within the purchase order screen allows for the automatic ordering of these goods for more than one location at a time. Once the items arrive in your company, another process within the inventory transfer order screen allows for the automatic transfer of goods from the central receipt location.
In this Topic
When to Use Centralized Purchasing
Q & A - Centralized Purchasing
Related Topics
3.18 Locations
10.1 Vendors
10.2 Purchase Orders
11.1 Supertrack Inventory
12.2 Inventory Transfers
When to Use Centralized Purchasing
Centralized purchasing is an advanced feature used by large companies with multiple physical locations. Many times, these companies receive items in a central location, perhaps the main office of the company, the main store, or the warehouse that a company may use. This location receives inventory for the entire company as a whole, and transfers the items to the other locations as needed.
First, click on Setup...Accounting...Purchasing. Then place a check in the box marked, "Allow centralized location purchasing of inventory." Save your changes.
Next, complete the appropriate options in supertrack inventory, on the vendor tab as follows:
| • | On inventory records for items in remote locations which are ordered centrally, select the "Centralized" purchasing method. Then, select the central location which will receive this item. |
| • | On inventory records for the central location, the "Location Based" purchasing method should be chosen, which will allow entry of vendor information for this item. Minimum Order and Economical Order values will apply to all locations assigned to the central item. |
The AutoFill feature in purchase transactions allows the user logged into the central location to estimate the needs for all locations and complete the transaction accordingly.
When the AutoFill option is chosen, the user will be presented with several options:
Quantities to order should be based on
Determines the basis of quantity to order:
| Maximum Quantity Level | Orders the quantity necessary to reach the maximum. |
| Economical Order Quantity | Orders the economic order quantity. |
| Best Fit | Orders the greater of the two quantities. |
Select inventory items to purchase from primary vendor only
Restricts the program to selecting items whose primary vendor is the currently chosen vendor.
Once the items have been received, the user can then transfer them automatically to each location, based on need. On the transfer form, after completing the From (Central) and To locations, click the Auto Fill button. The program will examine overstock from the central location and transfer any that is needed in the To location. The program will automatically calculate the amount necessary to fill the location to maximum level.
Q & A - Centralized Purchasing
| Q01. | How many locations should I have before I implement centralized purchasing? |
| A01. | The number of locations you have is not important, with the exception that centralized purchasing requires more than one location to work properly. Whether to use centralized purchasing depends more on whether one store will order for all or if each store orders their inventory independently of the others. In the first case, centralized purchasing is desirable, whereas in the second, centralized purchasing is not. |
| Q02. | If I turn on centralized purchasing, do all of my locations have to use it? |
| A02. | No. The decision to use centralized purchasing is item-based. Therefore, you can choose whether or not you want to purchase any single item centrally or on a per location basis. |
| Q03. | I don't see my question here. Where else can I get information? |
| A03. | Visit our website's Technical Support section. |
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