Stock locations Database setup

83 3. Generate a purchase invoice. 4. Pay your supplier. Following this, you will sell some of these products, using this sequence: 1. Receive a sales order for 6 Titanium Alloy Radiators from Smith and Sons, sold at a unit price of 130.00. 2. Despatch the products. 3. Invoice the customer. 4. Receive the payment.

8.6.1 Purchase Order

To place a Purchase Order with your supplier, use the menu Purchases → Purchase Management → Purchase Orders and click on New button. Complete the following field: • Supplier : Plumbing Component Suppliers . As you complete the Supplier field, Open ERP automatically completes the Address field and the Price List field from information it takes out of the Partner record. Enter the following information • Product : Titanium Alloy Radiator - type in part of this name then press the tab key to complete it, or click the Search icon at the end of the line to bring a search box. if product is previously configured When you have selected a product on the product line, Open ERP automatically completes the following fields from information it finds in the Product record: • Product UOM : the unit of measure for this product, • Description : the detailed description of the product, • Scheduled date : based on the product lead time, • Unit price : the unit price of the product, • Analytic account : if any account is specified then it will appear on the order line it is not in this example, • Taxes : applicable taxes defined in the partner, if specified, otherwise in the product, if specified there are not any in this example. You can edit any of these fields to suit the requirements of the purchase order at the time of entry. Change the: • Quantity : 10, • Unit Price to 56.00. Save the order line and close the Order Line window by clicking the Close button. You can then confirm the whole one-line order by clicking Save, which makes the form non-editable. It is now in a state of Request for Quotation, so click Convert to Purchase Order, which corresponds to an approval from a manager or from Accounts within your own company and moves the order into Confirmedstate. Finally click Approved by Supplier to indicate the supplier’s acknowledgment of the order. The order becomes Approved . If you click the Delivery Invoices tab you will see the delivery Destination is your own company’s Stock location and that the invoice was created from the order. It is not entirely obvious at this stage, but the invoice is in a draft state so it can be edited and, crucially, has no accounting impact yet: it is just ready for your accounting group to activate it. 84

8.6.2 Receiving Goods

After confirming the order you would wait for the delivery of the products from your supplier. Typically this would be somebody in Stores, who would: 1. Open the menu Warehouse → Warehouse Management → Incoming Shipments using the expandcollapse icon. Note: From the Purchase Order You could have clicked the Receptions link to the right of the Purchase Order to reach the same screen, but this would confuse the purchasing role with the stores role. That link is very useful during testing and training, however. 2. When the Receptions window appears, select the name of the entry in the list IN00002 to display the Packing List itself – you would usually do a search for the supplier name or order number in a list that was larger than this – then click Process to load the Process Document form. 3. Click Validate to indicate that you are receiving the whole quantity of 10 units. At this point you have accepted 10 units into your company, in a location that you have already seen. Using the menu Purchases → Products → Products you can find the product Titanium Alloy Radiators with Real Stock and Virtual Stock 10. From the product form click on the link at the right most side Stock by Location you can see the Real Stock and Virtual Stock of this product in various locations. Now click on the Location Inventory Overview Report to see the inventory valuation per location. Figure 8.12: List of products and their stock levels Tip: Traceability in double-entry Open ERP operates a double-entry stock transfer scheme similar to double-entry accounting. Because of this you can carry out various analyses of stock levels in your warehouse, along with the corresponding levels in Partner Location at your Supplier. The double-entry system, analogous to that of accounting, enables you to keep track of stock movements quite easily, and to resolve any errors that occur.

8.6.3 Invoice Control

When you have received an invoice from your supplier which would usually be sent to your Accounts department go to the menu Accounting → Suppliers → Supplier Invoices to open a list of supplier invoices waiting for receipt. These invoices enable your Accounts Department to match the the price and quantities ordered against the price