Purchasing Case Study

Case

Acme Holding's production manager has created an order offer for materials such as bottles, labels, boxes, parcels to Dentas Packaging and Paper Ltd. in order to be able to supply the packaging of the products it produces. The supplier company asked for a price of approximately 1000 USD above the offered price. However, Acme Holding, which did not want to pay the price offered, negotiated with Dentas and provided a discount on the requested price. As Acme Holding Packaging supplier, it wanted to make an agreement with the only company it trusts and agreed on the payment method, guarantee and advance rates. Later, a letter of guarantee was received from the supplier. A purchase condition has been added by applying discounts on standard purchase prices. Re-orders were placed from the supplier with an interval of two days, depending on the needs.

Some of the packaging materials were delivered broken and cracked. Goods receipt of the materials delivered in good condition has been issued. However, the supplier sent the prices of some materials above the agreed price. After creating an invoice order for the difference, the invoice was issued. A payment order was given for the amount to be paid, a check was issued for a part of the amount, while the remaining amount was paid by bank transfer.

Transactions

Preliminary Transactions

1. Register the supplier company in the system.
2. Register the products you want to buy in the system.
3. Make Payment Method definitions.
4. Make the Dispatch Method definitions.
5. Make Tender Method definitions.
6. Define the Negotiation Type and Warehouse.
7. For the agreements
8. Make the Transaction Type definitions.
9. Make process descriptions.
10. Make category definitions.
11. Make the Transaction Type definitions for the Margin.
12. Make Quality Control definitions for purchased products.
13. Make the transaction type definitions for the Receipt.
14. Make the transaction type definitions for the Purchase Invoice.
15. Make the transaction type definitions for Outgoing Money Transfer.
16. Make the Transaction Type definitions for Check Exit Register-Revenue.

Main Transactions

1. Submit a Purchase Offer.
2. Make an agreement with the supplier company.
3. Get a Letter of Guarantee from the supplier.
4. Add Product Purchase-Sale Condition above standard purchase prices.
5. Place a Purchase Order.
6. Check the sent products according to the quality definitions and save the broken/damaged products.
7. Create the Goods Receipt.
8. Issue the Purchase Invoice.
9. Issue the Price Difference Invoice issued.
10. Create a Payment Order.
11. Pay as much as you want by Check.
12. Pay the desired amount via Bank Transfer.

Post-Transactions

1. Check the products, prices and quantities for which you want to get an offer.
2. Check the payment method, guarantee and advance rates in the agreement made.
3. Check the discount rates entered for the Product Purchase-Sale Condition.
4. Check the products you want to purchase, their price and quantity.
5. Check the Goods Receipt, Purchase Invoice, and Price Difference Invoice by observing that the quality of the products sent suitability to the control definitions.
6. Check if the check pops up in the finance scenario.
7. Check outgoing remittance.
8. Check the accounting transactions.
9. Check the budget records.

You can do study, training, developmental testing and learning activities on your own through the example case above.