Purchase Policy

Every organization has its own unique way of functioning. Through this option, users can instruct IMMS to behave in a particular manner to suit the functioning of the organization. In technical jargon this process is known as setting the flags. Hence, setting the flag as YES or NO to certain options, determines the behaviour of IMMS.

It is very important for the user to know the implications of setting the flag in a particular position. Administrator/User, after taking inputs from all the concerned, needs to take an informed decision before setting the flag in a particular position. Positions of some flags cannot be changed during the year.

Through this option, user can define parameters which influence many important matters related to the Purchase department. They affect many entries and reports of the Purchase Module.

Click on the button to enter/change the values of the flags.

Please remember that there are certain fields that can not be changed.

Screen Layout of Purchase Policy

Field Description of Purchase Policy

Allow changing Purchase Rate in PO and PO Amendment Entry?

Turn the flag 'On' or 'Off' by clicking on it.

While creating or amending a Purchase Order, Basic Purchase Price offered by a particular Vendor for a particular Item is by default taken as defined in Item Vendor Purchase Master - Entry option in Purchase Module.

If 'Off' is chosen, this rate can not be changed by the user in a Purchase Order.

Allow changing Discount in PO and PO Amendment Entry?

Turn the flag 'On' or 'Off' by clicking on it.

While creating a Purchase Order, value of Discounts  offered by a particular Vendor for a particular Item is by default taken as defined in Item Vendor Purchase Master - Entry option in Purchase Module.

If 'On' is chosen, this discount can be changed for that particular item by the user in a Purchase Order.

If 'Off' is chosen, this discount can not be changed for that particular item by the user in a Purchase Order.

No. of Previous PO to be Shown in List?

(Type : Numeric, Length : 2)

Enter number 0 to 10.

While entering Items in a new Purchase Order, a user might need to refer to previous Purchase Orders may be to check the rate of an Item or any other details. Through this field, IMMS provides the facility to refer previous Purchase Orders for an entered Item. The number of previous Purchase Orders shown depends on the number entered in the above field. For example, if the field is set to 10, then the user will be able to view previous 10 Purchase Orders for reference purpose.

Service Bill Certification Required?

Turn the flag 'On' or 'Off' by clicking on it.

If 'On' is chosen, IMMS will allow to certify quantity / percentage of Service Purchase Order for Bill Passing through Service Bill Certification Entry option of Purchase Module.

If 'Off' is chosen, there is no need to certify for Bill Passing. Therefore the menu will also not display related options.

Buffer Days for Planning (in days):

This Flag is considered only while running Autoshop function.

Denotes the number of days to be considered as buffer for the procurement of Items in general. Unlike Lead Days, Buffer Days are not linked with any Vendor.

Buffer Days are used for deriving Indent Delivery Date while running Autoshop function for SJOs. Please note that, Buffer Days are considered while calculating Indent Delivery Date, ONLY when the flag 'Indent Creation Date in Autoshop Based On' is set as 'Planning Start Date' through MRP Policy.

Indent Delivery Date is calculated as follows -

Indent Delivery Date = Production Start Date – (Buffer Days + Process Days)

General Process Time (in days):

This Flag is considered only while running Autoshop function.

Denotes the number of days to be considered for some kind of an outside process to be done on Items in general.

General Process Time is used for deriving Indent Delivery Date while running Autoshop function for SJOs. Please note that, Process Days are considered while calculating Indent Delivery Date, ONLY when the flag 'Indent Creation Date in Autoshop Based On' is set as 'Planning Start Date' through MRP Policy.

Indent Delivery Date is calculated as follows -

Indent Delivery Date = Production Start Date – (Buffer Days + Process Days)

Allow PO Authorization Without SJO Link?

Turn the flag 'On' or 'Off' by clicking on it.

If 'On' is chosen, then at the time of PO Authorization, if any line item is found without any type of link (SJO/OAF/EOQ/MOQ/MIL), the system will confirm with the User whether he still wants to authorize such a Purchase Order or not. The purpose of this is to alert Purchaser to take action (i.e. delete such items with no link by editing PO before authorization) so that excess inventory can be avoided as much as possible. This will be purely Purchaser's call whether to take action or not. TNG will only prompt message before authorization.

If 'Off' is chosen, no such confirmation will be asked from the user and the Purchase Order will be any way authorized.

Supplier's Order Confirmation Entry Basis?

Select either 'Item wise' or 'Delivery Date wise'. You can change it in 'Edit' mode.

Item Wise

Select this option by clicking on it. IMMS will update the Purchase Orders with the Vendor's confirmation date for receiving the order as well as for delivery of the order through Supplier's Order Confirmation Entry option of Purchase Module.

 

Item Delivery Date wise

Select this option by clicking on it. IMMS will allow to enter the Vendor's breakup of Purchase Order Quantity and its respective Delivery Date for each Item of a Purchase Order through Supplier's Order Confirmation Entry option of Purchase Module.

 

Want to use Action to be taken Report?

Turn the flag 'On' or 'Off' by clicking on it.

If 'On' is chosen, a report called Action To Be Taken Report will be available in Purchase Module.

If 'Off' is chosen, no such report will be available in the Purchase Module.

Should Latest Item-Vendor-Rate be fetched while PO edit / PO Amendment/LRC edit / LRC Amendment?

Turn the flag 'On' or 'Off' by clicking on it.

The Rate at which an Item is sold by a particular Vendor may or not change with time. But in case it has changed, IMMS provides the facility to consider the latest Rate while generating or amending a Purchase Order or Labour Rate Contract.

If 'On' is selected, IMMS will check whether the entered Rate of the Item is latest or not by comparing it with the Rate of Item specified for the selected Vendor through Item Vendor Purchase Master Entry or Item Vendor Labour Master Entry. In case it is not same, IMMS will ask the User if the latest Rate should be considered or not.

If 'Off' is selected, IMMS will not check whether the Rate of the Item with the selected Vendor is latest or not and will accept Rate entered by the User as it is.

Do You Want to Use Master Control Form?

Turn the flag 'On' or 'Off' by clicking on it.

If 'On' is selected, IMMS will NOT allow the user to edit 'Minimum Order Quantity' and 'Economic Order Quantity' through Item Vendor Purchase Master Entry or Item Vendor Labour Master Entry options of Purchase Module. Moreover the user can also NOT edit 'Minimum Level' through Warehouse Inventory option of Stores And Inventory Module. But the user can enter all three quantities while adding new data in the respective masters.

If 'Off' is selected, IMMS allows to enter all three quantities in add as well as edit mode in respective masters.

Item Vendor Data Filling Default Sort Order?

Select 'Vendor wise' or 'Item wise' from the given options.

Vendor wise

Select this option by clicking on it. If 'Vendor wise' option is selected, then while defining Item-Vendor Purchase relationships through Item Vendor Purchase Master - Entry option of Purchase Module, IMMS allows to specify the Vendor first and then the Items related to that Vendor.

Item wise

Select this option by clicking on it. If 'Item wise' option is selected, than while defining Item-Vendor Purchase relationships through Item Vendor Purchase Master - Entry option of Purchase Module, IMMS allows to specify the Item first and then the Vendors related to that Item.

Want to Update Final PO Print Flag at the time of PO Authorization or PO Amendment Authorization?

Turn the flag 'On' or 'Off' by clicking on it.

Once a Purchase Order / PO Amendment is authorized, it is compulsory for users to print the Final PO through PO Print option of Purchase Module before the material can be received against it. This flag allows users to enable or disable this condition.

If On' is chosen, IMMS will automatically update the Final PO Print Flag and users need not take the Final print out the Purchase Order.

If 'Off' is chosen, the Final print out of the Purchase Order has to be taken out. Only then material can be received against it.

Tax Calculation

Select any one of the following options by clicking on the button.

Exclusive Taxes on Original Basic Value (O)?

Selecting this option will calculate the Basic Value of a Purchase Order by including the exclusive taxes as well. Tax Rates are defined as Inclusive or Exclusive through Tax Rate Master option in Purchase Module.

Please note : We do not recommend to select this option.

Calculated Basic Value Derived by Subtracting Inclusive Taxes (C)?

Selecting this option calculates the Basic Value of a Purchase Order without including taxes that are Inclusive. Tax Rates are defined as Inclusive or Exclusive through Tax Rate Master option in Purchase Module.

Indent Details

Want to use Indent to Generate PO?

Depending on its functioning, a company can decide whether to generate a Purchase Order with / without indenting the items first by using this flag.

 

Turn the flag 'On' or 'Off' by clicking on it.

 

If 'On' is chosen, IMMS will provide facility to create Indent through Indent Entry option of Purchase Module. Moreover, Indent can be prepared for only those Items for which 'Indent for Purchase Required' field   in Item Master Purchase - Entry option of Purchase Module is set as 'On'. Further to this, IMMS will allow to generate Purchase Orders from existing Indents.

Similarly, IMMS will also provide facility to create Service Indent through Service Indent Entry option of Purchase Module. Moreover, Indent can be prepared for only those Items for which 'Indent Required' field in Item Master - Service option of Purchase Module is set as 'On'. Further to this, IMMS will allow to generate Service Purchase Orders from existing Service Indents.

 

If 'Off' is chosen, IMMS will not give facility to prepare or generate Indent manually or automatically. Also access to 'Indent for Purchase Required' field   in Item Master Purchase - Entry option of Purchase Module is disabled. Purchase Orders can not be generated from existing Indents.

 

Similarly, IMMS will not give facility to prepare or generate Service Indent manually or automatically. Also access to 'Indent Required' field   in Service Item Master option of Purchase Module is disabled. Service Purchase Orders can not be generated from existing Service Indents.

Allow PO Qty > Indent Qty While Making PO from Indent?

Turn the flag 'On' or 'Off' by clicking on it.

 

When a Purchase Order is generated from an Indent, all the details including Item quantity in Indent are by default carried forward in the Purchase Order.

 

If 'On' is chosen, then while generating a Purchase Order from an existing Indent, the User can change Purchase Order quantity of an Item to more than the quantity mentioned in Indent.

 

If 'Off' is chosen, then while generating a Purchase Order from an existing Indent, the User can not change Purchase Order quantity of an Item to more than the quantity mentioned in Indent.

Want to Allow Change of Delivery Schedule in Indent to PO Conversion?

Turn the flag 'On' or 'Off' by clicking on it.

 

When a Purchase Order is generated from an Indent, all the details including Delivery Schedule of that Indent are by default carried forward in the Purchase Order.

 

If 'On' is chosen, user will be allowed to change the Delivery Schedule in Purchase Order.

 

If 'Off' is chosen, user will not be allowed to change Delivery Schedule in Purchase Order.

Want to display Rate, Value in Indent?

Turn the flag 'On' or 'Off' by clicking on it.

 

If 'On' is chosen, Rate and Value of the Item will be displayed while making entries in the Indent . Further, Rate and Value of the Item will be printed in the Indent Report taken out through Indent Print option of Purchase Module.

 

If 'Off' is chosen, Rate and Value of the Item will not appear while making entries in Indent and will not be printed in the Indent Report as well.

Indent Item Rate to pick up from:

This field will be enabled only if the flag 'Want to display Rate, Value in Indent?' is 'On'. Otherwise it will be disabled.

 

Select your desired option from the given options -

Standard Rate from Item Master

If 'Standard Rate from Item Master' is selected, then only the Item's Standard Rate will be taken from Item Master Purchase - Entry option in Purchase Module and displayed while making an Indent and printing in Indent Report. Value will be calculated accordingly.

 

Minimum Rate from Item Vendor

If 'Minimum Rate from Item Vendor' is selected, then the rate which is lowest among all the Vendors will be taken from Item Vendor Purchase Master option in Purchase Module and displayed while making an Indent and printing in Indent Report. Value will be calculated accordingly.

Do you want to restrict Manual Indent Generation based on Nature of Item?

Turn the flag 'On' or 'Off' by clicking on it.

 

IMMS provides the facility to restrict generation of Indents for Items on the basis of their Nature.

 

If 'On' is chosen, IMMS will restrict Indent generation for Items by checking their respective Nature. Further, Purchase Order can not be generated for such Items as well.

 

If 'Off' is chosen, there will no restriction on Indent generation. In other words, the system will not check Nature of the selected Item and therefore Indent can be generated as usual.

Do not allow to create Indent of selected Nature of Item Type(s):

This option will be enabled only if the above flag 'Do you want to restrict Manual Indent Generation based on Nature of Item?' is set as 'On'. Otherwise it will remain disabled.

 

Denotes the Nature of Items for which Indents can not be created.

 

Click on the field. A list of all Nature of Items will be displayed. Click on the small white box in case you do not want to allow Indent generation for Items belonging to particular Nature. Click on it again to de-select. Purchase Orders can not be raised for such Items as well.

Do you want to carry forward Indent (1st) remark in PO Entry?

Turn the flag 'On' or 'Off' by clicking on it.

 

Once you have entered all the information, click on 'Save' button to save or 'Cancel' button to discard.