What is Procurement in Odoo ERP?
Procurement in Odoo refers to the process of managing the acquisition of goods or services required by a business. The system integrates with other modules like Inventory, Sales, Manufacturing (MRP) and Accounting, providing a seamless flow of procurement-related data. It includes features such as managing vendors, creating purchase orders, handling vendor bills, and analyzing procurement performance.
Key Features of Procurement in Odoo
- Request for Quotation (RFQ): Allows users to solicit quotations from multiple vendors and compare prices.
- Purchase Orders (PO): Manages confirmed orders with vendors.
- Vendor Management: Maintains a database of vendors and their pricing.
- Integration with Other Modules:
- Inventory: Automatically updates stock levels upon receipt of goods.
- Sales: Links sales orders to procurement for dropshipping or made-to-order items.
- Manufacturing: Ensures the availability of raw materials for production.
- Reporting and Analytics: Provides insights into procurement efficiency, vendor performance, and cost management.
Steps to Make a Procurement in Odoo ERP System
- Request for Quotation (RFQ)
- At this stage, Click New to generate a new RFQ.
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- And then, Fill in the details:
- Vendor: Select the supplier.
- Products: Add the required products, including quantities and units of measure.
- Delivery Date: Specify the expected delivery schedule.
- And click save manually
- And then, Fill in the details:
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- When you click save manually, the RFQ receipt will receive an order number and the RFQ’s receipt can be printed or sent via email.
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- When you click ‘Send by Email,’ the ‘RFQ’ will change to ‘RFQ Sent.’ Then, click ‘Confirm Order’ to finalize the order you have placed.
- Purchase Orders
- After you click ‘Confirm Order,’ you will be directed to the ‘Purchase Order’ or ‘Locked’. The “lock” feature is designed to permanently secure the receipt, preventing any further modifications. So, make sure the receipt is done correctly.
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- Next, go to the ‘Inventory Module’ to check the stock of items that have been received or to adjust the quantity if the items delivered do not match the quantity ordered. And then, click ‘to receive’ button
Then, after you click ‘To Receive,’ the purchase order document will appear. Ensure the quantity of items received (Quantity Unit) matches the quantity you ordered (Demand). If everything matches, click ‘Validate.’
Then, if the quantity of items received matches the quantity ordered, click ‘Validate’ and go back to the ‘Purchase’ Module to create a bill.
However, if the quantity of items received (Quantity Unit) does not match the quantity ordered (Demand), you can adjust the received quantity in the Quantity Unit column. For example, if the ordered quantity of Apple Pie (Demand) is ‘3’ but only ‘2’ were delivered, you can change the Quantity Unit to ‘2’.
After that, click ‘validate’ and ‘Create Backorder?’ pop up will appear, then, click the ‘create Backorder’ button
Then, click the ‘Reporting’ column > click ‘Stock Moves History. Next, make sure the quantity of items received has been updated correctly.
And then, go back to ‘overview; > click ‘to receipt’ > click the previous receipt that has been updated to be backorder receipt
Click the receipt. The advantage of the procurement feature in Odoo is that it can identify and distinguish documents, indicating that the document has now been updated to a backorder receipt (back order of), so there is no confusion. Once everything is complete, click ‘Validate’ button.
After clicking ‘Validate,’ go back to the Purchase Module > click the previous receipt > then click ‘Create Bill‘ to generate the vendor bill.
Then, fill in the details first, after that, when it’s all done then click ‘confirm’ button.
And then, click ‘Register Payment’ button to record payments made or received for a specific transaction, such as vendor bills or customer invoices. This action ensures accurate financial tracking and helps maintain up-to-date records in the Accounting Module.
Then, fill all the blank > then click ‘Create Payment’
After filling in all the fields and clicking ‘Create Payment,’ the status of your vendor bill receipt will be updated to ‘IN PAYMENT’.
After that, go to Accounting Module > Click ‘bank’ column
And then, click ‘New’ button > fill all the blank > all done & click ‘Add & New’ button
After all done, you will receipt the invoice number
Go back to ‘Purchase Module’ > click the previous receipt > and the receipt has been updated from ‘IN PAYMENT’ to ‘PAID’
