2.2. Configuration


Before we proceed to the first step of the purchasing process, we will start with Configuration to set up the general settings used for the Purchase module. There are 3 main fields needed to be set up in the configuration of the Purchase module: Logistics, Purchase order, Location & Warehouse.


1. Logistics:

  • Purchase Lead Time is the acceptable lead time for vendors. This is the number of days your company can spare the vendors if they cannot deliver the goods/ products on an agreed delivery date. 

  • Purchase Order Modification: If you choose “Allow to edit purchase order”, this will enable you to edit the confirmed purchase order. Otherwise, if you choose “Confirmed purchase orders are not editable”, you won’t be able to edit the confirmed purchase orders.

  • Levels of Approval: This option allows you to choose the number of approval levels before a purchase order is confirmed.  

2. Purchase Order:

  • In the “Product variant”, you can choose to have many variants and attributes for one product or not. For example, one product like a T-shirt can have several variants such as size, color and attributes like size (X, L, XL) or color (yellow, blue, green) etc. 

  • In Unit of measure, you can choose the purchasing unit of measure for the products in purchase order is similar or different to the sale unit of measure in sale order.



  • In Costing method, you can choose a fixed cost for every product or different costing methods for all products. 
    • Fixed Costing method – fixed costs remains the same and is applied to all products in the inventory
    • Real Costing method – in this option, each product has their own cost based on the actual cost of the product
    • Average Costing method – is the cost for each product that is calculated based on the average cost of all products in the inventory

  • For Call for tenders, you can choose to have Purchase agreement with Purchase tender or Blanket order with “Allow using call for tenders to get quotes from multiple suppliers (advanced)”. Otherwise, you can just have 1 quotation from 1 supplier at a specific time period if you choose “Purchase propositions trigger draft purchase orders to a single supplier”. 

  • Vendor price: When choosing Manage vendor price on the product form, prices from different vendors of each product must be manually inputted on the product form. Or if you choose Allow using and importing vendor price lists, you can have the Vendor price lists and be able to import vendor price lists .

  • In Warning, if you choose “An informative or blocking warning can be set on product or customer level”, a series of alerts for each partners or products can be configured by setting parameters in the Warnings tab in the vendor forms or product forms. There are 3 options for warning/blocking a message: (1) No message: this option will not display a message, (2) Warning: this option will show the user an alert message, (3) Block message: this option will cause an exception and block the workflow. Otherwise, there will be no warning or blocking when using these products.

3. In Location & Warehouse, if you select Allow suppliers to deliver directly to your customers, this will enable you to set the route to drop-shipping and the goods will be delivered directly from the vendors to the warehouse of the customers. Otherwise, if you choose the other option as Suppliers always deliver to your warehouse(s), the purchasing products will be delivered to your warehouse before delivering to the customers.

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