2.3.2. Regular purchase process


After creating your new products, the regular purchase process will start with Purchase Agreement. You can negotiate specific conditions and choose the best price from the Purchase Agreement before proceeding to an official Request for Quotation. In the Purchase module of Kiu BMP, if you choose to create a new purchase agreement, in the next window of the purchase agreement, you can specify the type of agreement, if it is a purchase tender or blanket order.

A Purchase Tender is sent to multiple suppliers, where as a Blanket Order is only sent to a single supplier. In a Purchase Tender, the quantities are set automatically on the Purchase Order, while in a Blanket Order you will have to set the quantity manually on the Purchase Order. Additionally after using the Purchase Tender you will only have a single Purchase Order, while with the Blanket Order you will have to use multiple PO’s.

First, let’s create a Purchase tender by choosing dropdownmenu from Agreement type:  

In the purchase agreement, you can choose the analytic account which is the internal account used for monitoring and reviewing the costs, sales and margins by specific department/resources or products. On a day-to-day use, it will be useful to mark the analytic account on each purchase invoice. When the invoice is approved, it will automatically generate the entries for both the general and the corresponding analytic accounts. For each entry on the general accounts, there is at least one analytic entry that allocates costs to the department which incurred them

For the Agreement deadline, this is the last day in which the purchase agreement is still active and this can be modified based on specific quotation/purchase agreement

For Ordering Date, this is the starting date of the agreement. And for the delivery date, this field should be blank as we can have multiple delivery dates for multiple orders or quotations from different vendors.

In the Products section, click on Add an item. Select products in the Product list, then insert Quantity. You can add as many products as you wish then click Save.


One Purchase tender can be sent to multiple suppliers. In order to choose the best offer with the most reasonable price from different vendors, you can create a multiple Request for Quotation with one Purchase tender by clicking New Quotation after confirming the Purchase agreement.


New quotation from different vendors has been created with one Purchase tender.

The quotation is now ready to be sent to the vendor by clicking on Send RFQ by email button.

Verify the details of the email as well as the information of the vendor then click Send.

After sending the Request for Quotation successfully and receiving feedback from vendors, Click “Edit” on the top left, to update the quotation with the new information provided, such as price, any taxes, expected delivery lead time, payment terms, or any other information the supplier has given you, then click “Save” at the top of the screen.


Once all the Requests for Quotation are sent, you can click “Validate” on the Purchase Tender.

The vendors can send their offers, and you can update their Request for Quotation accordingly. Then, choose the ones you want to accept by clicking on ”Confirm Order” for the Request for Quotation and “Cancel” on the others. Finally, after the purchase order has been confirmed, you can click Done on the Purchase tender to close the agreement.

Next, select Blanket order from the dropdown menu of Agreement type:

A “Blanket Order” is similar to a framework contract, where you lock in a good price with a vendor for a specific period of time and plan multiple deliveries within that interval. In the supplier field select the vendor you intend to purchase from. In the “Product Tab” below, click “Add an Item” to add one or more products. Select the quantity, which will be the sum of all deliveries to be covered by this Blanket Agreement, and add the negotiated price in the “Unit Price” column.

When you have completed filling in the details, click “Confirm”.


Now you can start creating different Purchase Orders with multiple scheduled delivery dates within the agreed period that are all linked to this Blanket Order.

The system will auto-fill the document with the product(s) from your blanket order, you only have to choose the quantity and confirm the order. When you go back to the blanket order, you will see how many quantities you have already ordered from your blanket order.

This way, you can easily track how many products you have ordered within a particular agreement and the remaining products to be delivered from a vendor.

After your Purchase agreement has been created and the most suitable quotation has been selected, the process continues by selecting Purchase/ Request for Quotation then select the Create button to create a new Request for Quotation.

In the new screen of Request for Quotation, Select existing supplier in the “Vendor” menu, or create a new supplier by clicking on “Create and Edit”.


If you choose to create a new supplier, then a new window for Vendor will appear. General information of the new supplier must be filled in such as selecting this as a company or individual, name, address, email, phone, etc.

In the Sale & Purchase tab of the new vendor form, tick the box “ Is a vendor” and specify the supplier currency if needed.

In the accounting tab, default receivable and payable accounts have been set up automatically for new vendors. These default accounts can be changed only in special circumstances.

After selecting Vendors successfully, reference to identify specific vendors can be filled in:

If you will not choose a purchase agreement and leave this field as blank, this would be treated as a normal request for quotation. Otherwise, this would be a purchase tender or a blanket order. We can choose an existing purchase agreement or choose to create a new purchase agreement:


So far we’ve covered how to create a “Request for Quotation”, and a “Purchase Tender” with several RFQs included, sent those requests to suppliers, then used the returned Quotations to update our Request, before finally placing a “Purchase Order” with a supplier.


If your company accepted the quotation, click the Confirm order button to convert the Quotation to an official Purchase order. Otherwise, If you already know the price of the item you want to purchase, and you only intend to purchase one time, you can skip the “Request for Quotation”, “Purchase Tender”, and “Blanket Order” and proceed directly to creating a “Purchase Order”.


After clicking on “Confirm order” and a new purchase order based on the quotation has been created successfully, the status of the request for quotation will change to “Purchase Order”. The icons on the upper right corner of the order will show “1 Shipment” and “0 Vendor Bills”.

However, if you already know the price of the item you want to purchase, and you only intend to purchase one time, you can skip the “Request for Quotation”, “Purchase Tender”, and “Blanket Order” and proceed directly to creating a “Purchase Order”. In the “Purchases” module, click the “Purchase” from the drop down menu at the top of the screen select “Purchase Orders”. The system will now open a list of Purchase Orders. The list shows all Purchase Orders created. When you click “Create” you will see a screen very similar to the “Request for Quotation” form. The status field will be either be “Waiting Bill”, “Bills Received”, or “Nothing to Bill” for a cancelled order. “Waiting Bill” means that the Purchase Order has been confirmed and “Bills Received” means that the Vendor Bill has been created.

If you want to view an existing Purchase Order, you can choose the Purchase Order from the list. To create a new Purchase Order click on the “Create” button. The only difference between the “Request for Quotation” and the “Purchase Order” views, is the addition of the columns “Received Quantity” and “Billed Quantity”.

The “Received Quantity” column will show the number you have received and the “Billed Quantity” will contain the number of items your company has received an invoice for.

To finalize the Purchase Order, you can click on the “Confirm Order” button, which will initiate purchase to your supplier, and is the last step in creating a Purchase Order.


When the supplier sends you the shipment, you will have to receive the products and register their invoice using a Vendor Bill. When the purchase order opens you will notice “Shipment” and “Vendor Bill” icons on the top right of the screen.

If we click on the “Shipment” button, the details of your shipment will appear. If the items displayed does not match the items you received, Click on the “Edit” button, or the small “Pencil Icon” next to each line of your shipment, and then select the number of products you have received.

Verify the actual units the company received from the suppliers.


If you’ve received all of the products in the shipment, the number of products you have received in the “Done” column matches the number in the “To Do” column, you can now click “Validate” at the top of the screen. The status will change to “Done” on the top right, upon receiving the products in your warehouse.

After receiving the product in you warehouse, you will have to pay for them. In the Kiu BMP system, we can create a Vendor Bill, which will be the last step in our purchasing process.


Just go back to Purchase order then select “Vendor Bills” icon on the top right of the screen.

Click on the “Vendor Bills” icon, and when the screen refreshes click the “Create” button.

The Vendor Bill will be pre-populated with all of the information from your purchase. If you have received all of the products in your Purchase Order, it should reflect that. If you only received a partial shipment, the Vendor Bill will automatically update for the quantity received. When you are satisfied with the information and it matches what you have received, click “Validate”. At this point, the Vendor Bill will still be a “Draft Vendor Bill”.

To create a final Vendor Bill, click on “Validate” to confirm all the information such as the number of product, price, bill date, due date, etc. Then your accountant or manager can work in the “Accounting” module to register the payment and finalize the purchase order.

This is the last step of regular purchase process. 

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