Category: Kiu BMP V2

Dropshipping is a method in which the vendor does not keep products in stock but instead transfers the products directly from the supplier to the customer.

Note

You need the Sales, Inventory and Purchases modules for this feature to work.

Activate the dropshipping feature

Go to Purchases ‣ Configuration ‣ Settings and select Dropshipping.

A new route Dropshipping has been created. You can go on a product and tick the dropshipping route. You also need to define to which vendor you will buy the product. Now, each time this product will be sold, it will be drop shipped.

If you don’t always dropship that product, you can go to Sales ‣ Configuration ‣ Settings and tick the box in front of Order-Specific Routes.

When you create a quotation or sales order, you can now decide, order line per order line, which products should be drop shipped by selecting the dropship route on the SO line.

Drop ship a product

Once a sale order with products to dropship is confirmed, a request for quotation is generated by KiuBMP to buy the product to the vendor. If you confirm that request for quotation into a purchase order, it will create a transfer from your vendor directly to your customer. The products doesn’t go through your own stock.

The Warnings feature allows you to raise warnings or blocking messages on purchase orders based on a vendor or a product.

For example, if you often have a problem with a vendor, you might want to raise a warning when purchasing from that vendor. If a product is about to be discontinued, you may want to raise a blocking message on the purchase order.

Configuration

For this feature to work, go to Purchases ‣ Configuration ‣ Settings and activate the Warnings feature.

Add a warning on a vendor

When you activate the feature, you get a new option under the Internal Notes tab on vendors. You can decide to write a simple warning or a blocking message.

Add a warning on a product

When you activate the feature, you get a new option under the Purchase tab on the product page where you can add a warning or a blocking message.

Trying to buy with warnings or blocking messages

If you try to validate a Purchase Order from a vendor or with a product with a warning, a message will be raised. You can ignore it by clicking ok.

However, if it is a blocking message, you cannot ignore it.

In some industries, you may receive a bill from a vendor before receiving the ordered products. However, you might not want to pay it until the products have been received.

To define whether the vendor bill should be paid or not, you can use what we call 3-way matching. It refers to the comparison of the information appearing on the Purchase Order, the Vendor Bill and the Receipt.

The 3-way matching helps you avoid paying incorrect or fraudulent vendor bills.

Configuration

For this feature to work, go to Purchases ‣ Configuration ‣ Settings and activate the 3-way matching feature

Should I pay the vendor bill?

With the feature activated you will have a new Should be paid line appear on the vendor bill under the Other info tab.

That way KiuBMP let you easily know if you should pay the vendor bill or not.

Tip

The status is defined automatically by KiuBMP. However, if you want to define this status manually, you can tick the box Force Status and then you will be able to set manually whether the vendor bill should be paid or not.

If your company regularly buys products from several suppliers, it would be useful to get statistics on your purchases. There are several reasons to track and analyze your vendor’s performance:

• You can see how dependent from a supplier your company is;
• you can negotiate discounts on prices;
• You can check the average delivery time per supplier;
• Etc.

For example, an IT products reseller that issues dozens of purchase orders to several suppliers each week may want to measure for each product the total price paid for each vendor and the delivery delay. The insights gathered by the company will help it to better analyze, forecast and plan their future orders.

Configuration

Install the Purchase Management module

From the Apps menu, search and install the Purchase module.

Issue some purchase orders

Of course, in order to analyze your vendors’ performance, you need to issue some Request for Quotations (RfQ) and confirm some Purchase Orders.

Analyzing your vendors

Generate flexible reports

You have access to your vendors’ performances on the Reports menu. By default, the report groups all your purchase orders on a pivot table by total price, product quantity and average price for each month and for each supplier. Simply by accessing this basic report, you can get a quick overview of your actual performance. You can add a lot of extra data to your report by clicking on the Measures icon.

Tip

By clicking on the + and – icons, you can drill up and down your report in order to change the way your information is displayed. For example, if I want to see all the products bought for the current month, I need to click on the + icon on the vertical axis and then on “Products”.

Depending on the data you want to highlight, you may need to display your reports in a more visual view. You can transform your report in just a click in 3 graph views: a Pie Chart, a Bar Chart and a Line Chart: These views are accessible through the icons highlighted on the screenshot below.

Note

On the contrary to the pivot table, a graph can only be computed with one dependent and one independent measure.

Customize reports

You can easily customize your purchase reports depending on your needs. To do so, use the Advanced search view located in the right hand side of your screen, by clicking on the magnifying glass icon at the end of the search bar button. This function allows you to highlight only selected data on your report. The filters option is very useful in order to display some categories of datas, while the Group by option improves the readability of your reports. Note that you can filter and group by any existing field, making your customization very flexible and powerful.

Tip

You can save and reuse any customized filter by clicking on Favorites from the Advanced search view and then on Save current search. The saved filter will then be accessible from the Favorites menu.

In case of expensive purchases you may want a manager approval to validate the orders, KiuBMP let you easily set that up.

Configuration

For this feature to work, go to Purchases ‣ Configuration ‣ Settings and activate the Order Approval feature. From there you can also set the minimum amount required to activate this feature.

Create a new Request for Quotation

While working on a new RfQ, if the order is made by a user and not a manager and the amount of the order is above the minimum amount you specified, a new To Approve status will be introduced in the process.

Approve the order

If you are a purchase manager, you can now go to the purchase order and approve the order if everything is alright with it. Giving you full control of what your users can or can’t do.

Once approved, the purchase order follows the normal process.

Due to misunderstandings, human errors or change of plans, it is sometimes necessary to cancel purchase orders sent to suppliers. KiuBMP allows you to do it, even if some or even all of the ordered goods already arrived in your warehouse.

We will first take as example the case where you order 3 Office Chair that haven’t arrived in your transfers yet. As the installation of the inventory application is required when using the Purchase module, it is also interesting to see the case of partially delivered goods that you want to cancel.

Create a Purchase Order

The first step to create a Purchase Order is to create a Request for Quotation (RFQ) from the menu Purchases ‣ Purchase ‣ Requests for quotation. Confirm your RFQ to have a confirmed purchase order

Cancel your Purchase Order

Use case 1 : you didn’t receive your goods yet

If you confirmed your purchase order and did not received your goods yet, you can simply cancel the PO it by clicking the cancel button.

KiuBMP will automatically cancel the outstanding shipments related to this PO and the status bar will switch from Purchase order to Cancelled.

Use case 2 : Partially delivered goods

In this case, 2 of the 3 Office Chair arrived before you needed to cancel the PO.

Register good received and cancel backorder

The first thing to do will be to register the goods received and to cancel the arrival of the third Office Chair that is still supposed to be shipped. From the PO, click on Receive products and, on the Office Chair order line, manually change the received quantities under the Column Done.

Note

To learn more, see Control product received (entirely & partially)

When clicking on Validate, KiuBMP will warn you that you have processed less products than the initial demand (2 instead of 3 in our case) and will ask you the permission to create a backorder.

Click on No backorder to cancel the supply of the remaining product. You will notice than the quantity to receive has been changed accordingly and, therefore, the delivery status has switched to Done.

Create reverse transfer

Now, you need to return the Office Chairs that you have received to your vendor location. To do so, click on the Reverse button from the same document. A reverse transfer window will pop up. Enter the quantity to return and the corresponding location and click on Return.

Process the return shipment and control that the stock move is from your stock to your vendor location.

When the reverse transfer is done, the status of your purchase order will be automatically set to done, meaning that your PO has been completely cancelled.

Once an order is confirmed, you can lock it preventing any further editing.

Configuration

For this feature to work, go to Purchases ‣ Configuration ‣ Settings and activate the Lock Confirmed Orders feature

Lock an order

While working on a purchase order, when you confirm it, you can then lock the order preventing any further modification on the document.

Note

You can unlock the document if you need to make additional changes