Requirements - Purchase Order Processing (PO)

Requirements-Purchase Order Processing (PO)
1.1 General requirements
(a)	A Company intended to introduce a Purchase Order Processing system to increase control over the ordering of goods and services. The system will also be used to record and report on a wide variety of committed expenditure and is expected to integrate with:
	a job/project costing system,
	the purchase ledger,
	the general ledger.
(b)	Orders will be placed through the raising of authorised purchase order documentation. Initially, orders will need to be entered manually.
(c)	It is intended that the system will be integrated with a computerised stock system and the availability of a stock module should be stated.
(d)	The stock system will create purchase order recommendations based on re-order levels, re-order quantities and lead times.
(e)	Order recommendations will be reviewed visually and either confirmed, amended or deleted. Remaining orders will then be actioned and printed.
(f)	Each order line in the system will carry a status indicator to assist in monitoring progress, for example goods awaiting delivery, part delivery, goods received but not invoiced, invoices awaiting approval.
(g)	Purchase orders will remain on the system until the user indicates that each order line is complete and the corresponding invoice has been authorised. Orders may be deemed complete before the full order quantity is received.
(h)	There will be links to the following systems:
	purchase ledger, for posting of authorised invoices,
	job costing, for posting of the cost of issues,
	stock control, for generation of purchase orders and receipt of ordered goods.
1.2 Data input
(a)	Purchase orders for stock items will mainly be created from the stock module as described above.
(b)	Purchase orders may also be input manually. These will cover non-stock items and orders overriding the normal stock replenishment system.
(c)	Manual orders will require free type facility for item descriptions and a facility to enter the total value of the order.
(d)	Each order record will contain space for the user to free type notes on the progress of the order.
(e)	Goods received will be matched with the order on one of the following fields:
	order number,
	supplier code,
	product code,
	alpha search on supplier name.
(f)	The quantity received will be entered against each order line. If this quantity is less than the quantity ordered, the user must indicate whether the rest of the order line is to follow or if the order is to be cleared. The order line will be marked as
(g)	Purchase invoices will be matched with orders and the value of goods and VAT entered. The order will be marked as invoiced not authorised.
(h)	When invoices are authorised they will be posted automatically to the purchase ledger, and relevant journals for goods value and VAT will be posted to the general ledger.
(i)	Goods received will be posted to the stock system. Goods values from purchase invoices will update the item value in the stock system.
(j)	The system will allow users to enter additional lines such as expected freight and duty for each order.
1.3 Data stored
(a)	For each order the following data will be held:
	a six digit order number,
	supplier code,
	supplier name,
	address,
	date ordered,
	supplier reference,
	total net value,
	total VAT,
	order status.
(b)	For each order line the following data will be held:
	line number,
	product code,
	product description,
	unit of measure,
	order quantity,
	received quantity,
	due date,
	line status,
	unit cost,
	line value.
1.4 Data output
1.4.1	Enquiries
(a)	Screen enquiries will be required on purchase orders.
(b)	Access routes for screen enquiries will include:
	order number,
	product code,
	supplier code,
	due date,
	alpha search on product or supplier, description
1.4.2	Documents and reports
(a)	Purchase orders will be printed by the system.
(b)	It will be possible to produce summarized and detailed value reports on purchase orders in the system by order status and due date.
1.4.3	Accruals
(a)	Accruals will be calculated for goods received not invoiced and for freight and duty charges not paid.
(b)	The accrual will be posted to an account in the general ledger, automatically reversing at the start of the next period.