What is Purchase in Odoo?
Purchase is a process of buying goods, service, raw materials and spare parts from suppliers for an organization.
What is Purchase Order in Odoo?
A purchase order is a standard commercial document and an official offer that is provided by the buyer to the seller to control the purchase of goods and services. It indicates the product type, quantity, and agreed prices.
Benefits of Purchase module
- Odoo Purchase helps to automate all purchase-related operations
- Manage every single detail
- Manages orders
- Quick generation of a request for quotation
- Easy billing process
- Payment and invoice management
- Easy integration with accounting and inventory wings
- Tracks product stock and plan purchase
How to create purchase order in Odoo?
Odoo purchase will provide the complete management solution to deal with the purchase aspects of the company that would indulge in operations such as vendor management, vendor bills, stock update, quality checks and the other all aspects of the purchase operations to be dealt within the company.
It also brings in a steady and smooth operational methodology the company dealing with the purchase quotations, orders, voucher operations, MRP management, requisition and many more aspects of the purchase operations of the company. The main advantage of the Odoo purchase is the platform is integrated with the other company operational module in Odoo which allows a combined operational methodology which would indulge in all the aspects of the company operation that are involved with the purchase aspects such as sales, inventory, repairs, production and accounting.
Once you have sent a Request for Quotation, you may click on the “Confirm” button to assign a Purchase Order (PO).
You can also create a PO as follows:
1. Go to the purchase module and click “Create”
2. Enter all the necessary information (Vendor, Order Date, etc.)
3. Add the product data to the Product Line
4. Also, Odoo users may click the “Other Option” tab to add some additional information if needed
5. You can either send the request by e-mail or even print it
6. To create a purchase order in Odoo just click Confirm Order. Ready!
How to Manage Receipts in Odoo Purchase Order?
A receipt is a record of incoming deliveries in Odoo. If you need to manage the receipt in Odoo purchase order, follow these steps:
1. After confirming the PO, you can notice the “Receipt” button in the upper right corner of the screen
2. Click this receipt button, then click “Confirm”. You can also affirm it by clicking the “Receive Products” button in the PO page
3. After that, press the “Print” button to print the picking operations, as well as the waybill
4. After creating a purchase order, you can notice the “Create Bill” button at the top right corner
5. Click on this button, and then click “Confirm”: as a result, the status will be changed to a paid one
6. Once vendor bill created it will be displayed on the top of the definite PO
Don’t run out of stock with reordering rules
To make sure you never run out of stock, you can define Reordering Rules on products. Thanks to them, Odoo can help you replenish your stock automatically when it reaches set quantities or whenever a sales order is created.
You need to install the Inventory app to use reordering rules.
Configure your storable product
Open or create a product with its Product Type set to Storable Product.
As you are purchasing this product from a vendor, go to the product’s Purchase tab and add a vendor by clicking on Add a line. You can add multiple vendors, but make sure to order them correctly, since reordering rules always use the first vendor in a list. You can add a price, but it isn’t necessary for the reordering rule to work. In addition, you can add a minimum quantity you must order to benefit from that price.
Purchase Agreement in Odoo.
Next, make sure the correct route is selected under the Inventory tab of your product. If you created your product within the Purchase app, the Buy route is selected by default. If you are looking to drop ship your product, select Drop ship.
Note: Purchase in different units of measure than sales and setup your reordering rules Specify sales and purchase units of measure
Explore Purchase Agreement
A purchase agreement in Odoo is a legal document outlining various conditions related to the sale of goods and services. This creates a legally binding contract between two parties: the seller and the buyer.
The configuration for activating the Odoo Purchase Agreement (PA) is as follows:
1. Go to the Purchase Module
2. Select “Configuration”
3. Go to Settings and activate the “Purchase Agreement” function
In order to create a purchase agreement in Odoo, follow these steps:
1. Go to the purchase module, then click “Purchase”, after which you will see a drop-down list
2. Select a Purchase Agreement from the list and click “Create”
3. To create a purchase agreement, enter all the necessary information into the special fields, then click the “Confirm” button – the agreement will change its status to confirmed
4. Click on the validation button
5. After successful validation, you can notice the “RFD / Order” button in the upper right corner of the screen, it will go into the Bid selection status
6. Click on the “RFD / Order” button, then confirm the appropriate RFQ and cancel the other RFQs
7. Go back to the Purchase Agreement, then click Close
Here are two possible types of agreement:
There are two main types of purchase agreements pre-configured in Odoo: blanket orders and call for tenders.
1. Blanket orders are long-term agreements between a company and a vendor to deliver products on a recurring basis with predetermined pricing. Your company should consider using them when you frequently purchase the same products from the same vendor in varying quantities and/or at different times. Among their many benefits, you can save time as the ordering process is simplified, and money thanks to more advantageous bulk pricing.
2. Calls for tenders use a special procedure to request offers from multiple vendors at the same time. While public sector organisations are often legally bound to release calls for tenders when they want to purchase goods or services, private organisations can also use them to get the best deal among several vendors.
Set up a blanket order
Go t0 Orders ‣ Purchase Agreements and click on Create. Select Blanket Order as your Agreement Type. Next, select the vendor. The other fields aren’t mandatory.
Next, add the products you want to order and their price. Note that you can also add a Quantity for each product, for example, if you have agreed with your vendor to order a specific minimum quantity each time or in total. If you have configured your blanket order to set quantities manually, this is only used for informational purposes.
Set up a call for tenders
Go to Orders ‣ Purchase Agreements and click on Create. Select Call for Tenders as your Agreement Type. The other fields aren’t mandatory, but you can add the date you want to be delivered and set an agreement deadline. You usually don’t want to select a vendor for calls for tenders as you are looking to get quotations from multiple vendors.
Next, add the products you want to order and in what quantity. For calls for tenders, you typically don’t add a price, as the vendors should give you their best quote.
You can also write any Terms and Conditions at the bottom of the agreement. Once you are ready, click on Confirm.
Control and know when vendor bills should be paid
With Odoo, you can define how your vendor bills are controlled. For each purchase order, you can decide when the related vendor bill should be paid: either before or after you have received your products. You can also check at a glance the billing status of each purchase order.
With the 3-way matching feature, Odoo compares the information appearing on the Purchase Order, the Vendor Bill and the Receipt, and lets you know if you should pay the bill. This way you can avoid paying incorrect or fraudulent vendor bills.
Vendor bills default control policy
As a first step, open your Purchase app and go to Configuration ‣ Settings to set the default bill control policy for all the products created onwards.
Change a specific product’s control policy
If you want to modify a specific product’s control policy, go to Products ‣ Products, open it, click on Edit and go to the Purchase tab. There you can change a product’s default bill control policy.
Explore your data
The pivot table view enables you to explore your data in great detail. Unlike the graph view, the pivot table enables you to add several measures at the same time. By clicking on Measures or on the + sign in the Total column, you can add as many as you want, each assigned to a new column. By clicking on the + sign in the Total row, you can add Groups. If you click on a group’s + sign, you can add a sub-group, and so on.
Please find purchase apps by Preciseways:
1. RFQ Comparison Dashboard: System will tell you which RFQ is best for your need based on multiple comparison filteres like Min price or Expected delivery date. You can also manual select RFQ or update and confirm RFQ from dashboard.When you confirm any purchase order rest will be cancel automatically and manual process also available. Dashboard shows RFQ with product (Left) vs vendors (Top) and qty and price in middle.
2. Purchase Multi Warehouse: Purchase a Product in Multiple Warehouse
3. Merge Purchase Receipt : Merge multiple purchase receipts
4. Product Purchase History: You can see purchase history of products in product, variant and purchase order line views.
5. Purchase Multi Locations: Purchase products in multiple location of same or other warehouse
6. Purchase Order Version: Creating different versions for purchase orders, you can add more products, and update any kind of important information (qty, PRICE) in to orders.
7. Purchase Quantity Update: When you select products with given button, it will takes you to newly kanban view of product lines, where you can update qty of all products from new widget, that will make your process very user friendly and faster.
8. Purchase Read-only Vendor Price: Make vendor price read only on purchase order based on group right in user (user wise)
9. Sale Purchase Orders Weight: Based on product weight, you can find individual and total weight of sales or purchase orders
10. Supplier Wise Products: Filter and show only products based vendor select on purchase order