Odoo 14 book

Purchase Management

Purchasing is the aspect of a company or a personal asset which deals with products, services and commodities being brought from the vendors for a specific price. The operation in case of a company operations are mostly repetitive and have a fixed wholesale price whereas the vendors provide retails price to the customer in case of personal shopping let it be for grocery, day to day use commodities or household products.

The Odoo purchase management module will provide an act as 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 updation, quality checks and the other all aspects of the purchase operations to be dealt with in the company.

The Odoo purchase management can bring in a steady and smooth operational methodology the company dealing with the purchase quotations, orders, voucher operations, MRP management, requisitions and many more aspects of the purchase operations of the company. The main advantage of the Odoo purchase module is that 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.

The purchase module of Odoo operates in the step by step operational terminology such as:

  • initially allow the users to call for tenders for the supply of products and raw material to the vendors available.
  • Based on the tender biting the request for quotations(RFQ) are being sent out. Once the request for quotation is agreed and validated the RFQ is transformed into a purchase order.
  • On the conformation of the purchase order the incoming shipments are validated
  • Based on the shipment the vendor bills are generated and the payment is done. At certain instances the vendors may require advance payment, which would be triggered before the shipment is to be done by the vendor.

Product management

The Odoo platform allows the user an efficient product management tool to describe the products, their variants and the various processes allocated with it in the purchase management in this aspect. The product menu of the purchase model can be accessed from the products tab available in the home dashboard.

Product creation

In the products menu the user can view all the products which are being listed out in the platform. The list of products can be viewed in list and kanban view. In addition, these had various default as well as customizable filtering options available which would add up to the data deduction aspects of the menu. The user can create a new product in the platform by accessing the creation window on selecting the create option available.

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In the product creation window the user can assign a name to the product, choose it be sold, purchase or expensed. There are smart button options available which would direct the user to the company website, product moves menu, the units being sold, the bill of materials menu if it’s a manufactured product, put away rules defined, quality points and the purchased unit’s menu.

Under the general information tab, the user can assign the product to be consumable, storage or service product. The product operations Odoo entirely depends on these allocations as the settings on the operation vary as per this option. The product category can be assigned from the list available or the user can create a new one by selecting the product category menu.

Internal reference is for the in house operation of the product in the company and the user can name it accordingly per the company terminology. The Odoo platform supports the barcode operation which would be effectively established on the product by describing it in the product menu.

The sales price of the product can be assigned along with the extra prices allocated and the customer taxes to be added to the sales price. The cost of purchase can be mentioned as per the vendor bills. The company allocation can be made if the platform is operating on a multi company basis.

The unit of measure for the respective product can be defined based on how it should be described in the company and the unit of measure at the purchase of the product. The unit of menu conversion and the description can be defined in the unit of measure menu available in the module.

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The product variants for the respective product can be described under the variants menu of the product description. In the menu the user can select the add a line option available which will allow the users to assign the products based on the variant attributes being described in the platform.

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Under the sales menu of the platform the user can describe the invoicing policy on which the product should be invoiced based on the ordered quantity or the delivered quantity. Additionally, the reinvoicing expenses can be assigned based on the company policies. The optional products can also be assigned based on the needs of the user as it should be mentioned in the ecommerce platform.

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Under the point of sale menu, the user can enable the product to be mentioned in the point of sale or retail operation for the company. The category of the point of sale of the product can also be assigned.

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The ecommerce description of the product can be made under the ecommerce menu of the product description tab. Under the ecommerce menu the user can assign the category of operation, alternative products being involved and the accessory of the products which will be allocated with the product description in the ecommerce platform.

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Under the purchase menu of the product the user can provide the various purchase details such as the vendor information. The vendor information can be described by selecting the add a line option available in the menu. The vendor bill description can also be described with attributes such as vendor taxes and the control policy of the bill generation in the Odoo platform. The user can also provide a custom made description of the respective product as per the vendor details being provided.

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The inventory aspects of the product can be described under the inventory menu of the respective product. The route operations of the product along with the packing aspects of the can be described with packaging details, contained product, unit of measure and the company allocated. In addition, the logistics operations required for the respective inventory operation can be described such as responsible employee, weight and volume of the product, manufacturing as well as the customer lead times can also be described in the menu.

The custom made product description on various aspects of inventory operations such as delivery orders, receipts and internal transfers can be provided in the menu itself.

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The accounting descriptions of the respective product can be described in the accounting menu of the respective platform. Both the receive able as well as the payable aspects of the financial operations conducted on the product can be described. The accounts of receivable as well as the expenses and the price difference accounts can be specified from the list of charts of accounts being described in the platform.

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Product category

Every product defined in the Odoo platform is allocated to a product category for the operations. The product category for a product is assigned when it's being created in the Odoo platform. The user can view all the product categories available in the platform by selecting the product category window accessible form the configuration menu. All the enlisted product categories will be listed out in the menu and the user can conduct modification by selecting the respective category.

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The user can create new product categories. In the creation window product category name can be allocated and assigned to the parent category. In the logistics menu the user can assign the routes of operation and the force removal strategy if any. Additionally, the inventory valuation as well as the costing method can be assigned. The product to the respective category can be selected in the products menu accessible from the window. The puts away rules of operation can also be assigned based on the company operational terminologies.

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Product attributes

The Odoo platform allows the users to define the various attributes which will define the product variants in the platform. The product attribute will define the various standards of the same products in terms of size, color material and more. The product attributes menu can be accessed from the configuration menu of the purchase module where all the product attributes will be listed out. The user can edit the ones available and create new ones by selecting the create option available.

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In the attributes creation window the user can specify the name of the attribute, the mode of display and the variant creation mode on how the attribute should be displayed in the product category window. The attribute values can be assigned by selecting the add a line option available.

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Vendor management

The Odoo platforms effective vendor management tool allows the user to manage the operations of the vendors being listed out in the platform. The user can describe multiple vendors to a product and service in the Odoo purchase management tool. This multiple vendor aspect of the Odoo platform will add up to the user interface and operations ability of the Odoo in the real time operations of the company.

The vendors described in the platform are listed out in the vendor menu accessible from the orders tab of the module. The vendor list available is described and the user can view the menu in the kanban format or the list view. In addition, the data available can be sorted out using the various filtering options available in the platform.

In the instance of a new vendor creation to the platform the user can access the creation window by selecting the create option available.

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In the vendor creation window the user can provide the vendor name , mention it as the company or an individual, allocate the company address and the taxation details as per the region of operation. Describe the contact details of the company such as mobile, office number, email ID, website links and the tags allocated with the vendor for the in house operations. In the contacts and address menu the user and add the respective address and the location details of the vendor. A vendor can have multiple addresses and location details in Odoo.

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Under the sales and the purchase menu the user can assign the sales person, delivery method, payment terminologies and the price list operations of the vendor. Under the purchase details of the menu the user can define the payment terms and the receipt reminder operations of the module. The point of sale options for the vendor can be described based on the barcode details and the loyalty points on the product sales achieved. The fiscal position can be defined under the fiscal information tab. The miscellaneous information has the reference details, company, website and the industry type descriptions can also be provided.

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The accounting aspect of the vendors can be described under the accounting menu of the respective vendor. The bank accounts of the vendor along with the details of the accounts can be allocated. The accounting entries within the platform operation for the receivable and payable chart of accounts can be described.

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Under the internal notes menu the user can provide a vendor description which will be mentioned internally only. In addition, in case of warning messages to be generated at instances of operation in Odoo involving the respective vendor can also be customized here.

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Vendor price list

The important aspect of a vendor management is setting the price list for the different products available and are supplied by each vendor. The vendor price list menu can be accessed from the configuration tab of the purchase module. In the menu the user can view all the price list options being described in the platform. The data can be viewed in list and kanban view which can be sorted, filtered and grouped by based on the different parameters available.

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The user can create a new price list by selecting the create option available in the window. In the creation window the user can provide the vendor details, vendor product name, vendor product code and assign the delivery lead time. In the pricelist section of the menu the user can assign the product information such as product name, variant, quantity and the unit price along with the validity of the respective price list.

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Request for quotation purchase order

The request for the quotation on the various causes to be made can be created in the purchase module. This would allow the vendors to send out the quotation to the user and then generate purchase orders based on the quotation being spent and considering the company requirements.

A request for quotation(RFQ) is sent by a company to multiple vendors and on considering the response the various purchase orders are created and sent to these respective vendors. The purchase orders are sent out considering the various aspects of the RFQ and the vendor such as the quantity, quality, cost and reliability of the product. Additionally, the history of the company, the payment terminologies and various other aspects of the company which will recognize a vendor as trustworthy.

The request for quotations window can be accessed from the orders menu of the purchase module. In the menu the user can view all the questions being sent out and a tabular description on the RQF analytics of the company. The menu can be viewed in list, Kanban, pivot, graph and calendar views. In addition, in case of large numbers of quotations being described to filter out the required one the Odoo platform provides various default as well as customizable sorting options.

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To create a new RFQ the user can access the creation window by selecting the create option available. In the creation window the user can assign the vendor, tax details based on the region, vendor reference and purchase agreement being described in the platform. The order deadline along with the receipt date can be assigned to the RFQ. The products required can be mentioned in the product menu along with the variants and the required quantity. In addition, under the other description tab the user can provide the financial description on the same.

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If the RFQ is created and verified it can be sent to the vendor via emails and there is a provision to take printout of the RFQ and send it in hard copy to the vendor. If the RFQ is to be sent by email the user will be depicted with the email creation window as shown below. An automated email template is generated and the user can edit the description details as per the need.

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If the RFQ is confirmed the user can confirm the order and the status of the RFQ change to order placed in the dashboard description.

Purchase agreements

Purchase agreements are the drafted agreement on the terms and terminologies of the business agreed upon by both the vendor and the customer. The Odoo platform enables the user to create various purchase agreements with the vendors on the product purchase. Multiple agreements can be made with the vendor and it can be made on multiple products too.

Creating a purchase agreement type

The platform has a separate menu under the purchase module which allows the users to create and manage the purchase agreements drafted by the consultation with the vendors. To use the purchase agreements in the platform the user should initially enable the purchase agreement option available in the setting menu under the orders tab.

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On enabling the option, the user can view the purchase agreement type being displayed on the settings menu. Selecting this option, the user will be directed to the purchase agreements menu. The user also can access the purchase agreement menu form the configuration tab of the purchase module.

In the purchase agreement type menu, the user can view all the types which are being embedded in the platform. The agreement types can be edited by selecting the respective one. In addition, the user can create a new one by selecting the create option available.

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In the new purchase agreement type creation window the user can specify the agreement type and the agreement selection be it based on single RFQ or multiple RFQ. Under the data for new quotations the user can assign the lines of agreement and the quantities associated with it.

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Creating a new purchase agreement

The purchase agreements window can be accessed from the orders tab of the purchase module. In the menu the all purchase agreements will be listed out and the user can edit the ones available by selecting it. In addition, the creation window accessible form the menu will allow the users to create a new purchase agreement.

In the creation window the user can assign the person responsible for the purchase, representative, the agreement type from the ones being specified in the agreement types window and the vendor to which the agreement is associated with. Additionally, the user can specify the agreement deadline, order date, delivery date, source document form which the agreement is made upon, operation type and the company of operation if the user is having multiple companies being managed in the Odoo platform.

The mainly used purchase agreements in the window are based on call for tenders and blanket orders which follow the same operational methodology of sending out the RFQ based on the tender bidding and the previous agreements being discussed with the vendors respectively. Under the products menu the user can provide the product entails allocated with the agreement including cost and the number of quantities. The user can assign multiple products to an agreement. Once the agreement is confirmed the status changes to confirmed and the will be changed into bid selection and closed as per the operations conducted in the platform.

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Once the agreement is confirmed the user can view the option to validate and generate new quotations straight from the window. On selecting to create a new quotation the user will be directed to the quotation creation window as shown in the below image. The vendor details and the purchase agreement is being auto filled based on the quotation. The taxes allocated, vendor reference, order deadlines and the receipt date can be mentioned in the quotation. The product description is auto filled and can be modified even new products can be added to the quotation.

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If the RFQ is verified and needs to be sent the user can do it by emails or take spring out of the same. Additionally, there are options to create the purchase order by selecting the create option available. The user can cancel the quotation request by opting for the cancel option. On selecting to send the quotation by email the user will be depicted with the email creation window as shown below. The template for the emails is auto assigned and the user can create, edit the description and the subject being provided. The edited description can be saved as a template for further use.

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Purchase orders

The purchase orders in Odoo are created based on the RFQs being sent out. The user can verify the RFQs and create a purchase order straight away from the respective RFQ menu. The Odoo platform also provides the user to create purchase orders straight away without sending out the RFQs, this will help the users to deal with the regularized purchase operations of the company.

Under every RFP being sent to the vendors there are options to create a purchase order straight away from the RFQ window. The user can select the confirm order option available and the confirmed order request will be sent to the vendor.

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In the purchase order window after confirming the order there is an option for the user to lock the purchase order which would enable the user to avoid any further changes on the purchase order to be done by any other employee or the users of the platform. This automated option on the locking of confirmed orders in Odoo can be enabled or disabled in the settings window of the purchase module. The user can enable the option lock confirmed order which would automatically lock the orders form further modification after the order is confirmed. The user can also unlock the respective order by selecting the unlock option available.

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Receiving products

The final step of the purchase operations being conducted in a company are the product revival upon verification. The user can have customized quality checks being made at the receiving location which may or may not be indulging with the Odoo operations. Once the purchase order is confirmed and the products are sent to the company location from the vendor the users will be depicted with the receive product option on the respective purchase orders. The user can also select the receipt icon available in the window which would direct the user to the respective purchase orders receiver window.

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In the receipt window the user can validate the delivery on verifying the details. If the user has enabled the tracking functionality of the respective product in the purchase order he/she will have to assign the serial or the lot numbers for the done quantities. This can be done by selecting the menu available next to the units of measure menu.

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In the detailed operation window of the user can assign the costs or the serial numbers under the product quantity description and assign the done quantities of the operation. On confirmation the user will be depicted with the validate option on the receipt menu on selecting it the purchase order is completed and the status changes to done. As the purchase order is completed the products are added to the inventory and to the respective warehouse location.

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Warning messages

The Odoo platform allows the users to generate warning messages on certain vendors while operating on them. This would be helpful if the platform has multiple users and employees operating it in a company. A warning set by the user will be visible to other members of the company logging into the platform.

In the Odoo platform to create the warning messages the user can enable the option available in the settings menu of the purchase module. In the settings menu under the orders tab the user can enable the warning options available which can be described on the vendors as well as the products.

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As the warnings are enabled in the platform the user can now allocate custom made messages for the products and the vendors. In case of the vendors under the vendor menu the user can choose a respective product and in the internal nodes of the respective vendor description the warnings on purchase and warnings on picking can be allocated. The warnings can be custom made and be provided as warning messages or blocking messages which can be closed as the warnings.

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Vendor bills

The billing or the payment for the purchases made are direct to the vendors. The user can generate vendor bills in the platform and provide payment for the respective ones. The vendor bills in Odoo can be derived based on the delivered quantity or the ordered quantity. This can be defined in the settings menu of the purchase module under the invoicing tab. In the menu the user can either choose the bill control to be based on ordered quantities or received quantities.

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Control policy

The bill control policy of the product can be assigned in each product's window and allows the users to function based on the order parameters of the product being defined.

In the purchase menu of the respective product there is option for the users to define the control policy to be assigned based on ordered quantities or received quantities.

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3 way matching purchase receptions and bills

The advance purchase operation terminology defined by the Odoo platform to ensure that the user company only pays the bills for the product being delivered to the company. This terminology in Odoo is predefined and the user can enable it in the platform by selecting the option in the settings menu.

In the settings menu under the invoicing tab the user can view the 3 way billing icon available which can be enabled to be established in the platform.

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As the option is enabled the user can view the changes in the vendor bill operation. If a purchase order has been validated and the products are received the user can now generate the respective vendor bill for the purchase being done. In the vendor bill creation the prices of the products are auto assigned and the journal entries too are as they are described in the vendor description while creating the vendor in the platform. Under the other info tab of the accounting description the user can view the option should be paid depicted as yes, which is auto generated and its due to the enabling of the three way billing aspect in the platform.

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Drop shipping

Drop shipping is the terminology in Odoo where the user purchases the product but does not add it to the inventory. A separate location in the company is added where their products are unloaded and on sale they are directly loaded to the customer. This is done for the product which has customer demand but is not in stock at the instance but when it arrives there is no requirement to add these to the inventory rather they are all sold out with ease.

The drop shifting option in the platform can be enabled in the settings menu of the purchase module. Under the logistics menu the user has the drop shifting option which can be enabled or disabled.

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The products which are needed to be allocated with the drop shifting terminology can be defined under the product description. In the product description menu under the inventory tab of allocation of routes option the user can view the option to select the routes and the user can view the drop ship option available.

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The drop shipping operations acne defined as per the rout description being provided in the inventory module. In the inventory module under the configuration tab the user can see the option to view the routes menu. In the routes menu the user can create a new route or edit the existing drop shipping route operations which are predefined.

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Unit of measure

As mentioned earlier the operations of the product quantity are described based on the unit of measure being described and allocated to the respective products. The units of measure can be defined based on the regularization and the company standards in the unit of measure menu accessible form the configuration tab of the purchase module.

In the menu the user can view all the units of measure being described in the platform and can undergo editing if required by selecting the ones available.

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The new units of measure can be created in the creation window which can be accessed by selecting the create option. In the creation window the user can provide the name of the unit of measure, category of operation, the taxation allocation as the unit of measure operation is based on the localization and further on local taxation. The respective unit of measure can be activated or deactivated using the respective icon available. The rounding precisions for the unit of measure can also be defined.

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Unit of measure categories

The units of measure categories of operation can be defined based on the user and the company specifications. The respective units of measure category can be defined under the unit of measure categories menu. The menu is accessible through the configuration tab and will list out the respective units of measure categories being defined in the platform.

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The new unit of measure category can be created using the create options and the menu will provide provisional space to define the respective category of unit of measure.

Reporting

Like every aspect of the Odoo platform the purchase management also allows the users to generate various analytical well as graphical reports on the aspects of purchase operations being conducted. The repeating menu is accessible from the purchase modules dashboard.

The purchase reports can be created in the form of graphs, line charts and pie chart models. With the help of various measures and grouping functionalities which can be defined from the customizable as well as the default ones available in the platform. Additionally, the reports of the purchasing aspects of the company can be viewed in pivot and graphical view too.

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The Kanban view of the respective reporting module can be accessed by scrolling the reporting menu down. The Kanban view will allow the user to generate quantitative reports using the filtering, group by and measure functions available in the platform.

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