Connecting a Purchasing System to an Existing ERP

Why are purchase orders needed at all?

Many organizations need a process that regulates their procurement workflow from the purchase request stage through payment to the supplier. This process includes order approvals, confirmation of item receipt, opening new suppliers, and more…

Managing processes in the existing ERP system

Most organizations that need to manage the procurement process certainly try, or even implement in one way or another, what their existing ERP has to offer. However, it quickly becomes clear that managing a process in traditional ERP systems can be very technical and confusing for most users. This is because most of them are not finance professionals, and therefore their access to the financial system requires complex permission management and training, which usually leads to frustration and only partial implementation of the process. In addition, approval routes are by nature flexible processes that are built dynamically based on amounts, dynamic fields, departments, and many other options, so it is not simple to implement this configuration easily and integrally within the local ERP system.

Choosing a tool that complements the procurement process of the existing ERP system

As a result of these challenges, many companies look for the right tool to make implementation of the procurement process easier. For that purpose, first and foremost, the tool must synchronize with the ERP system and create the relevant transactions within it, while providing the organization with maximum flexibility in terms of purchase invoice approvals, form completion, goods receipt approval, budget management and control, etc…

It is precisely from this situation that the clouderp system emerged, with an emphasis on organizations with multiple departments and different units, and many suppliers from whom the organization purchases products and services. About 90% of users in clouderp are not finance professionals, and the system was designed exactly for them, with all the flexibility required to adapt the process to the organization’s unique formula.

Bringing up procurement-related matters at an early stage in the process (and not when the completed order is created or when the tax invoice is received) saves the organization money and time and allows the process to flow naturally and smoothly. This is mainly because the most significant part of procurement is at the beginning of the process – why is this purchase necessary? What terms does the supplier set? What are the payment terms? Should additional negotiation with the supplier take place? This process is significant before the order is issued, and therefore creating a simple and uniform platform through which the process is carried out is at the core of our system.

The signs of a problematic procurement process are the many channels through which the process is managed – emails, spreadsheets, WhatsApp, Slack, and more… This creates disorder, and these channels can also be easily bypassed… In addition, the requester is very frustrated because they cannot know with confidence where their request stands, the approvers do not know where the request stands in terms of budget, and ultimately the accounting department cannot rely on such a fragile process.

clouderp – gives your ERP wings!

clouderp focuses on what the ordinary user needs to deal with in the procurement process – creating order requests, approving the order, opening new suppliers, and approving receipt of the goods, all while maintaining full synchronization with the organization’s ERP system.

In general, the process managed by the system can be divided into several parts:

1. Sending an order request by the user – in simple terms, this is a smart form that, based on the data entered into it, knows how to reach the relevant route.

2. Once the request is created, a notification is sent to the next approver in line who is supposed to approve the order. That approver reviews the order and the remaining budget against the line item, and can also consult with additional parties and add them to the approval route.

3. Once the route is completed, the purchase order is created. Its automatic sending to the supplier can be configured.

4. Upon receipt of the goods, the requester can confirm their receipt so that the accounting department can pull the entries for recording in the company’s books