Purchase Management

Purchase Management

Manage procurement of educational supplies, lab equipment, library books, IT equipment, furniture, and other institutional needs through a streamlined purchasing workflow.

Time Required: 20-30 minutes (initial setup), 5-10 minutes (per order) Module: Purchase User Role: Purchase Manager, Procurement Officer

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Table of Contents

1. Before You Begin
2. Understanding Purchase Workflow
3. Configure Products for Purchasing
4. Set Up Vendor Pricelists
5. Create a Request for Quotation
6. Send RFQ to Vendor
7. Confirm Purchase Order
8. Receive Products
9. Manage Vendor Bills
10. Purchase Agreements (Blanket Orders)
11. Call for Tenders
12. Reordering Rules
13. Purchase Analysis Reports
14. Field Reference
15. Troubleshooting
16. Related Topics

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Before You Begin

Ensure you have:

• Purchase module installed and enabled
• Inventory module installed (for stock tracking)
• Accounting module installed (for vendor bills)
• Purchase Manager or Procurement Officer role assigned
• Vendor contacts created in the Contacts app
• Products configured as purchasable items

Common Educational Purchases

Category	Examples
Lab Equipment	Microscopes, chemicals, beakers, safety equipment
Library Materials	Textbooks, journals, reference books, e-resources
IT Equipment	Computers, projectors, tablets, networking gear
Furniture	Desks, chairs, storage cabinets, laboratory benches
Stationery	Paper, pens, markers, folders, printing supplies
Sports Equipment	Balls, nets, gymnasium equipment, uniforms
Classroom Supplies	Whiteboards, markers, teaching aids, craft materials

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Understanding Purchase Workflow

The purchase process in OpenEduCat follows a structured workflow:

Product Need Identified
        |
        v
Create Request for Quotation (RFQ)
        |
        v
Send RFQ to Vendor(s)
        |
        v
Receive Vendor Response
        |
        v
Confirm Purchase Order (PO)
        |
        v
Receive Products
        |
        v
Create and Pay Vendor Bill

Purchase Order Stages

Stage	Description	Status
Draft	RFQ created but not sent	RFQ
RFQ Sent	Quotation sent to vendor, awaiting response	RFQ Sent
To Approve	Awaiting approval (if approval workflow enabled)	To Approve
Purchase Order	Order confirmed with vendor	Purchase Order
Done	Products received and billed	Done
Cancelled	Order cancelled	Cancelled

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Configure Products for Purchasing

Before creating purchase orders, products must be configured as purchasable items.

Step 1: Navigate to Products

1. Go to Purchase in the main menu
2. Click Products > Products
3. Click Create for a new product, or select an existing product

Step 2: Enable Purchasing

Field	Action	Example
Product Name	Enter descriptive name	”Laboratory Microscope - 40x”
Can be Purchased	Check this box	Enabled
Product Type	Select type	”Storable Product”

Step 3: Configure Purchase Tab

In the Purchase tab:

Field	Description	Example
Vendor	Default vendor for this product	”Lab Equipment Suppliers Ltd”
Vendor Product Code	Vendor’s SKU/code	”MIC-40X-BIO”
Price	Unit purchase price	2500.00
Delivery Lead Time	Days to receive after order	7

Step 4: Configure Inventory Settings

In the Inventory tab (if using Inventory module):

Field	Action	Example
Routes	Enable “Buy” route	Buy
Track Inventory	Enable for stock tracking	By Unique Serial Number

Click Save to store the product configuration.

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Set Up Vendor Pricelists

Configure vendor-specific pricing for products to auto-populate prices on purchase orders.

Step 1: Access Vendor Pricelists

1. Go to Purchase > Configuration > Vendor Pricelists
2. Click New to create a new pricelist entry

Step 2: Configure Pricelist Entry

Field	Required	Description	Example
Vendor	Yes	Select vendor	”ABC Office Supplies”
Product	Yes	Select product	”A4 Paper Ream”
Quantity	No	Minimum order quantity	10
Unit Price	Yes	Price per unit	150.00
Start Date	No	Price validity start	2026-01-01
End Date	No	Price validity end	2026-12-31
Delivery Lead Time	No	Days to deliver	3

Step 3: Add Multiple Vendors per Product

For competitive pricing, add multiple vendors for the same product:

Example - A4 Paper Ream:

Vendor	Quantity	Unit Price	Lead Time
ABC Office Supplies	1	160.00	3 days
ABC Office Supplies	50	145.00	3 days
XYZ Stationery	1	155.00	5 days
XYZ Stationery	100	140.00	5 days

Click Save after adding each pricelist entry.

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Create a Request for Quotation

A Request for Quotation (RFQ) is the first step in the purchasing process.

Step 1: Navigate to RFQ Dashboard

1. Go to Purchase > Orders > Requests for Quotation
2. Click New to create a new RFQ

Step 2: Fill Header Information

Field	Required	Description	Example
Vendor	Yes	Select supplier	”Science Lab Equipment Co.”
Vendor Reference	No	Vendor’s reference number	”QUOTE-2026-001”
Order Deadline	No	Date vendor must confirm by	2026-01-15
Expected Arrival	Auto	Calculated from lead times	2026-01-22
Deliver To	Yes	Receiving warehouse	”Main Warehouse”

Step 3: Add Products

In the Products tab, click Add a product and fill:

Field	Required	Description	Example
Product	Yes	Select product	”Digital Microscope”
Description	Auto	Product description	Auto-filled
Quantity	Yes	Order quantity	10
UoM	Auto	Unit of measure	”Units”
Unit Price	Auto/Manual	Price per unit	3500.00
Taxes	Auto	Applicable taxes	”GST 18%“
Subtotal	Auto	Line total	35,000.00

Educational Context Example - Science Lab Order:

Product	Quantity	Unit Price	Subtotal
Digital Microscope	10	3,500.00	35,000.00
Petri Dishes (Pack of 100)	5	800.00	4,000.00
Safety Goggles	50	150.00	7,500.00
Lab Coats	50	450.00	22,500.00
Total			69,000.00

Step 4: Add Additional Information (Optional)

Click the Other Information tab:

Field	Description	Example
Buyer	Person responsible	”John Smith”
Source Document	Reference to original request	”DEPT-REQ-2026-042”
Incoterm	Shipping terms	”Delivered at Place (DAP)“
Payment Terms	Payment conditions	”30 Days Net”

Click Save to create the RFQ as a draft.

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Send RFQ to Vendor

After creating the RFQ, send it to the vendor to request pricing and availability.

Step 1: Review the RFQ

Before sending, verify:

• Correct vendor selected
• All products and quantities accurate
• Expected arrival date acceptable
• Contact email configured for vendor

Step 2: Send by Email

1. Click Send by Email button
2. A compose email window appears with pre-filled template
3. Review and customize the message if needed
4. Click Send

The RFQ status changes from RFQ to RFQ Sent.

Step 3: Alternative - Print RFQ

1. Click Print RFQ to generate a PDF
2. Download or print the document
3. Send manually via fax, courier, or hand-delivery

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Confirm Purchase Order

Once the vendor confirms the quotation, convert it to a Purchase Order.

Step 1: Update Vendor Information

If the vendor provides updated pricing or lead times:

1. Open the RFQ from Purchase > Orders > Requests for Quotation
2. Update unit prices, quantities, or expected dates as needed
3. Click Save

Step 2: Confirm the Order

1. Click Confirm Order button
2. The RFQ converts to a Purchase Order (PO)
3. Status changes to Purchase Order

Step 3: Verify Confirmation Details

After confirmation, review:

Field	Description
Confirmation Date	Date and time order was confirmed
Order Reference	Unique PO number (e.g., PO00001)
Receipt	Smart button showing expected receipts

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Receive Products

When products arrive, record the receipt to update inventory.

Step 1: Access the Receipt

From the Purchase Order:

1. Click the Receipt smart button
2. Or navigate to Inventory > Operations > Receipts

Step 2: Validate Receipt

Action	Description
Validate	Confirm all products received as ordered
Edit Quantities	Adjust if partial delivery received
Set Done Quantities	Click to match ordered quantities

Step 3: Handle Partial Receipts

If only some products are received:

1. Edit the Done quantity for each product
2. Click Validate
3. Choose No Backorder or Create Backorder

Option	When to Use
No Backorder	Remaining items will not be delivered
Create Backorder	Remaining items expected in future delivery

Step 4: Complete Receipt

1. Click Validate to confirm receipt
2. Inventory quantities are updated automatically
3. Receipt status changes to Done

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Manage Vendor Bills

Create and pay vendor bills for received products.

Bill Control Policies

Products can be configured with different billing policies:

Policy	Description	Best For
On Ordered Quantities	Bill created when order confirmed	Services, prepaid items
On Received Quantities	Bill created after products received	Physical goods

Step 1: Create Bill from Purchase Order

1. Open the confirmed Purchase Order
2. Click Create Bill button
3. A draft vendor bill is created

Step 2: Enter Bill Details

Field	Required	Description	Example
Bill Date	Yes	Invoice date from vendor	2026-01-20
Bill Reference	No	Vendor’s invoice number	”INV-2026-0042”
Due Date	Auto	Payment due date	2026-02-19
Payment Terms	Auto	From vendor settings	”30 Days Net”

Step 3: Verify Invoice Lines

Review that all lines match the vendor’s invoice:

Field	Description
Product	Should match ordered items
Quantity	Should match received quantities
Unit Price	Should match vendor invoice
Amount	Total per line

Step 4: Confirm and Pay

1. Click Confirm to post the bill
2. Click Register Payment to record payment
3. Select payment method and journal
4. Click Create Payment

3-Way Matching

Enable 3-way matching to ensure bills are only paid when:

1. Purchase Order exists (what was ordered)
2. Receipt completed (what was received)
3. Vendor Bill received (what is being charged)

To enable:

1. Go to Purchase > Configuration > Settings
2. Enable 3-way matching under Invoicing section
3. Click Save

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Purchase Agreements (Blanket Orders)

For recurring purchases from the same vendor, set up blanket orders to lock in pricing and terms.

When to Use Blanket Orders

Scenario	Example
Annual contracts	Yearly stationery supply agreement
Bulk discounts	Negotiated pricing for 500+ textbooks
Recurring needs	Monthly lab supplies replenishment
Budget planning	Pre-approved spending limits

Step 1: Enable Purchase Agreements

1. Go to Purchase > Configuration > Settings
2. Enable Purchase Agreements under Orders section
3. Click Save

Step 2: Create Blanket Order

1. Go to Purchase > Orders > Purchase Agreements
2. Click New
3. Fill the agreement form:

Field	Required	Description	Example
Vendor	Yes	Supplier for agreement	”National Book Distributors”
Buyer	Auto	Responsible person	Current user
Agreement Type	Yes	Select Blanket Order	”Blanket Order”
Agreement Validity	No	Valid date range	2026-01-01 to 2026-12-31
Currency	Auto	Payment currency	INR

Step 3: Add Products and Pricing

In the Products section, add items with negotiated prices:

Product	Quantity	Unit Price	Notes
Textbook - Mathematics Grade 10	500	350.00	Annual requirement
Textbook - Science Grade 10	500	400.00	Annual requirement
Notebooks (Pack of 10)	1000	180.00	Quarterly orders

Click Confirm to activate the agreement.

Step 4: Create Orders from Blanket Order

1. Open the blanket order
2. Click New Quotation
3. A new RFQ is created with pre-filled products and prices
4. Adjust quantities as needed
5. Confirm the order

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Call for Tenders

Request quotes from multiple vendors to compare pricing and select the best offer.

When to Use Tenders

Scenario	Example
Large purchases	New computer lab equipment
Price comparison	Annual stationery contract
Policy requirement	Government/institution mandates
New vendors	Evaluating potential suppliers

Step 1: Create Initial RFQ

1. Go to Purchase > Orders > Requests for Quotation
2. Create RFQ for the first vendor
3. Add all required products
4. Click Save (do not confirm yet)

Step 2: Create Alternative RFQs

1. In the RFQ, click the Alternatives tab
2. Click Create Alternative
3. Select a different vendor
4. Check Copy Products to include same items
5. Click Create Alternative
6. Repeat for additional vendors

Step 3: Send All RFQs

For each RFQ in the Alternatives tab:

1. Click on the RFQ reference
2. Click Send by Email
3. Return to alternatives and repeat

Step 4: Compare Quotations

Once vendors respond:

1. Open any linked RFQ
2. Click the Alternatives tab
3. Click Compare Product Lines
4. View side-by-side comparison:

Product	Vendor A	Vendor B	Vendor C
Desktop Computer	45,000	42,500	44,000
Monitor 24”	12,000	13,500	11,800
Keyboard + Mouse	1,500	1,200	1,400
Total	58,500	57,200	57,200

Step 5: Select Best Offers

1. Click Choose for preferred product lines
2. Products can be mixed from different vendors
3. Navigate back to RFQs
4. Confirm selected orders
5. Cancel or keep alternatives as needed

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Reordering Rules

Automate purchase orders when stock falls below minimum levels.

Step 1: Configure Product for Reordering

1. Open the product form
2. In Inventory tab, ensure:
   • Product Type is “Storable Product”
   • Track Inventory is enabled
   • Routes includes “Buy”

Step 2: Create Reordering Rule

1. On the product form, click Reordering Rules smart button
2. Click Create
3. Configure the rule:

Field	Required	Description	Example
Location	Yes	Stock location	”Main Warehouse/Stock”
Min Quantity	Yes	Trigger level	50
Max Quantity	Yes	Reorder target	200
Multiple Quantity	No	Order in multiples	25
Unit	Auto	Unit of measure	Units

Step 3: Automatic RFQ Generation

When stock falls below minimum:

1. Scheduler runs daily (or manually triggered)
2. RFQ created automatically for configured vendor
3. Quantity calculated to reach max level
4. Review and confirm as normal

Example - Stationery Reordering:

Product	Min	Max	Current	Auto-Order
A4 Paper Reams	50	200	45	155 units
Ballpoint Pens	100	500	80	420 units
Staplers	10	50	12	No order

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Purchase Analysis Reports

Monitor purchasing performance with built-in reports.

Access Purchase Reports

1. Go to Purchase > Reporting > Purchase
2. Select view type: Graph, Pivot, or List

Available Measures

Measure	Description
# of Lines	Total order lines across all POs
Average Cost	Average cost of purchase orders
Days to Confirm	Time from RFQ to PO confirmation
Days to Receive	Time from PO to product receipt
Qty Ordered	Total quantity ordered
Qty Received	Total quantity received
Qty to be Billed	Quantity pending invoicing
Total	Total spend including taxes
Untaxed Total	Total spend excluding taxes

Common Analysis Examples

1. Vendor Performance Analysis

• Group by: Vendor
• Measure: Days to Receive
• Purpose: Identify fastest/slowest suppliers

2. Monthly Spending Trends

• Group by: Confirmation Date (Month)
• Measure: Total
• Purpose: Track procurement spending over time

3. Department-wise Purchases

• Filter by: Source Document (department codes)
• Measure: Untaxed Total
• Purpose: Budget monitoring per department

4. Product Category Analysis

• Group by: Product Category
• Measure: Qty Ordered
• Purpose: Identify most purchased categories

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Field Reference

Purchase Order Fields

Field Name	Technical Name	Type	Required	Description
Vendor	partner_id	Many2one	Yes	Supplier contact
Vendor Reference	partner_ref	Char	No	Vendor’s reference
Order Deadline	date_order	Datetime	No	Confirmation deadline
Expected Arrival	date_planned	Datetime	Auto	Calculated arrival date
Currency	currency_id	Many2one	Auto	Order currency
Deliver To	picking_type_id	Many2one	Yes	Receiving operation
Source Document	origin	Char	No	Reference to source
Payment Terms	payment_term_id	Many2one	No	Payment conditions
Buyer	user_id	Many2one	Auto	Responsible user
Status	state	Selection	Auto	Order stage

Purchase Order Line Fields

Field Name	Technical Name	Type	Required	Description
Product	product_id	Many2one	Yes	Ordered product
Description	name	Text	Auto	Product description
Quantity	product_qty	Float	Yes	Order quantity
Unit of Measure	product_uom	Many2one	Auto	UoM
Unit Price	price_unit	Float	Yes	Price per unit
Taxes	taxes_id	Many2many	Auto	Applicable taxes
Subtotal	price_subtotal	Float	Auto	Line total

Purchase Order Statuses

Status	Technical Value	Description
RFQ	draft	Draft quotation
RFQ Sent	sent	Quotation sent to vendor
To Approve	to approve	Pending approval
Purchase Order	purchase	Confirmed order
Done	done	Completed
Cancelled	cancel	Cancelled order

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Troubleshooting

”Cannot confirm order - No product selected”

Problem: Confirm button fails with no products error.

Solutions:

1. Ensure at least one product line is added
2. Check product quantities are greater than zero
3. Verify products are saved (not in edit mode)

“Product not available for purchase”

Problem: Product doesn’t appear in product dropdown.

Solutions:

1. Open product form and enable Can be Purchased checkbox
2. Ensure product is not archived
3. Check user has access to the product

”Expected arrival date in the past”

Problem: Warning about past expected arrival.

Solutions:

1. Update the Order Deadline to a future date
2. Check vendor lead times in product configuration
3. Manually adjust Expected Arrival date

”No vendor defined for product”

Problem: Price not auto-filling when adding products.

Solutions:

1. Add vendor pricelist for the product
2. Configure default vendor in product’s Purchase tab
3. Manually enter price on the order line

”Cannot create bill - Nothing to bill”

Problem: Create Bill button shows error.

Solutions:

1. Verify products have been received (check Receipt)
2. Check product Bill Control Policy is “On received quantities”
3. Ensure ordered quantities match received quantities

”3-way matching exception”

Problem: Bill shows “Should Be Paid: Exception”.

Solutions:

1. Verify bill quantities match received quantities
2. Check prices match the purchase order
3. Review any modifications made to the draft bill
4. Override manually if discrepancy is valid

”Reordering rule not triggering”

Problem: Stock is below minimum but no RFQ created.

Solutions:

1. Run scheduler manually: Inventory > Operations > Run Scheduler
2. Verify product has “Buy” route enabled
3. Check reordering rule is not archived
4. Ensure vendor is configured for the product

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Best Practices for Educational Institutions

Procurement Planning

Period	Activity
Annual	Review blanket orders, negotiate new contracts
Quarterly	Analyze spending, adjust reordering rules
Monthly	Review pending orders, check delivery schedules
Weekly	Process RFQs, follow up on delayed orders

Vendor Management

1. Maintain vendor database - Keep contact information current
2. Track performance - Monitor delivery times and quality
3. Diversify suppliers - Avoid single-vendor dependency
4. Regular reviews - Annual vendor performance evaluation

Budget Control

1. Set approval limits - Require approval for large purchases
2. Use blanket orders - Pre-negotiate pricing for budgeted items
3. Monitor spending - Regular reports by department/category
4. Track commitments - Include open POs in budget planning

Academic Calendar Alignment

Period	Focus Areas
Pre-Session (2 months before)	Textbooks, course materials, lab supplies
Session Start	Stationery, uniforms, IT equipment
Mid-Session	Maintenance supplies, replacement items
Session End	Inventory audit, next session planning
Vacation	Major equipment, furniture, renovations

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Related Topics

• Inventory Management

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Last updated: January 2026