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Overview

The Buying module helps you manage the entire procurement cycle from supplier selection to goods receipt. It provides tools for vendor management, purchase planning, order tracking, and supplier performance evaluation.

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Key Features

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Supplier Management

Maintain comprehensive supplier records:

Supplier Database

  • Contact details
  • Payment terms
  • Credit limits
  • Tax information

Supplier Portal

Allow suppliers to view RFQs and submit quotations online

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Core Doctypes

The primary document for ordering goods and services from suppliers.
# From purchase_order.py
class PurchaseOrder(BuyingController):
    status: Literal[
        "Draft",
        "To Receive and Bill",
        "To Bill",
        "To Receive",
        "Completed",
        "Cancelled",
        "Closed",
        "On Hold"
    ]
Key Features:
  • Multi-item ordering
  • Partial receipts
  • Drop shipping
  • Blanket orders for recurring purchases
  • Quality inspection integration
  • Subcontracting support
Purchase orders can be created directly or auto-generated from Material Requests.
Send RFQs to multiple suppliers and compare quotes.Process:
  1. Create RFQ with required items
  2. Send to multiple suppliers via email
  3. Suppliers submit quotations online
  4. Compare quotations side-by-side
  5. Create purchase orders from selected quotes
The supplier quotation comparison tool helps you select the best supplier based on price, delivery time, and other factors.
Record quotations received from suppliers.Features:
  • Link to RFQ
  • Multiple items
  • Valid until date
  • Terms and conditions
  • Convert to Purchase Order
Record goods received from suppliers.Capabilities:
  • Quality inspection
  • Batch and serial number tracking
  • Rejected quantity handling
  • Return against purchase receipt
  • Barcode scanning
Impact:
  • Updates stock levels
  • Creates accounting entries (if perpetual inventory)
  • Updates purchase order status

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Material Request Workflow

Initiate the procurement process with material requests:
1

Create Material Request

Department/user requests materials needed
2

Approval

Route for approval based on amount
3

Generate Purchase Order

Auto-create PO from approved material requests
4

Track Status

Monitor ordered, received, and pending quantities

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Supplier Scorecard

Evaluate supplier performance systematically:

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Scoring Criteria

Quality

  • Acceptance rate
  • Rejection rate
  • Quality inspection results

Delivery

  • On-time delivery
  • Lead time accuracy
  • Order completeness

Cost

  • Price competitiveness
  • Payment terms
  • Total cost of ownership

Service

  • Communication
  • Issue resolution
  • Flexibility

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Scorecard Features

# Supplier scoring variables
- On-time delivery percentage
- Quality inspection pass rate
- Response time to RFQs
- Price variance from budget
- Lead time adherence
Supplier scorecards help you make data-driven decisions about supplier selection and relationship management.

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Subcontracting

Manage subcontracting operations where suppliers manufacture items using your raw materials:
  1. Setup: Define subcontracting BOM
  2. Purchase Order: Create PO with subcontracting items
  3. Material Transfer: Transfer raw materials to supplier
  4. Receipt: Receive finished goods from supplier
  5. Accounting: System handles complex cost accounting
Tracking:
  • Raw materials with supplier
  • Finished goods received
  • Cost allocation
  • Material consumption

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Buying Settings

Customize the buying module behavior:

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Configuration Options

SettingDescription
Supplier NamingAuto-naming or manual naming
PO RequiredMake purchase order mandatory
PR RequiredRequire purchase receipt before invoice
Maintain StockEnable/disable stock tracking
Default Buying Price ListDefault price list for purchases
Allow Multiple ItemsAllow same item multiple times in transaction
Backflush Raw MaterialsAuto-consume materials on receipt

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Purchase Analytics

Gain insights into your procurement operations:

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Key Reports

Track purchase order trends and status:
  • PO value by supplier
  • PO aging analysis
  • Pending orders
  • Delivery performance
Visual analytics for purchase trends:
  • Monthly purchase trends
  • Category-wise spend
  • Supplier-wise analysis
  • Item-wise purchase history
Complete view of procurement pipeline:
  • Material request to PO
  • PO to receipt status
  • Receipt to invoice status
  • Payment status

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Price Lists and Item Prices

Manage purchase pricing:
  • Supplier-wise pricing: Different prices for different suppliers
  • Quantity-based pricing: Volume discounts
  • Time-bound prices: Valid from/to dates
  • Party-specific items: Items supplied by specific suppliers only
The system automatically fetches the last purchase rate when creating new purchase documents.

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Purchase Taxes and Charges

Handle complex tax scenarios:
  • Multiple tax templates
  • Item-wise taxation
  • Tax withholding (TDS)
  • Reverse charge
  • Customs and import duties
  • Shipping and handling charges

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Blanket Orders

Set up recurring purchase agreements: Use Cases:
  • Annual supply contracts
  • Rate contracts
  • Consumable items
  • Regular services
Features:
  • Validity period
  • Maximum quantity/amount
  • Order against blanket order
  • Quantity tracking
Blanket orders help you negotiate better prices for bulk quantities while making purchases as needed.

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Drop Shipping

Handle direct shipment from supplier to customer: Benefits:
  • Reduce inventory holding
  • Faster fulfillment
  • Lower logistics costs

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Quality Inspection

Integrate quality checks in the procurement process:
  • Inspection before receipt: Inspect goods before accepting
  • Sample-based inspection: Check sample quantities
  • Parameter-based: Define quality parameters
  • Accept/Reject: Automated acceptance based on results

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Key Workflows

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Standard Purchase Flow

1

Material Request

User requests materials
2

Request for Quotation

Send RFQ to suppliers
3

Compare Quotations

Evaluate supplier quotations
4

Purchase Order

Create PO for selected supplier
5

Purchase Receipt

Receive goods and update stock
6

Purchase Invoice

Book supplier bill
7

Payment

Make payment to supplier
The buying module integrates seamlessly with accounts and stock modules to provide end-to-end procurement visibility.

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