Search Knowledge Base Articles

Purchase Module

PURCHASE MODULE – COMPLETE KNOWLEDGE PROCESS & USER GUIDE

1. Introduction to the Purchase Module

The Purchase Module in Bylon EMS is used to manage the complete purchasing cycle of an organization, from identifying items that need to be purchased, selecting vendors, requesting quotations, creating purchase orders, receiving goods, processing returns, and recording supplier invoices.

The module helps an organization maintain proper purchasing records, control inventory, manage suppliers, and ensure that purchases are properly approved and received.

Purchase Module Sub-Modules

The Purchase Module contains:

Analytics
Items
Vendors
Vendor Items
Purchase Requests
Quotations
Purchase Orders
Order Returns
Contracts
Debit Notes
Invoices
Landed Cost

Note: Some sub-modules such as Contracts, Debit Notes, and Landed Cost may be used depending on the organization's purchasing requirements and workflow.

2. ANALYTICS

Purpose

The Analytics section provides an overview of purchasing information and helps management monitor purchasing activities and trends.

It can be used to review purchasing performance, item purchasing information, vendor-related purchasing information, and other purchasing indicators.

Summary Process

Purchase → Analytics → Review purchasing information → Apply available filters → Analyze results

Why Analytics is Important

Analytics helps the organization:

Monitor purchasing activities.
Identify purchasing trends.
Review purchasing values.
Monitor items purchased.
Analyze vendor-related purchases.
Support purchasing and management decisions.

3. ITEMS

Purpose

The Items section is used to create and maintain products or commodities that the organization purchases.

Before purchasing an item, the item should normally exist in the system so that it can be selected in purchase requests, quotations, purchase orders, GRNs, and invoices.

Process of Adding an Item

Step 1: Open Purchase

Go to:

Purchase → Items

Step 2: Click Add

Click Add to create a new purchase item.

Step 3: Fill in Item Details

The Add Item tab will appear. Fill in the relevant fields:

Commodity Code – Unique code used to identify the commodity.
Commodity Bar Code – Barcode associated with the item.
SKU Code – Stock Keeping Unit code used to identify the item.
SKU Name – Name of the stock item.
Description – Additional information about the item.
Commodity Group – Main category to which the item belongs.
Subgroup – More specific classification within the group.
Rate – Applicable item rate.
Purchase Price – Price at which the organization purchases the item.
Unit – Unit of measurement, such as pieces, cartons, litres, kilograms, etc.
Tax 1 – Applicable tax.

Step 4: Submit

Review the information and click Submit.

Item Dashboard

The Items dashboard provides an overview of items, including information such as:

Total items.
Rate.
Purchase price from vendors.
Item group.

Summary Process

Purchase → Items → Add → Enter item details → Submit → Item becomes available for purchasing transactions

4. VENDOR

Purpose

The Vendor section is used to create and manage suppliers who provide goods or services to the organization.

A vendor must be created before they can be selected in transactions such as purchase orders, invoices, and other purchasing documents.

Creating a New Vendor

Step 1: Open Vendors

Go to:

Purchase → Vendor

Step 2: Click New Vendor

Click New Vendor.

The Vendor Profile will appear.

Step 3: Enter Vendor Information

Fill in the relevant vendor details:

Vendor Code – Unique identification code for the supplier.
Client's Company – Vendor/company name.
Address – Physical or business address.
Balance – Current balance associated with the vendor.
As Of – Date to which the balance applies.
VAT Number – Vendor's VAT registration number.
Phone – Vendor contact number.
Website – Vendor website, if available.
Vendor Category – Classification of the vendor.
City – Vendor's city.
Set/State – Relevant location information.
ZIP Code – Postal/ZIP code.
Country – Vendor's country.
Bank Details – Vendor banking information.
Payment Terms – Agreed payment conditions, such as cash, 30 days, 60 days, etc.

Step 4: Submit

Review the information and click Submit.

Summary Process

Purchase → Vendor → New Vendor → Enter vendor profile → Enter banking/payment details → Submit

5. VENDOR ITEMS

Purpose

Vendor Items links a specific vendor to the items they supply.

This is useful when an organization purchases particular products from particular suppliers.

Process

Step 1

Go to:

Purchase → Vendor Items

Step 2

Click New.

Step 3

On the Vendor Items tab, fill in:

Vendor
Group Item
Items

Step 4

Click Submit.

Why Vendor Items Are Important

They help the organization establish which items are supplied by which vendors. This makes it easier to identify suppliers when preparing purchasing transactions.

Summary Process

Purchase → Vendor Items → New → Select Vendor → Select Item Group → Select Items → Submit

6. PURCHASE REQUEST

Purpose

A Purchase Request is used to formally communicate that certain items are required and need to be purchased.

It is normally the starting point of a controlled purchasing process.

For example, a department may require 100 cartons of a particular product. Instead of immediately creating a purchase order, a purchase request can first be created and shared with vendors where applicable.

Creating a Purchase Request

Step 1

Go to:

Purchase → Purchase Request

Step 2

Click New.

Step 3: Enter Request Details

On the Add New Purchase Request screen, fill in:

Branch – Branch requesting the goods.
Purchase Request Code – Unique identification/reference for the request.
Purchase Request Name – Name or title of the request.
Currency – Currency to be used.
Requester – Person or department requesting the items.
Share to Vendors – Used where the request needs to be shared with vendors.
Description – Additional information about the request.

Step 4: Select Items

Select the required items.

Tick the item using the blue tick.

Step 5: Submit

Review the request and click Submit.

Summary Process

Purchase → Purchase Request → New → Enter request details → Select items → Tick items → Submit

Importance

The purchase request provides an audit trail showing:

What was requested.
Who requested it.
Which branch requested it.
Which items were required.
When the request was created.

7. QUOTATIONS

Purpose

The Quotation section is used to record and manage supplier quotations before an organization commits to purchasing.

A quotation allows the organization to compare supplier pricing and purchasing terms before creating a purchase order.

Creating a Quotation

Step 1

Go to:

Purchase → Quotation

Step 2

Click Create New Quotation.

Step 3: Fill in Quotation Details

Enter:

Vendor – Supplier providing the quotation.
Purchase Request – Related purchase request, if one exists.
Currency – Currency used in the quotation.
Quotation Date – Date the quotation was issued.
Branch – Branch making the purchase.
Expiry Date – Date until which the quotation remains valid.
Discount Type – Type of discount offered.
Quotation Number – Supplier's quotation/reference number.
Buyer – Person responsible for the purchasing process.

Step 4: Select Items

Select the items included in the quotation.

Step 5: Submit

Review the quotation and click Submit.

Summary Process

Purchase → Quotation → Create New Quotation → Enter vendor and quotation details → Select items → Submit

Why Quotations Are Important

Quotations help the organization:

Compare supplier prices.
Confirm supplier terms.
Maintain supplier quotation records.
Support purchasing decisions.
Link supplier quotations to purchase requests.

8. PURCHASE ORDER

Purpose

A Purchase Order (PO) is an official document issued to a vendor confirming the organization's intention to purchase specified goods or services at agreed terms.

The purchase order normally follows the purchasing decision and becomes the main reference for receiving goods.

Creating a Purchase Order

Step 1

Go to:

Purchase → Purchase Order

Step 2

Click New.

Step 3: Enter Purchase Order Details

Fill in:

Purchase Order Description – Description or purpose of the order.
Purchase Order Number – Unique purchase order reference.
Vendor – Supplier from whom the goods will be purchased.
Purchase Request – If a purchase request was previously created, it can be fetched here.
Order Date – Date the order is created.
Person in Charge – Person responsible for the purchase.
Branch – Branch making the purchase.
Warehouse – Warehouse where the goods will be received.
Number of Days – Relevant purchasing/delivery period.
Delivery Date – Expected date of delivery.
Discount Type – Discount method applicable to the order.

Step 4: Select Items

Select the required items.

Once an item is selected, it will appear in the item section.

Enter/review:

Item Name
Price
Quantity
Tax
Subtotal
Discount
Total

Tick the selected item.

Step 5: Submit

Review the purchase order and click Submit.

9. PURCHASE ORDER APPROVAL

After creating the purchase order, it may require approval before the organization proceeds to receive the goods.

Process

Open the Purchase Order dashboard.
Locate the newly created purchase order.
Click Send for Approval Request.
The approval request is sent to the responsible approver.
The authorized person reviews the purchase order.
The approver clicks Approve.
Once approved, the purchase order can proceed to the goods receiving stage.

Why Approval Is Important

Approval ensures that purchases are authorized before goods are received and entered into inventory.

It helps prevent:

Unauthorized purchases.
Incorrect quantities.
Incorrect prices.
Unapproved suppliers.
Unnecessary expenditure.

Summary Process

Create PO → Submit → Send for Approval → Approver Reviews → Approve → Proceed to Goods Receiving

10. GOODS RECEIVING / GRN

Purpose

A Goods Receiving Note (GRN) is used to record goods that have physically arrived at the organization from a supplier.

The GRN confirms what was actually received against the purchase order.

Creating a GRN

After the purchase order has been approved:

Step 1

Go to:

Warehouse Hub → Goods Receiving

Step 2

Click New GRN.

An Inventory Receiving Voucher will appear.

Step 3: Enter Receiving Details

Fill in/review the relevant information:

Dockets – Automatically generated/reference where applicable.
Accounting Date – Date used for accounting purposes.
Voucher Date / Receiving Date – Date the goods were physically received.
Delivery Note Number – Number on the supplier's delivery note.
P.O Reference – Select/fetch the purchase order being received.
Supplier – Supplier associated with the purchase order.
Requester – Person who requested the goods.
Deliverer – Person who delivered the goods.
Warehouse – Automatically populated from the purchase order.
Branch – Automatically populated from the purchase order.
Items – Automatically populated from the purchase order.

IMPORTANT: Receive Only Physically Delivered Items

Do not automatically receive every item listed on the purchase order.

Only receive the items and quantities that have actually been delivered and physically verified.

For example:

If the purchase order contains:

100 cartons of Item A
50 cartons of Item B

but the supplier delivers:

100 cartons of Item A
30 cartons of Item B

the GRN should reflect what was actually received, according to the system's receiving controls.

This prevents inventory from being overstated.

Step 4: Save and Confirm

After checking the received items and quantities:

Save and Confirm

Step 5: Approve the GRN

On the GRN dashboard:

Locate the GRN.
Click the GRN Code.
Select View and Approve.
Review the GRN.
Click Approve.

Result

Once the GRN is approved, the received stock is posted into the warehouse/inventory according to the system workflow.

The approved transaction will therefore be reflected in the warehouse.

11. GRN DASHBOARD AND FILTERS

The GRN dashboard allows users to monitor receiving transactions.

Common filters include:

Approved
Pending
Draft
Rejected

These filters make it easier to identify the current status of each GRN.

Example

Draft – GRN has been created but is not yet finalized.

Pending – GRN is awaiting the required action/approval.

Approved – GRN has successfully passed approval and the receiving transaction is completed.

Rejected – GRN was rejected and requires correction or further action.

12. ORDER RETURNS

Purpose

Order Returns are used when goods previously received from a vendor need to be returned.

Returns may occur because of:

Damaged goods.
Wrong items supplied.
Incorrect quantities.
Expired products.
Quality issues.
Goods supplied contrary to the order.

Creating an Order Return

Step 1

Go to:

Purchase → Order Returns

Step 2

Click New.

Step 3: Fill in Return Details

On the Add New Order Return screen, enter:

Vendor – Supplier whose goods are being returned.
GRN Number – Reference to the receiving transaction.
Order Date
Goods Receipt Note – Fetch the GRN from which the goods are being returned.
Order Return Number – Unique return reference.
Date Created
Return Type
Email
Phone Number
Currency

Step 4: Select Items

The items will normally appear automatically based on the selected GRN.

Verify the items and quantities being returned.

Step 5: Enter Reason

Enter:

Return Reason – Explain why the goods are being returned.
Admin Note – Internal administrative information where necessary.

Step 6: Save

Click Save.

Summary Process

Purchase → Order Returns → New → Select Vendor → Select GRN → Select/verify returned items → Enter return reason → Save

Important Control

Returns should be linked to the correct GRN so that the organization can trace the goods back to the original receiving transaction.

13. INVOICES

Purpose

The Invoices section is used to record supplier invoices for goods or services purchased by the organization.

Where goods have already been received through a GRN, the supplier invoice can be linked to the relevant GRN and purchasing information.

Creating a Purchase Invoice

Step 1

Go to:

Purchase → Invoices

Step 2

Click New.

Step 3: Enter Invoice Information

Fill in:

Branch – Branch responsible for the transaction.
Currency – Currency of the supplier invoice.
Invoice Code – System invoice reference.
Invoice Number – Supplier invoice number/reference.
Supplier Invoice Number – Supplier's actual invoice reference.
Transaction Date – Date of the accounting transaction.
Vendor – Supplier.
Contract – Select the applicable contract, if any.
Discount Type – Applicable discount method.
Goods Receipt Note (GRN) – Link the invoice to the relevant GRN.
Invoice Date – Date shown on the supplier invoice.
Due Date – Date payment is expected.
Recurring Invoice – Select where the invoice is recurring.
Items – Items will appear automatically where linked to the GRN/purchasing transaction.
Admin Note – Internal note.
Vendor Note – Note relating to the supplier.

Step 4

Review all invoice information and click Submit.

Summary Process

Purchase → Invoices → New → Enter invoice details → Select vendor/GRN → Verify items → Enter dates and payment information → Submit

14. CONTRACTS

Purpose

The Contract section is used to manage formal purchasing agreements between the organization and vendors.

Contracts can be useful where an organization has agreed terms with a supplier for a specified period.

Typical Uses

Contracts can help track:

Supplier agreements.
Contract periods.
Agreed purchasing terms.
Vendor commitments.
Contract-related purchases.

Summary Process

Purchase → Contract → Create/manage supplier agreement → Maintain contract details → Link applicable purchases

The exact fields and approval workflow may depend on the organization's Bylon configuration.

15. DEBIT NOTES

Purpose

A Debit Note is generally used to adjust the amount owed to a supplier, commonly where goods are returned, an invoice was overstated, or another supplier-related adjustment is required.

Common Use Cases

Purchase returns.
Supplier invoice adjustments.
Overcharged amounts.
Price corrections.
Other supplier account adjustments.

Summary Process

Purchase → Debit Note → Create adjustment → Link relevant supplier/purchase transaction → Enter adjustment details → Submit/approve according to workflow

The exact fields may depend on the organization's configuration.

16. LANDED COST

Purpose

Landed Cost is used to account for additional costs associated with bringing purchased goods into the organization.

These costs can include expenses associated with transporting or importing goods.

Examples may include:

Freight.
Transportation.
Insurance.
Customs-related charges.
Other costs incurred before goods are ready for use or sale.

Why Landed Cost Is Important

The purchase price of an item may not represent its complete cost to the organization.

For example:

Purchase price + applicable additional costs = Landed cost

This gives the organization a more accurate understanding of the cost associated with acquiring inventory.

Summary Process

Purchase → Landed Cost → Select relevant purchase/received goods → Add applicable additional costs → Allocate costs → Submit/confirm

The exact allocation fields and process depend on the organization's Bylon configuration.

17. COMPLETE PURCHASE MODULE PROCESS

The purchasing process can generally be understood as a sequence:

Item Setup → Vendor Setup → Purchase Request → Quotation → Purchase Order → Approval → GRN → GRN Approval → Inventory Update → Supplier Invoice → Payment

Not every purchase must use every stage. The actual workflow depends on the organization's purchasing policy.

Simplified Workflow

1. Create Item

↓

2. Create Vendor

↓

3. Create Purchase Request

↓

4. Request/Record Quotation

↓

5. Create Purchase Order

↓

6. Send Purchase Order for Approval

↓

7. Approve Purchase Order

↓

8. Supplier Delivers Goods

↓

9. Create GRN

↓

10. Verify Physical Goods

↓

11. Save and Confirm GRN

↓

12. Approve GRN

↓

13. Stock Is Updated

↓

14. Create Supplier Invoice

↓

15. Process Payment According to the Organization's Payment Workflow

18. DETAILED SUMMARY: PURCHASE ORDER TO GRN

This is one of the most important purchasing processes because it connects the approved purchase to the actual physical receipt of inventory.

Stage 1: Create the Purchase Order

Go to:

Purchase → Purchase Order → New

Enter the purchase order information:

Purchase order description.
Purchase order number.
Vendor.
Purchase request, if applicable.
Order date.
Person in charge.
Branch.
Warehouse.
Number of days.
Delivery date.
Discount type.

Then select the required items and enter:

Item.
Price.
Quantity.
Tax.
Subtotal.
Discount.
Total.

Review the order and Submit.

Why?

The PO formally records what the organization intends to purchase from the vendor.

19. Stage 2: Send Purchase Order for Approval

After submission:

Purchase Order Dashboard → Send for Approval Request

The purchase order is sent to the responsible approver.

The approver reviews:

Vendor.
Items.
Quantity.
Prices.
Taxes.
Discounts.
Total value.
Branch.
Warehouse.
Delivery information.

The authorized person then Approves the purchase order.

Why?

The approval confirms that the purchase is authorized before the organization proceeds with receiving the goods.

20. Stage 3: Supplier Delivers Goods

The vendor delivers the goods according to the purchase order.

At this point, the warehouse team should physically verify the delivery.

Check:

Correct supplier.
Correct items.
Quantity received.
Condition of goods.
Delivery note.
Purchase order reference.
Any damaged or missing items.

IMPORTANT

A purchase order does not mean that the goods have been received.

The PO represents what was ordered.

The GRN represents what was actually received.

21. Stage 4: Create the GRN

Go to:

Warehouse Hub → Goods Receiving → New GRN

The Inventory Receiving Voucher appears.

Enter/review:

Docket.
Accounting date.
Receiving/voucher date.
Delivery note number.
P.O reference.
Supplier.
Requester.
Deliverer.
Warehouse.
Branch.

Fetch the relevant Purchase Order.

The system will automatically bring in information such as:

Supplier.
Branch.
Warehouse.
Items.

22. Stage 5: Verify Physical Quantities

This is a critical control point.

Compare the goods physically received against the purchase order.

Example

Suppose the PO says:

Item	Ordered
Bottled Water	100 cartons
Juice	50 cartons

The supplier delivers:

Item	Received
Bottled Water	100 cartons
Juice	40 cartons

The GRN should reflect the actual receipt, not simply copy the full PO quantity.

The 10 cartons of Juice that were not delivered should not be treated as received.

Why?

This prevents:

Inflated inventory.
Incorrect stock balances.
Incorrect supplier records.
False receiving records.
Accounting discrepancies.

23. Stage 6: Save and Confirm

Once the warehouse team has verified the goods:

Save and Confirm

The GRN is now recorded and moves through the configured approval workflow.

24. Stage 7: Approve the GRN

On the GRN dashboard:

Locate the GRN.
Click the GRN Code.
Select View and Approve.
Review the receiving information.
Confirm that the goods were properly received.
Click Approve.

25. Stage 8: Inventory Update

Once the GRN has been approved, the received goods are posted into the warehouse/inventory according to the Bylon workflow.

This means the organization now has a system record showing that the goods were physically received.

Important Difference

Purchase Order

= What the organization ordered.

GRN

= What the organization actually received.

Purchase Invoice

= What the supplier billed the organization.

These documents should be consistent and traceable to one another.

26. COMPLETE PO → GRN PROCESS AT A GLANCE

Purchase Order

Purchase → Purchase Order → New → Enter PO details → Select items → Enter quantities/prices → Submit

↓

Approval

Send for Approval → Authorized Person Reviews → Approve

↓

Physical Delivery

Supplier Delivers → Warehouse Receives → Physically Verify Goods

↓

GRN

Warehouse Hub → Goods Receiving → New GRN → Fetch PO → Verify Items → Enter Delivery Details

↓

Confirmation

Save and Confirm

↓

GRN Approval

GRN Dashboard → GRN Code → View and Approve → Approve

↓

Inventory

Approved GRN → Received Goods Posted to Warehouse/Inventory

27. IMPORTANT PURCHASING CONTROLS

When using the Purchase Module, users should observe the following controls:

1. Verify the Vendor

Always ensure the correct vendor is selected before creating a purchase transaction.

2. Verify the Purchase Order

Before receiving goods, confirm that the correct PO has been selected.

3. Receive Physical Goods Only

Never mark goods as received simply because they appear on the PO.

4. Verify Quantities

Compare the physical quantity against the ordered quantity.

5. Check Item Details

Confirm that the correct items have been delivered.

6. Check Delivery Documentation

Verify the supplier's delivery note and other supporting documents.

7. Follow Approval Procedures

Purchase orders and GRNs should be approved by the authorized person before proceeding to the next stage.

8. Maintain Traceability

The purchasing process should allow users to trace:

Purchase Request → Quotation → Purchase Order → GRN → Invoice

9. Use Returns Correctly

If goods are returned, link the return to the relevant GRN where applicable and clearly state the reason for the return.

10. Avoid Duplicate Receiving

Do not create duplicate GRNs for the same physical delivery.

28. FINAL PURCHASE MODULE SUMMARY

The Purchase Module manages the organization's purchasing activities from the initial requirement to the final receipt and recording of purchased goods.

The general process is:

Items
Set up the products or commodities that can be purchased.

↓

Vendors
Create and maintain supplier information.

↓

Vendor Items
Link vendors to the items they supply.

↓

Purchase Request
Record the organization's requirement for goods or services.

↓

Quotation
Record and evaluate supplier quotations.

↓

Purchase Order
Officially place the order with the selected vendor.

↓

Approval
Obtain authorization for the purchase.

↓

Goods Receiving / GRN
Record the goods that were physically delivered.

↓

GRN Approval
Approve the actual receipt.

↓

Inventory
Approved received goods are reflected in the warehouse/inventory.

↓

Order Returns
Return goods that are damaged, incorrect, excess, or otherwise unacceptable.

↓

Invoice
Record the supplier's invoice against the relevant purchasing/receiving information.

↓

Debit Note / Landed Cost / Contract
Handle supplier adjustments, additional acquisition costs, and contractual purchasing arrangements where applicable.

Key Principle

The most important concept in the purchasing workflow is:

A Purchase Order records what was ordered, while a GRN records what was actually received.

Therefore, users must always verify the physical goods before confirming the GRN. This ensures that the warehouse, purchasing, and financial records remain accurate and properly traceable.