Business Process

Purchase Central

Here is the business flow of purchase central modification in Odoo:

Functional Process

The purchase central function is used to list requests from unit hotel to corporate office for products that needed to be bought from corporate office or for the expense that needed to be invoiced from corporate office to unit hotel. From purchase central, user should be able to trigger creation of procurement documents such as:

1. Purchase Request
2. Purchase Order
3. Vendor Bill

After finished with the procurement process, purchase central help user from corporate office to enable create customer invoice to unit hotel to collect receviable from the purchased product. The customer invoice will be created for each unit hotel which listed in the same purchase central document.

The Vendor Bill (vendor invoice) will be using the same payable account as the usual account used for payable trade transaction. While the customer invoice will be using different receivable account to differentiate the amount received as receivable with the amount received from unit hotel as reimburse payment.

Purchase Central Settings

1. Reimburse Account - used as Expense Account in journal receiving or vendor bill and as Income Account in journal from Customer Invoice which created from Purchase Central.

2. AR Account - used as the Receivables Account in journal from Customer Invoice which created from Purchase Central.

3. AP Account - used as the Payables Account in journal from Vendor Bill which created from Purchase Central.

4. Expense Account - used as the Expense Account in Write as Expense journal entry.

5. Expense Journal - used to set the journal to write direct journal entry in Write as Expense.

Journal Entry in Purchase Central

The journal entry produce from Purchase Central, mostly are the same as the normal purchase. The differences are:

1. The Expense and Income account are the same "Reimburse Account".

2. The Receivables account used in AR Invoice from Purchase Central is different with normal AR Trade account. The Receivables account is different, because the amount in customer invoice from Purchase Central is not claimed as revenue.

Journal Entry from Receiving

If the product type is stockables, the purchase process will go through Purchase Order and Receiving. The journal entry from receiving will be based on account settings in Product or Product Category, and the Purchase Central account settings in Company Additional Settings.

Example of journal entry from receiving for product type stockable.

Journal Entry from Vendor Bill

The journal entry in Vendor Bill will depends on the source and the product type in Vendor Bill.

Example of journal entry from direct to Vendor Bill for product type consumable or service.

As display above in Journal Entry from Receiving, the expense not yet met with account payables. The journal vendor bill for product type stockable will extends the journal entry from receiving.

Journal Entry from Customer Invoice

The journal entry in Customer Invoice, will using account based on account settings in Purchase Central account settings.

PO (Purchase Order) Qty 1

The function is to enable Qty in Purchase Order = 1 per product while the total Qty request is more than 1. The function only applicable if the product type is consumable or service.

Write as Expense

The function Write as Expense only available once per Worksheet Central. The journal entry number will be displayed on header of Purchase Central once the journal expense posted.

Reimburse Aging Report

The reimburse aging report will be available in menu Invoicing > Reporting > Reimburse Aging. The report function is to help user in Corporate to monitor list of reimburse transaction which are not invoiced to Unit hotel yet.

Entity Relation Diagram in Purchase Central/Reimburse Process