Manual do usuário

Purchase Terms

The Purchase Terms connect a stock item to its vendors. It is used for pre-filling a Purchase Order, and for production lead time estimation when items are not in stock.

With a Purchase Term, it's possible to
  • add vendors to an item,
  • pre-define the prices and lead times,
  • enter the vendor or manufacturer part numbers,
  • set minimum order quantities (MOQ),
  • convert units of measurements.

Jump to:

  1. How to create a Purchase Term?
  2. How to convert units of measurement?
  3. How to enter pricing tiers for purchased items?
  4. How are Purchase Terms used to auto-fill POs?
  5. How to update Purchase Terms?
  6. How to import Purchase Terms in bulk?

Saving a Purchase Term

  1. Open the article details in Stock -> Items.
  2. Scroll down to the Purchase Terms table. (If you do not see it, mark the checkbox for This is a procured item)
  3. Click Add a vendor Add to add a new Purchase Term.
  4. Fill in the details.
  5. Save.

Take note:

  • The lead time is measured in business days. The number of business days per week is defined by Settings -> System settings -> Work hours.
  • A higher number in the Priority field indicates higher priority.

Conversion of units of measurement

If the vendor has another unit of measurement than used in your stock:

  1. Go to Purchase terms at the bottom of Item details, and click View.
  2. Check the option Vendor-specific unit of measurement.
  3. Enter the name of the unit to the Vendor's UoM, e.g. 1 box.
  4. If the unit of measure is indivisible, select the option Indivisible UoM. Then a decimal quantity will be rounded up.
  5. set the Conversion rate, e.g. 40 pcs = 1 box.

When a purchase order is created, then the PO will show the vendor's unit of measurement which will be converted into your internal unit.

Entering price brakes or pricing tiers from a vendor

To enter price brakes from one vendor, enter several purchase terms with the same vendor, and for each define the Minimal order quantity of the pricing tier. MRPeasy will understand, according to the PO quantity, which tier to choose. MRPeasy will choose the correct tier according to the PO quantity.

Example, 4 pricing tiers

Vendor Priority Price per unit Min. quantity
Vendor A  10 10  
Vendor A  10 9 10
Vendor A  10 7 50
Vendor A  10 5 100

Use of Purchase Terms when Creating Purchase Orders

When adding a Part to a purchase order:

  • If it has one vendor, all details will be filled automatically.
  • If it has several vendors, its vendors will be highlighted in bold. After choosing the vendor, all details will be filled automatically.
  • If you choose a Vendor, then the parts from this vendor will be highlighted in bold. After choosing the part, all details will be filled automatically.

How the suitable Purchase Term is chosen:

  1. The purchase term with the highest priority, which satisfies the Minimal Order Quantity, is chosen.
  2. If there are several terms with equal priority, which all satisfy the Minimal Order Quantity, then the lower price term is chosen.
  3. If no supply terms meet the minimum quantity requirement, the term with the highest priority is used.

For example, if an item has four purchase terms:

Vendor Priority Price per unit Min. quantity
Vendor A  30 4 100
Vendor B  25 4.5 100
Vendor A  20 5 20
Vendor A  10 6  

Then, if the order quantity is

  • greater than 100, the price is set to 4.
  • less than 100, but greater than 20, the price is set to 5.
  • less than 20, but greater than 10, the price is set to 6.

Uploading and updating Purchase Terms

Updating Purchase Terms:

  1. When a purchase order is saved and an item has only one purchase term, then MRPeasy will use the price from the purchase order to automatically update the purchase term.
  2. It's possible to bulk update purchase terms at Procurement -> Vendor -> Particular vendor's reports: Purchase terms.
  3. While purchase terms can be initially uploaded at Procurement -> Vendors -> Import from CSV, re-uploading will not update existing terms but will create duplicates.