Advantage Procurement is designed to provide department users, purchasing and accounts payable personnel with operational support in the requisition, purchase, and payment process. Inventory Management is designed to aid warehouse personnel in effectively processing stock requisitions and managing reasonable inventory levels.
The Procurement and Inventory Control Subsystems are integrated in order to minimize inventory investments by basing purchasing decisions on inventory usage history. Since Inventory Management and Advantage Procurement are integrated, some of the procurement transactions, such as Purchase Requisitions, Purchase Orders and Receiver Transactions, update the inventory tables. For example, when a purchase order that contains a warehouse is accepted by Advantage Financial, On Order Quantity and Next Delivery Date fields are updated on the Inventory Inquiry page for inventory items. Similarly, purchasing and vendor lead times are calculated and incorporated by the inventory batch jobs that set reorder levels and order quantities. While Advantage Procurement may be installed without Inventory Management, the converse is not true. Purchase Requisitions, Purchase Orders and Receivers (RC) are the only way to update several fields on the inventory master tables.
Advantage Financial currently supports two accounting models for purchasing items into inventory:
Purchase Method - Purchases are charged to a pre-defined budgetary account upon acquisition.
Consumption Method - Inventory items are recorded as a memo asset upon acquisition, and charged to an operating budget upon issue from the warehouse for consumption.
The Payment Request transaction (PRC) is also integrated within Advantage Inventory. The PRC is an Accounts Payable transaction that functions as the bridge transaction linking procurement with accounts payable and inventory. The PRC is used to pay for warehouse items, and to update the extended cost on the inventory tables.
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