Purchase Management in Tally.ERP 9

Tally Solutions |Updated on: July 29, 2022

• What is purchase management
• Objectives of purchase management
• Key aspects of sales management
• How to successfully manage purchase with Tally.ERP 9?

What is Purchase Management?

Managing purchases in an organisation are concerned with the procurement of proper equipment, materials and supplies of the right quantities, at the right prices at the right time.

Considering the complex nature of the manufacturing activities today, purchasing has become a specialised function and separate purchase departments are established in almost all large concerns. In large-sized companies, the major activities consist of ordering material upon requisition by the users, checking receipt of the material and maintaining files and records of orders and price movements.

Objectives of Purchase Management

• The first scientific objective of purchase management is to procure proper quantity of materials so that production goes on uninterruptedly
• To make sure that goods purchased are of proper quality
• It sees through that the supplies of materials are made at the time it is needed by production department
• The losses of materials due to spoilage, obsole­scence, duplication etc. are kept at the minimum.
• Setting up of purchase by keeping in view of short- term and long-term production policies of the concern
• To preserve suitable sources of supplies and also to keep in touch with alternative sources
• Bargaining for a reasonable price for materials so that investments in stores are minimum
• Maintaining competitive position of the firm by maintaining quality standards positively comparable with those of competing firms
• To maintain good supplier relationships this will ensure the best terms of supply of materials.
• Deploying the most advantageous method of purchase to ensure smooth delivery of materials from suppliers and to avoid the risks of any disputes of financial loss

Key Aspects of Sales Management

• Controlling Cost: Controlling the cost is a critical factor in purchase management. The managers here analyze which suppliers are selling the necessary inputs for production and at what cost
• Stability in Price: An important role of purchase management is achieving price stability. With the fluctuations in cost of production, other departments experience obstacles

Here the managers keep the cost of production stable in a number of ways, one of which is negotiating with vendors to achieve the lowest price and to lock in the value for a lengthy contract.

• Maintaining a healthy supply chain management: Securing the supply chain is another critical role of purchase managers. Here the store managers are held responsible for ensuring that all of the necessary materials appear on time, intact and of expected quality. Any delay in shipments of materials or any defect in the quality of materials, all these effects reverberate throughout the production chain.
• Achieving customer satisfaction: Here the purchase managers play a fundamental role in ensuring customer satisfaction. They have this obligation in two ways: quality of product and on-time deliveries.

How to Successfully Manage Purchase with Tally.ERP 9?

Tally.ERP 9 Solutions gives illustration an extensive experience in delivering comprehensive solutions and services, to empower every aspect of business operations of the Manufacturing Organization.

By deploying this solution, one can effectively streamline and integrate the business processes, optimize the entire supply chain, and quickly identify customer needs, eventually contributing to an improved bottom line.

Purchase order processing in Tally.ERP 9 – A efficient purchase management tool: With Tally.ERP 9, you can manage your purchases efficiently by creating purchase records, generating expense reports, and updating to purchase records as and when needed.

Video guide on purchase and sales order processing in TallyPrime

Watch Video on How to Record Purchases and Sales in TallyPrime