1. Openbravo QuickStart 2
User Manual
Chapter 2 – Procure to Pay
v2.0.1
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Introduction ....................................................................................... 2
Abstract Business Process .................................................................. 2
Roles Involved .................................................................................... 3
Configuration ...................................................................................... 4
Taxes ............................................................................................... 4
Payment Terms .................................................................................. 0
Vendors ............................................................................................ 4
Product Categories ............................................................................. 5
Purchase Products and Prices ............................................................... 6
Step by Step ....................................................................................... 7
Manage Requisition............................................................................. 7
Request Quotations ............................................................................ 8
Receive Quotation Proposal.................................................................. 8
Analyze Quotation Proposal.................................................................. 8
Create PO (Purchase Order) ................................................................. 8
Creating PO from Scratch ................................................................. 8
Retrieving Lines from a Previous Purchase Order.................................10
Creating Lines from Purchase History ................................................11
Send Purchase Order ......................................................................... 12
Sending Paper Copy by Mail or Fax....................................................13
Sending Email ................................................................................ 13
Manage Pending Orders...................................................................... 14
Receive ............................................................................................ 15
Creating the Goods Receipt Automatically ..........................................15
Creating the Goods Receipt Manually .................................................17
Attaching Supplier Shipment Information ...........................................18
Inspect ............................................................................................ 18
Update Inventory .............................................................................. 18
Register Asset................................................................................... 19
Manage Pending Invoices ................................................................... 19
Enter Invoice .................................................................................... 19
Creating an Invoice Directly from a Goods Receipt ..............................19
Creating an Invoice from Pending Lines to be Invoiced.........................21
Attach Supplier Invoice Information ..................................................22
Creating an Invoice Manually............................................................ 22
Monitor Payments.............................................................................. 24

2. Accounting ........................................................................................ 24
Posting of a Purchase Invoice .............................................................. 24
Introduction
This workflow manages the life-cycle of a purchase process, from the moment finance staff
requests orders goods to the supplier, to the moment the finance staff receives the invoice.
Abstract Business Process
The abstract Procure to Pay business process is defined by the following diagram:

3. The process can be summarized in these steps:
• Managing requisitions (not done in Openbravo ERP)
• Requesting and managing quotations
• Ordering the goods
• Receiving the goods
◦ Updating inventory
• Receiving supplier invoices
Roles Involved
The following roles are required to be used in order to complete this process:

4. • Finance - in charge of ordering required goods and paying for them
• Material Management - in charge of receiving ordered goods and placing them
into storage
• Company Admin - role used for configuring various elements
Configuration
Some configuration needs to be done before various parts of the process can be fully
executed:
• Taxes
• Payment terms
• Payment methods
• Vendors
• Product categories
• Purchase products and prices
Taxes
The Company Admin role should be used.
Tax categories and rate should have already been pre-configured by the Openbravo
consultant and with the use of a localization pack.
Payment Terms
The Company Admin role should be used.
Payment terms should have already been pre-configured by the Openbravo consultant upon
implementation.
Payment Methods
The Company Admin role should be used.
Payment methods should have already been pre-configured by the Openbravo consultant
upon implementation.
Vendors
Practically any role can be used to administer vendors.
Vendors and their contracts are defined within the Master Data Management || Business
Partner window, using the [Vendor/Creditor] tab:

5. Product Categories
The Company Admin role should be used.
Product categories are a good way to
• group products together by type, context, etc
• predefine accounting configurations on the level of a product category
• do summarized reports per category
To define them, use the Master Data Management || Product Setup || Product
Categories window:
Note: A product cannot be created without assigning it to a specific product category.

6. Purchase Products and Prices
The Finance role should be used.
Purchase products need to be configured prior to any procurement is done.
Note: each product that is being purchased needs to have a price in at least one purchase
price list in order to be selectable in any transactional document like a purchase order or a
purchase invoice.
To create a product, use the Master Data Management || Product window and create a
new record:
Fields to note:
• Search Key - ID or key name to identify the product
• Name - full name of the product
• Tax Category - assign a predefined tax category to the product. Selecting this
product in an order or an invoice line will automatically use this tax for the
calculation.
• UOM - basic unit of measure of the product (also called SKU). Selecting this product
in an order or invoice line will automatically preselect this UOM.
• Attribute Set - The attribute set that should be selected for the product. The
attribute can be a lot, a serial number or an specific attribute like size, color...
• Attribute Set Value - The value for the attribute set selected.

7. • Use Attribute Set Value As - If attribute values are set in the product it is
possible to set how to use those values on the transactions done using the product.
At this moment there are 3 different possibilities:
◦ Default: This means that the attribute set value defined will be defaulted in
each of the transactions.
◦ Overwrite Specification: This means that the attribute set value will specify
completely the product.
◦ Specification: This means that the attribute set value will specify completely
the product. The attribute set value will always have this value and no other
value will be allowed for it.
• Cost type - Cost calculation configuration for this product
Then, move to the [Price] and enter the price for this product into an existing purchase
price list (this needs to have been created previously):
Fields to note:
• Price list version - Select the price list version of the purchase price list
• Standard price - The price for which the product will be bought
• List price - vendor's list price used to calculate the discount
Note: A company can purchase an sell the same product. In this case, the product should
have two prices, one assigned to the sales and one to the purchase price list.
Step by Step
Manage Requisition

8. This process is not supported by the QuickStart 2 edition of Openbravo ERP out of the box.
However, the consultant can turn this functionality on on request.
Request Quotations
Managing requests for quotations to the supplier is not directly supported by the Openbravo
ERP. The options offered are:
• Manage the quotation process outside Openbravo ERP
• Create a new document type in purchase order window, and manage quotations as
separate purchase order documents (a consultant's assistance will be required in
this case)
Receive Quotation Proposal
See Request Quotations section of this document.
Analyze Quotation Proposal
See Request Quotations section of this document.
Create PO (Purchase Order)
The Finance role should be used.
Creating PO from Scratch
In order to enter a purchase order, use the Procurement Management || Transactions
|| Purchase Order document to create a new one:
Fields to note:
• Document No. - Automatically generated purchase order document number that
can be changed by hand
• Order Reference - Suppliers order number. Update it when you receive this data
from the supplier.

9. • Delivery Notes - Any note to the supplier you would like to appear in the printing
form.
• Business Partner - select the vendor to order goods from
• Order Date - date of the purchase order
• Warehouse - receiving warehouse for this order
Then, move to the [Lines] and enter the products that are being ordered:
Fields to note:
• Product - the product to be ordered
• Ordered Quantity - quantity of the product ordered
• Net Unit Price - the price charged per product unit. This information will be
automatically retrieved from the Standard Price in the purchase price list inherited
by the [Header] from the vendor selected. It can be manually changed.
• Tax - tax rate automatically set according to product definition. It can be manually
changed.
• Line Net Amount - Quantity time Unit Price calculation before taxes
Create additional lines if needed.
When finished entering lines, switch back to the [Header] and complete the purchase
order. Note the Total Net Amount (order price before taxes) and the Total Gross
Amount (order price after taxes):

10. Retrieving Lines from a Previous Purchase Order
Create a new record inside the Procurement Management || Transactions || Purchase
Order window:
Once the required information is filled, save the record. Click the Copy from Order button:

11. In this new window, open the search by clicking the icon next to the Order field and use the
filters to select any historical purchase order and press OK:
Note: This search shows both sales and purchase orders so notice the Sales Transaction
column that specifies if a line is a sales transaction or a purchase one.
By going to the [Lines] you will notice that the lines of the selected purchase order were
inserted there. You can now manually change any information (quantity, amount, unit price)
or add more lines.
Creating Lines from Purchase History
Use the Procurement Management || Transactions || Purchase Order document to
create a new one:

12. Once the required information is filled, save the record. Click the Copy Lines button to
bring up the following window showing products that have been purchased from the supplier
in the past:
Select the lines/products to be copied into the purchase order, change the Last Price that
will become the Unit Price and the Quantity to required ones and confirm with OK.
Finally, complete the sales order by clicking the Complete button. See that the Document
Status changed to Completed.
Send Purchase Order
The Finance role should be used.

13. Sending Paper Copy by Mail or Fax
Print the purchase order to a PDF file by clicking the printer icon in the toolbar. Print it and
send it by fax or mail to the supplier.
Sending Email
Click the e-mail icon inside the toolbar:
Fill in the receiver's e-mail, and the e-mail data. Attach another file if required and send the
email:

14. Manage Pending Orders
The Material Management role should be used.
To review pending orders to be received, go to Procurement Management ||
Transactions || Pending Goods Receipt form, and use the filters to narrow down the
search for pending orders:

15. The orders that are pending and match the criteria entered will be shown:
Note: Pending order lines are grouped by business partner and purchase order document
number.
Receive
The Material Management role should be used.
Upon reception of goods, a Goods Receipt document is filled out and there is several ways
of doing so.
Creating the Goods Receipt Automatically
To create a goods receipts from a pending purchase order, go to Procurement
Management || Transactions || Pending Goods Receipt form, and use the filters to
find the correct purchase order:

16. Select the lines received, correct the quantity of individual products if required and enter
mandatory fields as the Reception date and the Destination Warehouse Bin:
Click on the Process button.
If the product(s) selected do not require an attribute (color, size, lot...) the system will
create a goods receipt document in Completed status and will show the user the
corresponding document number:
If the products selected do require an attribute (color, size, lot...) the system will create a
goods receipt document in Draft status and will show the user that document number
asking the user to navigate to that goods receipt and enter the attributes for those products
before completing the document:

17. If this is the case, navigate to the document in Procurement Management ||
Transactions || Goods Receipt window, and in [Lines] tab, insert the attribute for the
required lines. Save the edited lines and complete the document back in the [Header] tab.
Creating the Goods Receipt Manually
Imagine we have a pending order of a supplier called Obelix. We receive the goods and we
want to enter the information in the system so the warehouse inventory count is updated.
Go to Procurement Management || Transactions || Goods Receipt and create a new
record.
Fields to note:
• Business partner - the vendor from whom we have received the goods
• Movement Date - date when the goods enter the warehouse
• Order reference - vendors shipment document number
• Warehouse - warehouse that is receiving the shipment
Click the Create Lines From button to pop a new dialog that enables the user to select a
pending order related to the business partner just entered:
Select a pending order from that supplier. Pending products to be received from the
selected pending purchase order will be shown:

18. Select the lines/products that arrived and correct any information if needed. Remember to
fill the attribute field if the product requires them. Once finished, click OK.
Make sure the selected lines have been inserted in the document by navigating to the
[Lines]:
Complete the document back in the [Header].
Attaching Supplier Shipment Information
While creating the Goods Receipt document or after it is completed, one can enter the
supplier's shipment number into the Order Reference. This way both the internal
document and the supplier reference number will be linked for further inspection.
Then supplier's shipment document can also be scanned and attached to the goods receipt
document in Openbravo ERP by clicking the paper clip icon and adding the scan file.
Inspect
There is no specific process in Openbravo ERP that supports inspection. We advise the
following:
• Use document and line Description fields to enter any notes regarding arrived goods
• Use storage bins to separate goods that are ready for use from the faulty one or one
waiting for inspection. See Wall to Wall Accuracy Physical Count chapter of the
user manual for more information on how to create storage bins and move goods.
Update Inventory
Inventory is automatically updated upon completion of the Goods Receipt document
explained earlier.

19. Register Asset
Please refer to the Asset Acquisition to Dispose chapter for information on this process.
Once the asset is registered in the application link it to the product using the Product field
inside the Financial Management || Assets || Asset window. This step is not
mandatory, but will help the user as navigating from the asset to the actual product used
for procuring the asset.
Manage Pending Invoices
There is currently no support in Openbravo ERP to review purchase orders and goods
receipts pending to be invoiced.
Enter Invoice
The Finance role should be used.
Creating an Invoice Directly from a Goods Receipt
Use the Warehouse Management || Transactions || Goods Receipt window and find
the receipt in question. See the Generate Invoice from Shipment button:
Click the button and confirm the dialog:

20. Note: You can also change the price list used for the pricing at this point.
After confirming the dialog, the success message should be shown, indicating the number of
the invoice that has been generated:
Navigate to the Procurement Management || Transactions || Purchase Invoice and
find the invoice that has been generated. Make any corrections or add more lines if
necessary and complete it since it will be left in Draft status otherwise:
Notice the payment plan that has been generated by the Purchase Invoice inside
the [Payment Plan]:
This scheduled payment will be outstanding, indicating that you owe money to the vendor.

21. Creating an Invoice from Pending Lines to be Invoiced
Go to Procurement Management || Transactions || Purchase Invoice window create
a new record:
Fields to note:
• Order Reference - supplier invoice number
• Business partner - the supplier
• Invoice Date - date when the invoice is entered in the system
• Accounting Date - date that defines the date of the general ledger posting and the
fiscal period it belongs to
• Payment Method - Payment method associated to the invoice. This value will be
inherited from the supplier, but can be changed.
• Payment Terms - Payment terms associated to the invoice. This value will be
inherited from the supplier, but can be changed.
Save the record. Click the Create Lines From button:
Select a purchase order or a goods receipt that is pending to be invoiced from that supplier:

22. Once a pending document to be invoiced is selected, its pending lines (products) will
automatically be displayed to be selected. Select the ones that were invoiced in the
supplier's invoice and click OK. Selected lines will be entered automatically into the [Lines]
tab where they can still be modified or new lines added:
Also make sure each line has been linked to the original purchase order and the goods
receipt lines. This way, the whole flow of documents connected and navigable.
Complete the document back in the [Header].
Attach Supplier Invoice Information
A scan of the original supplier's invoice document can be attached to the purchase invoice
inside Openbravo ERP using the paper clip icon in the toolbar.
Creating an Invoice Manually
Sometimes there is no purchase order or a goods recept available from which to create the
invoice, for example when purchasing services. In this case, the purchase invoice needs to
be created manually from scratch. To do so use the Procurement Management ||
Transactions || Purchase invoice window again and create a new record:

23. Save the record and switch to [Lines]. Create as many records here as there are products
invoiced:
Fields to note:
• Product - product or service invoiced by the supplier.
• Attribute set Value - product attribute if needed (normally, manually invoices do
not require products with attributes).
• Quantity - quantity of the product invoiced.
• Unit Price - price per product unit. This field is retrieved from the product
information although can be changed.

24. • Tax - Tax that will apply to this product in this invoice line. This field is retrieved
from the product information although can be changed.
• Line Net amount - Quantity of the line * Unit Price.
Save the record. Create new lines if needed. When finished, go to [Header] and Complete
the document.
Monitor Payments
Use the Sales Management || Transactions || Purchase Invoice window to monitor
the payment status quickly.
Several fields to invoice header to display payment information:
• Total paid - Amount paid for the selected invoice.
• Outstanding Amount - Amount pending to be paid for the selected invoice.
• Days till due - Number of days left to reach the next maturity date. If it is a
negative value it reflects number of over due days.
• Due Amount - Total amount that has already reached the maturity date.
• Payment complete - Flag indicating if an invoice is fully paid.
• Last calculated on date - Date on which this info was last calculated.
Accounting
There is no specific accounting procedure or configuration that this process requires apart
from the regular Business Partner and Product configuration.
Posting of a Purchase Invoice
When a purchase invoice is posted the general ledger entry is the following:
The accounts of the post are retrieved according to this configuration:
• Vendor Liability account inside the [Vendor Accounting] tab of the Master
Data Management || Business partner window
• Tax Credit inside the [Accounting] tab of the Financial Management ||
Accounting || Setup || Tax Rate window

25. • Product Expense account inside the [Accounting] tab of the Master Data
Management || Product window