Ronak - Purchase Cycle

Ronak – Purchase Cycle (Procure-to-Pay)

1. Purchase Requisition (PR)

• User/department
  raises a request for goods or services.


• Captures
  item, quantity, expected date, and justification.


• Approval
  workflow (manager/finance).

2. Request for Quotation (RFQ)

• Sent
  to multiple vendors for pricing.


• Vendors
  submit quotes.


• System
  supports comparison of price, quality, and delivery terms.

3. Purchase Order (PO)

• Approved
  vendor chosen → PO generated.


• PO
  sent to vendor with terms & conditions.


• Tracks
  status (Open, Partially Received, Closed).

4. Goods Receipt Note (GRN)

• Vendor
  delivers items.


• Warehouse
  team verifies quantity & quality.


• GRN
  created → stock updated in inventory.

5. Vendor Invoice Processing

• Vendor
  submits invoice.


• System
  performs 3-way matching → PO, GRN, Invoice.


• Discrepancies
  flagged for approval.

6. Accounts Payable & Payment

• Approved
  invoices sent to finance.


• Payments
  scheduled as per credit terms.


• Payment
  modes: Cheque, NEFT, RTGS, Online Transfer.


• Payment
  status updated in system.

7. Reporting & Analytics

• Purchase
  spend analysis (by vendor, category, department).


• Pending
  PRs, Open POs, and Due Payments reports.


• Vendor
  performance tracking (on-time delivery, quality score).