Automatic Purchase Orders are those orders that you create by selecting the products available on the Inventory Order Alert page. Creating automatic purchase orders helps you procure adequate stock (based on the stock levels) to run your business efficiently.

If the current stock quantity of a product is less than the alert level (defined while creating the product) as shown in the screenshot, such a product automatically appears on the Inventory Order Alert page. 

You can create multiple automatic purchase orders at a time for single or multiple vendors.  

Along with the Current Inventory, Zenoti displays other stock levels on the Inventory Order Alert page as follows:

  • Desired Level: The quantity of a product you need to maintain in your inventory at any time to run your business smoothly.
    Example: Let’s say that the desired level of a product is 100 bottles, but you have only 30 bottles left. In this case, you can procure 70 bottles to maintain the desired level. 
  • Alert Level: The quantity of a product at which you want Zenoti to alert you so that you can procure the desired quantity of products. Ideally, you can calculate the alert quantity as: ((the number of days your vendor takes to deliver the products + 1)* number of units consumed in a day).
    Example: Let’s say that the number of units consumed in a day are 5 and your vendor takes 6 days to deliver the products. In this case, you must set the alert quantity as 35 based on the calculation ((6+1) * 5). 
  • Order Level: The quantity of a product that works as the first checkpoint before the quantity reaches the alert level.
    Example: Let’s say that the desired quantity of a product is 100 and the alert level quantity is 30. In this case, you can set the order level to 50 so that it serves as the first checkpoint before the quantity reaches the alert level. 
  • Recommended Level: The quantity of the product suggested by Zenoti (Desired stock + Current stock).
    Example: Let’s say that the desired quantity of a product is 50 and its current inventory quantity is 20. In this case, Zenoti suggests the recommended product quantity to be 70 (50+20).

Note: You can define the Desired, Alert, and Order levels of a product while creating a product.

When you create automatic orders, based on the quantities available in the Desired or Order columns, Zenoti copies one of the quantities to the Retail Qty and Consumable Qty fields, as shown in the following scenarios.

Scenario 1: For a product, if the quantity available in the Desired Level is greater than the quantity available in the Current Inventory (store+floor), Zenoti considers the highest quantity between the (Order Quantity and (Desired Stock Level minus Current Inventory level)) and copies the highest quantity to the Retail and Consumable Qty fields. 

Example: Let’s say that the product Black Gold Face Serum has the following values:

  • Desired Level: 100
  • Current Inventory: 0
  • Order Quantity: 90

In this case, since 100 (Desired Level minus Current Inventory) is greater than 90 (Order Level), Zenoti copies 100 to the Retail Qty and Consumable Qty fields, as shown in the following screenshot.

Important: Notice that the sum of retail and consumable stock is 200 whereas the stock quantity you need to order is 100. In this case, to avoid ordering excess quantity, you must adjust either the retail, consumable, or both quantities so that the total stock count becomes 100. You can adjust the stock as follows:

  • Retail quantity: 50; Consumable quantity: 50
  • Retail quantity: 30; Consumable quantity: 70
  • Retail quantity: 40; Consumable quantity: 60

Scenario 2: For a product, if the quantity available in the Desired Level is less than or equal to the quantity available in the Current Inventory (store+floor) column, Zenoti copies the quantity available in the Order Quantity column to the Retail Qty and Consumable Qty fields. 

Example: Let’s say that the product Argan Oil has the following values:

  • Desired Level: 0
  • Current Inventory: 0
  • Order Quantity: 20

In this case, the quantity available in the Desired Level is equal to the quantity available in the Current Inventory. Therefore, Zenoti copies the Order Quantity number (20) to the Retail, Consumable, or both the fields (depending on the product type: Retail, Consumable, or both), as shown in the following screenshot. 

Scenario 3: If the Current Inventory quantity has decimal values, Zenoti rounds off the decimal value to a whole number, as shown in the following examples. 

Note

  • If the decimal value is between .1 to .5, then Zenoti rounds off the value to the closest lower whole number. For example, 51.4 to 51.
  • If the decimal value is between .6 to .9, then Zenoti rounds off to the value to the closest higher whole number. For example, 51.7 to 52.

Example 1: Let’s say that the product Orange Face Pack has the following values:

  • Current Inventory: -1.6
  • Desired Level: 50
  • Order Quantity: 30
  • Recommended Level: 51.6

In this case, Zenoti rounds off 51.6 to 52 and copies the same to the Retail, Consumable, or both the fields (depending on the product type: Retail, Consumable, or both), as shown in the following screenshot.

Example 2: Let’s say that the product Tea Wash has the following values:

  • Current Inventory: -1.49
  • Desired Level: 50
  • Order Quantity: 30
  • Recommended Level: 51.49

In this case, Zenoti rounds off 51.49 to 51 and copies the same to the Retail, Consumable, or both the fields (depending on the product type: Retail, Consumable, or both), while creating the automatic purchase orders as shown in the following screenshot.

Note: It is ideal to audit and reconcile your stock at regular intervals to maintain accurate values on the Inventory Order Alert page. 

To create an automatic purchase order

  1. Navigate to Inventory > Procurements > Orders.
    The Manage Procurement page opens.
  2. In the I want to drop-down list, select Add Order (Auto).

    The Inventory Order Alert page appears with details such as Current Inventory,
     Desired Level, and Recommended Levels.

  3. Using the Filters, search for the required products.
  4. From the search results, select the desired products and click Next.

      One of the following can take place:
         - The message There are some products which are not associated to any
            vendor
can appear if the products are not associated with vendors. In this
            case, you must first associate the products with the vendors.

         - The Create Purchase Orders page appears with the list of products (selected
           on the Inventory Order Alert page) and associated product details such as
           Quantity, MRP, Discount, and Taxes. 

  5. (Optional) In the Vendor drop-down list, if required, select a different vendor
      (because a product can be associated with multiple vendors). Based on the
      vendor, Zenoti updates the product details such as Quantity, MRP, Discount, and
      Taxes.
  6. (Optional) In the Retail Qty, Consumable Qty, MRP, Unit Price, Discount, or Tax
      fields, modify the details as required.
  7. In the Notes field, enter the required comments.
  8. Click Create Purchase Orders.
      A single purchase order or multiple purchase orders are created based on the
      number of products you select on the Inventory Order Alert page with the status
      Created, and the Manage Procurement Page appears.

Now that you have created an automatic purchase order, you must raise the purchase order.

See Also

Did this answer your question?