Procurement and supply chain overview

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Procurement and supply chain overview within SmartERP.

This page provides the operational and architectural foundation of SmartERP Procurement, Strategic Sourcing, and Inventory Management. It is written for Procurement Directors, Buyers, Sourcing Committees, Supply Chain Managers, and Warehouse Controllers.

SmartERP Sourcing & Supply Chain provides an integrated enterprise procurement and materials management platform tailored to transparent competitive bidding, sealed-bid governance, automated 3-way matching, and multi-warehouse physical distribution.

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2. Prerequisites & Security Access Groups#

• Required Modules: purchase, stock, smarterp_store_voucher, purchase_requisition
• Security Groups:
  • Purchase User (Technical ID: purchase.group_purchase_user)
  • Purchase Administrator (Technical ID: purchase.group_purchase_manager)
  • Inventory User / Storekeeper (Technical ID: stock.group_stock_user)
• Master Data Dependencies: Product masters, units of measure, approved supplier catalog, warehouse storage locations, and procurement budget lines.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Purchase app icon.
4. From the top navigation bar, open Purchase → Orders → Purchase Orders / Requisitions; Inventory → Operations.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Vendor / Supplier (Mandatory): Approved vendor profile with verified commercial license and TIN
   • Order Lines & Products (Mandatory): Specified items with precise quantities, units of measure, and unit costs
   • Delivery Destination (Mandatory): Physical store or warehouse receiving location
   • Fiscal Position & Taxes (Mandatory): Statutory 15% VAT and applicable withholding tax terms
3. Configure optional operational parameters and localized tags as required:
   • Requisition Reference (Optional): Link to approved departmental purchase requisition
   • Payment Terms (Optional): Contractual settlement schedule (Net 30, Advance, LC)
   • Incoterm & Port (Optional): Shipping terms for import consignments (FOB Djibouti, CIF Bole)
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Draft RFQ → Sent → Confirmed Order → Received (GRN) → Billed → Locked).
• Ledger & System Impact: GRN validation posts stock valuation entries; vendor bill confirmation posts accounts payable and statutory withholding tax liabilities.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Core Capabilities#

Statutory and Commercial Procurement Baseline#

SmartERP embeds official public and commercial procurement standards:

• Two-Envelope System: Physical and digital segregation of Technical Offers from Financial / Commercial Offers. Financial envelopes remain cryptographically locked until technical qualification passes.
• Bid Security (CPO): Tracking Cashier's Payment Orders (CPO), bank bid bonds, and performance guarantees with validity monitoring.
• Standstill Cooling-Off Period: Mandatory 7-calendar-day standstill interval post-adjudication allowing unsuccessful bidders to review award notices and lodge formal appeals prior to contract execution.
• Supplier Debarment: Blacklist verification blocking sanctioned or non-performing vendors from participating in active tenders.

Transactional Supply Chain Lifecycle#

Every procurement and inventory operation follows an auditable 5-stage lifecycle:

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1. Procurement Planning & Requisition (purchase.procurement.plan): Department needs are consolidated into approved procurement packages.
2. Sourcing & Tender Bidding (purchase.tender): Bill of Quantities (BoQ) and lots are published; vendors submit sealed bids with SHA-256 receipts.
3. Evaluation & Adjudication (purchase.tender.award): Independent committee scores technical proposals; commercial bids unseal; standstill notice issued.
4. Contract Execution & PO (purchase.order): Purchase orders are dispatched with delivery milestone commitments.
5. Receipt, Inspection & 3-Way Match (stock.picking & account.move): Goods are received via Model 19 GRN, quality checked, and matched against vendor bills before payment.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • Procurement: Run scheduler (reordering rules) (stock.ir_cron_run_procurement): Runs daily to generate RFQs for inventory items below safety stock
  • Stock: Expired lot quarantine trigger (stock.ir_cron_quarantine_expired): Runs daily to isolate batches past shelf life
  • Purchase: Check supplier delivery deadlines (purchase.ir_cron_check_deadlines): Runs daily to send automated expediting notices to suppliers
• Custom Print Templates & Reports:
  • Purchase Order Confirmation (Commercial Contract)
  • Ethiopian Goods Receiving Note (GRN / Model 19)
  • Store Issue Voucher (SIV / Model 20)
  • Vendor Bid Evaluation & Comparison Matrix
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#

Next#

• Understand procurement concepts: Concepts and procurement principles.
• Walk through a complete tender: Quick start.
• Create a procurement plan: Create annual procurement plan.