Centralised Purchasing Groups

Marlin Tyre and Mechanical Workshop Software's Enterprise Management package enables centralised purchasing across multiple companies.

Centralised purchasing means one branch group (e.g. a head office or warehouse) is billed for the purchases of items for other locations.

• The receiving branch enters the supplier invoice as normal
• Two corresponding invoices are then automatically created:
  • An invoice for the bill-to party to owe the supplier
  • An invoice for the receiving branch to owe the bill-to party, with optional markups applied.

This reduces costs through discount arrangements and bulk buying and improves efficiency by managing purchasing in one place.

Invoices are billed to a bill-to party, which must be set up as a subsidiary supplier.

Quick Ref

Configuration:

• Enable the CentralisedPurchasing.Enabled enterprise setting
• Add bill-to party as a subsidiary supplier

Adding purchasing groups:

• Select Master Files > Suppliers > Centralised Purchasing Groups
• Click Add
  • Enter Name
  • Set Invoice Received By to Store
  • Select the Bill to Party
  • Add Suppliers using the list below
  • Click on the Items tab to add markups (optional)

Orders and invoices:

• Place supplier orders as usual
• Supplier invoice is sent to the bill-to party
• Second invoice from the bill-to party is sent to the ordering branch
  • Branch receives the inventory
  • Branch pays the bill-to party
  • Bill-to party pays the supplier

Enabling Centralised Purchasing Groups

System > Money and Banking > Centralised Purchasing Groups

Centralised Purchasing Groups can be enabled or disabled for Marlin Enterprise systems using the CentralisedPurchasing.Enabled enterprise setting.

Once enabled, groups can be viewed and edited by selecting Master Files > Suppliers > Centralised Purchasing Groups from the menu bar.

Bill-To Parties

Before configuring centralised purchasing groups, the required bill-to parties must be set up as subsidiary suppliers.

Bill-to parties are the branches within centralised purchasing groups that will be billed for supplier invoices.

They are typically a warehouse or head office responsible for paying suppliers:

• Supplier invoices are automatically redirected to the selected bill-to party
• The bill-to party then processes payment and re-bills the original branch

Adding Centralised Purchasing Groups

Master Files > Suppliers > Centralised Purchasing Groups

The Centralised Purchasing Group module will open on the Search page showing active groups.

To add a new group:

• Click on the Add button at the top right

In the Details tab that opens:

• Enter a Name
• Set Invoice Received By to Store
• Select the Bill to Party
• Leave the Active checkbox ticked

Suppliers can then be added using the Suppliers list below.

Optional markup rules can also be added, if required.

Adding Suppliers to Purchasing Groups

Master Files > Suppliers > Centralised Purchasing Groups > [Group] > Details

Suppliers added to a group will have invoices redirected to the bill-to party.

To add a Supplier to a group:

• Click Add or use the picker in the next empty cell in the Suppliers list at the bottom of the details tab

Removing Suppliers from Purchasing Groups

System > Money and Banking > Centralised Purchasing Groups > [Group] > Details

To remove suppliers from a group:

• Untick their Active checkbox

Use the filter at the top right to view and reactivate inactive suppliers.

Purchasing Group Markups

System > Money and Banking > Centralised Purchasing Groups > [Group]

Optional markups can be added to specific items or item reporting groups purchased using centralised purchasing groups.
The Bill-to-party will owe the original amount to the supplier, and the markup will be applied to the amount the branch will owe the bill-to party.

To add a markup:

• Open a purchasing group in edit mode
• Click on the Items tab at the top
  • Add items or reporting groups using the relevant pickers
  • Enter a Markup Amount or Markup Percentage
  • Leave the Active checkbox ticked

Markups can be enabled or disabled using the Active checkbox.

Centralised Purchasing Invoices

Daily Activity > Supplier Orders > [Invoice]

You still enter and process supplier orders and invoices as usual, if your branch is part of a centralised purchasing group.

When committing an invoice linked to a purchasing group, a pop-up will open, showing the bill-to party and terms.

Once committed, two invoices are created:

• A supplier invoice at the bill-to party branch
• A payment invoice at the ordering store (with any markups applied)

The bill-to party pays the supplier and the branch pays the bill-to party.