Workshop of Week 10: Purchases and Payment Cycle in Kingdee K/3 ERP System

Launching K/3 ERP System

To launch Kingdee K/3 ERP system, you should double click the K/S icon (left) on the
desktop. The login screen will show as below.

Students should select the following options in every Kingdee K/3 ERP workshop:
[Organization]: Select either "K3GP1 (T01)", "K3GP2 (T02)", "K3GP3 (T03)", "K3GP4 (T04)"
which you belong to.

[A/C Set]:

Select the pre-assigned data set

[Login as]:

a Named User

[User Name]:
[Password]:

administrator
(blank)

Reminder: Before going through the following procedures of the Purchases and

Payment Cycle, you should read and/or complete the handout of Master Data
Management first (Workshop of Week06).

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Purchasing Cycle in Kingdee K/3

To record or manage purchasing related transactions, we should go to Supply Chain module and
select Purchase.

2.1

Workflows of Purchasing Cycle in K/3

The major workflows of Purchasing Cycle include
i)

Purchase Requisition recording the prices of materials or goods needed among

different suppliers;

ii)

Purchase Order confirming the prices and trade terms, and schedule the arrival
date;

iii)
iv)
v)

Material Receipt Notice recording the receipt of materials or goods internally;

Purchase Receipt confirming the receipt of materials or goods with supplier;
Purchase Invoice recoding the receipt of sales invoice from supplier.

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Should be
prepared by
Purchasing
Department.
Should be prepared by
Warehouse Department.
Should be prepared by
Purchasing Department.
Should be prepared by
Finance (or AP) Department.

2.2

Record a purchase requisition

Under [Purchase] function, select [Purchase Requisition] and double click [14007 Purchase
Requisition - New]

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Enter the following data for the purchase requisition:

2.3

[Using Dept.]:

Purchase Dept.

[Date]:
[Material Code]:
[Qty]:
[Suggested Purchase Date]:
[Arrival Date]:
[Requestor]:

Current Date
Press "F7" key to search "A1522-128-Gold"
2000
Current Date + 7 days
Current Date + 7 days
015 Jessie

After the purchase requisition is saved, we should approve this transaction in TWICE in order
to proceed to purchase order. Select [View] in tool bar and click on "Approve".

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After 1st level of approval process is done, the requisition entry cannot be edited.
We have to proceed the 2nd level of approval process. After the 2nd level of approval, there is
a seal on the top right hand corner of the requisition screen.

2.4

Record a purchase order

After a purchase requisition is sent to a supplier, the supplier would prepare a quotation with
proposed price and related trade terms for the material(s) or good(s) we needed.
To accept the quotation, we should prepare a purchase order to the supplier as follow:
Under [Purchase] function, select [Purchase Order] and double click [14009 Purchase Order New]

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Enter the following data for the purchase requisition:

[Source Doc. No.]:

Double click this field and search for document no.

"POREQ000026", then double click this document.

[Date]:
[Collection Date]:
[Unit Price]:
[Discount Rate (%)]:
[Delivery Date]:
[Supervisor]:

Current Date
Current Date + 7 days
5000
5
Current Date + 7 days
015 Jessie

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After saving this purchase order, remember to approve it TWICE.

2.5

Record a material receipt notice

When the previously ordered material(s) or good(s) are arrived, we should prepare a material
receipt notice to record how many of items are actually received. This transaction should be
recorded by the staff in the warehouse department.

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Under [Purchase] function, select [Material Receipt Note] and double click [14014 Material
Receipt Notice / Inspection Requisition - New]

Enter the following data for the material receipt notice:

[Source Doc. Type]:
[Source Doc. No.]:

Purchase Order
Double click this field and search for document no.
"POORD000057", then double click this document.

[Date]:
[Warehouse]:

Current Date + 4 days

For Inspection

[Qty]:
[Receiving Warehouse]:
[Supervisor]:

1750
For Inspection
015 Jessie

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After saving this material receipt notice, remember to approve it ONCE.

2.6

Record a purchase receipt

Purchase Receipt is a written certificate for confirming material(s) or good(s) receipt, it
reflects both, goods transfer and ownership transfer.
Under [Purchase] function, select [Purchase Receipt] and double click [14016 Purchase
Receipt - New]

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Enter the following data for purchase receipt:

[Source Doc. No.]:

Double click this field and search for document no.

"DD000015", then double click this document.

[Date]:
[Warehouse]:
[Receiving Warehouse]:
[Qualified]:
[Person in Charge]:

Current Date + 5 days

Hong Kong Warehouse
Hong Kong Warehouse
Yes
015 Jessie

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After the transaction is saved, the 1750 iPhone6 Plus move from Inspection Warehouse to
Hong Kong Warehouse. To check the inventory status, select [View] -> [Query Inventory] ->
"Hong Kong Warehouse".

Approve the transaction for proceeding to purchase invoice.

2.7

Enter a purchase invoice

After confirming the receipt of material(s) or good(s) with supplier, the supplier issues a sales
invoice to Finance/Accounting Department for payment (and taxpaying).

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Under [Purchase] function, select [Purchase Invoice] and double click [14018 Purchase
Invoice - New]

Enter the following data for purchase invoice:

[Source Doc. Type]:
[Source Doc. No.]:

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Purchase Receipt
Double click this field and search for document no.
"MWIN000048", then double click this document.

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[Date]:
[Invoiced by]:

Current Date + 7 Days

Your name

Save and approve the transaction in above.

After approving the transaction, the system transfers the outstanding balance of this purchase
invoice to AP module for query and/or making payment(s) in future

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2.8

Check supplier's balance in AP module

Click on [Financial Acctng] -> [A/P] -> [Report] -> [06031 A/P Details]

Fill-in the following data in Filter Condition page:

[To] (period):
[Acctg. Item Code]:

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Year 2015, Period 2

CN001 to CN001

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The system returns the following result:

Payment Cycle
As companies usually purchase materials or goods on credit, Finance/Accounting Department is
required to
i. check the payment due from time to time;
ii. prepare payments before the due date; and
iii. predict future cash inflows and outflows to ensure there will be sufficient cash / money
to make payments.

3.1 Aging Analysis

Aging analysis is used to analyze the balance and aging of transaction accounts
Select [Financial Acctng] -> [A/P] -> [Analysis] -> [06028 Aging Analysis]

Date range: from 1/1/2009 to 31/3/2015

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Edit the aging conditions as the image in above.

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3.2 Payment Forecast

Payment forecast shows future payable amount according to the A/P at a specific date.
Select [Financial Acctng] -> [A/P] -> [Analysis] -> [06030 Payment Forecast]

End date: 15/2/2015

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Make a payment to a supplier

Select [Financial Acctng] -> [A/P] -> [Payment] -> [06010 Payment Note - New]

Enter the follow data for payment note:

[Source Doc. Type]:
[Source Doc. No.]:

Purchase Invoice
Double click this field and search for document no.
"ZPOFP000032", then double click this document.

[Settlement Method]:
[Settlement No.]:

Bank Clearing
12345

[Paying Bank]:
[Document Amount]:
[Actual Payment Amount]:

Double click this field and select BoC High Tech Branch
4,000,000
4,000,000

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Save and approve the transaction in above.

To view the journal entry of this payment note, click on [Data] in menu bar, select [Voucher].

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