Central purchasing

The capability of combining more than one Purchase Entry Recommended Replenishment Action Report (PO RRAR) into a final purchase order is referred to as central purchasing. There are two methods available for combining the multiple reports.

• Central vendor buying is available for users who have multiple target buying objectives for a particular vendor. Separate PO RRAR reports are created for each product line. These reports are then combined into a single purchase order.
• Central purchasing allows you to combine PO RRAR reports from separate branches into one large purchase order. This method enables the purchase to qualify for a better discount that could not be achieved by the branches individually. This method works well when there is not a designated buyer in each of the branches. A central office makes the buying decisions for the branches.