Flow Diagram

End-to-end procurement and payment flow in Tatva ERP

In Tatva ERP (ReQtoPO), procurement runs from Material Request (MR) to payment. The flow involves four roles: Site Engineer (demand and site verification), Admin (approvals and governance),Procurement (sourcing, PO, delivery, and invoice), and Accounts (payment execution and ledgers). Below is the visual flow followed by a detailed explanation of each step.

Phase 1: Demand & approval

Site Engineers raise material needs; Admin controls what enters the procurement pipeline.

1. Site Engineer creates MR with the desired products. In Tatva ERP, the Site Engineer goes to Material Requests, selects products from the organization's Product Master, enters quantities, assigns the correct site, and adds any notes. The MR records what is needed, how much, and where (which site) before any vendor is involved.
2. Site Engineer sends it for approval to Admin. Submitting the MR sends it into the approval workflow. The Admin sees it in Pending Approvals and can review product details, quantities, site allocation, and justification to avoid unnecessary or duplicate procurement.
3. Admin approves; it is automatically sent to the Procurement team. On approval, the MR status changes and it becomes visible to Procurement. No manual handoff is needed—the system routes the approved MR so Procurement can start sourcing.

Phase 2: Sourcing & purchase order

Procurement converts the approved MR into RFQs, collects vendor quotes, negotiates, and creates a PO for Admin approval.

4. Procurement selects products from the MR to send RFQ for and selects vendors. Procurement can send an RFQ for all or a subset of MR items. They choose one or more Vendor Contacts (from Registrations / Vendor Contacts), and the system generates an RFQ per vendor and sends each vendor a secure link by email.
5. Vendor responds from the link in the RFQ. Vendors do not need to log in: they open the link from the email, see the items and quantities, enter their prices (and optionally notes or validity), and submit. The quote is stored and linked to the RFQ. Procurement sees it on the RFQ detail page.
6. Procurement negotiates if required. Using the RFQ detail page, Procurement can send a counter-offer or run a Best and Final Offer (BAFO) so vendors can revise prices. Negotiation continues until terms are acceptable.
7. Procurement compares prices for each product, creates the PO, and sends for Admin approval. The Compare Quotes view shows all vendor quotes side by side for the same MR. Procurement selects which vendor(s) to use (including splitting products between vendors), creates the Purchase Order from the chosen quote(s), and submits it for Admin approval.
8. Admin approves or rejects the PO; it is sent back to Procurement. Admin reviews vendor selection, pricing, total PO value, and payment/delivery terms. On approval, the PO becomes active and can be sent to the vendor. On rejection, it returns to Procurement with the option to correct and resubmit.

Phase 3: Delivery & receipt

After Admin approves the PO, Procurement and the vendor manage dispatch and delivery; the Site Engineer confirms receipt at site; Procurement closes the PO as delivered.

9. After Admin approval, Procurement accepts the PO and dispatches by generating the Delivery Note. Procurement (or the vendor, depending on your setup) confirms the PO and creates a Delivery Note stating what was dispatched, quantities, and date. This records that the order is on the way.
10. After Delivery Note generation, Procurement creates the Allotment Note and sends it to the Site Engineer who created the MR. The Allotment Note assigns the delivered items to the relevant site(s). It is sent to or made visible to the Site Engineer for that site so they know what to expect and can verify receipt.
11. Site Engineer acknowledges the Allotment Note and creates a Site GRN. The Site Engineer verifies the physical delivery at site, acknowledges the Allotment Note, and creates a Site Goods Receiving Note (Site GRN). On the Site GRN they confirm actual received quantity and mention the condition of each product (Good, Damaged, Short supplied). This ensures accountability and supports resolution if there are issues.
12. Procurement verifies the Site GRN and creates the Final GRN; the PO is marked as Delivered. Procurement reviews the Site GRN, resolves any discrepancies if needed, and creates the Final GRN. The system then marks the PO as Delivered. Inventory (main and/or site) is updated at this stage, and the PO becomes eligible for invoicing and payment.

Phase 4: Invoice & payment

Procurement uploads the invoice; Admin approves it; Accounts requests payment approval, executes NEFT, and records the payment so ledgers stay accurate.

13. After the PO is marked Delivered, Procurement uploads the invoice and sends it for Admin approval. Procurement attaches the vendor invoice to the PO (or to the linked invoice record), cross-checks it with the PO and GRN, and submits it for Admin approval. This completes operational closure before finance takes over.
14. Admin approves the invoice; after approval it is sent to the Accounts team. Admin verifies that the invoice matches the PO value, delivered quantity matches the GRN, and there are no pricing or tax discrepancies. On approval, the invoice moves to Accounts for payment scheduling and execution.
15. When the invoice payment date is near, Accounts requests payment approval from Admin. Accounts use the Payment Due dashboard to see what is due when. For the relevant invoice, they request payment approval from Admin so that the release of funds is authorized.
16. Admin gives approval to pay the invoice. Admin reviews amount, due date, vendor ledger balance, and bank liquidity, then approves (or rejects/delays) the payment. This maintains cash flow control and financial oversight.
17. Upon approval, Accounts pays the invoice via NEFT and creates the NEFT receipt. Accounts makes the NEFT payment externally (via their bank), then in Tatva ERP they create an NEFT receipt: they enter the PO reference, bank account used, amount (full or partial), payment date, and UTR reference, and upload the NEFT proof document.
18. Ledgers are updated according to the NEFT paid. When the NEFT receipt is saved, the system automatically credits the vendor ledger, debits the buyer (organization) ledger, reduces the bank balance, and reduces the PO outstanding. No manual ledger entry is required—Tatva ERP keeps financial records in sync for reconciliation and reporting.

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