4. Purchasing & Project Job Costing

This guide explains how Edge Home Solutions manages supplier procurement and links purchase orders directly to client projects to ensure accurate margin analysis.

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1. Procurement Lifecycle

[Material Requisition from Project]
            ↓
[Purchase Order to Supplier (KES)]
            ↓
[Goods Delivered → Purchase Receipt to Main Store - EHS]
            ↓
[Purchase Invoice & Accounts Payable]
            ↓
[Payment Entry to Supplier via Bank / M-Pesa]

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2. Managing Suppliers

Suppliers are grouped into specialized joinery categories:

• Board & Panel Importers (MDF, Plywood, Marine Board, Melamine sheets)
• Architectural Hardware & Hinges (Soft-close hinges, tandem boxes, profile handles)
• Stone & Quartz Countertop Fabricators (Engineered quartz, granite, marble slabs)
• Edge Banding & Surface Finishes (PVC tapes, laminates, polyurethanes)
• Glass & Aluminum Profiles (Fluted glass, tinted mirror, aluminum door frames)

To add a new supplier: Go to Buying → Supplier → + Add Supplier.

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3. Creating a Project-Linked Purchase Order

To guarantee exact job costing, always tag the project on the Purchase Order:

1. Go to Buying → Purchase Order → + Add Purchase Order (https://erp.edgehomesolutions.co.ke/desk/purchase-order).
2. Select Supplier.
3. In the Project field, select the client project (e.g., Kilimani Penthouse - Modular Kitchen & Master Wardrobes).
4. Add items and negotiated supplier rates (KES).
5. Click Save and Submit.

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4. Receiving Goods & Processing Invoices

1. When Materials Arrive:
   • Open the Purchase Order and click Create → Purchase Receipt.
   • Verify sheet counts / hardware boxes received into Main Store - EHS.
   • Submit the receipt to update stock balance immediately.
2. When Supplier Sends Invoice:
   • Click Create → Purchase Invoice.
   • Check totals against the PO and tax details (16% VAT if applicable).
   • Submit the invoice to log the Accounts Payable liability.

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5. Analyzing Project Profitability

Edge Home Solutions tracks profit per wardrobe and kitchen installation in real time:

1. Open Projects → Project → Select Project.
2. Scroll to the Costing and Billing section.
3. Review metrics:
   • Total Billed Amount: Customer milestone invoices issued.
   • Total Cost: Total purchase invoices, material transfers, and labor logged.
   • Gross Margin (%): Real-time project gross profitability.