Hi, good evening everyone. Could anyone help me answer the questions below? I feel my answers are still lacking, and I’d like to hear your opinions. I would really appreciate the help.
What is the difference between a Purchase Requisition (PR) and a Purchase Order (PO)? Why do we need both?
This isn’t a homework service.
Hello Eva,
These questions are general and you would get very good answers from your favorite AI Chatbot. Once you have specific questions about Epicor Kinetic, feel free to come back and ask.
I’ve asked before, but the result was too analogous to something outside the topic and technical, so I was really confused and could only try asking here. I hope someone will help because this is for my ERP expo event tomorrow 
Okay, thanks for the information. I appreciate the reminder and I apologize for the inconvenience. I’m having a hard time understanding this material, so if anyone could give me a little hint or a quick explanation, that would be really helpful. Thank you.
To @aosemwengie1 's harsh (albeit not wrong) response, You are going to get more help if you shown that you’ve actually tried to solve whatever problem you have. Be it homework or a real world scenario. Post what you’re answers are (since you mention you have some… you do actually have some answers right…?) and someone might come in and help point out where your understanding could use a little polishing. 1. No one wants to come and do your homework for you. and 2. The best way to get correct answers on the internet is to post the wrong answer, someone will come along shortly and correct you. 
Alright, I understand, can you help me correct the answer I have made?
1. Master Data vs Transaction Data
So Master Data is the basic reference data that is used in many transactions, like the supplier PT. Vision Technology Indonesia or the part Al Chip. But the Transaction Data is created when we do a business transaction, like a PO or an AP Invoice. So Master Data stays the same unless we update it, but Transaction Data is different every time we create a new transaction?
A. ERP Fundamental Concepts
1. Master Data vs Transaction Data
The difference is that Master Data is the basic information we create once, like the supplier PT. Vision Technology Indonesia or the part Al Chip.
But the Transaction Data is created when we do a business transaction, like a PO or an AP Invoice.
So Master Data stays the same unless we update it, but Transaction Data is different every time we create a new transaction.
2. Why do we need Master Data before creating transactions?
Because If the supplier or product hasn’t been created yet, we don’t know who we’re buying from or which product we’re using.
3. Why is the ERP transaction flow important and can’t be skipped?
Because everything is connected. Each step uses data from the previous one. So For example, we can’t create an Invoice if the Purchase Order hasn’t been created yet.
4. What’s the benefit of having all departments in one ERP system?
The main benefit is that everyone can see the same data in real time. So when Sales gets a new order, Production, Warehouse, and Finance can see it immediately without us needing to tell / without waiting for manual updates
B. Procurement Process
A purchase requisition is an internal request from our company when it wants to purchase something.
A Purchase Order is the official order we send to the supplier.
6. Does creating a PO automatically increase inventory?
No. A PO only means we’ve ordered the items. The inventory will increase only after the goods arrive and the warehouse receives them.
7. When do purchased items officially become inventory?
They become inventory after the goods are received in Receipt Entry and pass the Inspection Process. Then they’re added to warehouse stock.
8. If we order 100 items but receive only 70, what happens?
We record the 70 items that arrived. The remaining 30 stay in the system as an outstanding order, so we know the supplier still needs to deliver them.
C. DMR and Quality Process
9. What’s the purpose of DMR in Epicor?
DMR is used to handle items that fail inspection. It keeps damaged materials separate so they don’t affect production."
to handle materials that fail to pass inspection during the warehouse inspection process, so that these damaged items are separated and don’t disrupt the production process.
10. Why use DMR instead of just adjusting inventory?
Because DMR gives us a clear reason for the adjustment. For example, if the goods are damaged during shipping, Finance has proper documentation to request compensation from the supplier.
11. If 10 items arrive but 2 fail inspection, what happens?
The 8 good items go into inventory. The other 2 are recorded under a DMR so they can be processed as rejected items.
D. Production Process
12. What’s the difference between Part, BOM, and Production Job?
A Part is a product or component. A BOM is the list of materials needed to make the product. A Production Job is the work order that tells the factory to start making it.
13. Why do we need a Production Job instead of adding finished goods directly to inventory?
Because the system needs to calculate the production cost, including materials and labor. That’s why we use a Production Job.
14. What happens to raw materials after they’re issued to a Production Job?
The materials are deducted from inventory and become part of the production process, so they can’t be used for another job.
15. What is Work In Process (WIP), and why is it important?
WIP means products that are still being made and aren’t finished yet. It’s important because it shows how much inventory and production cost are still in progress.
16. When do manufactured products become finished goods?
They become finished goods after the Production Job is completed and the products are received into finished goods inventory.
E. Sales Process
17. Does creating a Sales Order reduce inventory?
No. A Sales Order only records the customer’s order. Inventory is reduced only when the goods are shipped.
18. What’s the difference between Sales Order, Customer Shipment, and Customer Invoice?
A Sales Order records the customer’s order. Customer Shipment records the delivery of the goods. Customer Invoice is the bill we send to the customer for payment.
19. What happens to inventory during Customer Shipment?
When the goods are shipped, Epicor automatically reduces the finished goods inventory because the products have left the warehouse.
20. If the customer only pays a 50% deposit, what happens to the rest?
The remaining 50% stays in the system as an outstanding balance until the customer pays it.
F. RMA and Customer Return
21. What is RMA, and how is it different from DMR?
RMA is used when a customer returns goods to us. DMR is used for rejected materials that we return to the supplier.
22. Why do we need the RMA process?
It helps us record the reason for the return and gives Finance the information needed to process a refund or replacement.
G. End-to-End ERP Integration
23. Explain the business process from PR until receiving payment from the customer.
First, we create a Purchase Requisition. Then we send a Purchase Order to the supplier. After the goods arrive, we process Receipt Entry and the AP Invoice. Next, we use the materials in a Production Job to make finished goods. Finally, when a customer places an order, we create a Sales Order, ship the products, and send an AR Invoice to receive payment.
24. Explain one transaction you demonstrated (PO Suggestion to PO Entry).
In my demo, the MRP system detected a material shortage and created a PO Suggestion. Then I converted that suggestion into an official Purchase Order. After that, the system generated three separate POs for three different suppliers.
25. What happens if an important step is skipped?
If we skip a required step, Epicor will block the transaction. For example, we can’t create an AP Invoice if the warehouse hasn’t completed the Receipt Entry, because the system has no proof that the goods were received.
I think most of these answers are right on point. Great job!
The areas that need a little more work are DMR (specifically question #9) and End-to-End Integration (specifically questions 23 and 25).
DMR isn’t just a place to put items that fail inspection, it is also (and primarily) the basis for “what do we do with it now”. Do we accept it as is and say it’s ok, do we fix it (and document how and at what cost), do we throw it away as unfixable, or what? DMR is not just a screen, it is a process.
For question 23 (business process from PR to payment), I think the question is poorly worded in such a way as to not actually ask what I think they want you to verbalize. Instead of “PR”, I would have used the term “customer request”, because what I think they want to know is do you have an understanding of ALL the steps in what we usually call a “quote-to-cash” scenario.
Finally for question 25, Epicor doesn’t always “block” the transaction. There are LOTS of cases where steps are skipped and nobody finds out until several steps later, at which point a lot of stuff has to be UNDONE back to the point of the skip. For instance, if you close a job PRIOR to receipt to stock (or shipment), the goods are effectively “locked” in WIP and cannot be moved or shipped until the job is reopened, which may also have costing issues. At some point, yes, a transaction will be blocked, but not necessarily right away.
But you’ve done a marvelous job here. Good luck in your expo tomorrow… let us know how it goes!
I agree with Ernie. Nice job. And I agree with his assessment.
I might want to know the actual definition of DMR and RMA.
Here’s a question that you might be asked: Do I always have to make product, or can I buy it and just resell it from inventory?