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5.1 Material – Material Purchase Management

Note: Material Purchase Management is an important component of the Ming system (Note: The material purchase and inventory management modules can be run separately after project establishment). The material management workflow can be integrated with expenditure contracts, payments, cost management, and other data in the system. Material purchase and inventory management are key to project management, and the management results are directly related to profits.

Part A. Material Catalog
Material purchase and warehouse management must first maintain the material catalog. Material budgets, purchas阿plan, purchase Application, purchase contract, purchase order, including centralized purchasing modules, inventory management modules, and material name and classification information, must be read from the material catalog. Add/Edit Material Category
Click on the top navigation menu “Material”, then in the left navigation menu bar, click “Material Catalog” to enter the material catalog list page. Click the “+ Add” button in the “Title of classification” area to add, or move the mouse to the end of the corresponding classification row and click “Edit”, “Add subclass”, “Delete” in the pop-up link to maintain. Click the “+ Add” button in the right area to add materials, or click the corresponding material row end link to perform corresponding operations and maintenance. Add/Edit Material Details
In the pop-up modify or add interface, fill in the corresponding parameter data details, select the appropriate pricing unit and material category, and click the “Save” button to save after completion. Import Material Catalog from xlsx File
Click “Download template” first to save the template. After maintaining the material catalog data according to the field names in the template, click “Click or drag file to this area” to upload and import the material catalog. If the page reports an error during import, please check whether the Excel file contains macros and other codes or unrecognizable codes, pictures, etc., whether the field values have been modified, and whether the file size exceeds 5M, then upload again.
If the error persists, please take a screenshot and contact us via email for technical support (web@mingjiancloud.com). Export Material Catalog

Part B. Material Budget

When your organization purchases the “Cost” cost module and cost control is enabled for the project, please go to “Cost-Target Cost-Cost preparation” to prepare the material budget cost.
After the material budget is prepared, when planning, applying, ordering, contract signing, or settling purchases of materials, the total quantity/price will be automatically calculated and the system will prompt if the budget is exceeded.
Step 1. Select Project After entering the Material Management module, click “Material Budget” and select the project. After selecting the project, click the “+ Add” button to add a new material budget. Each project can only submit one material budget information. If you need to modify it, please click the blue lock before the list display to unlock and revise it.
(The unlock operation cannot be performed if the approval form is not completed. Please complete the approval first.)

Budget Preparation:

Part C. Material Plan
For large projects, a monthly purchase plan is required for material. The material plan generally corresponds to a unit-price controlled framework contract (which can also correspond to the purchase contract mentioned below), which can be provided by one supplier or multiple suppliers. However, whether it is a material plan, a purchase Application, or a purchase contract, from the perspective of managing funds security, confirmation through a purchase order is required when confirming the purchase of goods. Please also pay attention to the budget quantity and cumulative purchase quantity.

Material Plan Preparation:
When preparing the material plan, unless all the listed materials are supplied by a designated supplier, do not select a supplier. Otherwise, it will cause only the designated supplier to be available when generating a purchase order.

Part D. Material Application
Material application are generally used for unplanned scenarios, temporary purchases for public procurement, personal cash purchases, etc. The items have a small value, simple parameters, and do not require complex after-sales service. For materials that are not included in the material budget or are materials added due to temporary construction changes or change visas, it is recommended to adjust the material project. Because they will affect project profits, please carefully control the total quantity, total price, and budget cost to avoid exceeding the budget and increasing material costs without visas.

Part E. Material Procurement Contract
Material contracts are generally used for material procurement with advance payment, progress payment, and warranty payment. Because it involves complex payment terms and material equipment with complex parameters and maintenance service related content, a contract is needed to clarify the responsibilities and obligations of both parties.

Step 1. Click on the gear icon in the upper right corner to enter the backend parameter management. Click on the left navigation bar “Parameter setting” to enter the parameter setting function, select “Project level”. In the page project selection area, select the corresponding project, click “Material Control” to enter the setting interface, click to select “Enable”, and then click the lower right corner of the page “Save” to confirm the opening of the system’s material control function.

Step 2. Then click on the page navigation “Material” to enter “Material-Purchase Management-Purchase Contract”, select the corresponding project in the project selection area, click “+ Add” in the upper right corner to open the purchase contract content creation page.

Step 3. On the contract creation page, fill in the customer name for the purchase contract (i.e., the contracting company of PROJECT A shown in the figure), select the contract supplier (if not in the list, the subcontractor/supplier maintenance should be performed first), and select the supplier contact information will be automatically introduced. After selecting “Material Procurement” in the “Contract Type” section, the “Material detail” filling area will appear.

Step 4. Click “+ Select Material” to enter the material selection page, where you can select some or all of the materials in the material plan, or choose not to select any. Please fill in the additional fees according to the actual situation in “Add-On details”. If the agreement includes a “Payment plan” section, please fill it in truthfully and upload the confirmed contract draft and relevant attachment materials. Finally, save and submit for approval.

Please pay attention to fill in the “Tax rate” in the material details. Otherwise, the form may not be saved properly. If there is no tax rate to be selected, please choose 0%. (If there is no tax rate to be selected, please screenshot and email us at web@mingjiancloud.com)

Due to certain factors, the quantity, price, and total price of the materials and services actually purchased may need to be changed and adjusted during the procurement process. The procurement order change can be used to register and record the changes.

Open the page, select the contract that needs to be changed, fill in the change order content and details, and submit for approval.

Part E. Material Order

Three types of procurement orders:
1. Personal cash purchase: suitable for business scenarios where there is no contract, simple parameter specifications for auxiliary materials, accessories, or general materials, and temporary situations where the purchaser purchases with cash and then goes through the reimbursement process.
2. Contract purchase: suitable for business scenarios where a procurement contract or joint procurement contract has been signed, using a procurement order to confirm the current required quantity of materials and procurement list, and the supplier performs in accordance with the contract, with subsequent payment made by the company’s finance.
3. Public ad hoc purchase: suitable for business scenarios where no procurement contract has been signed, using a procurement order to confirm the current required quantity of materials and procurement list, and the supplier sends the goods for settlement later with frequent cooperation. Subsequent payment is made by the company’s finance.
Step 1. Click “Material” in the page navigation to enter “Material-Purchase Management-Purchase Order”, select the corresponding project in the project selection area, click “+ Add” in the upper right corner to open the new procurement order entry page.

Step 2. Open the Purchase Order editing page and fill in/select the corresponding data.

1. The signing company here can be flexibly selected, with the purpose of having the appropriate company name appear on the Purchase Order page when printing. This is because large construction companies often have professional purchasing companies to assist with project procurement.
2. Please select the appropriate purchasing type. Here we will demonstrate using contract purchasing. This same process can also be applied for ad hoc public procurement. However, for individual cash purchases, since it involves the reimbursement process of finance, please refer to the operating guidelines in the reimbursement process.
3. Select the corresponding material supplier. You can choose to add procurement contracts, purchase applications, and material procurement plans according to your needs. Click “+Add” in the “Material detail” area and they will appear in the selectable interface.

Step 3. On the material addition page, select the materials that have appeared in the material details by checking “In Contract”, “In Plan”, and “In Application” as needed. Click “confirm” to return to the detail editing page.

Step 4. Fill in the Purchase Order as needed and confirm the quantity of materials. Pay attention to filling in the “Tax rate” field in the material details. Otherwise, the form may not be saved correctly. If there is no tax, please select 0%. If there are additional costs, you can click “+Add” or use “Surcharge import” to import the contract surcharge.
(If the tax rate option does not appear, please take a screenshot and email us at web@mingjiancloud.com)

Step 5. Save and submit the Purchase Order for approval. After approval, go to the “Material-Purchase Management-Purchase Order” page and find the corresponding Purchase Order record. Click the record under “purchase order subject” to view the submitted Purchase Order. Click “print purchase order” in the lower left corner to enter the order printing page.

Step 6. Check the generated “print purchase order” page and confirm that the relevant information is correct. Print the order, affix a seal, and sign it for use in connecting with offline procurement matters.


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