PO-A  Enter Purchase Orders

Purpose of Program

Use this program to enter regular or credit purchase orders (PO's) or service orders for your vendors.

Using approved vendors and manufacturers

This program supports the use of approved vendors and manufacturers, meaning that you can control which vendors can be used for specific items, as well as designated manufacturers.  For more details, see How to Use Approved Vendors and Manufacturers.

Field Explanations

PO ENTRY FIELDS

PO No (Required)

The number for this PO.  You may either assign this number when entering the PO or the program will assign it for you.  To set the default for starting PO number, go to SD-R Assign Next Numbers.

Order Date

The date this PO is entered.  The entry in this field defaults to the current date.

Vend Cd (Required)

The code of the vendor to whom or which this PO will be sent.  If the Vendor Code does not yet exist in the vendor file, you will be prompted to add it.  If you know what you are placing the Purchase Order for but not who the vendor should be, press Alt-P when in this field and enter the item to be purchased and  the primary vendor for the item will pull into the PO.

Type

Type P is for a Purchase Order, which is for tangible items, and type S is for a Service Order, which is for service type purchase such as plating, painting, etc.  Type S service order line items are tied to routing and will require a valid Work Order number and outside processing sequence number to be entered.  If you are using type T- Outside Processing or type M - Make From item numbers, services are purchased from within type P  purchase orders.

Name, Address, City, St, Zip, Country

These fields are filled in from the vendor master record.

Ship to Vend/Cust or your Location

You may specify a Ship to address that is different from your business address.  This is normally used if you want a purchase shipped directly to another vendor or to a customer.  Enter a V for a vendor, C for a customer.  Type the vendor or customer or select one by clicking on the Lookup icon (or press F2).   The address fields will automatically be displayed.

If you leave this field blank, the program will print your company address, as specified in IN-L-B  Enter/Assign Locations for the location specified on the PO.

Ord Desc

A general description for this PO.  This will be printed on all reports and on the vendor's check when this purchase order gets invoiced and paid.  This is a 30 character alphanumeric field. If this field is left blank, the reports and vendor's check will be printed with a cross reference to the PO number

Ship Via

The method of shipment.  This is a 15 character alphanumeric field and will default to the Ship Via specified for the vendor in AP-A  Enter Vendors.

Terms Cd (Required)

The payment terms.  The offered default is the terms type specified for the vendor in AP-A  Enter Vendors.

Job No

If the PO is part of a group of PO's tied to a master job number, you can enter the job number in this field.  Various reports can be limited by job number range for tracking purposes.  Entering a Job Number here has no effect on where the costs from this PO will be posted.

FOB

The FOB point for this PO.  This is a 20 character alphanumeric field and will default to the FOB specified for the vendor in AP-A  Enter Vendors.

Ent by

This is a memo field only.  Type in initials of the person at your business who entered the order, or use the default entry from SD-C  Purchase Orders Defaults.   This is a 2 character alphanumeric field.

Currency

If you are have multi-currency processing enabled in IM-A  International Configuration, the currency code assigned to the vendor in AP-A, Enter Vendors, defaults into this field.  It may be overridden for a given purchase order, if desired.

Confirming?

Enter Y here if you want the words "Confirming Only" printed on the PO.

Taxable? (Required)

Y if this order is taxable, N if this is not taxable.  You are offered a default of N.  If you specify that the purchase order is taxable, you still can make individual line items non-taxable during line item entry.  If you specify the purchase order as non-taxable, all line items will be non-taxable.

Taxable/Tax Group/Tax Rate

If Track PO taxes using Tax Groups? is set to Y in SD-C  Purchase Orders Defaults and you enter Y in the Taxable? field when entering a purchase order, the default Tax Group assigned to the vendor in AP-A  Enter Vendors will automatically display in the field to the right of Taxable? and its corresponding rate will automatically display in the Tax Rate field.  You cannot override the Tax Rate.   If you are not tracking PO taxes with tax groups, the default PO tax rate from SD-C  Purchase Orders Defaults  will pull in as the tax rate.

If the purchase order is not subject to tax, you can enter an N in the Taxable field and the program will not display a Tax Rate.

GL Dept

The code of the GL Department to which the PO receipt is to be posted, if applicable.  If you do specify a department, all items on the PO will be posted to the department when received via PO-C  Receive Purchase Orders, provided the GL Department specified in the Item Class or System Defaults for the posting is blank.  The GL Department specified on the PO will apply to all postings related to the Purchase Order through the invoicing process except the PO Received/Not Invoiced, Accounts Payable, Cash (for COD) and any currency exchange related transactions.  You can control whether it displays or is mandatory through settings in SD-C  Purchase Orders Defaults.  

Location

The factory or warehouse the items on this purchase order to which the items on this PO are to be received.  This must be a valid location from the location file.

Import Lines

Once the vendor information has been entered but before advancing to the line item screen, there is a button available with a green circle and white pointer for importing lines.  Click the button and you will be prompted for an import file name (CSV format), date format option, and which column holds the required data which is Item Number, Description,Quantity, Price and Estimated Receipt Date.  If you do not include price and description in the import file, they pull in from item master and vendor pricing.

LINE ITEM ENTRY FIELDS

REF

This is an optional field which allows you to enter a line number or reference number for this line item.   It can be set to automatically assign line numbers in SD-C  Purchase Orders Defaults

Item number

The inventory item number for the line item, from IN-B  Enter Inventory.  If you plan on purchasing non-inventory items such as shop supplies, you should create a dummy number (or series of dummy numbers) as type N (non-inventory) item numbers assigned to a product class established to post to the appropriate expense account.  In our example of shop supplies, you would purchase all shop supplies under the dummy item number (which tells the program what account to post to in the General Ledger), but type in custom descriptions on the PO as to what you are actually buying.  Some companies use their GL accounts as the dummy item numbers for these non-inventory type purchases.   You can also enter additional comment lines describing items purchased by leaving the Item number blank and entering the Description field only.  A line with a blank item number will have no quantity, price or delivery date.

Location

The inventory location to be assigned to this line of the PO.  It will default to the main Location set in the header of the PO but can be changed at the line item level.

Job Number

The Job Number associated with the individual line item.

Description

The inventory product description is displayed here after the item number is entered.  You can change this description on the purchase order without changing the description stored in the inventory file or add additional description lines for additional comments.  Second Description lines and Specifications from Inventory files and approved Vendor and Manufacturer item numbers also pull in as comment only lines..

Quantity (Required)

The number of units ordered.  This is an 11 character numeric field, two of which are decimals.

Due Date (Required)

The estimated date of receipt or promise date given to you by the vendor.  The default entry is the date entered for the previous line item.  For the very first line item entered, the date is calculated using the lead time in the vendor price file (as maintained in PO-H  Enter Vendor Prices) or, if there is no such record, the item's inventory lead time (as maintained in IN-B  Enter Inventory).  In either case if the date falls on a non-working day as defined in SM-H  Enter Shop Calendar, the date is moved out until the next available working day.  On lines after the first line, if the current date plus the appropriate lead time falls later than the due date from the previous line item, a warning message will be displayed.

Price

The gross unit price.  This is a 13 character numeric field, 4 of which are decimals.

If this is a type P purchase order, the price defaults to the price entered in PO-H  Enter Vendor Prices for the vendor on the PO. If a price is not found there, it uses the inventory Last Cost.

If this is a type S service order and no price for this item and vendor has been entered in PO-H  Enter Vendor Prices, the price is left as zero until you have designated the work order number and sequence number in the last two fields.  You will then be asked if you wish to use the outside processing cost on the routing (as maintained in RO-A  Enter Routings).  If yes, the program will insert the routing cost into the Price field.

UM

The purchase unit of measure.  The default value, which can be overridden, comes from the Purch UM field in the vendor price file as entered in PO-H  Enter Vendor Prices.  If no record exists for this item and vendor, it will get the value from the item's inventory master record.  The following values (which can be listed on the screen by clicking on Help or pressing F1) affect the way the purchase price is calculated.

M = per thousand.  (PO quantity)/1000 x (PO price)

H or C = per 100.  (PO quantity)/100 x (PO price)

LOT = lot charge.  Prices the item on a lot charge (flat fee), regardless of quantity.

LB = per pound.  (PO quantity) x (value in the inventory Weight field) x (PO price)

CWT = per 100 weight.  (PO quantity) x (value in the inventory Weight field)/100 x (PO price)

SF = per square foot.  (PO quantity) x (value in the inventory Foot Factor field) x (PO price)

MSF = per 1000 square feet.  (PO quantity) x (value in the inventory Foot Factor field)/1000 x (PO price)

BF = per board foot. (PO quantity) x (value in the inventory Foot Factor field) x (PO price)

MBF = per 1000 board foot.  (PO quantity) x (value in the inventory Foot Factor field)/1000 x (PO price)

LF = per linear foot. (PO quantity) x (value in the inventory Foot Factor field) x (PO price)

CLF = per 100 linear feet. (PO quantity) x (value in the inventory Foot Factor field)/100 x (PO price)

MLF = per 1000 linear feet. (PO quantity) x (value in the inventory Foot Factor field)/1000 x (PO price)

Conv. Fact.

The PO Conversion factor which will be used to convert from purchase unit of measure to stock unit of measure when the item is received.  The default value, which can be overridden, comes from the Purch UM field in the vendor price file as entered in .  If no record exists for this item and vendor, it will get the value from the item's inventory master record.  If the UM is one of the ones listed above, the conversion factor (such as 1000 for M) is already built into the program logic and should not be entered again.  For example, suppose a distributor sells you resistors on a reel of 5000.  You would enter a PO for 1 REL @ $50.00 with a conversion factor of 5000.  When received, 1 REL @ $50.00 would be received but inventory would then be updated by 5000 Resistors @ $0.01 each.

Taxable? (Required)

If you entered Y in the Taxable? field in the header, you can choose whether each line item is taxable.  You are offered a default from the inventory file from this item's inventory master record.   If you entered N in the Taxable? field in the header, then this field is automatically N for each line item.

Disc%

You can type in a discount off the gross unit price for this line item.  This is a 4 digit numeric field with 2 decimal characters.  In this field, for example, a discount of 10% would be entered as 10.00.

Estimate

This field is only accessible when using PO-E  Enter/Print RFQ's which calls this same screen.

Work Order

If this purchase is for a specific work order, you may specify the work order number.  You can lookup work orders from this field by clicking on the Lookup icon.  This must be a valid work order.  When received, the units and costs will bypass inventory and will be posted directly to this work order for job costing purposes.  On type P purchase orders for tangible items this field is not required.  On type S service orders you must specify a valid work order number.

Seq

The routing sequence associated with the work order.  On type P purchase orders for tangible items this field is not required.  On type S service orders you must specify a valid outside processing sequence as defined in the work order routing.  When the service order is received, the costs will be posted to this sequence for job costing purposes.  You can lookup sequences by clicking on the Lookup icon (or press F2).

GL Acct

If the default for editing GL Accounts by Item type has been set to Y in SD-C Purchase Order Defaults and the line being entered is an appropriate type, you will be able to edit the GL Account.  Otherwise, it is visible as reference only.

GL Dept

If the default for editing GL Department by Item type has been set to Y in SD-C Purchase Order Defaults and the line being entered is an appropriate type, you will be able to edit the GL Department.  Otherwise, it is visible as reference only.

ECO Info

The ECO Info button is enabled if the Use ECO is set to Y in SD-H Inventory Defaults.  If available, you can indicate the specific revision level associated with this PO and optionally print the information on the PO.

 

TOTALS

Subtotal

The subtotal amount for the PO, displayed as a running subtotal during line item entry.

Tax

The amount of tax for this PO, calculated when the PO is saved.

Total

The total amount of the PO (Subtotal + Tax).  This is calculated and displayed only after the PO is saved.

General Program Operation

Adding a New PO

The initial screen presents a listing of purchase orders.  Click the Add button to enter a new purchase order.

The order date will default to today's date.  You may override it if you wish.  Enter a PO number, or press <Enter> if you want the program to automatically assign a number when the PO is saved.  If you enter your own PO number, you will be asked if you want to reset the counter.  We recommend that you use the number assigned automatically; it is the Next Purch Ord No field from SD-R Assign Next Numbers.  The next step is to assign a vendor.  Enter a complete vendor code, or click on the Lookup icon (or press F2) while the cursor is in the Vend Cd field to choose from a list of vendors.  If you know what item you are purchasing but are not sure who the vendor is, press Alt-P when in the Vendor Code field and a popup screen will allow you to enter the item being purchased and the primary vendor for that item will be pulled in.

If you enter a code that isn't in the vendor file, the program will take you to the AP-A  Enter Vendors program where you can set up the vendor.  After the new vendor record is saved you are returned to the program.

Enter P or S to designate this as either a Purchase Order or a Service Order.  A purchase order is for tangible items, while a service order is for services such as plating or painting.  Service orders are used in conjunction with the Routings and are tied to specific work order outside processing sequences.

After the vendor and address is selected, the cursor is placed in the Ship-to Vend/Cust field.  If you want to the order shipped to another vendor, enter a V.  If you want the order shipped to a customer, enter a C.  If you are not shipping to a vendor or customer, accept the default of C and move on to the next field.  If you are shipping to a vendor or customer, enter the vendor code or customer code or select one by clicking on the Lookup icon (or press F2).  The name and address will be displayed.  If you want the shipment delivered to your address, leave these fields blank and the address entered in IN-L-B  Enter/Assign Locations will pull in.

You can enter a general description for the PO in the Ord Desc field.  This description will appear on posting reports and on the vendor checks when this PO is eventually invoiced and paid.  If you leave the Ord Desc field blank, a cross reference to the PO number will pass over to the AP reports and vendor check stub.

The method of shipment can be entered in the Ship Via field and will default to the value entered for the vendor at AP-A Enter Vendors

The next step is to enter the payment Terms Cd.  The default is displayed automatically from the default specified in AP-A  Enter Vendors.

The final entries in the first part of the PO are as follows:

Job Number -  If this PO is part of a series of PO's tied to a master job number, enter the job number here.

FOB - The default is displayed automatically from the default specified in AP-A  Enter Vendors

Ent by -  Enter the initials of the person who entered the PO, with a default provided from SD-C  Purchase Orders Defaults.

Currency - If multi-currency processing is enabled in IM-A  International Configuration, then the vendor default currency will be pulled in and may be overridden for this PO.

Confirming? -  Enter whether you want to print Confirming Only" on the PO.

Taxable? - Enter whether the PO is taxable.  If you enter Y the program will also ask for the tax rate or tax authority if you are tracking PO taxes by tax group.  You are offered a default of N (see Field Explanations above).

GL Dept -  If you leave this field blank, the default GL departments specified in the item's item class, as defined in SM-C  Enter Item classes will be used.  If you enter a GL department, all items on the PO will be posted to the specified department, regardless of the item class department designations.  This field can be turned off or made mandatory by settings in SD-C  Purchase Orders Defaults

Location - Enter the Location code, which designates the factory or warehouse to which the items on this PO are to be received.

Entering a PO Line Item

After completing the header section your are automatically presented with the line item entry screen.  You can also get to the line item entry screen at any point while on the header screen by clicking the Line Items button or pressing Alt-L.  You can return to the header screen by clicking on the Header button.

You can enter a number in the REF field if you want a line number for this line item or the program can automatically assign line numbers.  To enter a product from the inventory file, either enter a complete item number or select one by clicking on the Lookup icon (or press F2).   The Location will default to the value entered in the PO header but can be changed on a line by line basis.

The inventory description will automatically display in the Description field.   You may change the description for this one PO without affecting the standard inventory description.

The quantity defaults to 1.00.  Change to the quantity desired.  You can enter comment lines as needed.  To enter a comment, press <Enter> in the Item number field.  The cursor then moves to the Description field and you can enter up to 30 characters.  Comment lines are useful for separating and heading groups of related line items or for adding any remarks you would like printed on the PO's.  Blank comment lines are accepted.  The program will not ask for the quantity, price, discount, or if the item is taxable when a item number is not specified.

Enter the Due Date, which is the promise date given by your vendor or the normal delivery time for this item.  The inventory planning system uses this date as in indication as to when items or services will arrive.   The vendor Promise Date will default to the same value.  If delivery changes, the Due Date can be changed so the planning programs know when the item is really scheduled to arrive but the original Promise Date can be retained for evaluation of vendor on-time delivery performance.

After entering the line item quantity, the program will check the vendor price file to see if there is a valid price for this item (as entered in PO-H  Enter Vendor Prices).  If a price is found, it will pull into the price field; if not, the inventory Last Cost will be automatically entered.  In either event you can override the automatic entry.

If this is a type S service order and no price for this item and vendor has been entered in PO-H  Enter Vendor Prices, the price is left blank until you enter a work order number and sequence number, at which point you will be asked if you wish to use the outside processing cost maintained in the item's routing.

Next, the program will check for a vendor specific unit of measure and conversion factor (as entered in PO-H  Enter Vendor Prices).   If none is found, the values from the inventory master as entered in IN-B  Enter Inventory will be pulled in and can be changed if necessary.

If you entered Y in the header Taxable? field, the program will allow you to enter whether an individual line item is taxable.  If it is, enter Y in the line item Taxable? field.  This field will default to the entry in the Taxable? field in the item's inventory master record.

You may also enter a discount percentage for this line item which will appear on the PO.  Each line item can have its own discount rate.  If this purchase order is for a specific work order, enter the work order number or select one by clicking on the Lookup icon (or press F2).

If this is a service order, you must enter a valid Work Order and outside processing sequence number in the Work Order and Seq field so that the costs can post correctly to the work order routing file.  You can also select a sequence by clicking on the Lookup icon (or press F2).  Ignore the sequence field if this is a type P purchase order.

If this vendor's item number has been entered at BM-K Enter Approved Vendors, it will automatically come into the purchase order as a comment line immediately following the line item.  If manufacturer and manufacturer's item numbers have been entered at BM-L Enter Approved Manufacturers, they will print as comment lines following the vendor's item number.

If this item has Specifications defined in its inventory master record, you will be asked if you want them included.  If you indicate yes, they will copy in as comment lines following the manufacturer's item number.  Up to 12 lines of specifications may be defined.

If this is a Service Order, the Routing Notes can also pull into the purchase order as comment lines.

After each line is completed the line item entry area will be cleared so that you can enter a new line and the Subtotal and Total amounts will be updated.

You can include both purchased parts (R types) and non-inventory (N types) on a PO.  It is common to set up non-inventory items for categories of items such as office supplies, shop supplies, etc. so that they can be ordered and tracked through the Purchase Orders system.  You can type over the standard inventory description to provide specific descriptions for each purchase.

Changing a PO Line Item

To change a line that has been entered previously, retrieve the line into the line item entry area.  While in the Ref field you can view all your lines in a display window by clicking on the Display Lines button (or press F2).  Using your arrow keys or mouse, highlight the line you want and press <Enter> or click on it and the line will be brought into the entry area.  An alternative to the display window is to use search buttons.  Clicking on the Previous button brings in the previous line, whereas clicking on the Next button advances you one line forward.

Once the line is in the entry area, the entry procedure is the same as for a new line item.  You can change any or all of the field values (except for the Item number), and the purchase order totals will be updated accordingly.  You can always clear the entry area for entry of a new line by clicking on the New Line button.

Deleting a PO Line Item

To delete a previously entered line, highlight the line on the listing of lines and click the Delete button.  You will be asked to verify that you want to delete the line.  Deleting a line item removes the line record from the PO line item file, recalculates the PO totals, and decreases the units on purchase order in the inventory file.

Insert Capability

If you wish to insert a new line between two existing lines, move the line you wish to insert in front of into the entry area.  Click on the Ins Line button and you will be asked if you wish to insert a line.  Indicate yes and the entry area will be cleared and all subsequent lines moved down one position.

Dupe Capability (for Scheduled or Blanket Purchases)

Because each line has its own Due Date, you can enter the same item multiple times, each with its own Due Date.  This is referred to as a scheduled or blanket order.

To reduce data entry time, once the item is entered once, you can use the dupe capability to repeat all the line information.  After the first line is saved, click on the Dupe Line button.  You will be asked if you wish to include comments.  If you indicate yes, the previous line and any comment lines following it will be repeated.  You can then edit the Due and Promise dates the desired date, then save the line.  You can repeat the dupe process multiple times as needed.

Purchase Order Notes

You can click on the Notes button at any point to access the notes screen.  You can also click the Copy Notes button and copy the notes from another PO so you can set up Note Templates.  Notes will print on the purchase order following all the line items.

To Save and Exit:

To complete the purchase order, click on the Save button (or press F10) at any time during entry.  If you answer Y when asked if the PO is entered correctly, you are asked if you want to use the default ending lines from SD-C  Purchase Orders Defaults.  The ending lines will print on the PO.  The PO will be saved whether you print the ending lines or not.  Saving a PO updates units On Purchase Order in the inventory file, updates units on order for the specified location in the inventory location file, adds the PO to the PO files, and updates the Next PO Number in SD-R Assign Next Numbers.

After saving a PO, you will be asked if you want to print the PO.  If Y, you will be switched to the PO print screen where you can print one or a range of PO's.  The PO will not be posted to the General Ledger, Accounts Payable, or Inventory files until the PO is received using PO-C  Receive Purchase Orders.  Until then, the items will be reflected as units On Purchase Order for each inventory item.

Changing an Existing PO

A previously entered PO may be changed any number of times until all items are fully received through PO-C, Receive Purchase Orders and the vendor invoice is processed through AP-C  Enter Purchase Order Invoices.

To change an existing PO, select it by highlighting and pressing <Enter> on the opening list of PO's.  The PO will be pulled into the entry screen and can be edited.

Reversing a PO

If you need to reverse the effect of a posted purchase order (for example, in the case of a return to a vendor), enter a new PO with line items identical to those on the purchase order, except that you must enter negative quantity amounts.  When the PO is received, the second PO adds offsetting detail line items to the ledger, inventory, and vendor record, balancing and reversing the first PO.  This is sometimes known as a Credit PO.

Deleting an Existing PO

Highlight the desired PO on the opening list and click Delete.  You will be prompted to be sure you want to delete the PO selected.  You will not be allowed to delete a PO that has items received not invoiced or items in QC.

Deleting a PO reverses the operations described under To Save and Exit.

Copying an Existing PO

Highlight the desired PO on the opening list and click Copy PO.  You will be prompted for a PO Number or leave blank for the next available PO Number.  Then you will be prompted for the Receipt Date or leave blank to calculate based on the first line item lead time.

Using Make-From's

A Make-From is an item that receives an outside process such that it becomes a different item number than the item without the process.  For example, a part could sit on the shelf non-plated.  Some of the parts could be sent out for plating.  When the parts come back they should have a different item number to differentiate between the plated and non-plated parts. Make-From items are coded as type M items in IN-B  Enter Inventory and are set up with a bill of material in BM-A  Enter Bills of Material, consisting of the raw part(s) (in this example the non-plated part) that go into the finished Make-From.

Even though Make-From's are used for purchasing services, they are entered on type P purchase orders because they are not tied to a work order sequence like regular type S service orders are.  When a Make-From is entered as a line item, the component(s) in the Make-From's bill of material automatically come into the PO as line items following the Make-From item; however, they have negative quantities.  This properly creates a negative value against the On PO status field in Inventory, which tells the MRP system and the Reorder Report that the components are allocated for a PO and are not available for other use.

When Make-From's are received in PO-C  Receive Purchase Orders, you not only receive the Make-From item, but you also receive the item's components.  Because they are negative quantities, by receiving them you actually deduct them from inventory.  When the Make-From is added to inventory, PO-C adds its PO unit cost to the cost of the component(s) so that the total cost for the Make-From accurately reflects both the service rendered to it as well as the cost of the components that went into it.

If you are using multiple Locations, you are given the opportunity to assign the Make-From's components to a different Location than the PO itself.  Thus, you can use IN-L-J  Transfer Inventory to transfer components to a vendor Location to be stored as consignment.  As Make-Froms are received, the components will be deducted from stock at the vendor Location while the parent item is put into stock at your main warehouse location.

The use of Make-Froms provides a convenient alternative to using the work order process for handling the outside processing costing and inventory properly for the Make-From item and its components.