Purchase orders identify what items you want to purchase, who you want to purchase them from, and when you can expect to get those items. The Purchasing system helps you minimize purchasing costs by combining purchase orders, keeping track of customer special requests, and the cost of carrying inventory.
In addition, the Purchase Order Entry program can track purchase requests, monitor changes made to orders, and add freight or handling charges if needed. When you receive ordered stock into inventory, the system helps you reconcile those purchases with your General Ledger.
You must have authorization to work with purchase orders. There are three levels of authorization within the POE.ALLOWED authorization key:
Level 1 - View-only access to purchase orders. Access to Stock Receipts, Copy to Purchase Order Bid functionality, and Rebate Detail Maintenance.
Level 2 - Permission to create POs, plus Level 1 abilities.
Level 3 - Permission to edit orders, plus Level 1 and 2 abilities. Level 3 users must also have POE.OPEN.ORDER.EDITauthorization key assigned.
There are several kinds of purchase orders:
|
Purchase Order Type |
Description |
|
General |
Created from the Purchase Order Entry. Items are ordered and shipped to the warehousing branch. |
|
Created from Sales Order Entry (SOE). Use theModefunction to access the Purchase Order Entry window and ship items directly to the customer from the vendor. A direct PO bypasses having to receive and re-ship items. The sales order displays a "-DIR suffix on the order number. You have to reconcile this in A/P and then the suffix changes to a generation number, such as .002. If you cancel an invoiced direct purchase order, then the purchase order side of the direct returns to an open status. |
|
|
If you cancel an invoiced direct purchase order, then the purchase order side of the direct returns to an open status. You cannot cancel a direct order that has any generation in a closed accounting period. The system displays an error message in this situation. |
|
|
To ensure that your direct orders are credited correctly in your general ledger, use the Direct Inventory, ~*Direct Purchases, and Clear Direct To Direct Inventory G/L Automatic Postings to select the appropriate G/L accounts. These postings are inter-dependent and make sure that you do not need to use journal entries to reconcile the accounts due to overstated inventory posted to Inventory G/L Posting. |
|
|
Note: Non-stock item descriptions do not print on direct purchase orders. The default print style for direct orders is "BLIND" if a print style is not selected. For information about shipping line items, see Direct-Shipping Specific Line Items. For information about creating a direct sales order, see Entering a Direct Order. |
|
|
Procure |
Created from SOE when no quantity is available and the customer does not want a substitute. Use theProcurefunction to access the Purchase Order Entry window. Some customers allow SOE personnel to create a PO in this instance. However, you can search for the sales order in Procurement Confirmation. Use the Create PO or Add to PO options to tag the order. We recommend using the Add to PO hot key to eliminate the cost of a single item purchase order. |
In most cases, the order from the parent branch supercedes the order
from the child branch. However, there can be exceptions using the
For example, you create the order in the parent branch before the order
in the child branch. The parent's order has a status of Ship On and the
child branch has a status of Call When Complete. The
This section provides information about the following: