Complete Purchase Orders

"Complete Purchase Orders" is the final step in the process of buying inventory items through purchase orders. The Receiving Purchase Orders option allows the received weight to be entered into inventory for use but does not assign value to the received weight. Changes could be made to either the weight, unit cost, or add-on cost on the purchase order. In the "completing" process, the system updates the actual weight received at the actual received unit cost and the actual add-on costs for the purchase order. This gives the user the most accurate product cost to be used when calculating gross margins. By delaying the assignment of costs to the purchase order, both the actual weight to inventory and actual cost can be used to calculate the unit cost of the item purchased.

The system will use the cost assigned to the purchase order when it is completed to assign the cost to the planned transfers, inventory transfers, sales orders, and work orders that used the inventory when Cost of Goods Sold is run. Inventory adjustments cannot be made to the items on the purchase order until the purchase order is completed.

Using the Purchase Orders option is a three step process:

1. Entering the purchase order through Purchase Orders
2. Receiving the items through Receiving Purchase Orders
3. Completing the purchase order through Complete Purchase Order.

The system breaks these steps up so that the user can separate the actual functions of buying, receiving, and valuating the inventory. (For a simple process for non-inventory products, see Purchasing.)

Although inventory is created in the product receiving step, the purchase order WILL NOT APPEAR in the Purchase Inquiry, Daily Purchases Report, or the Purchasing Activity Report until the purchase order has been "completed" through this option. All three purchasing statuses – Inventory Hold, Payment Hold, and Ready to Pay – are available with the appropriate security privileges.

See Completing Settlement Purchase Orders for information on completing settlement purchase orders.

See Completing Consignment Purchase Orders for information on completing consignment purchase orders.

Security Required : Purchasing - Complete Purchases