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Purchase Orders

There are three ways of entering purchases into the system. Select the one which is right for your application:

Purchase Orders: The Purchase Orders option (this function, continued below) is used to create a purchase order that will be received in the future. It allows you to enter changes and receive lotted, unlotted, and individually-lotted types of items.
Other Purchase Orders: Other purchase orders are used to create purchase orders for items that do not exist in the item master file. It is used for non-stocked and non-sold items like supplies, maintenance items, packaging, etc. that the user does not have or need items code for.
Purchasing: Purchasing is a one-step method of entering, receiving, completing, and paying for a purchase. It can only be used for unlotted items.

Purchase Orders

Using the Purchase Orders option is a three-step process:

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

Purchase orders can be designated as standard receiving, settlement lot receiving, or consignment.

Purchase orders can contain items of any costing method and are received as a single lot per line.
"Settlement" purchase orders can be used with individual-lot costed items only, and can be received with multiple lots per line. (One lot for each box received, based on box number, grade, or other item info lot attributes that make it necessary to track each separately). Using individual lot receiving is necessary to generate settlement reports to calculate the purchase cost of each item received and report the purchase price back to the vendor. For information on settlement purchase orders see Adding Settlement Purchase Orders.
Consignment purchase orders allow the user to receive the full quantity shipped into inventory. Users can buy the items as they are sold, and complete the purchase order for the amount sold. A new purchase order is created for the quantity that has not been purchased. For information on consignment purchase orders see Adding Consignment Purchase Orders.

Best Practice: Separating these functions allows for segregation of duties and allows users to work immediately with items as they are received, while recording its cost only when the cost is fully known, resulting in a highly accurate, real-time system for inventory control and actual item costing.

Inquiries can be generated for items entered on product purchase orders through the Items on Order menu option.

Items on an open product purchase orders account for the item totals in the purchase order column of the Planning Report.

If you are looking for a faster way to create purchases for unlotted items, consider using the Purchasing option.

The cost associated with receiving Items into the inventory (freight, warehouse charges, custom duties and broker, etc) can be added to the purchase cost of the item in Purchase Orders. These additional charges, known as cost adjustments, can generate vouchers or journal entries. Additional charges on purchase orders can be distributed on a cost per pound basis, cost per unit, percentage of purchase cost, or as a total amount to be distributed evenly based on the total weight on the purchase order.

Also, additional costs may be added on a line item basis by enabling the Purchase Order Line-Item Adjustment (Pad) feature. Pad settings are controlled using the Use Pad setting in Purchasing Options; a default "pad" amount can be entered for each item. The quantity to inventory can also be automatically adjusted by a shrink percentage. Both features are controlled in Purchasing Options.

Purchase order numbers can be reserved for future assignment using the Reserve Purchase Order option.

If the Use Requests option is set to Y (Y=Yes) in Purchasing Options, the user will have the ability to request purchase orders when entering a sales order for lotted items in which a lot item was not assigned.

The Request Purchase Order notifies the buyer that a purchase must be made for the item. The lot number will be assigned to the sales order when the received purchase order used to purchase the item on the Request Purchase Order is updated. The cost will be assigned to the item based on the costing method of the item.

Sales orders for lotted items can be committed against open purchases if the Commit Purchase Order (PO) to Sales Order (SO) flag for the location is set to Y=Yes. When the purchase order is received the lot number will automatically be assigned to the sales order.

Configuration Issues

The functionality of the user experience and the fields viewable in product purchase order screens and output will depend on defaults selected in various parts of the system.

Purchasing Options controls which of the three purchase order form types will be used in the system and what prints on each type of purchase order copy:

The Purchase Order – The in-house or accounting purchase order copy.
The Rreceiver copy – The purchase order receiver copy.
The Vendor copy – The vendor copy.

Purchasing Options also controls:

Whether settlement type purchase order will be used.
Whether purchase order requests can be created in sales orders.
Whether pad and shrink can be assigned to automatically adjust the cost and quantity to inventory when purchase orders are received.

The amount of purchasing history kept in the system is controlled in Record Retention.

Item Info settings control which of the user definable item info attributes and Trace source product attributes will be entered on the Purchase Order screens. see Item Info Lot Attributes for more information.

Item Maintenance allows users the ability to change the desired accuracy of item prices and item costs (the system allows you to have up to four places after the decimal).

Country of origin labeling identities are also used in purchase orders and are applied based on the setting for the items. See COOL Rules for more information.

Locations can be set to allow sales orders to be committed against open purchase orders.

Vendors that are designated as fishing vessel controls whether or not the information for the SAFIS reporting needs to be entered on the purchase order. Also, Vendors identified as requiring Trace reporting can be setup to have Trace source product attribute overrides and Vendor Item Alias.

A vendor must be designated as a consignment vendor to use consignment type purchase orders.

The Standard cost of the purchased items can be adjusted when opening a Purchase order if the set Standards in PO is set to Yes in Inventory Options. The standard cost of items that use the purchased item as a raw material in the item setup can also be adjusted. The related item standard cost will be calculated based on the purchased item's standard cost and the standard yield for the related item.

The fields that appear on purchase order header, as well as which purchase order form type that will be used by each user, is controlled in User Options.

Many of the fields that appear on Purchase Order screens are controlled in User Options.

Available Actions

Using

Adding

Changing

Printing

Voiding

Purchase Order Fields

Header Fields (subject to settings in Purchasing Options and User Options)

Vendor	The vendor ID code.
Name	The vendor's name.
Purchase	The purchase order number. Assigned automatically upon updating the purchase. The word NEW will show while the purchase order is being written. Valid types of purchase orders are: Settlement – Multiple lots received per line. Purchase – A standard or regular purchase order. Consignment – A consignment purchase order, if the Consignment setting is set to Y (Y=Yes) for the vendor.
Note	The purchase order header note. The information prints on purchase orders and check stubs.
Location	The warehouse location that all items will be delivered to. The field may be left blank and separate locations individually assigned to items.
Trip	Fields for port landed, VTR#, area code, and sub area fields will appear if the vendor is designated as a fishing vessel vendor.
Opened	The date the purchase order was entered. Defaults to the current system date.
Expected	The expected arrival date of the purchased items. Defaults to the current system date.
Received	The date the purchase order is received (if it has been received).
Buyer	The name of the buyer making the purchase. Defaults from the User Options default Buyer setting.
Terms	The payment terms for the purchase order.
Invoice	The vendor invoice number (optional unless mandated in Purchasing Options). It can be entered in Receiving Purchase Orders and Complete Purchase Orders.
FOB	Freight on board.
Freight	Y – Indicates that freight was prepaid N – Will charge freight cost to inventory P – Prepaid and charge. You will pay the freight but charge it back to the vendor as a line item on the purchase order.
Carrier	The carrier assigned to the purchase order, if using.
Shipper	A shipping note that will appear on all purchase order formats.
Charges	A pop up box appears to enter additional charges for the purchase. The charges are entered based on the setup options in Purchasing Options and the value type cost adjustment types.
Variance	Used in settlement purchase orders to enter the vendor declared/ shipped quantity and track the variance between the vendor's shipped quantity and actual quantity received.

The following fields appear in the header as items are entered

Total dollars for the purchase order	This value is recalculated after each line item is entered.
The total pounds ordered on the purchase order	This value is recalculated after each line item is entered.
Charges	The average per unit and total charges added to the order.

	Note: the field id and field name will appear when a PO is added to the system or when editing the header , otherwise only the field name will appear in the header .

	Line Item Fields
Item	The item group.
Item Name	The item name.
Quantity	The quantity ordered and the buying unit of measure.
Pad/Shrink	Enter Y (Y = Yes) to view and change the pad/shrink for this item based on the Using Pad and Using Shrink settings in Purchasing Options; enter N (N = no) to ignore the pad and shrink amounts will default based on the pad and shrink item default values.
Unit Cost	The expected per unit cost of the item and costing unit of measure. Press F3 to display a list of choices. This is the item's default invoicing unit.
Loc	The location in which the item will be received, if the item is lotted.
Cool	The country of origin cool identifier if a COOL Id has been assigned to the item or (COOL) control level: loose or strict or blank ( cool COOL control level defined for item) if a cool id has not been assigned to the item.
Item Info	The option to view and enter the item info lot attributes based on the item info template assigned to the item. C – Change B – Leave blank L – Last used N – No changes, accept item info standard for the item. The last used option will default based on the option used on the previous line.The item info attribute box will open based on the item info template assigned to the item .
Info	An additional purchase order line item text message.

Security Required : Purchasing - Purchasing Inquiry