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.EDIT authorization 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 the Mode hot key to access the Purchase Order Entry screen 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. You cannot cancel a direct order that has any generation in a closed accounting period. The system displays an error message in this situation. 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 Direct Sales Orders. |
|
|
Procure |
Created from SOE when no quantity is available and the customer does not want a substitute. Use the Procure hot key to access the Purchase Order Entry screen. 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 hot keys 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 Days Before Ship Date To Reserve Product control maintenance record .
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 Days Before Ship Date To Reserve Product control maintenance record is set to 14 days. If the Ship On date is equal to or later than the plenty date, plus the reserved 14 days, the child's order commitment has a higher priority than the parent branch. Otherwise, the system covers the commitment for the parent first.
This section provides information about the following: