Background: PO Maintenance
Use the PO Maintenance (VOE) program to enter a new purchase order or change an existing order. See Road Map for work flow.
This topic has these subtopics:
| Copy a PO | |
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PO Header
A purchase order has a header and lines. The header contains information that applies to all the lines on the order. Having a header means that you enter this data only once rather than for each item that you order.
Addresses
The PO Maintenance program uses the vendor's address from the Vendor Maintenance (VM) program. If you ship to your branch, that address comes from the Branch Maintenance (TBM), unless you enter a branch ship-to set up in the Branch Ship-to Maintenance (TBSM) program.
You can drop ship to a customer, using the primary address from the Customer Maintenance (CM) program or for a ship-to number set up in the Customer Ship-to Maintenance (CSM) program.
You can ship to another vendor, using their address from the Vendor Maintenance program or a ship-to address set up in the Vendor Ship-to Maintenance (VSM) program.
If you need to change a shipping address, you can click Address, select Vendor or Ship-to, and make the necessary change. This change affects only this PO.
Requesting Branch
When a PO is tied to a sales order, the Req branch field defaults to the sales order branch, and you cannot change the field. When you enter a new PO, the Req branch field defaults to your login branch. If you need to change the branch, you can change it to any branch in your inventory group.
Evaluated Receipt Settlement (ERS) Invoice
If your vendor does not send an invoice for items received, you should select the ERS vendor? field in Vendor Maintenance (VM) for the vendor. Then the ERS invoice? field on the purchase order header is selected by default. When you receive this vendor's items, the system generates an invoice to your accounts payable department, using the quantity received at the purchase order price.
Terms
The PO header has two fields for trade terms:
AP terms is used to calculate accounts payable discounts and invoice due dates. The program displays the AP terms code for the vendor from the Vendor Maintenance (VM) program. AP terms are the vendor's standard terms.
PO terms print on the purchase order. Typically, PO terms are the same as AP terms. However, when a vendor has different terms for selected POs, you can change the PO terms code for those POs.
PO Line Entry
When you have completed the PO header, click Lines to enter the items you want to order. The program assists you in numbering each PO line sequentially. If a branch record does not exist for an item, the program displays Item is not currently stocked at branch [branch]; continue?. If you click Yes, the system creates a branch record in the Branch Item Maintenance (IMB) program.
Inventory Items
When you enter an item number, the program retrieves its product class and item description from the Enterprise Item Maintenance (IM) program. Its purchasing unit of measure, UOM conversion factor, and vendor item number come from the Vendor Price Maintenance (VMM) program. You can make changes to this data as required.
If the item is marked for inspection or is not marked QA approved in Vendor Price Maintenance, the PO line will be marked for inspection and you cannot override the inspection requirement.
Non-Stock Item
You can order an item that does not have a record in the Enterprise Item Maintenance (IM) program by entering a unique number or a text description in the Item number field. The program prompts This item does not exist. Is it a non-stock item?. If you click Yes, you must enter a quantity, description, and a unit cost. The Purchasing UOM field defaults to EA (Each). You can complete remaining fields as applicable.
Purchase Quantity
If you enter a purchase quantity that is less than the minimum order quantity set in the Branch Item Maintenance (IMB) program, the program displays a warning message and gives you the option to continue.
Purchase EOL Date
If an item has a purchase EOL date and the purchase order line due date exceeds that date the program displays the warning message: Item is due past the product end-of-life purchase date; continue?. If you choose to continue, the program takes you to the next line; if you answer N, you can change the due date or remove the item.
Purchase Requisition
If a purchase requisition exists for the item you are ordering, you can enter or select the requisition number to retrieve information from it. When you confirm that this is the correct requisition, the program transfers the item number, quantity, vendor number, vendor item number, unit cost, and date wanted from the requisition to the PO line.
You can enter a purchase requisition with the Requisition Maintenance (IRM) program. If you do not select the Disable purchase order firewall option in the System Options Maintenance (XM) program (Purchasing Options) for your branch, the system creates a purchase requisition when the sales order entry clerk uses manual obligation and clicks Purchase or Create req.
Manufacturing Order Reference
You can tie the cost of special purchased raw material, components, non-stock items, or an outside service to a manufacturing order. Enter the manufacturing order number in the Mfg order no field.
If the component is not on the bill of material, the system adds it to the manufacturing order. The Due date in stk for the PO is the Component due date on the manufacturing order. The Date promised is Due date in stk - Put-away lead time. While you can create a PO on any date, manufacturing dates must be on the shop calendar.
You can also enter a non-stock item and reference a manufacturing order. When you receive the non-stock item, the system adds its cost to material cost for the manufacturing order.
The Shop Paper Print (MSP) program lists purchased components not on the standard bill of material with standard components. If you purchased a non-stock item, it appears in a separate Special Purchases section.
The Manufacturing Order Listing (MHL) program separates the cost of purchased material from stocked material. Manufacturing order cost report programs have an Include purchase material detail? program option that lists the cost of special purchased material and non-stock items.
The Material/Labor code indicates whether the order is for material or a purchased service. If you select L for Material/Labor, you must enter the operation sequence number for the outside service operation.
Unit Cost
If you entered vendor price breaks in the Vendor Price Maintenance (VMM) program, the program displays the vendor's unit price for each minimum order quantity. When you select a price and quantity, the program fills them into the Pur qty ordered and Unit cost fields.
If you did not enter vendor pricing, enter the cost of one purchasing unit of measure. For example, if you order by the dozen, enter the cost of one dozen. Be sure that you select a dozen for the Purchasing UOM field.
The unit cost for outside services, for example material/labor code L lines, comes from the routing operation. The default cost for labor purchase orders is the cost per piece from the associated routing operation.
Promised Date
The promised date, in addition to giving letting you know when the goods are expected, is used in tracking vendor delivery performance. If you change a promised date, the system retains the first (or previous) promised date and lets you choose which should be used when looking at the vendor's delivery performance.
The promised date may change multiple times for a PO line. For example:
Suppose that the vendor promises delivery on 6/16 when you enter the PO line.
You realize that you don't need delivery until 6/25 and the vendor agrees to the new date. When prompted if you want to use the first promise date as a basis for vendor delivery performance, you click no. Because you requested the change, the vendor's delivery performance will not be impacted for missing the originally-entered promise date. The system-maintained first promise date is now 6/25.
The vendor's delivery date then slips to 6/30. You want to use 6/25 (the previously agreed upon promised date) as the basis for tracking vendor delivery performance. When prompted use the first date, you click yes.
Assuming the goods are received on 6/30, vendor delivery performance reports reflect that the delivery was 5 days late.
Unit of Measure Conversion
The Purchasing UOM field displays the vendor's purchasing unit of measure if you have set up a record for this vendor and item in the Vendor Price Maintenance (VMM) program. If not, the program displays the item's stocking UOM.
If you select a Purchasing UOM that is different from the stocking UOM, the program uses the UOM conversion factor to convert purchasing units to stocking units. For example, if you purchase items in dozens but stock them in EA units, the conversion factor is 12. If you purchase a quantity of 2 (purchasing dozen), the program updates the quantity on order in the Inventory Status Inquiry (ISQ) program to show 24 units (stocking each).
When you receive the purchased items, the system converts purchasing units to stocking units, reduces the quantity on order, and increases the quantity on hand accordingly.
Use the Unit of Measure Codes Maintenance (TUM) program to set up new units of measure and conversion factors.
GL Organization and Account
The program displays a default GL organization code and account. If you do not want your invoice entries to post to this account, you can change the organization and account number for this purchase order.
For material purchases (M in the Material/Labor field) the default GL organization code and account come from:
Posting Criteria Maintenance (XPC) (Inventory, Floor stock, or Non-stock inventory posting) for the PO Receipt Register (VRJ) program, and then the GL organization and account for the posting criteria. If none are setup, then
Posting Criteria Maintenance (XPC) (Inventory, Floor stock, or Non-stock inventory posting) for the PO Receipt Register (VRJ) program default organization and account number.
If not set up in XPC, program sets the defaults from the vendor's record (maintained in Vendor Maintenance - VM).
For labor purchase order lines (L in the Material/Labor field):
Posting Criteria Maintenance (XPC) (WIP OS posting) for the PO Receipt Register (VRJ) program, and then the GL organization and account for the posting criteria. If none are setup, then
Posting Criteria Maintenance (XPC) (WIP OS posting) for the PO Receipt Register (VRJ) program default organization and account number.
When posting occurs, the account used depends on whether you selected one or both of these options in the System Options Maintenance (XM) program:
Inventory interfaced to GL? (Inventory Control Options)
AP interfaced to purchasing? (Accounts Payable Options)
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AP-Purchasing interfaced |
AP-Purchasing NOT interfaced |
IC-GL interfaced |
The PO Receipt Register (VRJ) posts to the accounts specified in the Posting Criteria Maintenance (XPC) program and to an AP Accrual account. The register in AP Invoice Entry (NE) backs out the AP Accrual account posting and post any difference between standard cost and actual cost to a variance account. |
The register in AP Invoice Entry (NE) posts to the organization and account entered in the Vendor Maintenance (VM) program. If neither was entered, you must enter the appropriate account to be expensed or the inventory account to be used on the PO line. |
IC-GL NOT interfaced |
The register in AP Invoice Entry (NE) posts to the accounts on the PO line and to the AP Accrual account. |
The register in AP Invoice Entry (NE) posts to the organization and account entered in the Vendor Maintenance (VM) program. If neither was entered, you must enter the appropriate account to be expensed or the inventory account to be used on the PO line. |
Surcharges
Click Surcharges to display surcharge codes and amounts for this vendor for this item that you set up in the Vendor Price Maintenance (VMM) program. The amount shown is per unit of measure. To see the total for the line, click OK, select the line, and click Totals.
Blanket & Split Line Functions
Click Copy/Blanket to access the blanket order and split line functions:
The Blanket function allows you to copy a single PO line to multiple lines for the same quantity with different wanted dates.
The Split function copies a single PO line to a second line, dividing the quantity ordered between the original and copied line.
Copy a PO
The Copy order button enables you to copy all of the lines from a previous purchase order into the current order, optionally copying notes and user fields from the original order.
Approvals
Click Approvals to display the approval status of each line item on the purchase order. The display shows the reason the item requires approval, who has signed off, the amount approved and the approval date.
Close PO Lines
There are times when you may need to manually close PO lines. One example is when you receive less than you ordered do not expect an additional receipt from the vendor.
To close all open lines on a purchase order in PO Maintenance:
When the PO header is displayed, click Close order. Lines with no receipts are voided; partially-received lines are closed short (provided none are linked to a sales or manufacturing order).
To close a single open purchase order line in PO Maintenance:
Display the line and click Close line. Lines with no receipts against them are voided; partially-received lines are closed short. The program prompts if the line is linked to a sales or manufacturing order; if you continue, the link is removed so that the line can be closed.
If the Allow PO line close during receipt? system option (in System Options Maintenance - Purchasing Options) is selected, you can close a PO line short when it is received.
The PO Line Close program enables you to do a mass close of PO lines based on criteria you specify.
Print PO
Before you can print a purchase order, you must define the Vendor Purchase Order document in the Document Output Parameters Maintenance (TDOC) program. In this program, you have the option to define who receives a copy and output device to be used. See Overview: Document Management System.
You have the ability, using the Vendor Document Profile Maintenance (VDM) program, to send a purchase order to a specific vendor using that vendor's preferred method (for example, email, EDI, fax). This is an option; it is not required.
You can also click Print PO and then Single copy or All copies on the purchase order header screen. Single copy prints the PO to the user's default output device; All copies uses the setup specified in the Document Output Parameters Maintenance (TDOC) program.
Copy A PO
Totals
When you select a line and click Totals, the program shows the total for that line:
Extended amount - Potential discount + Tax amount + Est freight + Est surcharge
The order header displays the totals for all lines. In both cases, the program calculates the total:
Pre-tax total - Potential discount + Tax amount + Est freight + Est surcharge
Audit Trail
To activate an audit trail, select one of the files listed below in the Audit Trail Maintenance (XAT) program. The system records all transactions. You can then run the Audit Trails (ATR) program and select that file to print a report of these transactions.
VP1: PO Header
VP1B: PO Lines