The process begins by selecting a Regular PO or an In-Store PO, then selecting a supplier for the order. The supplier is selected from a list of suppliers established in the Supplier Information module.
After selecting a supplier, the user may enter orders for various types of material. Inventory material is ordered to be placed in on hand inventory and used in the making of product. The user may also select MRO parts, parts which are not kept in inventory, but are expensed as they are purchased and distributed to the requester when they are received. (MRO parts may be defined in the item master and kept in inventory, if desired.) There is also a selection for Services.
The user may add a new part by selecting the part class and type, then choosing from a part matching that criteria, or go directly to the part number edit box and enter the part number without visiting the class and type box.
The buyer may have entered a specific manufacturer of the item, providing that the manufacturer and the part number have been entered in the inventory item master. If there is only one manufacturer, that manufacturer will be the default manufacturer entered in the purchase order.
If the user is adding an inventory item to the order, the system will add in the details from the item master once the part number is established.
Purchased items may have the delivery schedule established for one or more deliveries. The delivery date entered in the purchase order is meant to be the date the material lands on the user’s dock.
The user may enter either the stocking quantities based on the stocking unit of measure or the purchasing quantities, based on the purchase unit of measure. If the units of measure are different, the user must have defined the relationship between the different units in the Unit of Measure Conversion. Entering one quantity will automatically calculate and enter the other quantity.
The user enters the unit price and whether or not the item is taxable. If it is taxable, the tax percentage will be supplied based on the data entered in the Tax &Shipping Mode tab. The system will display the extended amount of the item on the order based on the quantity and price. Note: If the Tax Information has not been filled in, the Purchase Order will NOT calculate any sales tax. Therefore, it is important that the user set this up properly.
The user may define the quantity that may be received over the amount of the order by entering an overage percentage. This will allow incoming receiving to accept quantities up to the amount of overage specified for the order.
The user may enter specific notes about the item on the purchase order, to be printed on the order. They may also view and edit any item master notes that may exist for the part, and may also view the procurement history for the part.
Once entered, all orders require an approval. The approval authority established in the Purchase Order Authorization tab is used to determine whether or not an individual may approve an order. It is possible to allow two approvals to orders, and to set different approval limits for each of them.
Orders will be identified as temporary orders until approved, after which they will have a permanent number assigned.
Change orders to purchase orders must also be approved in the same manner. Once an order is changed, it cannot be printed or acted upon until it is approved again.
Details about the remittance, delivery point, billing etc. will be completed with Supplier default information, and may be reviewed for the order if necessary.
In-Store purchasing overview: In-Store is the situation where the Supplier has placed raw materials in the user’s warehouse. The Supplier still owns the raw materials. When the user is ready to use the Supplier’s raw materials, he/she issues an In-Store Purchase Order. For In-Store POs, the user may select by Supplier or by Part Number. Then the user may find records according to the selection. Once found, the user may create a PO for the In-Store Consumption. In-Store Purchasing also includes receiving.
