1. Purchase Setup

1.1. Prerequisites for Purchase Setup
 
Complete the attached worksheet and  "Mark as Completed RoadMap Section B Item 4-m"  before continuing the setup.

 
The prerequisites for entering Purchasing Setups are:
 
General Ledger Account Numbers set up in the G/L Account Setup module.

User MUST have full rights to the "System Setup" in System Security . Users with “Supervisor Rights” will automatically have access.  

1.2. Introduction for Purchase Setup

In this section, the approval authority is established for purchase order approval for each user. The company has the option to declare whether one or two approvals are required in order for a purchase order to be approved. If the user chooses to have two approvals, then one of the approval-users must have final approval authority.  The company also has the option to declare whether they want approvals Based on the PO Value and approvals when there is date changes or note changes.  

 

This section also establishes a default percentage that is allowed over and above the purchase order line item quantity. If material is received that exceeds in quantity the ordered amount by this percentage, then the receiving department cannot receive the material until the order is modified by purchasing. This is a default percentage applied to each order as it is placed, but may be over-ridden at the time the order is created.

 

 

1.3. Fields & Definitions for Purchase Setup
1.3.1. Purchase Order Default Tab

 

When a buyer generates a purchase order, it is created as a temporary order until it is approved. These orders will be created with a prefix to distinguish them as temporary until approved.  As a temporary order, the document cannot be printed, nor will the order be considered as supply for Material Requirements Planning considerations. When a purchase order undergoes a revision, changing schedules, quantities and/or pricing, the order returns to a temporary status until approved.   Note:  These changed orders are not changed back to a prefix. 

  

Approvals Required
 

The company has the option to declare whether one or two approvals are required in order for a purchase order to be approved. If the user chooses to have two approvals, then one of the approval-users must have final approval authority. 

Approvals Based on P.O. Value 
 
 This will allow the PO to be approved based on the PO value 
Require Approval For Date Change or Notes
 
 This gives the user the option to require approvals or not to require approvals when Date Changes or Note Changes are made.    If "No" is checked user can edit the notes without going into edit mode on the PO record.   NOTE:  If "No" is checked any changes made to the notes will not be recorded in the "View Changes History"  screen.  (This includes PO Item Master Notes, PO Item Notes, PO Notes, and PO Footnotes).

 

Default Overage %
 
 

This is a default percentage applied to each order as it is placed, but may be over-ridden at the time the order is created. If material is received that exceeds in quantity the ordered amount by this percentage, then the receiving department cannot receive the material until the order is modified by purchasing.

Days beyond which early receipts are rejected
 
 Enter the number of days allowed for early receipt (from the PO Scheduled Date) based on work days.   This is a provision for the restriction for PO early receipt. The default for this field is 30 days.
Allow to Change AVL Upon Receipt
 
 This will allow the users within Purchase Order Receiving to change the AVL selection (based on the available AVL's that currently exist within Inventory Control for that part) upon accepting the parts into inventory. 
Use PO Dock Receiving
 
 This will allow users to decide if they want to use the two-step receiving procedure (Dock Receiving & PO Receiving) or if left un-checked just the one step (PO Receiving Only) 
Default Number of Copies
 
 Enter in the number of copies you want the system to create per PO
Auto Approve PO when Importing from XL
 
 Default is un-checked.  If the user checks this box the system will automatically approve all the POs uploaded.  If this box is not checked then all the POs will be uploaded as "NEW" and users will be required to approve within the Purchase Order Management module.  
Auto Assign New Change Order # Upon Approval
Default is un-checked. If un-checked when user makes changes the CO# will stay the same, the system will prompt the reminder, and user may manually assign a change order number if applicable.  If checked, the reminder will not be issued and CO # field becomes not editable. When the user approves the change the Change Order number will be increased. NOTE:  If auto assign the next change order will be referenced in the change history and the PO change order will not increase until approved.  If not auto assigned then the change order will be referenced to what ever change order user enters.
 
Allow Partial Schedule  without a question
 
 Default is un-checked.  If un-checked user will receive the popup warning them that they have not scheduled all the order qty and ask if they want to finish scheduling the order qty,  upon saving a PO with only a partial schedule.  If the box is checked the system will not ask any questions when saving a po with only partial schedule.  
Print Labels upon PO Receipts in BC
 
Default is un-checked. If checked it will default into the PO Bar Code Receiving  Module and may be unchecked within the module if necessary. If checked the receiving label will be printed in the receipt using the PO Bar Code Receiving module. 
Print BOM Addendum for all "MAKE" parts on the Selected PO Default is unchecked.  If checked it will default into the PO Reports /PO Form Report Options.  If this option is checked  when the users add a Make/Buy part to a Suppliers PO, and checks this option the system will then print a "BOM Indented with AVL" report as an addendum to the PO form.  Each BOM will be printed as a separate report and will reference PO and item on the PO.  If the AVL on the approve vendor list for any of the items on the BOM happens to be checked as "disallow to buy" this AVL will not be included within the addendum to the PO.

 

When a non-inventory item is being purchased, the user must indicate the General Ledger MRO receiving numbers, if Accounting is used.

 

 
1.3.2. Purchase Order Authorization
For each user approval, the user may be authorized to approve one or both:  Inventory and/or MRO.  And each of these may have different levels of dollar amounts.  If the administrator chooses to have one approval for orders, then there must be at least one person with approval for the expected dollar value of purchase orders.  If two approvals are chosen, then there must be at least two people with approvals for the expected dollar vaule of purchase orders.  The names of the users must have been entered in the Security  Setup before entering in the Purchasing Setup, as they become available in the pull down listing for names.
 
 
 
 
 
 
 
Name User Name
Initials User Initials
 
Approval
 
Inventory Approved $ amount for User for an Inventory Part Purchased
MRO Approved $ amount for User for an MRO Item Purchased
 
 
1.3.3. Setup for Auto-PO when generating from MRP action List
 
 
 
Last Purchase Price for a Supplier The last Purchased Price for the Supplier Selected in the Preferred Supplier field 
Quote Price Price from an Approved Quote in the Quotation & Estimating Module.
Standard Material Price Standard Material Price listed in the Inventory Control Module.
Last Purchase Price Last Purchased Price.
Contract Price Price listed in the Contract Pricing Module.
Target Price Target Price listed in the Inventory Control  Module.
Manual Entry Enter Price Manually
1.4. How To ..... for Purchase Setup
1.4.1. Setup the Purchase Setup Module

Enter the SQLSYSSETTING.EXE (within the ManEx root directory)
This action will then prompt the user for a password

The following screen will be displayed, enter the Material/Purchase Setup Module

  

The following screen will be displayed:

Depress the Edit button. For Approvals Required, click on the desired radial for either One Approval or Two Approvals. Enter Default Overage % if applicable.  Click on desired radial for Approvals based on P.O. Value.  Click on desired radial if Approvals are required for Date or Note Changes.  Enter a Qty of Days beyond which early receipts are rejected if applicable.  If you want to Change AVL Upon receipt this box must be checked.  If you want to Use PO Dock Receiving this box must be checked.  If you want to Auto Apporve PO's when importing from XL this box must be checked.  If you want the system to Auto Assign New Change Order #'s upon Approval this box muxt be checked. If user wants to Allow partial schedule without receiving the reminder popup this box must be checked.  If you want to Print labels upon PO receipts in the BC (Bar Code Receiving module) this box must be checked. 

Depress the Add button to add additional MRO (Materials, Repairs and Other) Receiving GL Numbers, enter in the description, then select the appropriate General Ledger account number and description, by clicking on the down arrow next to the field, as follows:


When finished, the user must depress the Save or Abandon changes button. 

Purchase Order Authorization

On this screen, the user establishes the procurement authority levels for individuals.

 

To add a new user, click on the Add button and select a user from the Name pulldown field. Then enter the dollar amount authorized for either or both (Inventory and/or MRO) Approval and Final OK. If the company chooses only one approval, it must be in the Final column.

Each user may have different authority levels for different kinds of purchases. Additionally, the user may have different amounts authorized, depending on whether they are the first approval or the final approval. For example, a buyer may have authority to do a final approval for $1000, but must also approve P.O.s up to $10,000 before the person with final authority will authorize the P.O.
 
Setup for Auto-PO when generating from MRP action list
 
In order to create an automatic PO within the MRP action list, the system has to figure out unit cost.  Within this screen the user can select multiple methods ordered by their preference, from selecting items on the left and entering them on the right.  The system will try to find the price based on the first method in the selected list (on the right) and if the system cannot find any price information it will proceed with the next method (on the right) until price is found.  If not found system will assign "Manual Entry" and leave it at zero as a default.  The price source can be changed and the price can be overwritten in the screen which creates POs from the MRP action list.
 
 
Where Used:  Approvals are required on all purchase orders in order to place and receive material. General Ledger Account selection for all MRO purchases. 

«Mark as Completed in RoadMap in Section B Item 3-m»

1.5. ManEx Minute for Purchase Set-up