Purchase Order Guide
 
Table Of Contents
1    Purchase Order Steps    3
2    Create Purchase Order Record    4
2.1    Page 1 – General Information    4
2.2    Page 2 – Line Items    6
2.2.1    Unit Cost Formula    7
2.3    Page 2 – Line Item Additional Features    8
2.3.1    Insert Line Item Notes    8
2.3.2    Lots    8
2.3.3    Landed Cost    9
2.3.4    Rapid Entry    9
2.3.5    Product Information    10
2.4    Page 2 – Additional Features    11
2.4.1    Requests For Purchase    12
2.4.2    Supplier Profile    13
2.4.3    Purchase Order Notes    14
2.4.4    Supplier Notes    14
2.4.5    LB or KG Preference    15
2.5    Page 2 – Other-in Costs    16
2.5.1    Discounts    16
2.5.2    Freight    17
2.5.3    Other Charges    17
2.5.4    Tax Total Display    18
2.5.5    Distribute Costs-In    19
2.6    Page 3 & 4 – Vendor & Supplier Info    20
2.7    Finalize the PO    21
2.7.1    PO Status    21
2.7.2    Print the PO    22
3    Create Receiving Record    23
3.1    Import Items    24
3.1.1    Lots    25
3.1.2    Landed Cost    25
3.2    HACCP Information    26
3.3    Post Received Items    26
4    Managing Orders    27
4.1    Quick PO Worksheet    27
4.2    Purchase Requests    28
4.3    Buyer’s Report    29
4.3.1    Report Options    30
4.3.2    Using The Order Grid    31
4.3.3    Create Purchase Orders Automatically    32
5    Supplier Price Management    33
5.1    Establish New Supplier Prices    34
5.2    Landed Cost    36
5.3    Order Formula    37
6    PO Reports    38

 

1    Purchase Order Steps

A number of steps are involved to track product purchases: 
•    Create Purchase Order Records,
•    Create Receiving Records,
•    Enter Vendor Invoices, and 
•    Print AP Bank Cheques.

The first two are covered in this manual.  The following diagram shows the flow of these steps and the affect they have on Inventory detail and on the GL:

 
 

2    Create Purchase Order Record

This manual uses the following symbols:
*    Required fields that may NOT be left empty.
^    Fields that are selected from a table.  They are shown on the screen in Yellow.  Values can be typed in the field or selected from a pop-up list.  To display the pop-up list, press the <F2> key or right-click with the mouse.

Menu Option: PO – Purchase Order

The file of all purchase order records will open with the last order shown.  Use the Top, Prev, Next and Bott buttons from the bottom menu bar to navigate through the Purchase Order file.  Use the Find button to search for a specific PO.

To begin a new PO, click the Add button from the bottom Menu Bar.

 

2.1    Page 1 – General Information
Enter the Purchase Order header information:

*PO Type defaults to Purchase.  Change to Manual if the purchase order is for supplies that are not in Inventory, such as office supplies.
*^Vendor ID is the Vendor code from the Vendor Master file.  The Vendor name will be displayed.
*PO Number, depending on the system configuration, will be automatically generated or a PO number must be keyed.
Date will default to today’s date.  If the PO is for a different order date, type the date in MM/DD/YYYY format, or press <F2> or right-click with the mouse to bring up a calendar. 
*Delivery Date is the expected arrival date for the order.  This date will be displayed on the F9 – Inventory Inquiry screen as the Next PO ETA.
*^Buyer is the Buyer ID code.  The Buyer name will be displayed once the code is entered. 
*^Supplier ID is usually 1.  If Supplier codes are set up for brokers or multiple fulfillment warehouses, etc., choose the applicable Supplier code.  
*^Warehouse is the warehouse code for the destination warehouse.  If the delivery point is not one of the defined warehouses (e.g., a trade show), check the Adhoc box and type the destination address.
*Freight-in Type is either 
•    None (freight charges not included in inventory valuation), 
•    Collect (third-party freight bill, amount included in inventory valuation), or 
•    Prepaid (freight included on supplier invoice, amount included in inventory valuation).
   
^Ship Via is the shipping method from the Ship Via table.  A default Ship Via can be set on the Vendor Master file. 
F.O.B. is the freight-on-board destination.
Clerk ID is automatically filled in by the system.  It is the user account that is currently logged in at the workstation.  
Vendor Supplier Defaults are set on the Vendor Master file and are shown for information purposes:
Currency indicates currency preference for the Vendor.  Once the PO has been saved, click the Conv. Rate button to change the Conversion Rate if necessary.
LB Prefer? is Y if the default unit of weight for the Vendor is LB.  The default for this PO can be changed on Page 2.
Lead Time is the normal lead-time required for an order to be delivered.  This can help determine the delivery date.
Order days are the days of the week that orders are normally sent to the Vendor.
Credit terms are the terms set by the Vendor.

Click the Save button to save the PO and go to Page 2 – Line Items.
 

2.2    Page 2 – Line Items 
Click on the Page 2 tab located at the top of the screen or press ALT+2 to access the second page of the PO.

 

Click ACCESS to open the Items table.  Click ADD to begin entering items to order.

*^Product ID is the product code from the Inventory Master.  The Pack Unit and Description will be displayed and a product summary will be displayed on the bottom left hand side of the screen, see Section 2.3.5.
Vnd Prod ID is the Vendor’s product code.  Once it has been entered once in either a PO, Receive record or Invoice, it will be brought in automatically.
*Ordered is the quantity to order.  To view or change the Order Formula as set up in the Inventory Master file, press <F2> or right-click. 

 

 

Received is the quantity received.  This will be 0 until the receiving data has been entered.
Tot Weight is the quantity Ordered multiplied by the Average Weight from the Inventory Master.  If the field has a Blue background, an actual Catch Weight must be entered during receiving.  
T (Tax) is the default tax code from the Inventory Master.  To view tax code settings, press <F2> or right-click in the field.
 

Unit Cost will be set to a default amount depending on the AP Setup setting.  For more information, refer to Section 2.2.1 below.  Enter the cost amount for the current PO.  To view the Landed Cost window from the Inventory Master file, right-click in the Unit Cost field or click the Landed Cost button.  For more information, refer to Section 2.3.3 - Landed Cost.
D (Discount) is the line item discount.  If there is a discount for the line item, press <F2> or right-click to open a discount window.  Enter the Discount by % or $ amount.  Click OK.  The field will display an X.  Refer to Section 2.5.1 - Discounts for Discounts on the entire PO.
Amount is the total purchase price for the line item.

For more information on the Freight In, Other In, All In Costs and Effective Date columns, refer to Section 2.5.5 - Distribute Costs-In.  

When all of the items for the PO have been added, press the top Exit button to close the items table grid.

2.2.1    Unit Cost Formula
The default Unit Cost for each product is determined by a setting on the AP Setup File entitled Default Item Price to Base Cost?:

•    If the flag is set to Y, the Unit Cost will be the current Base Cost from the Inventory Master.  
•    If the flag is set to N, there is a hierarchy for determining the default Unit Cost.  The system will look for a cost in the following order and will use the first one found:
1.    New Cost from the Supplier Pricing Table if one is in effect for the order date.  For more information, refer to Section 5 - Supplier Price Management
2.    Regular Cost for the Supplier from the Inventory Master if one exists.
3.    Last Cost from the Invoice History for the Supplier.
4.    Last Cost from the Invoice History for the previous Supplier if there is no Invoice History for the current Supplier.
5.    Zero if the item has never been ordered.

 

2.3    Page 2 – Line Item Additional Features
When the line items grid is active, a number of additional features are available.  

 

2.3.1    Insert Line Item Notes
The Ins Notes button will add a line of comments above the current line item.  For adding general notes to the PO footer, refer to Section 2.4.3 - Purchase Order Notes.

Move to the line below where the notes are required and press the Ins Notes button (you may need to add a blank item).   A pop-up window will appear.  Type the notes.  Click OK.   

2.3.2    Lots
If the product has been flagged for Lot Tracking in the Inventory Master, the Received field will be shown in Green.  Lot numbers must be entered during Receiving and during Order Entry.

To view the Lots window, click the Lots button.  The table will be empty until the Receiving has been entered.

 
 

2.3.3    Landed Cost
The Landed Cost button will display the pricing formulas and pending price changes for the product from the Inventory Master file.  The window can be used to look up the Base Cost, Average Cost or Last Cost for the item.

If an Effective Date has been entered for the line item, the new settings from the current PO will be listed in bold text in the New Settings grid.  Refer to Section 2.5.5 - Distribute Costs-In for more information on setting a new Landed Cost.

 

2.3.4    Rapid Entry
Rapid Entry mode requires that only the Product ID and Ordered fields be entered.  All of the other fields are skipped.

To activate the rapid entry mode, click the Rapid Entry button.  When it is activated, the button text will be shown in capital letters.  For each line entry, type the Product ID, press Enter or Tab, type the quantity Ordered.  Press Enter or Tab to Add another line.

Click the Rapid Entry button again to go back to regular entry mode to make any changes to the cost, discounts or other information.  
 

2.3.5    Product Information    
As products are entered into the PO Items table, a summary of the current product is displayed at the bottom of the window.  

The summary includes the Quantity Available, Pre-paid, On Hold, On Order, On Hand and Allocated for the selected Warehouse.  The Brand, Pack Size, Cube, Landed Cost, Pack Weight and Order Formula are also displayed.

 

To view a history of purchases for the product, click the Purch Hist button.

 

If the Prod Notes button text is in capital letters, a note is on file for the product.  To view or edit the note, click the Prod Notes button.  

The following is a sample product note for Brie Cheese:

 

 

2.4    Page 2 – Additional Features
These extra features are available when the line items grid is NOT active.

 

 

2.4.1    Requests For Purchase
The Request For Purchase list is a tool to facilitate communication for special order items between buyers and order entry clerks.  If the Purchase Requests function has been activated, order clerks can create a Request For Purchase by preparing an Advance Sale order in the Order Entry screen (refer to the OE Manual.)  

To view the outstanding requests, click the Requests for Purchase button.  All outstanding requests for all Vendors will appear.  Click on each item to display the primary vendor and the customer at the bottom of the window. 

To add items to the current PO, click the check box in the Pick column.  Picked items will be shown in GREEN.  When all items for the Vendor have been picked, click the Import button to add the line items to the PO.

 

For more information on Purchase Requests, refer to Section 4.2 - Purchase Requests.
 

2.4.2    Supplier Profile
As Supplier information is added to the Inventory Master, a Supplier Profile will be compiled.  The link between a Supplier and a Product ID is maintained in the Inventory Master file on Page 5 – Suppliers.

To view the profile for the Supplier, press the Supplier Profile button.  Indicate the Order Days (as indicated on the Inventory Master) or leave blank for all days.

The products linked to the Supplier will be displayed.  The Cost is determined the same way as for the main PO; refer to Section 2.2.1.  For each item required on this order, enter the Quantity to Order.  Click Import.  A line item will be added to the PO for each product where a quantity has been entered.

 

 

2.4.3    Purchase Order Notes

There are two methods to add notes to an order.  For adding line item notes, refer to Section 2.3.1 - Insert Line Item Notes. 

To print notes at the bottom of the Purchase Order, click the PO Notes button. The first four rows of notes entered into the notepad will print at the bottom of the PO.  Type the notes and click the X to close the window.  When there are PO Notes on file, the button text is in CAPITAL letters.  

 

 

2.4.4    Supplier Notes

When there are notes linked to the Supplier file from the Vendor Master, the text on the Supplier Notes button will be displayed in CAPITAL letters.  Click the button to view the notes.

 

2.4.5    LB or KG Preference

Purchase orders will be generated using the preferred unit of measure for weights, LB or KG, as indicated on the Vendor Master file.  

The current weight setting is displayed in prominent white letters next to the PO Status.  Click the LB or KG button to change the setting.  The button text will show the current setting in CAPITAL letters.

When orders are converted from one weight preference to another there will be a slight difference in the dollar amount due to round off.  The difference is posted to an Inventory Variance account. 
When inventory is received, the receiving record can be set to the system preferred weight setting.  Regardless of the unit on the PO or Receiving, the quantity on hand will always be updated using the system preferred weight setting (established before products are set up in the Inventory Master file).

2.5    Page 2 – Other-in Costs
Once the line items have been entered and saved, click the Edit button in the bottom menu bar to add Discounts, Freight, Other Costs and verify the Tax total.  

Once all other-in costs have been entered, the costs are distributed to each of the line items so that the All-in Cost is accurate.

2.5.1    Discounts
There are two methods of handling discounts directly on the purchase order, by line item or for the entire PO.  Both types should be applied before issuing the PO.  Refer to Section 2.2 - Page 2 – Line Items for entering the discount by line item.

To enter a discount for the entire PO, press <F2> or right-click in the Discount field.  Enter the percentage or flat dollar amount to be taken off the PO.  Click OK.  The dollar amount of the discount will be calculated and displayed in the Discount field.  

This type of discount will post to the Discount GL account established in the AP Set Up file.

2.5.2    Freight
Domestic freight charges apply when the Freight-In Type on Page 1 is Collect or Prepaid (i.e., third-party or supplier’s carrier).  If Freight-in Type is None, a value should not be added.  If it is, it will not be included in the distribution to All-in Cost.

To enter the Freight amount, press <F2> or right-click in the Freight field.  Ship Via and FOB are from Page 1 of the PO but can be changed if necessary.   Enter Y if the order will be picked up.  Enter the freight charges either as a charge per LB or KG, or as a flat dollar amount.  Note that the currency is always domestic.  Change the Tax Code if applicable.  Click OK.  

The dollar amount of the freight will be calculated and displayed in the Freight field.  Collect freight will NOT be included in the PO Total and will not print on the PO, however it will be included in the All-in Cost.

2.5.3    Other Charges
There may be other charges related to bringing the product on site, such as foreign freight or duty.   Refer to the GL Manual for setting up default Descriptions and GL Accounts for these charges.

To enter Other Charges, press <F2> or right-click in the Other field.  For each applicable charge, enter Y if it is an Other-In charge, enter Y if it is a third-party charge that is not included in the PO total, enter the flat dollar amount, set the Tax code, and indicate the currency and exchange rate.  The GL Account can be changed only if the setting in the AP Setup File is set to allow editing at the PO level.

A running total of all Other charges, along with a total of third-party charges, is displayed.  Click OK when complete.  The dollar amount of non-3rd Party charges will be calculated and displayed in the Other field.  Third-Party charges will NOT be included in the PO Total, however they will be included in the All-in Cost once the costs have been distributed.

 

 

The amounts will post to different accounts based on the options selected in the Other Charges section of the PO:

PO Other Charges    Posting Step
Other-In    3rd Party    Receive    AP Invoice
Y    Y    DR Inventory    CR Other Accrual
Y    N    DR Inventory    CR AP Control
N    N    n/a    CR AP Control    DR Expense

2.5.4    Tax Total Display
To view the Tax Total Details for the PO, press <F2> or right-click in the Tax Total field.  Click OK to close the window.

 

 

2.5.5    Distribute Costs-In
Click Save to save the Discount, Freight and Other costs.  A warning message that the amounts have not been distributed will be displayed.  Freight, Discounts and Other Costs are distributed to each line item on the PO so that the amounts are included in the inventory valuation.

To distribute the costs, click the Distribute Costs In button.  Choose the type of distribution for each category, by order unit, by weight, or by dollar value.  Click OK.  Click OK to confirm that the amounts will be overridden.

To see the affect of the distribution to the Freight In, Other In and All In Cost columns, Access the grid and scroll to the right.  

If the Landed Cost for the product should be updated on the Inventory Master to affect a price change, enter an Effective Date for the change.  Often, the Effective Date will be the expected delivery date of the order (the date can be added automatically to each line item by setting a system flag).  Click the Landed Cost button to review the Landed Cost details from the Inventory Master.  The New Setting from the current PO is displayed in bold text.  To update the Costs recorded on the Inventory Master immediately, click the Update Costs and Prices Now button.

2.6    Page 3 & 4 – Vendor & Supplier Info
Vendor Master and Supplier information and account history can be accessed from the PO screen.  

•    Click on Page 3 to view information from the Vendor file.
•    Click the Invoice History button to view previous invoices for the Vendor.
•    Click the Edit button to change the contact information.
•    Click on Page 4 to view and update the Supplier file.

See AP Manual for more information on the Vendor Master file.

 
 

2.7    Finalize the PO
To issue the PO, return to Page 1 and click the Issue PO button.  This will change the status to Issued and update the expected arrival information.  

The PO must be issued prior to receiving items.

2.7.1    PO Status
The Status of each Purchase Order is displayed in prominent white capital letters.  The Status can be:

Status    Description    Options
NEW PO    Purchase orders have the status New until they are Issued.  All information can be added to, modified and deleted.  Items cannot be received until the PO has been issued.      Issue
Delete
ISSUED    All items from the PO are shown as On Order.  Receiving may take place once the PO is Issued.  Depending on the system setup, Issued POs may or may not be edited.      Close
Cancel
CLOSED    All items have either been received or removed from the order.  The PO can be closed by clicking the Close PO button or through the Receiving function.  Receiving may NOT take place once the PO is Closed unless it is Re Opened.    Re Open
RE OPEN    A Closed PO had been Re Opened.  Receiving may take place.    Re Close
CANCELLED    The PO is locked and the items are no longer shown as On Order.  If necessary, a new PO must be added.    None

Note:    Line items can be added or edited after a PO has been issued (unless a system flag has been set to disable the option.)  If line items are edited on an Issued PO, Other-in costs may need to be re-distributed.
 

2.7.2    Print the PO
POs can be printed individually or in a batch.

To print an individual copy of the PO directly from the entry screen, click the Print button from the bottom menu bar.  Choose the forms to print and click OK. 

The forms that have been printed are indicated on Page 1.

 

Menu Option: PO – Purchase Order Forms – PO’s by Batch

To print a batch of POs, choose the PO’s by Batch menu option.  Select the required print criteria and click OK.  If a pre-printed form is required, load it in the printer.

 

Receiving Sheets and Pickup Sheets can be printed in a similar manner.
 

3    Create Receiving Record

Once the shipment has arrived in the warehouse, a Receiving record is entered in the system. Purchase Orders must have a status of ISSUED before product can be received.  

More than one Receiving record can be created for a PO.  On each Receiving, only enter the quantities for items that have been physically received.  If an item is not received in full, only enter the actual quantity received.

Menu Option: PO - Receive Inventory

The file of all Receiving records will open with the last receiving shown.  To begin a new Receive record, click the Add button from the bottom Menu Bar.  (To add an additional Receiving record to a closed PO, the PO must be reopened.)

Enter the Receiving header information:

Date will default to today’s date.  This date will be used as the posting date.
PO Number can be entered or press <F2> or right-click for a list of Issued POs.

The other header fields will be brought in from the PO.  Click SAVE from the bottom menu bar.

 
 

3.1    Import Items
The items received can be imported from the PO or entered individually.
To import all the items from the PO, click the Import PO Items button:
•    The message “All Current Items Will Be Overwritten With PO Items. Import PO Items Now?” will be displayed.  Click Yes to continue.  
•    All items from the PO will be imported into the grid.  
•    The Received Quantity will default to the Ordered Quantity.  
To enter items individually, click the ACCESS button and Add the items one-by-one. 

Click the ACCESS button to enter the actual quantities received.  For each item:

Vend Prod ID is the Vendor’s product code.  Once it has been entered once in either a PO, Receive record or Invoice, it will be brought in to the screens that show Vendor Product ID.
Product ID, Description and Ordered Qty are from the PO.
Rec to Date is the quantity received on any previous Receive records.
Receive Qty is the quantity received on the current shipment.  Enter the actual quantity received.  If a second shipment arrives, add another Receiving record.  If the field is shown in GREEN, the item is lot tracked.  Refer to Section 3.1.1.
Total Weight is the weight of the ordered quantity.  For Catch Weight items, indicated by the field shown in BLUE, enter the actual weight of the product received.
If the system has been configured so that costs can be viewed during Receiving, the Costs columns will be shown.  Refer to Section 3.1.2.

When the Receiving information is complete, click the top EXIT button to exit the items grid. 
 

3.1.1    Lots
When the Receive Qty field is shown in GREEN, the item is Lot Tracked. For each Lot tracked item, click the LOTS button located above the items grid.  The Lots window will open.  

 

Enter the Quantity received, the Total Weight for Catch Weight items (BLUE field), the Lot Number (alphanumeric) and the Expiry/Best Before date.  Add as many lots as required to arrive at the total quantity received.  To finish, click Exit.  

 

 

 

After the receive record is posted, Lot information can be viewed on the PO, in Order Entry and from the Inventory Master.  

3.1.2    Landed Cost
If the system has been configured so that costs can be viewed during Receiving, the items grid will show amounts in the Unit Cost, Freight-In, Other-In and All-In Cost columns, and the Calculated 
Value of the Receiving record will be shown.  This option should only be activated if the person entering Receiving records also processes AP Invoices.

The cost values can be changed on the Receiving record based on new information from the Vendor Invoice.  This will ensure an up-to-date inventory valuation and limit the number of Inventory Adjustments generated from the AP Invoice module.  Alternately, the PO can be edited prior to adding a Receive record.

If the Landed Cost for the product should be changed to affect a price change, enter an Effective Date for the change.  Often, the Effective Date will be the expected delivery date of the order.  Click the Landed Cost button to review the Landed Cost details from the Inventory Master.
 

3.2    HACCP Information
To complete a HACCP (Hazard Analysis Critical Control Point) report, click the HACCP button.  The products that have been flagged in the Inventory Master for HACCP reporting will be brought into the report.  

Complete the required information (refer to the Inventory Manual for setting up the columns on the report.)  To update a column with the same value for each product, click the right and left arrow buttons until the column header is displayed, enter the value and click the Update All button.

To print a hard-copy report, click the Print button.  Click Exit to return to the Receive record.

 

3.3    Post Received Items
To finalize and post the Receiving record, click the Post Received Items button.  This will:
•    Update the Inventory Master file with the new Quantity on Hand and Average Cost, and 
•    Update the Inventory Asset and AP Accrual accounts in the GL.  
(For more information, refer to the diagram in Section 1 - Purchase Order Steps and to the Inventory Average Cost section of the Inventory Master manual.)

If all items from the PO have been received, the PO can be closed from the Receiving record.  To close the PO manually, go to the PO record and click the Close PO button.

 

The receive record cannot be edited after it has been posted.  To receive additional items on the same PO, add new Receiving records.  When an item has been received as ordered, a RED “C“, indicating Closed, will display next to the item on the PO and on the Receiving record.  

4    Managing Orders

A number of options have been provided to assist Buyers with managing orders.

4.1    Quick PO Worksheet
Menu Option: PO – Quick PO Worksheet

The Quick PO Worksheet is a quick way to note down items that need to be ordered.  There is one common list for all users who have access to the menu option.

To add items to the list, click Activate Grid then Add.  Enter the Warehouse Location, Product ID and Quantity to Order.  If the item has been ordered before, the Cost and Primary Vendor will be defaulted.  Make changes as necessary.  Click the View By button to sort the items by Supplier or by Product ID.

 

To generate Purchase Orders for the items in the Worksheet, click the Generate PO(s) button.  Select a Buyer.  Choose a Vendor or leave blank to generate POs for all Vendors listed.  Click OK to generate the POs with status New PO.  Open the Purchase Order file to finalize, issue and print the PO.

 
 

4.2    Purchase Requests
Menu Option: PO – Purchase Request Master

If the Purchase Request function has been activated, order clerks can create a Request For Purchase by preparing an Advance Sale order in the Order Entry screen (refer to the OE Manual.)  The Request For Purchase list is a tool to facilitate communication for special order items between buyers and order entry clerks.

This menu option displays the same window as the Request for Purchase button on Page 2 of the PO (see Section 2.4.1).  By default, all Ordered items are shown.  Use the options along the right column to display a different date range or request status.

To cancel a request that has not been ordered, click the option to show the Not Ordered requests, click the appropriate Product Request and click the Cancel Current Request button.  The request can be reopened as long as the screen options do not change.  Click the Print button to print a report of the requests that are currently displayed.

 

Menu Option: PO – PO Reports – Special Order Report

This menu option will list the POs issued from Special Orders between the dates selected.

  

4.3    Buyer’s Report
Menu Option:  PO – PO Reports – Buyer’s Report

The Buyer’s Report is a tool for Buyers to predict trends and anticipate buying needs.  There are three Report Destinations (formats), a Detail Report, a Summary Report, and an on-line Order Grid:

•    The Detail Report shows a detailed summary of sales history, which allows the buyer to determine the Quantity to Order. 
•    The Summary Report and the Order Grid both calculate sales history statistics between two dates and use those sales statistics, along with current inventory on-hand, to calculate a Suggested Order Quantity.  
•    The Order Grid allows buyers to review the Suggested Order Quantity, determine the actual Quantity to Order, and automatically create Purchase Orders.

 

NOTE:    New distrib-u-tec clients should only select weeks or periods that have sales data, or choose the Suggested Order Quantity “Product Minimum Quantity” or “Product Maximum Quantity” since they base their calculations on the Min/Max settings from the Inventory Master rather than sales history.
 

4.3.1    Report Options
Choose the items to be included on the report:

•    Select the Warehouse.  
•    Select a Buyer ID or leave blank for all buyers.  
•    Enter the Vendor and Supplier ID or leave blank for all.  
•    Select the Supplier and/or Product Order Day or leave blank for all.  
•    To include products that do not have an order day specified, set the flag to Y.  
•    To exclude To Be Ordered products, set the flag to Y.  
•    Select the option to Include Primary Supplier or All Supplier Products.
•    Select the option to Include Active, Inactive or All Products.

•    Choose the Report Destination (format) of Detail Report, Summary Report or Order Grid.

If the Report Destination is Summary Report or Order Grid, a number of additional options appear: 

•    Specify how the sales statistics are gathered:
-    Weekly Shipped – Use the Ship quantity of POSTED invoices by Week.
-    Weekly Ordered – Use the Order quantity of POSTED or UNPOSTED invoices by Week.
-    Period Shipped – Use the Ship quantity of POSTED invoices by Period.
-    Period Ordered – Use the Order quantity of POSTED or UNPOSTED invoices by Period.

•    Include Posted Sales History From/To – Choose the Weeks or Periods to include in the Sales History calculation.

•    Suggested Order Quantity Fills To – Suggested Quantity is calculated as Target Quantity minus Quantity On Hand minus Quantity Allocated plus Quantity On Order.  Choose the Target Quantity to use in the calculation:
-    Product Minimum Quantity – Target = Minimum quantity for the warehouse from the Inventory Master.
-    Product Maximum Quantity – Target = Maximum quantity for the warehouse from the Inventory Master.
-    Average Sales – Target = Average Sales for the weeks specified. 
-    Greater Of Minimum Qty Or Average Sales – Target = the larger of Minimum quantity for the warehouse from the Inventory Master or Average Sales for the weeks specified.
-    Lesser Of Maximum Qty Or Average Sales – Target = the smaller of Maximum quantity for the warehouse from the Inventory Master or Average Sales for the weeks specified.
-    Minimum Weeks Supply x Avg Sales (Weekly Shipped/Ordered only) – Target = Minimum Weeks supply for the warehouse from the Inventory Master multiplied by Average Sales for the weeks specified.
-    Maximum Weeks Supply x Avg Sales (Weekly Shipped/Ordered only) – Target = Maximum Weeks supply for the warehouse from the Inventory Master multiplied by Average Sales for the weeks specified.
-    Do Not Suggest Order Quantity

•    Rounding - Choose the type of rounding to use if the Suggested Order Quantity is less than a full unit.  

Click OK to continue.  If the Report Destination is Detail Report or Summary Report, a printed report will be generated.  A box is available on each report to note down the Quantity to Order.  If the destination is Order Grid, the Order Grid window will appear and Purchase Orders can be automatically generated.
 

4.3.2    Using The Order Grid 
The Buyer Order Grid allows buyers to review the Suggested Order Quantity, determine the Actual Quantity to Order, and automatically create Purchase Orders.  The products included and the suggested quantities are based on the options entered on the selection page.

Navigate through the grid and change the Vendor ID and Actual quantity to order as required.  The lower section of the screen will show the following for the current product:

•    Vendor Information from the Vendor Master.
•    Product Information from the Inventory Master.
•    Cost and Quantity information including quantity on hand, suggested order quantity, and sales history.

 

Right-click the Suggested field to display a breakdown of the calculation that was used to determine the suggested order quantity.

 

Right-click either the Total or Average Sales fields to display a breakdown of the sales history by week or period.

 

 

4.3.3    Create Purchase Orders Automatically
Once the order grid has been reviewed and the Vendors and Actual quantities are set as required, purchase orders can be generated.  

Choose a Buyer ID then click the Create PO’s button.  A message will indicate the range of Purchase Order numbers created.  POs are generated with status NEW.  Go to the Purchase Order file to finalize, issue and print the POs.

 
 

5    Supplier Price Management

Menu Option: PO – Supplier Pricing Table

The Supplier Pricing Table helps to manage Supplier price changes, i.e., contracts, specials and fliers.   Each product can have a number of Suppliers, each with a different Unit Cost.

Price changes can be permanent or have a time limit.  All prices entered into the Supplier Pricing Table will take effect on the starting date as entered and will continue to be in effect until the ending date.  The ending date is left blank for permanent price changes.  The Daily Cleanup procedure will ensure that prices take effect on each starting date.  

Note that new prices will apply to new POs only.  Existing POs will not be affected, even if they fall within the date range.  To change prices on an existing purchase order with a NEW or ISSUED status, delete and re-generate the applicable product line items.

Only Buyers with the applicable knowledge and skill to manage price and order formula changes should have access to the Supplier Pricing Table.  For that reason, this feature has been password protected.  A valid password is required to gain entry to this feature from the PO menu.  A different password is required to change a supplier Order Formula.  The passwords are set on the System Control File (refer to the Staff Security section of the System Manual.)

 

NOTE:    There are no audit functions related to the Vendor Supplier Price table.  A price record can be edited at any time.  This feature is intended to be a tool, not a historical record.

The Vendor Supplier Price table only updates the Base Cost on the Inventory Master file if an Effective Date is entered.
 

5.1    Establish New Supplier Prices
Click Add to add an entry to the Supplier Pricing Table.  The records in the table can be managed in different ways:

•    For permanent prices, create one table record as a template with no end date.  When permanent prices change, either edit the costs on the existing record or fill in the end date on the existing record and add a new one.  Do not have more than one record with an open ending date in the system for a Supplier, as there cannot be more than one permanent price change for the same product. 

•    For temporary prices, create a new supplier price table record for each price update, setting the effective dates accordingly.

Avoid having more than one Price record with the same Supplier/Product/Date combination.   If there is more than one, the system will use the last one created. 

The Vendor’s currency setting is displayed in RED.  All costs are shown in the Vendor’s currency.  Click the Conv. Rate button to view the current conversion rate from the AP Foreign Currency table.  (The exchange factor can be changed but it will not affect the rest of the system.)  The inventory value and last product costs are converted to domestic funds on receiving.

The Vendor’s weight preference is displayed.  All costs are shown in the Vendor’s weight preference.  Click the LB or KG button to toggle between settings.

Enter the Start and End dates and indicate if the record contains temporary or permanent prices.  Click Save.

 

 

To add products into the grid, either click the Import Items button to import all product codes that have been linked to the Supplier on the Inventory Master, or click Access and Add each item individually.

For each line item:

•    VProduct ID is the Vendor’s Product ID.  It can be entered in the Supplier Pricing table or on Purchase Orders, Receiving records or AP Invoices.
•    Product ID and Description are from the Inventory Master file.
•    Cost Off / Per is the dollar amount off per Order unit.  The New Cost will be calculated as the Regular Cost minus the Cost Off and will be displayed in RED.
•    New Cost / Per is the new cost per Order unit.  If a New Cost is entered, the New PK Cost will be automatically calculated.
•    New PK Cost / Per is the new cost per Pack unit.  If a New PK Cost is entered, the New Cost will be automatically calculated.
•    Reg. Cost / Per is the Regular Cost per Pack unit as recorded on the Inventory Master.
•    Effective is the date that the Landed Cost will be updated.  Refer to Section 5.2 - Landed Cost.
•    The first time a product is entered for a supplier, a RED NS will be displayed to the right of the effective date to indicate New Supplier.  
•    Order Formula is the Supplier’s Order Formula from the Inventory Master.  Refer to Section 5.3 - Order Formula.

Click the Sort By button to sort the products by Vendor Product ID or by Description.

 

 

Enter a New Cost or Cost Off value for each product with a price change.  

Click Exit to exit the grid.  Answer Yes to remove all products that do not have a new cost value entered.  If the zero cost items are not removed, POs may be generated with a zero cost. 

 

To copy the New Cost to the Regular Cost field on the Inventory Master, click the Update Regular Cost button.  The new Regular Cost will be imported the next time a Supplier Price Change is added.

To print a record of a price template, click the PRINT button.
 

5.2    Landed Cost
Optionally, the Landed Cost for a product can be updated directly from the Supplier Price table by entering an Effective date.  

 

To view the pending change, click the Landed Cost button.  The grid will display all pending updates to Landed Cost.  The row with bold text is from the current Vendor/Supplier item.

When the Daily Clean-up function is run on the Effective date, the Inventory Master will be updated as follows:

•    The New PK Cost from the Supplier Price table will become the new Base Cost.
•    The Freight Adjustment and Other Adjustment will remain the same as the current setting unless the New Setting is changed.
•    If Margin or $ Amount pricing is in effect, the selling price will change.

To update the Landed Cost immediately, click the Update Costs And Prices Now button.

5.3    Order Formula 
Different suppliers may sell the same product with different units of measure, e.g., LB instead of KG or Cases of different size.  All prices are entered in the Supplier Price Table for the unit of measure from the Supplier.  The Order Formula defines the relationship between the Supplier’s unit of measure and the unit of measure in inventory (Pack Unit).  The unit of measure on a PO is converted to the Pack Unit on receiving.

It is critical that the relationship between the Supplier’s unit of measure and the unit of measure in inventory (Pack unit) be set up and maintained correctly.  The Order Formula will affect quantity on hand and average costs.

The Supplier Price tables may be used to maintain each Supplier’s Order Formula.  The BLUE text in the Order Formula column displays the current formula for the Supplier from the Inventory Master.  If this is a new Supplier, the default Order Formula from Page 2 of the Inventory Master is shown.  For example:

•    Ordered in LB indicates that the product is purchased and sold by weight.
•    1 PC = 3.000 KG = 3.000 KG indicates 1 Piece from the Supplier equals 3 KG in inventory (Pack Unit).
•    1 BG = 1.000 BG = 1.500 KG indicates 1 Bag from the Supplier equals 1 Bag in inventory (Pack Unit) with an average weight of 1.5 KG.

 

To change the Order Formula for the current product, click the Order Formula button.  A password will be required.  (The password is set in System Setup.)

To set a new order formula, enter the Supplier’s unit of measure in the Order unit field.  This unit must represent one purchase unit, not a portion of a purchase unit.  Enter the number of Pack units for each Order Unit.  Enter the average weight of the Order unit.  Enter an effective date for the order formula to take effect.  Leave the end date blank for a permanent change.

To have the Daily Cleanup procedure change the formula on the Inventory Master, choose the appropriate Update option.  Click OK to save the formula.

6    PO Reports

Menu Option: PO – PO Reports

A number of reports are available to provide further information about Purchase Orders:

Open PO Listing    Lists POs by Buyer that have not been Closed or Cancelled.  This report should be run regularly to ensure the file is clean.

PO Receive List    Lists Receiving records for the Receiving dates selected.  The report includes detailed Posting information such as the reason a Posting failed.  Choose Unposted Only status to see a list of unposted Receiving records.

PO Ordered List    Detailed list of POs and Items ordered for the Order dates selected.

Expected PO Receive List    Detailed list of POs and Items ordered for the Expected Receiving dates selected.

Supplier Product List    Lists all products by Supplier by Category.  A column is available to note down Quantity to Order.  Net Quantity on Hand can be included as an additional column.

Supplier Profile    Lists all products for an individual Supplier by Category.

Products Under Min    Lists all products with a Future Balance (Quantity On Hand – Allocated + On Order) under the PK Minimum set on the Inventory Master.

Inventory Received    Lists products received by Warehouse for the Receiving dates selected.

Short Shipment Report    Lists products by Buyer and Warehouse where the Receiving Quantity is less than the Order Quantity for the Receiving dates selected.

Special Order Report    Lists POs issued from Special Orders / Purchase Requests between the dates selected.

Additional reports are available under the Inventory Reports menu.