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Purchase Order from PO to Goods Receipt

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Purchase Order from PO to Goods Receipt

02, Apr, 2024

Where perishable goods are transacted the expiry date will be required

Table of contents

Overview

Each Purchase Order will be received by a warehouse from a supplier.  

  • Stock will then be moved from this warehouse to others using Inter warehouse Move Orders

  • If a supplier is sending direct to multiple warehouses you will require multiple purchase orders

  • Suppliers may send multiple shipments and invoices per purchase order (if flagged)

A purchase order for purchasing perishable stock may be created:

Where Used Report - for recalls

The where used report is designed to find stock received from a supplier and look to see where it was used in manufacturing or sent to customers.

The where used report will find traceable stock based on expiry dates and lot numbers.

Find all customers that received the stock



Also used to create inter-company purchase orders

For non-stock purchasing use Non-Stock Purchase Order

Sales Order at Risk Report

When Purchase Orders are Delayed - it is important to contact Wholesale Customers to modify their orders.

This report provides a

  1. List of sales orders indicating the number of order lines that are at risk

  2. The ability to open the product forecasting screen to view expected stock levels including inbound purchase orders

An email of the XLS will be sent to users at 1pm each day with secure feature Secure Features#ReceiveMarketplaceOrdersReport

Purchase Order Flow

Where to find purchase orders

Purchase Order Report

From the Purchase Order Screen - finding a purchase order

Enter PO number.

Enter the supplier then do a search limited by the supplier.

Searching by supplier ref

Searching by shipping company ref

Purchase Order Register - The central list

On the Supplier

In the Forecasting screen

Expected Purchase Orders show in the forecasting screen

For a snapshot of the current situation of the items on this PO

To see detailed planning buckets over time across all products by supplier etc

See Product Forecasting Based on Sales History

In the Warehouse Shipments in/out screen

Used by the warehouse to track things that are arriving and departing the warehouse including purchase orders

Franchisee's receiving a Franchisor Drop Ship Purchase order from a supplier will have an asterix to indicate it is a Franchisor PO.

Building up a Purchase Order

Purchase orders may be created in a number of ways

  1. Manually - see below

  2. Upload of XLS sheet to Purchase order screen (commonly used if your warehouse holds 3PL stock with non EDI customer or on cutover) - SpreadsheetimporttoaddlinestoaPO

  3. From Sales Based Forecasting Screen - Product Forecasting Based on Sales History

  4. From Daily Purchasing Requirements Screen - Daily Purchase Order

  5. From a Drop Ship Sales Order Line see Drop Shipments - supplier sends direct to customer

  6. From Franchisor Replenishment Dashboard see Retail and Warehouse Stock Replenishment



When a Franchisee creates a Purchase Order to their Franchisor - when the Status moves to "Sent" a mirror Sales Order is created in the Franchisor.

A Franchisor can also create a Sales Order to a Franchisee - and when Authorised a mirror PO will be created in the Franchisee that will be used for receipting the goods

Regardless of how a Sales Order from a Franchisor to a Franchisee is created - when the Sales Order in the Franchisor creates a Debtor invoice - a mirror Creditor invoice linked to the PO in the Franchisee will be immediately created.

Purchase Order lines can also be updated by xls import. 

  • For example if a supplier is sent quantities and changes them to fit into shipping containers

  • Use "Update lines" option when importing

  • When a Dropship Purchase order quantities are updated > the corresponding sales order quantities will also be updated

Items that are only sold as JIT assembly can also be purchased using the JIT SKU.  The stock receipt will list the kit components to be counted.

Add Supplier - some fields will pre-populate

Supplier related limits

The Filter items by supplier flag will make a smaller list when doing item searches

ETA for the lines will only have a value if different to the ETA on the header of the PO. You can update the ETA of a line from the PO screen

Foreign Currency Suppliers

When a supplier that is setup as a FX supplier - then the FX amounts will show

If a FX PO has GST an alert will show

Normally FX PO's should not be subject to GST. 

If you have created one and it is incorrect then

  1. remove the incGST from the supplier company

  2. move the PO back to plan status

  3. Adjust a line qty or price (causes the entire PO to recalculate)

  4. then adjust it back and put the status back.

Checking recent purchase prices across suppliers

When negotiating with suppliers and prices rapidly change it is useful to have a view of recent prices

Note that the values are the last date for any Supplier + Price combination 

Add multiple lines to the Purchase Order

Updating of pricing requires Secure Feature "Can Change Purchase Order Unit Cost"

  • Unit Price is AUD price

  • FC Price is Foreign Currency Price

  • Value = Qty x Unit Price

  • Notes is system generated notes

    • Examples

      • Expected Quarantine Start Date

      • Split - multiple use by

      • Split - part receipt

      • if an intercompany purchase order then notes from the order lines

  • Other Quantities on the order line

    • Shipped - once the supplier notifies you how many they have shipped

    • Received - updated by the counting process as stock receipt

  • Line Status - system generated

    • Counted - once counted

    • Cancelled - using right click menu on the line to cancel the line

    • Closed once PO received

  • ETA is set by the Purchase Order ETA and is used by planning and and sales orders

Spreadsheet import to add lines to a PO

Before importing an XLS spreadsheet > create a PO by choosing a supplier and saving

A two column spreadsheet (SKU, Qty) can be used to quickly add lines to a purchase order - this will use the default buy price on the SKU

A third column can be added (Price) to import the price - note if the supplier is a Foreign Currency Supplier then the price is assumed to be in the Foreign Currency

To import open transactions on mass

  1. Import Headers.  Columns include - PO, Warehouse Code, Forwarder Ref, Supplier Code, Summary, ETA

  2. Import lines across Purchase orders by adding a column to the PO lines spreadsheet of (PO)

  3. SKU's that are in a status of Runout or Inactive will not be imported

  4. By default the SKU import process limits to the items with that supplier nominated as the primary supplier on the SKU - to enable the import process to import any SKU regardless of supplier untick the "Filter items by supplier" on the PO

Can also update lines on the order 

When a purchase order is in Planning or Plan status updates can be made to the quantity and price for a SKU.

Columns required 

  1. SKU, Price, Qty

When there is no default buy price for the item from that supplier

When the supplier is not one of the suppliers listed on the Article with a default buy price then the default buy price for the default supplier will default.

In this example the default supplier has a default buy price of $10 in AUD - the FX supplier we chose did NOT have a default buy price.

If the default supplier is a Foreign Currency Supplier then the default buy price will be in the foreign currency.

A warning will show when no buy price is found for the supplier.

Cancelling lines on a Purchase Order

Right click to cancel a line on the Purchase order > the cancelled line will still be on the purchase order however it will no longer be visible

  • A log entry will be added to the PO log

  • Note - if a complex landed cost exists AND manual costs have been associated to the line THEN the line cannot be cancelled until these have been removed

Re-instating a cancelled line

  1. Use the SKU to recall the line on the PO and press save on the line 

    1. this will change the line status from "Cancelled" to "Plan" and the line will again be visible

  2. Note - Cancelled lines on Drop Ship Purchase orders CANNOT be re-instated due to requirement to re-instate the line on the sales order

Add attachments to the purchase order

Example shipping documents, supplier documents etc - see Useful things to know

Note that international purchase orders have a list of standard documents expected if they have a ship from port and ship to port - see Purchase Reports Dashboard#ManagingShipments-InternationalPurchaseOrders

Add Freight Charges to the Purchase Order

When a purchase order supplier also charges freight - add it to the purchase order.

Freight will be in the same currency as the creditor and FX currency will show adjacent to the field

Add Additional Charges to the Purchase Order

When a supplier charges additional charges there are two possible approaches

  1. Use landed costing to associate the charges to the stock cost > in this case a separate invoice (linked to the PO if you want) will be required

  2. Consider the costs to be expenses and not absorb them in product cost > in this case a SERVICE can be added as a purchase order line at any time up to status "Invoiced"

Send the Purchase Order documents and track correspondence

See Correspondence explained and Email Templates

Status menu > Email this Purchase Order to Supplier > PO status will move to "Sent"

Email will be sent to

  1. Any contact on the supplier with a role of type "Logistics"

  2. The Debtor email address (if above not found)

  3. The Company email address (if above not found)



Can send the PO manually with a preview / edit

  • Edit the email and view the pdf attachment before you send it.

  • Email Template = System usage "Manual" and System Context "Purchase Order"

In order to print the Purchase Order when in Plan Status you will need the Secure Feature "Can Authorise Purchase Orders"

If you want to attach a PDF of the purchase order

  • Print Template YOURCOMPANYNAMEPurchaseOrder.mrt will be used - if not found then PurchaseOrder.mrt will be used

  • XLS will also be attached with SKU, Barcode and Carton Barcode to each purchase order sent (if xls is attached)

  • All emails sent of purchase orders will BCC if sender is setup as Company BCC

To set up a From email address for purchase orders sent via the 'Email this Purchase Order to supplier' status menu option:

  1. Admin menu, config, Contact/ID Types

  2. System Key, select Purchasing email

  3. Save (F4)

  1. Admin menu, Your Host Company, More tab

  2. Contact Info, Key, select Purchasing email

  3. Enter From email address in Detail

  4. Save Contact

Status Changes to track progress with suppliers

Can also manually change the status of a PO to keep track of where you are with the supplier.

  • Planning - internal planning only and still being adjusted

  • Plan - has been planned and is expected quantity

  • Sent - has been sent to supplier

  • Confirmed - quantities have been confirmed by supplier

    • After status confirmed > changes to lines are tracked. 

      • so if the purchase order status is moved back to unconfirmed then plan and lines are added or removed - an audit trail exists

  • Departed Supplier - supplier notifies they have shipped

Updating Supplier Default Price

Updating supplier default price

Products that suppliers change price of frequently are easily updated from a PO after confirmed status

Right click (can multi-select lines) to update the supplier default price to be the PO price

If the supplier is not already on the SKU then it will be added

  1. if there is no default supplier as the default supplier

  2. if there is a default supplier - as an alternative supplier



Confirm Expected Date (and other key dates)

Use the Status Menu to lock the expected date - so you know it has been confirmed.  

It can be unlocked at any time to be updated by using the status menu again - A log entry is written for the lock and the unlock process.

The shipments dashboard will indicate if dates have not been confirmed and are approaching

Users are warned if dates are not in the following sequence

  1. Confirmed date

  2. Production Start Date

  3. Supplier Departure EXW

  4. Port Departure ETD

  5. Port Arrival ETA

  6. Delivery ETA

Purchasing stock requirements for Multiple warehouses (move orders after receipt)

A single purchase order may have requirements for multiple warehouses - this can be managed manually or created via Product Forecasting Based on Sales History

Warehouse to Warehouse Stock Move Orders will be created to manage stock moves.

Review the distribution tab if the stock is being sent to other warehouses when it arrives

If you change the quantity on the purchase order line - the mismatch will show and need updating so all stock has a warehouse it is intended for

Once all the purchase order lines have been counted the system will create the required inter warehouse move orders

International Shipping Tracking and required actions

Where you use a shipping company you can import the details across all your international PO's.   o import from a shipping company the shipping updates the columns required are:

  1. Order, Supplier Invoice, ex Factory date, Load port code, discharge port code, ETD, ETA at port, Est Delivered date,  Arrival Vessel

Shipping is updated on the PO screen

Standard documents are required to be attached to international Purchase Orders - if they are missing they are listed as missing on the Managing Shipments Report

Managing Shipping Containers

On the purchase order you can track the shipping details

Finding Containers using search

Enter a partial match to the container name and click on the binoculars





All matches (and partials) will be listed and double click on the PO you want

Multiple shipping containers

It gets more interesting when the PO is across multiple shipping containers - because normally the local transport wants to drop and pick up in a single journey - so want you to tell them which container to bring first (and they then book the pickup times at the port).  To decide which container to bring first you will want to know which container is carrying which products

  1. The Container # cannot be changed after a line has been Counted (Counted status).

  2. The Container # of a JIT kit cannot be changed after the kit has been exploded (on PO Received). 



Link the PO line to a container

Container #'s can be cleared if required



Split lines across containers

Splitting items between Containers:

  1. If an item is split between containers then there will be 2 lines for the SKU.

    1. The line for the selected container will have the original Ordered quantity and a Shipped quantity of the Keep quantity entered in the Split pop-up.

    2. The other line will have no Ordered quantity and a Shipped quantity of the remainder, i.e. the first lines Ordered quantity minus the first lines Shipped quantity.

  2. JIT Kits can be split across containers

Count receipt by container

The when a container arrives - filter the PO by the container and do the counts.  These will be added to stock and the PO will remain open waiting for the next container

Exploding JIT kits:

  1. Kits are exploded when the PO is marked as Received.

  2. A line will be added for each different component of a kit.

  3. The Ordered quantity of the component will be the Ordered quantity of the kit multiplied by the number of that component in each kit.

  4. If the kit has been split between containers it might not have an Ordered quantity so neither will the component.

  5. The Shipped quantity of the component will be set to the Shipped quantity of the kit, if any, multiplied by the number of that component in each kit.

  6. The component will have a setting of Not Billable.

  7. The component will have a zero price and value.

  8. The kit will have a setting of Exploded.

Landed Costing Estimates

There are two methods you can use for landed cost

  1. Complex Landed Costs - Where landed costs are expected to be invoiced some time after the stock is in store (or sold) use the estimated landed cost capability.  Use this method to allow the stock cost to reflect your expected costs and be updated later when the actuals come in.  See Landed Costing for complete details

  2. Simple Landed Costs - If not using estimates - you can use simple landed costing after the PO has been receipted. see Simple Landed Costing

JIT Kits can use both simple and complex landed cost calculations.

Building a landed cost estimate (complex landed cost required before stock receipt)

  1. Note that the user requires Secure Features Set Requires Landed Cost to set or clear the 'Requires Landed Cost' check box on a purchase order.

  2. Note that a landed cost can be created using the Landed Cost Estimate form (Purchase menu > Complex Landed Cost) and linked to a purchase order and this will set 'Requires Landed Cost' on the purchase order even if the user does not have the secure feature.

Enter details into the estimate

Note that multiple charges or actuals can be entered. See Landed Costing for complete details for example using actuals before stock arrives

Can enter foreign currency amounts for both estimates and actuals.  They will resolve to Host Company currency equivalents.

Review the calculations

When ready set it ready to use.

Purchase Order Deposits

Any purchase order may have a deposit recorded.  Use the Payments section to enter how you expect the deposit / final payment to be split.

Any number of deposits may be paid on a single purchase order.  The amount of the deposit is added as a credit to the final invoice amount.

A creditor may have default payment terms

Entering a PO Deposit Payment

FX suppliers will have an FX value and FX rate to enter

Creates a Creditor Prompt Payment (Payment without Invoice)

Balance required to be paid

Foreign Currency Purchase Order Deposit Payments

Note after the first deposit - any number of deposits can be added to the PO and the paid amount will reflect the total value

The deposits paid reduce the final invoice amount to be paid

Payments via a clearing account - eg FX service

Some organisations may a single payment to a FX management company with instructions of payments to make.   

  • Link all the payments to a single Batch and to a clearing account

  • Create a journal from the clearing account to the bank the amount was transferred from

Create a journal batch - and link the deposits to it

Note - in order for the batch to show up on the journal screen - select the journal type

Deposits will be to the clearing account

Create a journal from the clearing account to the bank

Adjust the journal type on the batch so the payment journal can be linked

Then check all the journals you want to link are linked

Close the batch

Batches that remain open will have new journals auto added to them until they are closed

Purchase Reports - Required Payments Tab

Indicates when payments are required for Purchase Orders in the system.

If a PO does not have payment terms then it is assumed that no prepayments will be required.  The invoice will be raised when the PO is received and the terms of the supplier are added to the payment due date.

Purchase Reports - Shipments Tracking Tab

Can see if a purchase order has had a deposit paid - this can be critical to ensure the supplier has started.

Receiving the Purchase order - In Out Dashboard

The In/Out dashboard lists all inbound and outbound stock and is where to find PO's that are expected in a warehouse.  Only items that are expected in the date range are displayed.

Inbound:

  1. Purchase Orders

  2. Franchisor Drop ship Purchase Orders arriving direct at Franchisee

  3. Franchisor Drop Ship via Warehouse Purchase Orders arriving after being checked at the Franchisor Warehouse

  4. Move Orders from other warehouses in the same ABN

  5. Special Orders expected from a Francisor

  6. Fabrications Expected

Outbound

  1. Sales Orders being picked up or sent to customers or Franchisees

  2. Waybills departing on a vehicle

  3. Franchisor Drop Ship via Warehouse Purchase Orders that have been checked

  4. Special Orders ready to ship

  5. Deliveries for Project Orders

There are multiple ways to receive Purchase Orders

Simple Stock Receipt without count

Where the stock does NOT require expiry dates or batches or counting - it can be receipted in a single click

Scan every stock item that has arrived to compare with expected

When stock does NOT require batch or expiry details - can scan all items received and compare with ordered quantity

Count the stock and enter batch and expiry dates

Select a purchase order from the list on the Warehouse in/out Dashboard

If an order has not been marked as received the user will be prompted

The system will prompt if the PO should be marked as Received - note you can review the list of items on the PO before making it as received.

If perishable items are included the temperature of each container can be tracked.

Staging Locations

Each warehouse may have multiple staging locations

Choose the locations you will put the stock after counting and before put away.  Staging locations are temporary locations where stock is check counted before putaway.

If you are not using a staging location - the system will recommend put away based on stock history / available spaces.

The staging locations must be "Floor Area" locations and flagged as "Staging Area Temporary Storage"

Organisations with a coarse warehouse use a system recommendation for put away and avoid staging area requirement.

Count the Stock

  1. Enter the quantity reported by the supplier (found on the shipping documents)

  2. Count the stock - capture useby / batch number / Serial number (if capture is on receipt not on sale)

JIT Kit parents will not be listed on the Stock Receipt form - only the components will be listed

If the PO uses Containers then a choice will be required and will filter the grid and the actions.  When "Process all Counted lines in Plan Status" clears all lines in a container the grid will change to show the next container with lines still in plan status from the PO.



You can be part way through the count - while moving stock that has been counted away.

BUT - Each line must be completely counted before it is stocked.

Lines can be short counted and the system will ask if the line should be split to be counted later or received later

Short dated stock is captured at point of receipt

If expiry dated products are received and the expiry days is less than the minimum required

The date on the stock is compared with:

  • Field on Article (Article form, Extended Attributes, Sell Rate and Forecast, 'Default Expiry Days')

  • if not found then Field on Supplier (Creditor form, Supplier tab, 'Default Use by days')

An email is sent to the Roles with the secure feature Secure Features#ReceiveShortDatedReceiptAlert for this branch on each event of short dated items.

The stock is indicated as a short dated receipt on Short dated stock exception report in the 'Short dated receipt' column at the right of the report. The column will be blank if the stock was not short dated on receipt.

When the supplier sends you more than you have ordered

When the supplier has sent you less than you have ordered (or you need to split the receipt to account for multiple use by dates or container or partial put away)

When the supplier has sent you at item you did not expect

Add the new line to the purchase order

For information about SaaSplications go to http://saasplications.com.au