Types of Purchase Orders –

Purchase Orders are entered as sets of batches of transactions.  The batches may have control totals, and are posted with a register generated that may be printed or archived for future reference.  The following types of purchase orders may be entered:
  • Normal Purchase Orders for either non-Inventory or Inventory goods
  • Drop Ship POs for goods to be directly shipped to a Customer
  • Blanket POs for long-term agreements of purchases where multiple Releases may be generated

Purchase Order Entry –

Purchase Orders are entered into the system interactively by an operator, or they may be created when a previously entered Requisition is approved.  Manually entered POs reside in a Purchase Order Batch, that can be reviewed and edited prior to actually being posted as active orders.  Multiple Purchase Order Batches may reside on the system simultaneously, thus allowing multiple Purchase Order operators at the same time, (perhaps for different Buyers, or different Ship-To warehouses).  Other functions associated to Purchase Order Entry include the ability to Amend a posted PO, (either Open Closed or Cancelled ones); and being able to Copy a PO from history to make a new one.  When Copying a PO from history, POs may be browsed by PO #, Vendor Code, Supplier's Name or Email, Buyer, Ship-To Code, Requisition Number, or Date.

Multiple Ship-To Locations –

Even small companies can have more than one shipping address.  The Purchasing package allows for as many shipping address to be stored on file as you would ever need.  Each shipping address is accessed by a six character code.

Multi-Currency Purchase Orders –

When a PO is entered for a Vendor that has a Foreign Currency assigned to it, (that is different from the domestic currency), then amounts in the PO are kept in both currencies.  The PO when printed is in the currency of the supplier.  Within the PO system reporting applications, amounts are printed in the domestic currency.  When the goods are eventually received, the domestic value is recomputed based on current exchange rates.  The PO Inquire function displays amounts in both the suppliers and the domestic currency.

Requisition Entry and Approval –

A requisition lists the products to be ordered, by number (if possible), description, supplier, the desired quantity and desired delivery date.  These items are grouped by supplier to create Request-for-Quotes, (RFQs) and/or Candidate POs. RFQs may be easily replicated for multiple suppliers, and automatically emailed. Once an RFQ is selected for a particular supplier, it becomes a Candidate PO. Candidate POs may then be printed and emailed to an approving manager for authorization before being converted into a formal PO.  The information required for entry RFQs or Candidate POs is basically the same as that for the formal purchase order.  Each requisition entered has an Originator and an Authorizer.

The Originator is the person wishing to purchase the items on the requisition.  The authorizer is the person within the company that can approve the expense for the purchase. Every authorizer has a maximum authorization limit.  Requisitions must be authorized, with entry of a password, before they can become a Purchase Order.


Printing or Emailing of Purchase Orders –

Purchase Orders are generated as Microsoft Office Word documents, or PDF files.  These can be either printed, or they can be automatically emailed to the supplier.  Outputting them as MS Word documents allows for templates to be created that might include your logo, and assorted design elements.  The output format may be customized.

Receipt of PO Goods and Shipments–

When shipments for a purchase order are received, they may be either received as part of a Shipment of many POs, or as a single PO.  For a shipment, a Shipment Number is assigned, and Freight and Brokerage Fees may be entered, which will be prorated to all applicable PO receipts.  Individual PO Transactions are entered into the system using a single Receivings Batch.  Once the Shipment has been established, all eligible POs are displayed in a grid screen.  Specific POs may be selected and assigned to the Shipment.

Then for the given PO, all items that have not already been received are displayed.  Specific items may be marked as received, or you can have all the PO line items automatically selected as being received.  In each case, any given item may have the Quantity Received adjusted and the Unit Price, if known, entered.

Once all items of the Shipment have been recorded, the Received Shipment is posted.  This may be performed as two steps: The first if the warehouse just deals with quantities, then each PO may be Pre-Posted to Inventory, so that the Inventory System has the correct Quantities On-Hand figures.  Then a separate person, can enter the Unit Prices and/or Expense Account prior to the PO being fully received and posted.


Extra Costs and Inventory Landed Costs –

The system provides for the ability to record "Extra Costs" that might be associated to your purchases.  These would typically be things like surcharges, packaging, duty, third party modification to the item, freight, brokerage fees, storage or handling charge, duty or even bribes.  When the goods for PO Line Items are received and entered, you may specify these “Extra Costs” either for a set of POs associated to a Shipment, to a specific PO, or for individual PO Line Items.  These “Extra Costs”, both for the PO and the Line Items are used along with the actual supplier cost to compute the unit “Landed Cost” of the goods received.

Purchase Order Inquiry–

After all Purchase Orders have been entered and posted, they are available to be viewed on-line with the Purchase Order Inquiry function.  The PO may be amended, re-printed, or even re-emailed from this inquiry function.

Scheduled Receipts Report –

The Scheduled Receipts report provides an estimate of what goods will be received in a specified date range, based on the purchase orders' expected receipt date.  This report will be useful in that it will let you know what items you’ll be receiving and what value they have.  It may be generated either for a specified period date range, or on a day-to-day basis.  The report will also flag those items that are overdue by a threshold that you can set.

Cash Requirements Report –

Cash required for the payment of vendors can be calculated as soon as purchase orders have been printed.  The system knows how much was ordered, at what price, and when to expect the vendor invoice, (at about the same times as the receiving).  Using the vendor's terms, and anticipating receipt of the invoice, it is a simple matter to determine what cash payments will be required as of any particular date.

This report may be generated for up to 8 periods, by day, week, or month; and grouped by Project, A/P Job, CER, Buyer, Ship-To, Vendor Type or Expense Account Department.  As well, the Cash Required is broken down by the Accounts Payable's Bank Codes, as determined by a property for each Vendor, and where applicable reported in the associated currency.


Vendor Performance Analysis –

Another, more specific means of evaluating vendors is availability.  The Vendor Performance Analysis Report bases its evaluation directly from the PO History data.  Relevant statistics include the value of purchases year-to-day and last year, the total number of purchase order lines and the number of lines for which the vendor had late deliveries, the extent to which the vendor has billed the items at a cost different from the price specified on the purchase order, and the vendor's rejection rate.

Perhaps the most powerful feature of this application is the capability it provides of showing vendors that fall within a range of performance characteristics that you specify.  For instance, you can show all vendors that have less than 10% lines late, less that 5% cost variance and less then a 7% rejection rate.  You could also focus upon undesirable vendors by specifying that only those with a rejection rate of 20% and a cost variance percentage of greater that 10% be printed.


Interface with Series 5 Accounts Payable System –

When a PO is entered, the supplier may be selected as one of the A/P Vendors.  When an Invoice is entered in the Accounts Payable system, the associated PO # is entered and validated to the Purchase Order system.  Each line item of the PO becomes the default Expense Distribution to that A/P Invoice.  At this point, the A/P entry clerk can also verify that the invoice amounts match that which was expected by the PO.  Each PO line item record is updated indicating the dollar amount it was invoiced for.  The Purchasing package considers a purchase order to be Eligible to Close when all of its lines have been fully received and fully invoiced, so this billing information is important to those who monitor the status of purchase orders.

Interface with Series 5 Inventory Management System –

Files within the Inventory Management system are accessed for a variety of reasons throughout the Purchasing package.  For instance, during the entry of a line on the purchase order, it is validated to the Master Inventory files.  If found, the description and cost fields as used as default values.

When a purchase order is posted, the Quantity-on-Order for each inventory item is updated.  When goods are received against a PO, the Quantity-on-Order field is reduced and the Qty-On-Hand updated.  When Receivings are posted, these are recorded as transactions within the Inventory Management system's Receipts Entry operation.

The Purchasing Advice report offers an option to automatically have PO Requisitions generated with RFQs or Candidate POs.


Export to Spreadsheet –

The Series 5 system provides for the loading or dumping of data from or to your favorite spreadsheet.  Data can be read or written directly to Microsoft's Excel, or tab-delimited text files.
Data Export is offered for the following transactions, master records or analysis:
  • Capital Equipment Requisition Detail History data