Red Wing Windows Accounting Series. Purchase Orders. Red Wing Business Systems, Inc.

Transcription

1 Red Wing Windows Accounting Series Purchase Orders by Red Wing Business Systems, Inc. All rights reserved. No part of this book or system may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by information storage retrieval system, without permission in writing from the publisher. Changes in tax law, business practice, or your operating environment may cause your system to require changing. Red Wing cannot guarantee these changes will be reflected in future releases of software. This system is sold with the understanding the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Microsoft, Microsoft Access, Microsoft Word and Microsoft Excel are all registered trademarks of Microsoft Corporation. Windows is a trademark of Microsoft Corporation. Copyright Red Wing Business Systems, Inc. June 1999, Reprinted December 2001 ISBN

2 Important Please complete the software licensing agreement and return the white copy to Red Wing Business Systems. Returning the licensing agreement benefits you in the following ways: Upon receipt of your agreement, we check your serial numbers to make sure you have a current version of our product. If you do not have a current version, we send you one at no charge. We keep you informed of improvements to our software, including releases of new versions. We also send any seminar information to you. Complete the licensing agreement and mail the white copy today!

3 Table of Contents Chapter One Introduction Introduction Purchase Order Menu How to Get Help How This User Guide is Organized Formatting Standards How to Use the Purchase Order System Chapter Two Practice System Exercise 1: Set Up Customization Exercise 2: Automatically Select Inventory Items Exercise 3: Print Order File Report Exercise 4: Maintain Order File Exercise 5: Create Purchase Orders Exercise 6: Enter a New Purchase Order Exercise 7: Print Purchase Orders Exercise 8: Receive items by Processing a Purchase Order Chapter Three Purchase Order Menu Create Order File Maintain Order File Order File Report Create PO from Order File Maintain Purchase Orders Print Purchase Orders Open Purchase Order Report Receive Purchase Orders Appendix Customization Options for Purchase Orders... A-2 Month-End Processing Options for Purchase Orders... A-3 Calculations Used in Create Order File... A-4 How to Order Purchase Order Forms... A-6 Red Wing Customer Support Plans... A-6 Glossary... A-7

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5 Chapter One Introduction to Purchase Orders This chapter introduces Purchase Orders, giving a thorough overview of the different ways you can create and maintain purchase orders, print them, process them once the order is received, and produce invoices from them in Accounts Payable. Contents Introduction Purchase Order Menu How to Get Help How This User Guide is Organized Formatting Standards How to Use the Purchase Order System Introduction to Purchase Orders 1-1

6 Introduction The Purchase Order System The Red Wing Purchase Order system lets you create, produce and process purchase orders for both items and services. A purchase order is a piece of paper you can send to one of your suppliers (vendors) to authorize a purchase and keep track of what was ordered. The purchase order ensures that you get what you ordered. The Purchase Order system helps provide the proper checks and balances required by a good accounting system for tracking purchases of inventory and services. Purchase Order Menu The Purchase Order Main Menu selection appears as part of the Accounts Payable Menu in the Red Wing Accounting Series. The system can interface with Accounts Payable only (for services or items) or both Accounts Payable and Inventory (for creating orders directly from the Inventory system). You can also enter account numbers from the General Ledger system on a purchase order. The first four menu items are available only if you are interfaced with the Red Wing Inventory system. 1. Create Order File (page 3-2) 2. Maintain Order File (page 3-6) 3. Order File Report (page 3-13) 4. Create PO From Order File (page 3-15) 5. Maintain Purchase Orders (page 3-17) 6. Print Purchase Orders (page 3-28) 7. Open Purchase Order Report (page 3-36) 8. Receive Purchase Orders (page 3-38) To remove purchase orders, see Month-End Processing on the Accounts Payable End-of-Period Menu (explained in the Appendix, page A-3). 1-2 Introduction to Purchase Orders

7 Set Up Customization Options See page A-2 Before using the Purchase Order Menu, you need to set up several options on the Defaults tab in Customization in Accounts Payable (on the Setup and Maintenance Menu). You can enter the starting purchase order number and indicate the number of months you want completed purchase orders (ones that have been fully received) maintained in history. 1. Create Order File See page 3-2 Use this menu selection to look at items in the Red Wing Inventory module and determine what needs to be ordered. 1. Select a range of items to process. You can restrict this range to specific items, locations, product lines, sales categories or order cycles. Order cycles let you assign a one-character code to items and then select all the items with a specific order code, such as M=Monthly or W=Weekly. 2. Next, decide on the criteria that determines whether or not the selected items really need to be ordered. This decision can be based on: Default Order Quantities Items with less on hand than the safety stock level, items with less on hand than the order point or items that are close to zero (tell the system how close). Past Demand Tell the system what prior months to look at. The sales made during those periods determine how many you need to have on hand. EOQ (Economic Order Quantity) A standard formula (defined on page A-5) is used to determine what quantity should be ordered based on the cost of item, etc. 3. The items that need to be ordered are placed into a suggested order file. Introduction to Purchase Orders 1-3

8 2. Maintain Order File See page 3-6 Use the Maintain Order File selection to modify the order file (items that need to be ordered from Inventory) that was created automatically on the Create Order File menu selection. You can add, change, or remove the records on the order file (one at a time). The Detail option lets you see two records per screen, while the Summary option lets you see about six records. One handy feature lets you easily add a series of items to the order file, as follows: 1. Restrict your item list by specifying a specific product line and, if desired, further restrict it using additional criteria. 2. Specify a default quantity. 3. The selected items are shown in a list box. 4. Modify the quantity for any of the selected items. 5. Move the selected items to the suggested order file. 3. Order File Report See page 3-13 The Order File Report lets you look at the information in the order file. You can verify the accuracy of the quantities, costs and items before turning the order file into purchase orders. You can use three selection ranges (Item ID, Location ID and Vendor ID) to restrict the records selected from the order file before pri nting the report. You can also sort the report by Item ID (with total cost printed at the end of the report) or by Vendor ID (with totals printed for both costs and quantities at the end of each vendor). 1-4 Introduction to Purchase Orders

9 4. Create PO From Order File See page 3-15 Use this selection to turn the order file into purchase orders. Specify a starting purchase order number, a purchase order date and let the system generate purchase orders for everything in the order file. This process assumes that everything is correct in the order file, based on your use of the first three Purchase Order menu selections. 5. Maintain Purchase Orders See page 3-17 Use this menu selection to enter a purchase order from scratch, rather than using the first four menu selections to select inventory items that need ordering. The entry process is much like entering invoices in Accounts Payable. The Maintain Purchase Order screen has the following three tabs: 1. Header Tab Enter the vendor ID of the vendor you are ordering something from, the PO number (a default value is supplied by the system), the PO date (the current workstation date is used as a default value) and several miscellaneous pieces of information (such as the desired shipping method, required receipt date, who the order was placed by, etc.) The Header Tab also has a Notes field where you can enter any special delivery or handling instructions, such as Deliver to east end of building, delivery dock A. These notes are printed on the bottom of the purchase order. 2. Detail Tab Enter the items you want to order. You can select either the summary or detail entry screen. Enter an item ID (or leave it blank for non-inventory items), the quantity, unit of measure and unit cost. Enter as many detail lines as you like. Each detail line also has room for additional description information that can be printed on the purchase order. 3. Ship To Tab Use this tab to enter the ship to information specifying where the order should be shipped. The company address is the default value (generally it will be shipped directly to your company), but you can also select any inventory location ID (they all have an address area) or enter your own special address. Introduction to Purchase Orders 1-5

10 6. Print Purchase Orders See page 3-28 Use Print Purchase Orders to print the actual purchase order document that will be sent to your supplier (vendor) to order the goods or services. Your supplier will use this document as verification that you ordered something from them at a specified cost. When they invoice you for the items/services you ordered, they will include the purchase order number on their invoice. You can then match the invoice to the proper purchase order. You can print a plain paper purchase order where the entire form is printed for you, or you can print on preprinted forms that can be ordered from RapidForms ( , Red Wing code K-C120013). You can also use the Options... button to select the items you want printed on the purchase order. The purchase order is addressed to the vendor and has your company name/address as the Ship To address. Several miscellaneous pieces of information are also printed, including Ship VIA, FOB point, and Required By date. The detail section of the purchase order shows the items you are ordering and can be printed in three different formats: 1. Product Prints quantity, unit of measure, item ID, description, unit cost, total cost 2. Service Prints quantity, unit of measure, description, unit cost, total cost (no item ID) 3. Product (w/vendor Item ID) - Same as Product, except it includes the vendor s item number and your item number. The totals section of the purchase order shows the total cost of the items ordered and includes any notes entered on the purchase order, such as special delivery instructions. 1-6 Introduction to Purchase Orders

11 7. Open Purchase Order Report See page 3-36 The Open Purchase Order Report shows the purchase orders that have not yet been received. You can limit the report to specific inventory items, vendors, or purchase orders. The report can be sorted in order by: Purchase Order number Item ID Location ID Vendor ID These sort orders let you answer questions about outstanding orders, such as How many snow shovels do we have on order? How much do we have on order from vendor ACME? and What is the value of the total orders we have placed, but not yet received? If a purchase order has been partially received (some items were received, but others were not available), only those items that have NOT been received appear on this report. 8. Receive Purchase Orders See page 3-38 When an order is received from one of your suppliers (vendors), you must match it against a purchase order and make sure the correct items and correct quantities are received. You also need to make sure the costs are correct. This is all done through the Receive Purchase Orders process. Use the receipt entry screen to select the purchase order that matches the order received. The system displays several pieces of information from the purchase order (date, vendor ID, vendor name, purchase order status) and the detail lines (all items ordered on the purchase order) to help you verify that it is the correct purchase order. You can make changes to quantity or unit cost for each detail line and then click on the Receive... button to generate an Accounts Payable invoice for the order. Introduction to Purchase Orders 1-7

12 The Receive... button brings up a new screen showing the purchase order number, date and vendor. You are asked to enter the invoice number, date, GL period, and description. When you click OK, the system processes the detail lines, asking for any additional required information (such as serial numbers), and an Accounts Payable invoice transaction is created. The originating purchase order is updated with the actual quantity received and unit cost (if the cost has changed). Also, the status is changed to Partial or Complete, depending on whether or not the entire purchase order has been received. If you interface with Inventory, the Item Location, Vendor Information tab is updated with the purchase information. How to Get Help Online Help/Cue Cards Anytime you need help while working in Purchase Orders, press F1 to display online help and to access cue cards (handy step-by-step directions that stay in the upper right corner of your screen). You can also click on the Help icons to get help, or choose from the help sele ction on the Help Menu. Sample Data Use Red Wing s sample data (with SAM as the company code) to practice new activities or to refresh your memory on rarely used activities. User Guide The User Guide is another useful source of help. Use the comprehensive table of contents, glossary and index to search for terms and activities. Custom Help Create your own online help notes in a separate file. Press Shift F1 to access custom help for any screen. Customer Support Red Wing s Customer Support team is available to subscribers, ready to answer any of your questions, quickly and competently. For more information call Introduction to Purchase Orders

13 How This Guide is Organized The Purchase Orders User Guide is divided into the following sections. Chapter 1 Chapter 2 Chapter 3 Appendix Introduction Purchase Orders features and menu selections are explained, along with standards used in this manual. Practice System Experience some of the more important features of Purchase Orders using sample data. Menu Selections The Purchase Orders menu selections are explained, with detail information about every menu selection. Useful information in the supplement includes other Accounts Payable menu selections with Purchase Order options, how to order purchase orders, how to sign up with Red Wing Customer Support, and a handy glossary. For help on Red Wing key commands, menu bar, and toolbar, and other general definitions, see your System Manager User Guide. Formatting Standards Notes and hints are identified by a push pin and are printed in italics. These are important messages and suggestions that can save you time and help you avoid potential problems. Extremely important information is printed in boldface type. Not reading this information or following the suggestions offered can lead to serious problems. Introduction to Purchase Orders 1-9

14 How to Use Purchase Orders If you are new to Purchase Orders 1. Install the system, explained in Chapter Two of the System Manager User Guide. 2. Set up Accounts Payable (and Inventory, if applicable) and go through the Practice Systems for both in the appropriate user guides. 3. Go to Chapter Two, Purchase Orders Practice System, and go through the exercises. This is the BEST way to get a basic understanding of the Purchase Order system. 4. Start creating purchase orders. Review the menu selections listed on pages 1-2 through 1-7 to see where you should start. Details on each menu selection are explained in Chapter Three. If you have questions while using Purchase Orders 1. Try online help and cue cards 2. Chapter Three Reference information on each menu selection Introduction to Purchase Orders

15 Chapter Two Purchase Orders Practice System This chapter takes you step-by-step through basic procedures you will use when setting up and using Purchase Orders. It is an excellent learning tool, designed to make setting up and using your system much easier. Contents Exercise 1: Set Up Customization Set up the Accounts Payable options used by the Purchase Order system. Exercise 2: Automatically Select Inventory Items Use the Create Order File menu selection to select inventory items that need to be ordered, based on past sales. If you are NOT using Inventory, skip these exercises and go to Exercise 6 Exercise 3: Print Order File Report Print the Order File Report to verify that the correct items are selected for ordering. Exercise 4: Maintain Order File Change the quantity for the items that were selected for ordering. Exercise 5: Create Purchase Orders Automatically generate purchase orders for the items found in the order file. Exercise 6: Enter a New Purchase Order Use the Maintain Purchase Orders menu selection to enter a new purchase order as well as a standard order that is repeated monthly. Exercise 7: Print Purchase Orders Print the newly entered purchase orders. Exercise 8: Receive items by Processing a Purchase Order Learn how to process a purchase order when ordered items are received and generate an invoice. Practice System 2-1

16 Exercise 1: Set Up Customization Overview In this first exercise, look at the Accounts Payable Customization options that apply to the Purchase Order system and assign the starting purchase order number. Although you will be working with the sample data (Mid County Supply) in the practice system, these same steps are necessary when you set up your own files. If you are interested in using keystrokes to navigate the Red Wing Purchase Order system, see the Getting Started Guide, Chapter Five, for a short tutorial on navigating Red Wing Windows Accounting without using a mouse. Step One 1. Make sure you are already in company SAM (Mid-County Supply). If not, click on the Change Company button (or press Alt C) and select Mid- County Supply. 2. From the Main Menu, select Accounts Payable. Next, select Setup and Maintenance and double-click on Customization. Or, you can highlight each menu selection and press Enter. 2-2 Practice System

17 Step Two 1. If it is not already on top, click on the Interfaces tab (or press Alt I). 2. If you are using the Red Wing Inventory module, click on the Inventory check box under the Application Interface heading. The Customization screen uses a tabbed format. You can click on one of the three tabs (Interfaces, Options, Defaults) or press Alt and the underlined letter on the tab name to display that page of the screen and make any changes (for example, Options is Alt+O). This change affects only the Sample Company (SAM). Make changes, as necessary, to your own files. 3. When you are finished, click on the Defaults tab (or type Alt D). Step Three 1. Change the Next PO Number to This number will be used as a default when you create a purchase order. 2. When you are finished changing (and viewing) the Customization options, click on the Close Window button (or press F7) to save your changes and return to the Main Menu. Practice System 2-3

18 Exercise 2: Automatically Select Inventory Items for Ordering Overview Skip to Exercise 6 if you do not use the Red Wing Inventory application. Use the Create Order File menu selection on the Purchase Orders Menu (part of Accounts Payable) to select inventory items that have been sold in the past and need to be reordered. This exercise uses the past sales history to determine how many items to order. In the first part of this exercise you will select one of the Inventory locations and examine all of the items found at that location for the Lawn and Garden product line. Based on past sales history, the system will calculate the number of items that need to be ordered, allowing you to handle a similar sales demand in the future. Step One 1. From the Main Menu, select Accounts Payable. Next, select Purchase Orders and doubleclick on Create Order File. 2-4 Practice System

19 Step Two 1. Use your Tab (or Enter) key to move down through the fields on the Create Order File screen as you make the entries shown to the right. Item ID Location ID Product Line Skip this field Select MCSH (Mid County Supply Headquarters). Once you select MCSH in the From field, it is automatically entered in the To field. Select LAWNEQUIP to restrict processing to only items found at location MCSH in product line LAWNEQUIP. Data Entry Tips: To display a selection list, such as the list of location IDs, click on the combo box or press Alt. Fast Find Capability: You can use your up and down arrow keys to highlight a location (or any item in a selection list) and select it or, as in this case where you know what you are looking for start typing the location ID. The selection bar will jump to the matching ID. Calculation Method Period From 1 Period To 13 Year 1997 Selected Items Saved Vendor ID Skip the remaining selection ranges and move to the Calculation Method field under Suggested Order Based On. Select Past Demand. The system will use the past demand, measured by looking at sales history, to calculate a quantity needed. If the quantity on hand is less than the quantity needed, the item will be added to the order file. Make sure In new empty order file is selected. This selection empties any previously selected items from the order file before adding the items selected during this process. Select GEDIST as the Default Vendor, to indicate you plan on ordering these items from this vendor. 2. After making the entries, your screen should look like the one shown here. 3. Click on the OK button to start the selection process. When the message The order file has been created. appears, press Enter to return to the Create Order File screen. Practice System 2-5

20 Step Three In this part of this exercise you will select another product line, change the default vendor and add some additional items to the order file created in Step Your previous selections (from Step 2) should still be on the screen. If not, make sure you set them as shown here. 2. Change or enter the fields shown to the right: Location ID From/To MCSH Calculation Method Past Demand Period From 1 of 1997 Period To 13 of When you are finished, click on OK to start the selection process and press Enter when The order file has been created. message appears. Product Line From/To Selected Items Saved Default Vendor MISC (You will have to select MISC in both the From and To fields, since it was previously set to LAWNEQUIP.) Select the With previously saved items option so that the items selected for ordering are added to those selected in the first part of this exercise. Select Vendor ID HH. 4. Press F7 or click on the Close Window icon to return to the Purchase Order Menu. 2-6 Practice System

21 Exercise 3: Print Order File Report Overview In this exercise, print a report showing the items that were selected for ordering in Exercise 2. This report is used to verify that the correct items are being ordered before creating purchase orders. Skip to Exercise 6 if you do not use the Red Wing Inventory application. Step One 1. From the Accounts Payable Main Menu, make sure Purchase Orders is selected and double-click on Order File Report. Practice System 2-7

22 Step Two 1. On the Order File Report options screen leave the selection ranges blank and verify that the Sort By option is set to Vendor ID. Whenever you do not want to limit your report to a specific range, leave the From/To fields blank. 2. Click on the Print button to produce the report (shown on the next page). 3. When the report is finished, click on the Close button (Alt C) to return to the Main Menu. 4. Review your report. There should be several inventory items listed for each of the vendors selected in Exercise 2. If you do not have any items on the report, most likely the system already has these items on order and won t order them again. If this is the case, you can choose Maintain Purchase Orders on the Purchase Orders Menu and cancel the existing purchase orders. 2-8 Practice System

23 Exercise 4: Maintain Order File Overview Skip to Exercise 6 if you do not use the Red Wing Inventory application. In this exercise, using the report produced in Exercise 3, you will make some changes to the order file (created in Exercise 2). Looking at the Order File Report, item L (60 Watt Bulb) is suggested for ordering. However, you have decided to only handle the L bulb (60 Watt Bulb, Long Life). You need to remove the L bulb. Also, since you are no longer handling L , you need to order more of the L bulbs, increasing the quantity to 400. Step One 1. From the Accounts Payable Main Menu, make sure Purchase Orders is selected and double-click on Maintain Order File. Practice System 2-9

24 Step Two 1. To remove the record for item L , click on the record selector bar at the left margin to select the record. 2. Click on the Delete icon on the toolbar (or press F3) to remove the record. 3. To change the quantity for item L , click on the item number and then tab over to the quantity field. Type 400 in place of the current quantity. You can also add records to this order file by using the New button on the toolbar (or typing Ctrl A) and entering the required information. 4. When you are finished, press F7 or click on the Close Window icon to return to the Main Menu Practice System

25 Exercise 5: Create Purchase Orders Overview In this exercise you will automatically generate two purchase orders from the information in the order file (created in the previous exercises). Skip to Exercise 6 if you do not use the Red Wing Inventory application. Step One 1. From the Accounts Payable Main Menu, make sure Purchase Orders is selected and double-click on Create PO From Order File. Practice System 2-11

26 Step Two 1. Note that the PO Number defaults to the number you entered in Exercise 1 in the Next PO Number field in Customization. 2. Tab down to the PO Date field and enter 04/01/97. You can also use the built-in calendar feature to enter this date. While on the date field, hold the shift key down and press F10 (Shift + F10). Click on the date you want to select. 3. Change the Date Required to 04/18/ Click on OK to generate the purchase orders. When the Purchase Order(s) created message appears, press Enter to return to the Main Menu. Step Three 1. When you create purchase orders this way you normally need to modify the resulting purchase order before printing and sending it to your supplier. To do so, doubleclick on Maintain Purchase Orders Practice System

27 Step Four 1. To select one of the existing Purchase Orders, click on the Transaction No box and click on the combo box or press Alt to see a list of available purchase orders. 2. Click on the record to select purchase order 1701 for vendor GEDIST (or use your arrow keys to highlight the record and press Enter to select it). 3. Add the information in the box to the right to the purchase order: Ordered By Confirm To Ship Method Via FOB Notes: William Smith Henry Anderson Best Method Our Base Please send 3 copies of packing list and remember to specify both the PO number and date on all invoices. 4. Make sure your entries are correct, as shown on this screen. Practice System 2-13

28 5. Click on the Detail tab (Alt D) to view the items being ordered on this purchase order. 6. Click on the Shipping tab to enter a shipping address, if it is different than your company address. Select MCSH as the Ship To Location. The remaining information is filled in automatically. If the shipping address is left blank, the Ship To Address on the purchase order prints your company address. 7. When you are finished press F7 (or click on the Close Window icon) to return to the Main Menu Practice System

29 Exercise 6: Enter a New Purchase Order Overview This exercise teaches you how to enter a purchase order and select the products and services you want to order. If you are using the Inventory system, you can select any of the inventory items found in Inventory. If you are NOT using the Inventory application, you can select inventory items set up in System Manager (see Inventory Items on the System Manager Setup and Maintenance Menu). Step One 1. From the Main Menu, select Accounts Payable. Next, select Purchase Orders and doubleclick on Maintain Purchase Orders. Practice System 2-15

30 Step Two Purchase Orders automatically goes into add mode when you select Maintain Purchase Orders. To switch to change mode, click on the Transaction No. box and select one of the pre-viously entered invoices. To switch back to add mode, click on the Add Record button or press Ctrl A. On the Header tab, enter descriptive information about the purchase order (who it is for, terms, shipping method, notes, etc.). On the Detail tab, enter the individual services or items being ordered. On the Shipping tab, enter the ship-to address, for the order. 1. In the Vendor ID field select METRO1 as the vendor and enter this information on the Header tab: PO Number 1703 PO Date Date Required 04/21/97 04/02/97 (Remember, you can press Shift F10 to access the easy-to-use online calendar when entering dates.) Reminder: Use your Tab (or Enter) key to move down through the fields as you enter the information. (See page 2-5 for additional data entry tips.) Terms Code Location ID Ordered By Confirm To Ship Method/VIA FOB Notes T1 (the vendor s default terms code) leave blank Jim Schmidt Susan O Leary Air Freight Our Base All deliveries must be made between 6:00 a.m. and 8:00 p.m. Monday through Friday or between 6:00 a.m. and 12:00 noon Saturday 2-16 Practice System

31 2. Your completed screen should look like this. When entering your own purchase orders, you can use the Options button to limit entries to specific fields. This is an excellent way to speed transaction entry. Step Three 1. Next, type Alt D to move to the Detail tab. 2. You need to enter three detail lines on this purchase order. Two detail lines are for inventory items and the third is for a service contract. Make sure your screen is on the summary view of the Detail tab, as shown here: Click on the button to open the detail view window and, from the detail view window, click on to return to the summary view. Practice System 2-17

32 1st Detail Line Inventory items Item ID D Description Location ID GL Acct Accept the default You are ordering these items for the main warehouse, so enter WHSE1 Accept the default Qty 24 Unit Accept the default Unit Cost nd Detail Line Inventory items Item ID D Description Location ID GL Acct Accept the default WHSE1 Accept the default Qty 36 Unit Accept the default Unit Cost rd Detail Line Yearly service contract 4. Click on the Next Trans... button (or press Alt X) to enter the next purchase order. Item ID Description Location ID GL Acct Leave blank Yearly Service Contract Leave blank Accept the default Qty 1 Unit Year Unit Cost Practice System

33 Step Four 1. Next, enter a purchase order that is repeated monthly, using the same process as in the first purchase order, with only one difference: you must change the Transaction Type from Purchase Order to Standard Order. Standard orders are basically templates; they do not affect inventory on-order quantities until they are selected (using the Copy From... button). 2. Make the entries shown to the right to create a standard order. Transaction Type Header Tab Vendor ID Change from Purchase Order to Standard Order. GEDIST PO Number MSO-1 (Monthly Standard Order number 1) PO Date Date Required Terms Code Location ID Ordered By Confirm To Ship Method/VIA FOB Notes Accept the default Accept the default Accept the default MCSH Jim Schmidt Susan O Leary Best Leave blank Monthly order to be confirmed before filling 3. When you are finished, click on the Next Trans... button. Detail Tab Item ID D Description Location ID GL Acct Accept the default Accept the default Accept the default Qty 24 Unit Accept the default Unit Cost Practice System 2-19

34 Step Five 1. The standard order you just entered needs to be selected and slightly modified each month you use it. To see how to select a standard order, click on the Copy From... button. 2. On the Copy Standard Order screen, select order number MSO-1 and click OK. When the copy is complete, click OK again to return to the Maintain Purchase Order screen. 3. You are now in change mode with the newly created purchase order selected. You can make any necessary changes (such as changes to PO Date and Date Required). 4. When you are finished, press F7 or click on the Close Window icon to return to the Main Menu Practice System

35 Exercise 7: Print Purchase Orders Overview Print new purchase orders and learn how to reprint purchase orders. Step One 1. From the Purchase Orders Menu, double-click on Print Purchase Orders. Practice System 2-21

36 Step Two 1. Click on the Options... button to see what information can be modified on the purchase order form. Note that there are two sections on this options screen. The options on the left are used when printing plain paper purchase orders and those on the right are used for pre-printed forms. 2. Click on Close to return to the Print Purchase Order screen. Step Three 1. On the Print Purchase Orders options screen, make sure the Status, located in the PO Type group, is set to New. When set to New, only purchase orders that have never been printed or previewed are selected. 2. Click on Print to print the new purchase orders. The status of the purchase orders are changed to Open as they are printed (they have been printed, but not yet received) Practice System

37 Step Four 1. After the purchase orders are printed, try to print the same purchase orders again. You will get a message No records meet the selection criteria for this report. (because all purchase orders with a status of New have been changed to Open). If you want to reprint the purchase orders, you must change the Status field in the PO Type group to Open. 2. Press F7 or click on the Close window icon to return to the Main Menu. Practice System 2-23

38 Exercise 8: Receive Items by Processing a Purchase Order Overview. In this final exercise, you will go through the steps taken when an order is received. Select a purchase order and generate a matching Accounts Payable invoice. Step One 1. From the Purchase Orders menu selection double-click on Receive Purchase Orders Practice System

39 Step Two 1. Select the purchase order for the vendor METRO1. When the purchase order is selected, all of the detail lines from the order are displayed. 2. When your order was received, you only got 30 of the 36 items you ordered for part number D You need to change the amount so the correct dollar amount can be generated on the invoice. 3. Type 30 in place of the 36 and press Enter. Notice that the Total Received amount is reduced and is less than the order total. 4. To generate an invoice for vendor METRO1 for the amount shown in the Total Received field, click on the Receive... button. Practice System 2-25

40 Step Three 1. On the new screen, fill in the Create Invoice With section as shown here: 2. When you are finished, click on the Create Invoice... button. Invoice Number (invoice number from METRO1) Invoice Date 04/14/97 GL Period Accept the default Description Fault protect devices Freight $4.50 Miscellaneous Leave at.00 Sales Tax Leave at.00 During the receipt process an invoice is generated in the Accounts Payable application, the purchase order is updated with the quantity received information and the onorder quantities in Inventory (if you are using the Inventory application) are reduced by the amount of the receipt. 3. Once the invoice is produced a message is displayed letting you know the process is complete. Press Enter to return to the Receive Purchase Orders screen and then click on the Close button to return to the Main Menu Practice System

41 Chapter Three Purchase Order Menu This chapter introduces the Purchase Order Menu. Use these menu selections to set up and maintain purchase orders, print purchase orders and handle receipts. Contents Create Order File Maintain Order File Order File Report Create PO from Order File Maintain Purchase Orders Print Purchase Orders Open Purchase Order Report Receive Purchase Orders Purchase Order Menu 3-1

42 Create Order File Purchase Orders Create Order File Overview Use this selection to look at the Red Wing Inventory information (current onhand quantities and sales history) and determine the items that need to be ordered. If you already know what items you want to order, you can go directly to Maintain Purchase Orders and enter a purchase order without using this process (page 3-18). If you are not interfaced to Inventory, or are creating a purchase order for non-inventory items, use Maintain Purchase Orders to enter the purchase order information. Step-by-step 1. Select a range of items to process. You can restrict this range to specific items, locations, product lines, sales categories or order cycles. Order cycles let you assign a one-character code to items and then select all the items with a specific order c ode, such as M=Monthly or W=Weekly. 2. Decide what criteria to use to determine the quantity of items that should be ordered: Default Order Quantities: The suggested order will be a quantity large enough to bring the current on-hand quantity up to the Maximum Quantity, as specified on the Item Locations, Location Defaults tab (in Inventory). Past Demand: Tell the system what prior months to look at. The sales made during those periods determine how many you need to have on hand. EOQ (Economic Order Quantity): A standard formula is used to determine what quantity should be. See the Appendix, page A-5 for more details. 3-2 Purchase Order Menu

43 3. Decide what criteria to use to determine whether or not an item needs to be reordered. Options include: Order Point: When the on-hand quantity is less than the Order Point quantity as specified on the Item Locations, Location Defaults tab. Safety Stock: When the on-hand quantity is less than the Safety Stock quantity specified on the Item Locations, Locations Defaults tab. Close to Zero: When the on-hand quantity is close to zero (you specify how close). 4. The items that need to be ordered are placed into a suggested order file. Go to Maintain Order File (page 3-18) to make changes. Screen options Selection Ranges 1. Select the range of items to choose from when creating the order file. You can limit the items to a range of Item IDs, Location IDs, Product Lines, Sales Categories, Order Cycles and User-Defined Fields. Suggested Order Based On 2. Calculation Method Select the method to use in calculating the number of items to order. Options are: Default Order Quantity: The suggested order will be a quantity large enough to bring the current on-hand quantity up to the Maximum Quantity, as specified on the Item Locations, Location Defaults tab (in Inventory). Purchase Order Menu 3-3

44 For detailed explanations of the calculations used when creating the order file, see the Appendix, page A-4. EOQ (Economic Order Quantity): The order quantity is determined by a formula that uses the Carrying Cost Percent and the Ordering Cost Amount and any 12 months sales history to determine the most economical quantity at which to place an order. Select the range of periods to use in the calculation. (The carrying cost percent and ordering cost amount come from the Location Defaults tab in Item Locations, Setup and Maintenance. If either number is set to zero, the carrying cost percent and ordering cost amount entered in Locations on the Inventory Setup and Maintenance Menu are used instead.) Past Demand: Base the order quantity on historic sales information. Select the range of prior periods to look at. 3. Period From / To Select the range of periods (period and year) to include. This field is not used when the suggested order is based on the Default Order Quantity. If the order is based on EOQ, you can enter only the From date since the system automatically changes the To date so the range is exactly one year as required by the EOQ calculation (defined on page A-5). Include When On-Hand Quantity 4. Select the on-hand quantity level that determines whether or not the items need to be ordered. Options are when the on-hand quantity: Is below the Order Point level (based on the order point set up on the Location Defaults tab in Inventory, Item Locations). Is below the Safety Stock level (based on the safety stock field on the Location Defaults tab in Inventory, Item Locations). Is close to zero. When you select this option, you must also enter the on - hand quantity at which items are ordered. If using the Past Demand calculation method, the system automatically selects the Safety Stock option and first subtracts the past demand quantity from the on-hand quantity before comparing it to the safety stock quantity. 3-4 Purchase Order Menu

45 Selected Items Saved 5. Select how the items should be saved. Options are: In New Empty Order File: A new order file is started and any items in the existing order file are deleted. With Previously Saved Items: The new items being processed are added to the existing order file. If a selected item already exists in the order file (and is for the same vendor), the item is replaced with the current selection. Default Vendor 6. Enter the vendor to be used on the order if no default vendor is set up on the Locations Default tab in Item Locations. Purchase Order Menu 3-5

46 Maintain Order File Purchase Orders Maintain Order File Maintenance Screens Screen Options Summary View (page 3-7) Screen Options Detail View (page 3-8) Select Group (page 3-9) Order Options (page 3-12) Overview Use this selection to modify or add to the order file created in the Create Order File selection. Click on the Select Group... button to add a large number of items to the order file quickly. (See page 3-9.) Click on the Options... button to limit data entry to specific fields and to select the default entry screen. (See page 3-12.) Click on the Clear button to remove all entries in the order file. Select to toggle from summary to detail view and to toggle from detail to summary view. 3-6 Purchase Order Menu

47 Screen options Summary View Click on Detail view. (in the left upper corner of the Summary screen) to move to 1. Item ID Select the inventory item code of the item being purchased. The description is displayed below the item ID to help you verify that the correct item was selected. 2. Location ID The first location ID set up for the item is displayed. Accept the location or enter the ID of the location for which you are purchasing the item. 3. Vendor ID Select the vendor from which you want to order this item. The vendor name is displayed below the vendor ID to help you verify that the correct vendor was chosen. 4. Unit The default unit of measure for the item is displayed. Accept the default or enter another unit of measure. 5. Quantity Enter the number of units of the item being ordered. 6. Unit Cost If the vendor has a last cost for the selected item, it is displayed. If not, the last cost for the item at that location is displayed. You can change the cost, if necessary. 7. Ext Cost The extended cost (unit cost times quantity purchas ed) is displayed. Purchase Order Menu 3-7

48 Screen options Detail View Click on (in the left upper corner of the Detail screen) to move to Summary view. 1. Item ID Select the inventory item code of the item being purchased. The description is displayed next to the item ID to help you verify that the correct item was selected. 2. Vendor Item ID Enter the ID used by the vendor for their item, up to 24 characters. 3. Location ID The first location ID set up for the item is displayed. Accept the location or enter the location you are purchasing the item for. 4. Vendor ID Select the vendor from which you want to order this item. The vendor name is displayed next to the vendor ID to help you verify that the correct vendor was chosen. 5. Unit The default unit of measure for the item is displayed. Accept the default or enter another unit of measure. 6. Quantity Enter the number of units being ordered. 7. Unit Cost If the vendor has a last cost for the selected item, it is displayed. If not, the last cost for the item at that location is displayed. You can change the cost, if necessary. 8. Ext Cost The extended cost (unit cost x quantity purchased) appears. 3-8 Purchase Order Menu

49 Select Group Purchase Orders Create Order File Select Group... button Overview Use this window to quickly add a large number of items to the order file. Step-by-step 1. Enter the range of items, product lines and sales categories. Select a vendor, select a location and enter a default quantity. 2. After setting up the options, click on the OK button to copy the selected items from Inventory. The selected items are displayed on the screen. You are asked to enter the quantity for each item listed (if different from the default). 3. Last, you can either cancel the group of items or click on the Select button to add them to the order file. They are displayed on the Maintain Order File screen. Purchase Order Menu 3-9

50 Screen options Selection Ranges 1. Item ID From / To Select the range of items to include in the order file. When you do not want to limit the selections to a specific range, leave the From/To fields blank. 2. Product Line From / To Select the range of product lines to include in the order file. 3. Sales Category From / To Select the range of sales categories to include in the order file. Defaults 4. Vendor ID Select a default vendor (supplier) for these items. You can change the vendor later, if desired. 5. Location ID Select a default location. It can also be changed for any item(s). 6. Default Order Qty If desired, enter a default quantity. You can change quantities before the items are placed in the order file. 7. If you want to continue, click on the OK button to copy the items to the order file. If you want to start over, click on Reset to clear the fields and enter new information If you want to return to the Maintain Order File screen, click on Close Purchase Order Menu

51 8. If you selected OK on the Select Group screen, the items are copied to the order file and the message shown above appears. Press Enter after reading the message to display the detail information, shown below. 9. Enter the correct quantities and click on Select (or press Alt S) when you are finished to make the changes to the items on the order file. The Maintain Order File screen is re-displayed with the updated information. If you decide to exclude an item, enter a quantity of zero. Purchase Order Menu 3-11

52 Order Options Purchase Orders Create Order File Options... button Overview Use this window to limit data entry to specific fields and to select the default entry screen. Screen options Stop At Select the fields you want the cursor to stop at on the Maintain Order screen. This is particularly useful if you are changing only one or two entries on a large number of item records, but nothing else. Entry Method Select whether you want the default Maintain Order entry screen to be the Summary view or the Detail view. You can always change views Purchase Order Menu

53 Order File Report Purchase Orders Order File Report Overview The Order File Report lets you look at the information in the order file to verify the items being ordered, the vendors from whom they will be ordered, and the quantity and cost before turning the order file into purchase orders. Screen options 1. Item ID From / To Select the range of items to include in the report. When you do not want to limit your report to a specific range, leave the From/To fields blank. 2. Location ID From / To Select the range of locations to include in the report. 3. Vendor ID From / To Select the range of vendors to include in the report. 4. Sort By Select whether you want the information sorted by vendor ID or item ID. Purchase Order Menu 3-13

54 5. Select one of the report command buttons. 6. When you are finished select Close (or click on ) to return to the Main Menu. Order File Report 3-14 Purchase Order Menu

55 Create PO From Order File Purchase Orders Create PO From Order File Overview Use this selection to turn the order file into purchase orders. Specify a starting purchase order number, a purchase order date and a date required. The system automatically generates purchase orders for selected records from the order file. This process assumes everything is correct in the order file based on your use of the first three Purchase Order menu selections. Screen options Selection Range 1. Vendor ID From / To If you want to limit purchase orders to a specific range of vendors, enter the beginning and ending vendor IDs. When you do not want to limit the purchase orders to a specific range, leave the From/To fields blank. Purchase Order Menu 3-15