Overview of Procure to Pay

Transcription

1 This segment from our 427+ page JD Edwards Accounts Payable manual is being made available as a sample of our training manuals. Please contact Sandy.Acker@ERPtips.com if you have any JDE training needs, or visit for more information. Written by Bob DeMartino Published by Copyright 2008 Overview of Procure to Pay Many companies today begin the procurement process by creating a Purchase Order, then printing the PO, and sending it to their supplier. When the merchandise arrives, the receipt is recorded and a payment voucher is created. The voucher match process can be either a three-way match for stock items (PO to receipt to voucher) or a two-way match for non-stock items where receipts are not recorded (PO to voucher). In this chapter, we will be discussing: 1. Order Activity Rules what they mean and how they are used 2. Purchase Order Entry how to enter data into the PO header and detail sections 3. Receiving a PO how to receive and close a purchase order 4. Posting the receipt to the General Ledger 5. Matching a voucher to an open receipt how to create a voucher using receipt information 6. Posting the voucher to the General Ledger 7. Payment cycle overview Review of Order Activity Rules and Statuses The Order Activity Rules are a list of procedures or steps that must be completed in a specific "order" so that the procurement process can be successfully completed. Let's look at the rules set up in the demo: On the main menu, go to: Procurement and Subcontract Management Procurement Setup Procurement System Setup Order Activity Rules Accounts Payable EnterpriseOne 8.12 Rev. 11/29/07 1 JDEtips Sample Accounts Payable Overview of Procure to Pay

2 Overview of Procure to Pay On the QBE line, enter OP (Purchase Order) for the Order type and S (Stock) for the Line Type and click Find. There are a lot of numbers here so let's discuss what they mean: Last Status this number indicates the process which has just been completed. Next Status this number indicates the next step that must be completed before any other process is executed. Other 1 5 values entered in these columns override the Next Status. For example, after entering a new purchase order, the Last Status is 220 and the Next Status is 230. This indicates that the next step in the procurement process is Approval Process #1 (approving the purchase order). However, column Other 1 indicates an override status of 280 and column Other 2 an override status of 400. This means that we can skip the approval process (status 230) and Print Purchase Order (status 280). Alternatively, we can skip both of those steps and go directly to Record Purchase Receipt (status 400). As we advance through each step in the process, the statuses will be automatically updated, as we will see later on. Entering a Purchase Order Before we begin entering a purchase order, we need to change the demo data for Company Go to Financials General Accounting General Accounting System Setup Organization & Account Setup Company Names & Numbers. 2 Rev. 11/29/07 Accounts Payable EnterpriseOne 8.12

3 Overview of Procure to Pay Enter R in the QBE line above Date Pattern and check the box in the upper lefthand corner to select all rows. Click on the Row exit and select Global Close. Change the Current Period to 3 and the Fiscal Year to 8 for G/L, Financial Reporting, A/P, and A/R; then click OK. Click Close to return to the main menu.. Now we can enter our purchase order. From the main menu, choose Procurement and Subcontract management Daily Processing Stock Based Purchasing Purchase Order Processing Enter Purchase Orders. On Enter Purchase Orders Work with Order Headers, click Add. Enter the following data in the header: 1. Type 4360 in Supplier 2. Type 1 in Ship To 3. Type 03/01/2008 in the Order Date field 4. Type 30 in the Branch Plant field Accounts Payable EnterpriseOne 8.12 Rev. 11/29/07 3

4 Overview of Procure to Pay On the Line Defaults tab, enter the following data: 1. Requested Date 03/01/ Promised Delivery 03/31/ G/L Date 03/01/2008 Enter the following data into the next form: Use your down arrow on the keyboard after entering each line in order to populate the Unit Cost field. Item Number Quantity Ordered Click OK, then Cancel. Let's take a look at the statuses after the purchase order was entered. On the Enter Purchase Order form, enter your PO number and click Find. 4 Rev. 11/29/07 Accounts Payable EnterpriseOne 8.12

5 Overview of Procure to Pay You may want to create new tabs to move some columns over to the left to better view your data. Click Detail Revision on the Row exit. Notice that the statuses are at 220/230. Click Cancel and then Close. Accounts Payable EnterpriseOne 8.12 Rev. 11/29/07 5

6 Overview of Procure to Pay Let's take a look at the main menu. At this point, we can do the following: 1. Approve Purchase Orders. This step is required if an approval process has been set up. In our demonstration, we do not need go to Orders Awaiting Approval. 2. Print Purchase Orders (R43500). At this point, a purchase order would be printed and sent to the supplier. 3. Print Purchase Receivers (R43510). A purchase receiver can also be printed so that the Receiving Department can mark down which products were received. This ensures that the correct goods are inventoried and accounted for. 4. After the goods you ordered are received in the warehouse, the receipt must be recorded. An entire PO can be received by using Enter Receipts by PO or, if a PO has been partially received, by using Enter Receipts by Item. Since our Order Activity Rules specify that we can receive goods without approving a PO, printing a PO, or printing a Receiver, we will jump to Enter Receipts by PO. Entering Receipts by PO On the main menu, click on the pointer (>) to the right of Enter Receipts by PO and select Values. Tab #2 Status Default should show 230 in Processing Option #1. Click OK. Note that the status codes in processing options 1, 2, and 3 are the same as in the Order Activity Rules for Next Status, Other 1, and Other 2. 6 Rev. 11/29/07 Accounts Payable EnterpriseOne 8.12

7 Overview of Procure to Pay The Open Orders form will automatically come up. Enter your order number and click Find. With the first line of the grid highlighted, click Select and you will be taken to the following form: Accounts Payable EnterpriseOne 8.12 Rev. 11/29/07 7

8 Overview of Procure to Pay The Receipt Option field will automatically populate with a "1" to receive and close both line items. Click OK and you will be back on the previous form; then click Find and your order will disappear from the form indicating that it has been received. Let's take a look and see what our purchase order looks like after it has been received. On the main menu, click on Enter Purchase Orders and enter your order number. Click Find. Click on Detail Revision on the Row exit. Notice that the order lines have been crossed out indicating that the order was received and the Next Status Code is at 999, the code for a closed purchase order. Click Cancel. Approving and Posting Receipts Receiving goods is the first step in the procurement process that creates a transaction. Therefore, we need to post the receipt in order to bring our General Ledger up to date. On the main menu, go to Procurement and Subcontract Management Daily Processing Stock Based Purchasing Purchase Order Processing Receipts Matching and Posting Review G/L Receipts Journal. This will display all unposted batches. Check the box next to your batch (the batch number was created when we received the goods) then click on Post by Batch in the Row exit. When the Report Output Destination form appears, click OK. 8 Rev. 11/29/07 Accounts Payable EnterpriseOne 8.12

9 Overview of Procure to Pay The posting entry is as follows: The Inventory account is debited and since we have not yet created or received a voucher from our supplier, the Received Not Vouchered account is credited. We have just completed the first step of a three-way match: receiving a purchase order and posting it. Matching Voucher to Open Receipt The final step in a three-way match is to create a voucher from the receipt and post it. On the main menu under Receipts Matching and Posting, click on Open Receipts by Supplier. Enter your Order Number and click Find. Your order should appear in the grid. Notice that it shows both the Amount Received and the Amount Not Vouchered, which in our case is $42,500. Click Close. On the main menu, click on Match Voucher to Open Receipt, then click Add. Accounts Payable EnterpriseOne 8.12 Rev. 11/29/07 9

10 Overview of Procure to Pay Enter the following information: Note: Your Order Number may be different than shown here. Order Number 117 Supplier 4360 Invoice Number 4000 Invoice Date 03/31/2008 G/L Date 03/31/2008 Company Branch Plant 30 Click on Receipts to Match on the Form exit. Check the box in the upper left portion of the grid to select both rows; then click OK. 10 Rev. 11/29/07 Accounts Payable EnterpriseOne 8.12

11 Overview of Procure to Pay Notice that the Gross Amount field automatically populates with the total of the two rows that were highlighted above. Click OK, and the receipt is now matched to a voucher. Click Cancel and then Close. Approving and Posting the Voucher After completing all of the above steps, we now have a voucher to post to the General Ledger. Click on Voucher Journal Review on the main menu. Locate your batch and check the box next to it; then click on Post by Batch in the Row exit. When the Report Output Destination form appears, click OK. The debit entry is to the Received Not Vouchered account, which clears the entry that was made when we posted the receipt. The credit entry is to Accounts Payable Trade. Accounts Payable EnterpriseOne 8.12 Rev. 11/29/07 11

12 Overview of Procure to Pay The voucher we just created can be viewed by going to the main menu and clicking on Financials Accounts Payable Daily Processing Supplier & Voucher Entry Supplier Ledger Inquiry. Click on Supplier Ledger Inquiry, enter Supplier Number 4360 and click the Open radio button. Click Find. You may want to create new tabs and format the screen to better view the information. The form shows that we have two Pay Items approved for payment (Pay Status "A"). Payment Cycle All vouchers in an "Approved" status are eligible for payment. These payments may be made manually or through an automatic process. The automatic payment cycle consists of the following steps: 1. Creating a Payment Control Group 2. Writing the checks 3. Updating the Supplier Ledger and General Ledger After a payment is made, the Open Amount in the Supplier Ledger Inquiry form changes to <Blank> and the Pay Status to "P" (paid in full). Later in this course we will learn both methods of payment and how the ledgers are affected. 12 Rev. 11/29/07 Accounts Payable EnterpriseOne 8.12

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