Accounts Payable/Purchase Orders

From PERPWiki

Back to - Accounts Payable - User Documentation

Contents 1 Overview 2 Working with Purchase Orders 2.1 Create a PO 2.2 Work with Existing POs 2.3 Returns and Cancellations 3 FAQ

Overview

The expected normal process for the purchase cycle is:

1. A purchase order is generated in response to a request (such a request could be verbal or automated from the inventory min/max)
2. The PO is approved, if required
3. The shipment is received into a particular location
   1. Shipping details are recorded
   2. back orders, short ships, over ships, condition of goods received all noted
4. A paper invoice received from the supplier is matched against the invoice details in pERP, and rationalized
5. The invoice is paid

Various print reports may be generated at various points in the process. All reports must be manually generated or scheduled.

The main access for viewing purchase orders is through Accounts Payable > Purchase Orders, using the icon as shown below.

However, pERP has numerous other ways to create and view POs, and the user will find one which best suits his or her job requirements.

Working with Purchase Orders

Create a PO

• Create a PO
  • Overview
  • From the PO List
  • From the Orders Tab
  • From the Catalog Tab
  • From the Add bar
  • Approvals for POs

Work with Existing POs

• Work with Existing POs
  • The Home Page
  • The PO List
  • The Orders Tab

• Edit a PO
  • Correcting an Error
  • Handling Short Ships and Over Ships
  • Canceling a PO
  • Reversing a PO

Returns and Cancellations

• Returns & Cancellations
  • Returned Goods
  • Cancelling a PO

FAQ

REVERSING A PO: I accidentally entered a PO for 3456 of an item (144 cases of 12 instead of 144 each) What is the best way to reverse my error? Should I just receive the 3456?

If the original PO has not been invoiced, you can simply change it by adding an offsetting amount. If it has, you also need to correct the quantity invoiced. Either way, you should not need to create a negative shipment, just use AP -> Receive and receive a negative quantity of the stock item against the correct Purchase Order. The shipment will be automatically created. You will then receive the negative quantity to correct your inventory levels. [CONFIRMATION OF PROCESS NEEDED]

It appears that a PO which has been received, can still be edited. Is that a good idea? Shouldn't a completed PO to be closed off to further edits and saves?

A PO is not completed until all lines on it have been completely received and fully invoiced. Various parts of it can be changed before that time.

• Once a line on a PO has been received, the item and quantity cannot be edited, but the unit price may be changed until that line has been invoiced (the purchasing dept. would call the supplier to discuss and correct any variation between the price on the PO and the price on the invoice.)
• A line can be removed from the PO before the line has been shipped or invoiced. Once the line is either shipped or invoiced, it can no longer be removed from the PO.
• A line can be changed or edited (amount ordered, item ordered, unit price) until the line has been received or invoiced.

Back to Accounts Payable