Purchase Orders

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Purchase Orders

 

Eritrium manages different types of purchase orders for supporting the business:

 

Standard Orders: Use when all commodities have quantity and unit prices.  Funds will encumber.

Stock Replenishment Orders:Use when all commodities have quantity and unit prices. and the target od the commodities is a warehouse.  Funds will encumber.

Crossdocking Orders: General crossdocking for directly deliver to a customer.

Standing Orders:Use for purchases that don’t require quantity and unit prices.  Funds will encumber.  This might be useful in situations where there will be multiple payments that are not specifically known up front.  For example, a PO for consulting services where periodic invoices will vary.  Payments will be applied to the overall PO amount

Blanket Orders:A blanket order is a master document that permits tracking of multiple transactions related to a specific vendor and/or project.  Multiple year projects or agreements may be recorded using blanket orders.  Blanket orders do not require FOAPAL codes therefore do not encumber.  Invoices cannot be paid against a blanket order.  A regular PO must be created against the blanket order referencing the blanket order in order to identify the FOAPAL codes, establish an encumbrance, and make payments

 

 

Basically purchase orders are used for:

 

Purchasing goods for internal use

Purchasing goods for warehouse replenishment

Purchasing goods for shipment to customers

 

When orders are either shipments for an end-user or orders placed on behalf of a customer. Each order is related to a person, group, or organization, depending on how it was originally entered in the database. An order may include a set of ordered items. An ordered item specifies a single part, quantity, and price of a particular item included as part of an order. An item is a part when it is ordered and once it is received into the system, it becomes an asset.

 

Each person or asset is assigned to a Cost Center, which is the entity assuming financial responsibility for an asset. Equipment or service that's ordered can be charged back to the caller's or the asset's Cost Center.

Since resources are frequently shared, the asset or component Cost Center overrides the person's Cost Center. For example, a printer shared by multiple departments malfunctions. Help desk personnel receive multiple calls from different departments about the same printer. If, in this case, help desk can't fix the printer, then a vendor must be called in to assist. Rather than "charge back" the cost of fixing the printer to the first person who reported the problem, the charge back is assigned to the printer's Cost Center.

 

Use the Order detail form to enter shipping and billing information and identify specific parts ordered.

The Order detail form has tree tabs: Detail, Description and Custom properties. The Line Items tab records specific information about the line items on an order, including pricing and quantity ordered.

ordered items. An ordered item specifies a single part, quantity, and price of a particular item included as part of an order. An item is a part when it is ordered and once it is received into the system, it becomes an asset.

 

To view the purchase orders in the system, from the main window options tree menu navigate to "Purchase Management -> Purchase Orders". The system displays five available options to browse purchase orders:

 

All Purchase Orders: Displays all the purchase orders in the system.

Purchase Orders not Submitted: Displays the orders that still a draft and they have not been submitted to the supplier jet.

Pending Purchase Orders: Displays the orders that are sent to the suppliers but the goods are not received jet.

POS Received with Discrepancies: Displays the orders that are received but not matching the conditions specified, ie: less units received, wrong products, etc...

Received Purchase Orders: Displays the orders that received successfully.

 

 

Doing double click with the mouse will open the purchase order window:

 

 

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When orders Orders are either shipments for an end-user or orders placed on behalf of a user. Each order is related to a person, group, or organization, depending on how it was originally entered in the database. An order may include a set of ordered items. An ordered item specifies a single part, quantity, and price of a particular item included as part of an order. An item is a part when it is ordered and once it is received into the system, it becomes an asset.

 

Each person or asset is assigned to a Cost Center, which is the entity assuming financial responsibility for an asset. Equipment or service that's ordered can be charged back to the caller's or the asset's Cost Center.

Since resources are frequently shared, the asset or component Cost Center overrides the person's Cost Center. For example, a printer shared by multiple departments malfunctions. Help desk personnel receive multiple calls from different departments about the same printer. If, in this case, help desk can't fix the printer, then a vendor must be called in to assist. Rather than "charge back" the cost of fixing the printer to the first person who reported the problem, the charge back is assigned to the printer's Cost Center.

 

Use the Order detail form to enter shipping and billing information and identify specific parts ordered.

The Order detail form has tree tabs: Detail, Description and Custom properties. The Line Items tab records specific information about the line items on an order, including pricing and quantity ordered.

 

The following picture shows an example of purchase order form:

 

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There are two ways that a User can add Purchase Orders from the main menu:

From the main menu: File>New>Purchase Order

From the main menu: File>Open>Purchase Orders. Eritrium will open the Purchase Orders browse window. The use the push button {New}

 

The Purchase Orders "Code" is the only required field.

 

There are two ways to View and Edit existing Orders:

From the main menu: File>Open>Purchase Orders. Eritrium will open the Purchase Orders list so the user can filter records using the standard procedures or edit any record doing double click on it

From the left tree view option panel: Doing double click on any of the following icons: Purchase Orders(

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To Delete existing Purchase Orders , edit the one you want to remove and use top menu option: File>Delete.

 

The information managed by the purchase order form is:

General:

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Code: The identification code for the purchase order generated by Eritrium.

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Supplier: The supplier to whom the purchase order will be sent.

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Opened: The date when the order is entered in Eritrium.

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Placed: The date when the order is sent to the supplier.

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Received: The date when the product is received from the supplier.

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Closed: Once the product is received and checked by Eritrium users, the order can be archived and the date will be displayed on this field.

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Summary: Description of the purchase order.

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State: Describes the state of the purchase order. It can be one of the followings:

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Pending: The order is created but not dispatched to the supplier yet.

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Placed: The order has been sent to the supplier.

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Hold: The order is stopped due to internal reasons.

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Received: The product purchased was received.

Details

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Cost Center: In some organizations is requested to enter the department that will pay the cost of the order. To define cost centers, see Lookup tables section for more information.

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Payment Mode: It is how the purchase order will be paid. To define different payment methods See Lookup Tables section for more information.

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Shipping type: This is the shipping system used to receive the purchased products. To configure different shipment methods see lookup tables section for more details.

Addresses:

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Ship to: Contact person at the shipping address.

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Ship to Address: Address where the product must be sent.

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Invoice to: Contact person for the invoice.

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Invoice Address.

Details: The list of products included in the purchase order. Doing double click on any of them the related order detail form will be displayed. The following information is also displayed:

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Price: The price of the requested products.

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Discount: The discount applied to the requested products.

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Tax: Tax amount to be paid.

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Final Price: Price of the products minus discount plus taxes.

Documents: List of documents of any kind related to this order. Doing double click on any of them, the related document form will be displayed.

Mails: List of mails sent to the supplier. Doing double click on any of them, the related mail form will be displayed.

Phone calls: List of phone calls done or received for or from the supplier Doing double click on any of them, the related phone call form will be displayed.

 

The available actions from the Purchase Order Form are:

 

View:

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Supplier: Eritrium will open the suppliers form related to the purchase order.

Actions:

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Add Part: Eritrium users can add products to the purchase order. The following figure shows the purchase order part detail:

 

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Set as:

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Set as Placed: When selecting this option, the purchase order change state to "sent to supplier".

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Set as Hold: When selecting this option, the purchase order changes state to "on hold". It means that the order is stopped because of any reason. It must be placed again or closed.

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Set as Received: When selecting this option, the purchase order changes state to "Received". It means that the owner has received the requested products from the supplier.

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Set as Closed: When selecting this option, the purchase order is closed and archived.

Add Document: Eritrium will generate a new document and link it to the order.

Send Email: Eritrium will open mail form with the address of the supplier so the user can fill it ed send it.

Add Phone Call: Eritrium will generate a new phone call and associate it to the purchase order