Any purchase order system has two main objectives: maintain adequate inventory stock levels and control the companys purchasing. The C/Books Purchase Order system has a set of processes to accomplish the first objective. The second objective can be accomplished through the use of the Purchase Order system to control all purchases.
The first step in the purchase order process is to enter the purchase orders into the system. As noted earlier, there is a set of processes to automate the restocking of inventory. These processes create the necessary purchase orders based on inventory levels and the vendor price book (refer to Chapter 29, Restocking Inventory). When sent to your vendor, these purchase orders request enough inventory stock to satisfy current orders and still maintain stock levels above the reorder points.
However, there are times when you cannot use this set of procedures: one of your vendors is having a special sale, you get an unexpected rush order, etc. These special cases usually require a manually entered purchase order.
Special inventory purchase orders are manually entered into the system using menu choice Purchase Orders on the Data Entry, Purchase Order menu. The Purchase Order data entry form is made up of a header screen, an unlimited number of detail line item screens, an optional freight screen, a shipping screen, and a vendor address screen. The information entered in this form is used on the printed purchase order form sent to the vendor. This information is also used when a receiving slip is created for the order and again when the vendors invoice is received and a voucher is entered.
As an example: on 04/06/87 a customer requests a rush order for 40 units of product 01c050. This item is not usually sold in such large quantities so the order cannot be filled with the stock on hand. Since this is a rush order, the buyer Linda calls George at Heirloom Furniture (h05400) and places the order over the telephone. She then enters this purchase order into the system using menu choice Purchase Orders on the Data Entry, Purchase Order menu. The general information pertaining to the purchase order is entered into the header screen as shown below.
The field Verbal has a value of yes. This tells the system that this is a telephone order. When this purchase order is printed, the message Written confirmation of telephone order will appear on the printed purchase order form. This lets the vendor know that this is not an addi-tional order. The values in the Vendor Name, Vendor Phone, Pay Terms and Future Payable fields come from the vendor master file. When the order is received, the amount of the order is credited to the future payable account, 2117.
Information specific to product 01c050 is entered on the detail screen. One unit of product 01c050 consists of a set of four wheels. Vendor h05400 sells the wheels one at a time (i.e. one unit of 01c050 is made up of 4 vendor units). This means that the U/M is equal to 0.25 (product units / vendor units). The entries to the detail line item screen are shown below.
Notice that the 40 product units is converted to 160 vendor units.
A blanket freight charge of 11.50 is entered in the freight screen. This charge is to be applied to the Freight In account, 6070. The freight screen is shown below.
Next, the shipping information is entered on the shipping screen. The order is to be delivered to the companys primary receiving location. The order should arrive tomorrow (04/07/87) by Federal Express. The shipping screen is displayed below.
The vendors address where the purchase order is sent is entered on the final screen, the vendor address screen. This purchase order is to be sent to vendor h05400 at its billing address which is the address entered in the vendor master file. The vendor address screen is displayed below.
The purchase order for 40 product units of product 01c050 is now completely entered into the system.