The Purchase Order system provides a means for controlling all purchases, including purchases of non-inventory items such as fixed assets, office supplies, insurance, etc. Purchase orders for non-inventory items are entered into the system using the menu choice Non-Inventory Purchase Orders.
The non-inventory purchase order data entry form consists of a header screen, an unlimited number of detail 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. It is also used when the receiving slip for the order is created, and when the vendors invoice is received and a voucher is entered.
In the following example, the company buyer, George, receives a request for five computer terminals for in house use. On 04/01/87 George enters purchase order po0401-03 into the system for five computer terminals. Since the terminals are for use within the company, they are considered fixed assets. These terminals are to be ordered from PacTel Info Systems (p01150). The general purchase order information is entered into the header screen as shown below.
Notice that this screen is the same as the header screen for entering inventory purchase orders. As in the data entry form for inventory purchases, the default values for the Pay Terms and Future Payable fields come from the vendor master file.
Next, the information relating specifically to the computer terminals is entered in the detail screen.
The Ledger and Account fields specify that this order is to be applied to the fixed asset account 89032. Since these terminals are not for resale, they are taxable. The tax amount is calculated later in the shipping screen. Normally, the cost of freight is considered part of the cost of a fixed asset, so it is also included in this screen.
After storing the detail information, the freight screen is displayed.
If the freight charge is to be tracked separately from the items ordered, it would be entered here along with the account it is to be applied to. In this example the freight charge was entered into the detail screen, so this screen is left blank.
Shipping information is entered in the shipping screen. The terminals are for use by the home office and are to be shipped to the companys primary receiving location. George expects to receive the terminals by 04/05/87.
The default value for the Tax Rate is the sales tax rate associated with the receiving location. This rate is entered either in Company Receiving Address screen (for the same receiving code) or in the Alternate Receiving Addresses screen (for alternate receiving location codes). In this example, the tax rate for the primary receiving location is 31.5.
The Taxable Total field is the sum of the taxable detail items. The Taxable Total is multiplied by the Tax Rate to get the Sales Tax.
Freight is the total freight amount on the order (i.e. the total of the freight entered in the detail screens and/or the freight screen).
The Total Items field is the sum of the detail line items. The Total Order is the sum of the Total Items, Freight, and Sales Tax.
This purchase order is to be sent to the vendor at the vendors billing address which was entered in the vendor master file. The vendor address screen, the last screen, is shown below.
Purchase order po0401-03 is now complete.