8.3.1. Entering Purchase Orders

Purchase Order

In SocrateCloud purchase orders are managed in the Purchase Order window located in the Procurement -> Purchase Order menu. To enter a new purchase order press the New record button. The following fields are available:

• Purchase Order No - the document number (if not entered manually the system will automatically generate a number);

• Order Reference - enter a reference number for the transaction (e.g. contract number and date);

• Target Doc Type - select a document sub-type with base document type "Purchase Order". Details in Document Types;

• IBAN - enter the vendor's account number;

• Date Ordered - date when the purchase order is entered;

• Date Promised - date when the ordered products are expected to arrive to the warehouse;

• Vendor, Vendor Location, Vendor Contact - select the vendor to which the purchase order is sent;

• Bill To, Bill To Location, Invoice Contact - select the vendor which will be invoiced for the order;

• Delivery Terms - select an international delivery term (INCOTERMS) which can be defined in the Delivery Terms window;

• Contract - select the associated contract;

• Create lines from - the purchase order details can be created based on another document (requisition, template, project)

Delivery section:

• Warehouse - select the warehouse where the ordered products will be received;

• Priority - select from the list a document priority level;

• Delivered - indicates whether the products on the purchase order have been received;

• Drop Shipment - indicates that the products are delivered from the vendor to the customer directly;

• Net Weight (KG) - total weight for the ordered products (calculated using the net weight value entered for each product in the Product window);

• Volume (DM3) - total volume for the ordered products (calculated using the volume value entered for each product in the Product window);

• Ship To, Ship To Location - the business partner which will receive the ordered products.

Invoicing section:

• Price List - determines the prices for the ordered products;

• Currency - the currency used on the document (determined by the price list)

• Representative - person responsible for the purchase order;

• Payment Method (button) - select a payment method which will be used to pay for the ordered products: Credit Card, Check, Cash etc.

• Discount Printed - if checked discount values will be printed on the purchase order;

• Payment Term -terms in which payments for the ordered products will be made. Details in Payment Terms;

• Fixed date - if checked a due date will be determined and displayed on the order. The selected payment term will no longer apply to the order;

The Reference section contains accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting:

The Status section displays information about the document status (according to the document workflow):

• Document Status - indicates the current status for the document;

  • Initial status: "Draft" - the document is being defined. Can be edited or deleted;

• Document Action button - is used to change the document status. The available actions are:

  • "Prepare" -> Document Status: "In Progress" - the document can be edited but cannot be deleted;

    • verifies the document and stock consistency;

    • will recalculate the ordered quantity and tax amounts;

  • "Complete" -> Document Status: "Completed" - the document generated it;s effects within the system. Cannot be edited or deleted;

    • should be selected after entering all the order information;

    • will mark the document as "Processed".This will prevent users from adding, editing or deleting order lines;

  • "Void" -> Document Status: "Voided" - all the documents effects within the system are cancelled;

    • will attempt to void the document by overwriting all the amounts with 0;

    • orders for which receipts or shipments were generated cannot be voided;

    • if the document is generated based on a mirror sales order, the sales order will not be affected;

  • "Reopen" - will bring the document status back to it's initial "Draft" status and voids any documents that were generated based on the order;

  • "Close" -> Document Status: "Closed" - no other document s can be generated based on closed documents. No other document actions can be applied;

    • permanently closes the document;

    • a document can only be closed if does not have any unprocessed documents associated;

• Document Type - indicates the document type (determines the status sequence and processing rules);

• Sub Total - total value for the document details;

• Grand Total - displays the total value for the purchase order, including taxes;

• Copy Lines - allows you to copy details from a previously entered purchase order.

  • Status - starting with v16.09 purchase order headers can have statuses (not the same as document statuses) and based on this, can be viewed and managed using the K-Board PO dashboard. Details in K-Board Dashboards;

  • Posted button - generates purchase order accounting transactions, if commitment accounting is used.

    • the account used for the expense product is defined in the Product window.

    • the accounts used for reservations are defined in the Account Element.

    • the transfer type of the document is Commitment.

    • If Commitment Accounting has not been indicated, then no accounting transaction will be generated for the purchase order.

  • Generate Payment Schedule button - details in Payment Terms;

Comments, Comments tab - starting with v16.09 when entering and saving a text in the Comments field, a read only record will be generated in the Comments tab with the entered text, the current user and the current date. Comments are not saved on the header;

Create Lines from

The process allows you to create purchase order lines based on another document's details:

• Order - select the source purchase order;

• Use Price List - if checked only lines containing products with prices on the destination purchase order price list will be copied;

• Keep Organization on Source Doc - you may keep the organization from the source document when creating lines (this is useful when the master is entered for the parent organization and the lines for child organizations).

Purchase Order Lines

Purchase order details can be entered manually in the PO Line tab or automatically using the Create Lines from or Copy Details processes in the Purchase Order window.

The PO Line tab is used to manage purchase order lines. For each product in the purchase order a line must be entered. To enter a line press the New Record button. The following fields are available:

• Quantity - enter the product quantity (for the selected unit of measure);

  • starting with 16.03 when entering a quantity on a purchase order line, for each product-vendor combination the following are available:

    • you cannot enter an amount less than Order Pack Qty * Minimum Order Qty.

    • you can only enter multiples of Order Pack Qty;

    • the Order Pack Qty and Minimum Order Qty fields can be found in the Product window, Purchasing tab, for the product and vendor on the order line;

    • example:

      • Minimum Order Qty = 10 and Order Pack Qty = 3 will result: Quantity > 30 and accepted amounts are: 30, 33, 36, etc

      • Minimum Order Qty = 2 and Order Pack Qty = 5 will result: Quantity > 10 and accepted amounts are: 10, 15, 20, 25, etc

• UOM - if a conversion between units of measure has been defined, an alternate unit of measure can be used on the order;

  • when using alternative conversions, if the price is changed, the resulting unit price will be rounded according to the standard precision defined for the alternative unit of measure;

• Quantity Ordered - the product quantity, displayed in the base unit of measure;

• Quantity Delivered - quantity delivered, if the purchase order has a matching receipt;

• Quantity Reserved - quantity not yet delivered;

• Quantity Invoiced - the invoiced product quantity, if the purchase order has a matching invoice;

• Quantity Returned - the returned product quantity, if any returns have been made for the order;

Amounts section - the initial values for the fields in this section are determined by the purchase order price list:

• Price - the price for a single product unit (for the selected UOM);

• Unit Price - the price for a single product unit (for the base UOM);

• List Price - product list price, determined by the purchase order price list;

• Tax - VAT tax rate used;

• Discount % - percent discount based on the list price. Will change it's value according to the price value (Price field), and the price will change it's value according to the discount;

• Project, Activity, Project Phase, Campaign, Trx Organization etc. - accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting;

Status section - the Line Amount field indicates the total value for the the purchase order line excluding taxes (Quantity x Price);

Delivery section:

• Net Weight (KG) - weight for the ordered product (calculated using the product quantity multiplied with the net weight value entered for the product in the Product window);

• Volume (DM3) - total volume for the ordered product (calculated using the product quantity multiplied with the volume value entered for each product in the Product window);

• Order Line Link - indicates the associated sales order line (if the Generate PO from SO process has been used);

The Reference section is automatically completed when saving the purchase order line with information regarding the product's associated bill of materials.

The Matching tab displays the matching lines from the associated documents (vendor invoice, receipt);

The Requisition Lines tab displays the matching line from the requisition used to generate the order;

Order Tax

The Order Tax tab is used to display information regarding the VAT used on the purchase order. The tax rates used for the ordered products are displayed. For each tax rate the following fields are available:

• Tax Value - total value for this tax rate cummulated for all the purchase order lines;

• Base Value - total value for the lines using this tax rate;

• Includes Tax - indicates whether the tax is included in the purchase order prices.

Generează PO from SO (form)

The Generează PO from SO window located in the Procurement -> Purchase Orders menu is used to generate purchase orders based on sales orders.

The functionality is only available if the SRPD (Rapid-Purchase-Delivery) component is activated.

• Fill in the mandatory fields: Business Partner, Representative, Warehouse, Delivery Terms;

• Press the Search button. In the tab below a list of orders will be displayed based on the mandatory and optional fields completed;

• From the list, select a source sales order;

• Press Process to generate a purchase order based on the selected sales order, using the values entered in the available fields above;

• A pop-up window will appear displaying the generated purchase order number;

Note: Purchase orders will be generated only for products which have a vendor defined (Purchasing tab, Product window).