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Overview

This guide covers the setup of the Purchase Order (PO) application. The Purchase Order application covers the creation and processing of purchase orders for stock inventory, miscellaneous items, or services. The Purchase Order system is deeply integrated with the Inventory Control, Advanced Inventory Control (Coil & Lot tracking), Order Entry (Sales Orders), Project Management, Task Management, Accounts Payable, and Accounting applications. The Purchase Order application setup should be completed after the System Manager Setup Guide and the General Ledger Setup Guide have been completed to avoid running into any roadblocks.

A solid understanding of the client's inventory accounting model is required to accurately set up the Item Master OHF records and Purchase Order default accounts.

Initial Setup

Review/Discuss Purchasing Sales Tax Policies

Work with the client to determine how taxes are handled for purchases. Under most circumstances, items purchase for resell are not taxed, and the majority of our clients do not regularly charge tax on POs. However, every industry and state is unique, and nothing should be assumed when it comes to taxes.

Review and update the following items in regard to taxing on purchase orders:

• POUSETAXFLAG Setup Option - Uses the taxable flag from each item record
• POSPLITTAX Setup Option - Splits up tax amounts in the ITEMACT records; posts tax amounts separately, and keeps received inventory value at the cost before tax

• Vendor Tax Rates in the Remit To attribute

• The taxable flag in PO Line Item Entry must be checked, and the vendor (or the Tax% in PO Header) must have a tax rate in order to calculate taxes on a PO

Establish the Authorized Buyers

Assign the 'Buyer in PO System' attribute to all employee contact records that should appear in the Buyer drop-down list.

• The POUSERISBUYER CID Setup Option will set the logged-in user as the buyer for any new PO, as long as the logged-in user has the 'Buyer in PO System' attribute.

• The CONFUSER CID Setup Option will default the UserID of the logged-in user in the Confirm To field for any new PO record.

Purchase Order Form(s)

Work with the client to determine how many PO form layouts will be needed for their operations. Most clients only need a single PO form, but Adjutant can accommodate unique forms that will default in from the POTYPE rule.

• The default PO form from MASTER should only need minor customizations for disclaimer areas, and to confirm that the logo images scale and display correctly.

• Make any further customizations and create additional forms as needed.

• Get client approval on all PO forms.

• The default PO form can be set in the PO Types rule, and individual vendors can be set to a default PO Type in the 'Sold From' attribute.

Vendor Pricing

Custom purchase pricing can be set up by combinations of vendor cost group, item group, and entity similar to customer pricing. The Vendor Pricing setup is similar to customer pricing. It has been rare that clients price/cost their purchases by vendor cost groups. Confirm whether the client has any custom vendor pricing that is defined by vendor groups.

• If the client does not have any group pricing rules, vendor pricing can be set in the Item Master C/V Part screen.
• If the client has vendor pricing that is defined by vendor groups, define the groups in the Vendor Cost Groups (ENTVGRP) rule, and set up the Vendor Pricing screen.

Set the Next PO Number

Review and update the 'Prefix' and 'Current Number' values in the CID Maintenance Counters tab for the PONO line. Establish the beginning PO number.

Review the Default PO Clearing Account

The PO Clearing Account is used to balance/clear the inventory/cost value from the PO receipt transaction to the AP Invoice transaction.

• Review/Update the PO Clearing Account in CID Maintenance-Accounts-Clearing. This is the lowest hierarchy for determining the PO clearing account.
• Review/Update the PO Clearing Account in each Warehouse-Accounts screen. The Warehouse entry will override the CID Maintenance entry.
• Review/Update the PO Clearing Account entries in the Item Master OHF record. The Item Master OHF record will override all other entries.
  • The item-level PO Clearing Account entries are easiest to review in SQL, under the ITEMDET database table.

Verify the APPASSTHRU Item Exists in Item Master

The APPASSTHRU item is used for converting AP to AR transactions. It should have been imported during the initial CID setup.

Review and Update Rule Maintenance Records

1099 Types (TYPE1099)

The TYPE1099 rule defines the valid 1099 reporting types that can be assigned to vendors in the Remit To attribute. The 1099 Type can also be set at the AP Invoice level if setup option APMULTI1099 is enabled. The rule from the MASTER CID contains the most common 1099 types needed for most customers. Notify the MASTER CID System Administrator of any valid new 1099 types that need to be added to the MASTER CID rule.

AP Check Overflow (APCHKOVERFLOW)

The APCHKOVERFLOW rule controls when and how paid invoice details that exceed the number of available lines on the check stub are handled. If the Print Details option is checked, the overflow message will NOT print on the stub, but the allowed number of invoices will print. If the Print Details option is unchecked, and the check form is correctly set up to print the overflow message, ONLY the overflow message will print on the stub.

• The 'll_printoverflow' expression is used as a Print When on the check form to control printing/hiding of invoice details and the overflow message.

AP Voucher Stamps (VOUCHSTAMP)

The VOUCHSTAMP rule allows users to create custom image overlays that can be 'stamped' on to AP Voucher documents in the Voucher List screen. The stamps are saved with the document in the Doc Vault.

Doc Vault Drop Folders (DROPFOLDERS)

Review the drop folder entries for AP Invoice and AP Voucher.

Terms of Payment Codes (TERMS)

The TERMS rule controls the valid terms of payment for both the AR and AP applications. Reconcile the entries against the customer questionnaire and the Open AP Invoice import data (if customer's data includes payment terms). Add any needed terms and delete any terms that are not needed. Too many TERMS options generally add user confusion and can create invoice records with unwanted terms.

Review and Complete Additional Accounts Payable Setup

Set up Templates and Recurring Payables

Discuss AP Invoice Templates and Recurring Payables with customer.

• Set up any templates and/or recurring payables as needed with the customer. Use the Recurring Order WIki as a reference for the recurrence codes.

Set up Credit Card Vendors

Discuss how the customer wants to handle credit card charges and credit card invoice payments. Determine if they will be using the Merge CC Invoices process.

• If the customer will be using the CC process, set up all credit card vendors with the 'Credit Card Vendor' Org Attribute, and set the default Pay Priority to 'C' in the Remit To record.

Scrub and Import Open AP Data

Refer to Accounts Payable Conversion Guide (UNDER CONSTRUCTION) for detailed information on the import and reconciliation process.