Purchase Orders

The Purchase Order system performs the following functions:

•Automatically records and generates Accounts Payable Invoices when the Purchase Order is Reconciled.

•Tracks committed costs created from Purchase Orders.

•Provides reconciliation of Purchase Orders with either Invoices or Packing Slips.

•Warns during Data Entry if items entered will create an Over Budget situation or if Over Committed amounts are received from the Invoice or Packing Slip.

Purchase Order Overview

The Purchase Order module is used to generate purchase orders, track committed costs created from purchase orders, and generate Accounts Payable invoices from reconciled purchase order items. This is especially helpful in avoiding overspending for cost code items on budgeted jobs. It is also helpful when ordering items which have a purchase price set in the Item Price File.

Vendors

All vendor information used in the Purchase Order module is maintained in the Vendors file. The vendor name, address and phone number may be entered during purchase order entry, although complete vendor information is generally entered and maintained through the Accounts Payable module.

Purchase Orders

The Purchase Order system allows purchase order line items to be charged to a job, a piece of equipment, or to other General Ledger accounts. One or more types of line items may be entered on the same purchase order.

Line items associated with a job cost code are checked to prevent orders being made that will cause a budget overrun. All line items are checked against the Item Price File for usual purchase prices.

Receipt of Ordered Items

As ordered items and their accompanying invoices are received, they are reconciled against the purchase order. This accomplishes two things. First, the vendor’s invoice is double checked against the purchase order to prevent overbilling (a higher unit price) and receipt of an incorrect quantity of items. Second, reconciled purchase order items may be posted to create an accounts payable invoice corresponding to the vendor’s invoice. This helps prevent double entry of information.

Committed Costs

As each purchase order is generated, the cost of line items that are associated with a job are added to the job’s committed costs. A report in the job costing module allows committed costs to be shown. As items are received and invoices are generated and posted, the committed cost is changed to an expense.

During purchase order entry or edit, a warning appears if ordered items could create a budget overrun.

Purchase Order File

The Purchase Order File holds all purchase orders, whether they have been proofed, generated, and/or reconciled. The Purchase Order listing and Generation of Purchase Orders are printed from this file. This file will grow indefinitely until purchase orders are purged.