Purchase Orders can be used to buy inventory or non-inventory items from a supplier. A Purchase Order can have multiple items which need to be ordered from the same supplier. You can create purchase orders from requisitions, service orders, work orders or you can add one individually. This article is going to highlight the steps to add an individual Purchase Order. There are multiple ways to add items and you can use all of them to add items to the same Purchase Order.
Follow these steps to add a Purchase Order, add items and check there is enough budget:
- Add a Purchase Order
- Add Items to a Purchase Order
- Add a Non-Inventory Item to a Purchase Order
- Add Items From a Market List to a Purchase Order
- Add Items From a Requisition to a Purchase Order
- Budget Checks
Also in this article:
- Edit a Purchase Order
- Delete an Item From a Purchase Order
- Copy a Purchase Order
- Close a Purchase Order
- Cancel a Purchase Order
- Delete a Purchase Order
- Purchase Order Security
Add a Purchase Order
- From the Main Menu, search for and select Purchase Orders. The Purchase Orders page opens.
- Click Add. The Add Purchase Order window opens.
- Enter the necessary information:
- Description – Name for the purchase order. Defaults to Purchase Order if no description is entered.
- Supplier – Supplier for the purchase order.
- Supplier Contact – Contact for the supplier for the purchase order.
- Department – Department needing the items. Defaults to the department assigned to the requester. Department is required if the PO/Requisition Department Required check box is checked on the Purchasing Configuration screen.
- Event/Job – Event or job needing the items.
- PO Contract - Purchase order contract linked to the purchase order.
- Required On – Date the items are needed.
- Date – Date the purchase order is created. Defaults to today's date.
- Expand the Additional Information section and enter the necessary information:
- Function – Function for the purchase order. Only available if an event/job is selected.
- Order – Order for the purchase order. Use the magnifying glass next to the Order field to search for an order number.
- Space – Space where the items are needed. Defaults to the space selected in the Spaces drop-down on the Edit User screen. If there is no space defined on the user's settings, this will default to the space listed on the Purchasing Configuration page.
- Currency – Currency for the purchase order. Defaults to the currency set for the supplier account on the A/P Demographics screen.
- Requester – Person asking for the items in the purchase order. Defaults to the user adding the purchase order if the Default Requester to User check box is checked on the Purchasing Configuration screen.
- In/Out Date – If checked, enter the exact dates and time for the purchase order items. Informational purposes only.
- Click Save. The window saves and updates to the Edit Purchase Order window.
Add Items to a Purchase Order
- On the Edit Purchase Order window, select the Purchase Order Items tab.
- Click Add. The Add Purchase Order Item screen opens.
- Enter the necessary information:
- Item – Inventory item to purchase. If it is not an inventory item, see Add a Non-Inventory Item to a Purchase Order.
- Description – Defaults to the inventory item description.
- Units – Number of units to purchase for the item. If necessary, update the unit of measure for the item in the drop-down.
- Unit Cost – Unit cost of the item. Depending on your configuration, the cost is before or after taxes or set as Non-taxable in the Taxable drop-down.
- Extended Cost – Total cost of the item. This will calculate automatically using Unit Cost and Units.
- Event/Job – If you selected an event or job on the Add Purchase Order window, the event/job will default into this field and not able to be changed. If you did not select an event or job on the Add Purchase Order window, you can select it here.
- Function – By selecting a function on the Add Purchase Order window, the function defaults into this field and is not able to be changed. You must select an Event/Job before you can select a Function for the Purchase Order item. If you have selected it on the Add Purchase Order window this will flow through to the Purchase Order item. If this is for the item only, then select this function.
- Department – If you selected a department on the Add Purchase Order window, the department defaults into the field and you cannot change it. If you did not select a department on the Add Purchase Order window, select the department required for the purchase order item.
- Required On – Defaults to the Required On date entered on the Add Purchase Order window. You can update the date if necessary.
- Supplier Item Number – Defaults to the supplier’s item number configured for the inventory item.
- GL Account – GL account for the expense (or stock) account. If more complex distribution is required, select the Distribution tab and click Distribution to insert additional distribution rows. If an account is selected from the GL Account Description drop-down, the GL account number defaults into the field.
- GL Account Description – GL account for the expense (or stock) account. If more complex distribution is required, select the Distribution tab and click Distribution to insert additional distribution rows. If an account number is entered into the GL Account field, the description of the GL account displays.
- Taxable – Select if the item cost does not include taxes (Exclusive), includes taxes (Inclusive), or if the item is not subject to taxes (Non-taxable).
- Expand the Additional Information section and enter the necessary information:
- In/Out Date – In and out dates for the item. Informational purposes only.
- Asset – Asset to assign to the item. Assigning an asset to the item marks the accounts payable voucher journal entry as an asset which allows you to import it against the asset and increase the book value of the asset.
- Note – Additional notes for the item.
- Click OK to add the item to the purchase order. You return to the Edit Purchase Order window.
Add a Non-Inventory Item to a Purchase Order
Purchase orders items not in your inventory list can be added using this option. These are often items you only order once or are not usually consumable items (class 2 or 3). When you enter a non-inventory purchase order item, you are responsible for entering the GL account distribution and tax information. Adding non-inventory items is controlled by the Allow Adding of Non-Inventory Items access privilege.
- On the Edit Purchase Order window, select the Purchase Order Items tab.
- Click Add. The Add Purchase Order Item window opens.
- From the Item dropdown, select Non-Inventory Item.
- Enter the necessary information for the non-inventory item.
- Select the Distribution tab.
- Click Add. The Add Purchase Order Item Distribution window opens.
- Enter the GL account information for the purchase order item.
- Click OK.
- Repeat steps 6-8 for all necessary GL accounts in the distribution.
- Select the Taxes tab if using purchase order taxes. If you do not use purchase order taxes, proceed to step 13.
- Click Add. The Add Purchase Order Taxes window opens.
- Select the tax resource from the Resource drop-down.
- Click OK. You return to the Edit Purchase Order Item window.
- Click OK.
Add Items From a Market List to a Purchase Order
- On Edit Purchase Order, select the Purchase Order Items tab.
- Click the arrow next to Add.
- Select Add Items From Market List. The Add Items From Market List window opens. Refer to this article for more information on Market Lists.
- From the Market List drop-down, select the items you need to add. The Purchase Order Market List Items tab displays with the items from the market list.
- Enter the date you need the items into the Required field.
- Select the Purchase Order Market List Items tab.
- Enter the Units into the Units field for the item you want to add. Repeat for each item.
- Update the cost in the Unit Cost field for each item.
- Click OK.
Add Items From a Requisition to a Purchase Order
- On the Edit Purchase Order window, select the Purchase Order Items tab.
- Click the arrow next to Add.
- Select Add Items From Requisition. The Add Items From Requisition screen opens.
- Check the box in the Add Item column for the items you want to add to the purchase order.
- Click OK.
Budget Checks
- When adding Purchase Orders, you are able to check the items are within the allocated budget the fiscal period the order is for. This can be done on a specific item or on the whole purchase order. When doing this at purchase order level, each item's GL Account will display in the view. This will also display information if you are using GL Dimensions, where the system will collate the codes to show the budget available.
- From the Purchase Order Item window, select View > View Budget Details. This will open the Budget Details view.
Purchase Order Approvals
Once you have finished adding your Purchase Order the status is set to Entry Status. Depending on your business process, the order will be approved (see the article Requisition and Purchase Order Approvals), then issued (see the article Issue Purchase Orders).
Edit a Purchase Order
The information available for editing on a purchase order depends on the purchase order status:
- Entry - All information is editable.
- Awaiting Approval or Open - You can edit the information if you have access to the approval level and for the amount of the purchase order. If you do not have access to the approval level or the amount, you cannot make changes.
If you change the following fields on a purchase order, the purchase order is reset to an Entry status and needs to go through the approval process again:
- Supplier
- Event/Job
If you change the following fields on a purchase order item, the purchase order is reset to an Entry status and needs to go through the approval process again:
- Description
- Event/Job
- Supplier Item
- Unit of Measure
- Unit of Time
- Increase in Unit Cost
- Increase in Units
- Increase in Freight
- Increase in Extended Cost
- Increase in Time Units
- Distribution
Other notes:
- If you change the supplier for a purchase order, taxes are recalculated if necessary.
- If you add additional items to a purchase order at an Awaiting Approval status, it is set back to an Entry status and needs to go through the approval process again.
- You cannot add additional items to a purchase order at an Open status.
- The Event, Function or Order fields are only editable if these values are not already assigned. Once they are assigned, you cannot change them.
- You can edit purchase orders entered by other users if you have the necessary approval level and amount access.
To edit a purchase order:
- From the Main Menu, search for and select Purchase Orders. The Purchase Orders screen opens.
- Select the purchase order to edit.
- Right-click and select Edit. The Edit Purchase Order screen opens.
- Edit the necessary information. The available fields depend on the rules above.
- To edit a purchase order item:
- Select the Purchase Order Items tab.
- Select the item to edit.
- Right-click and select Edit. The Edit Purchase Order Item screen opens.
- Edit the necessary information.
- Click OK.
- Click OK. Based on the rules above, the status may update to Entry.
Delete an Item From a Purchase Order
You can delete purchase order items with an item status of Entry, Awaiting Approval or Open. Once you issue the purchase order, you cannot delete items. If you need to delete items from an issued purchase, copy the purchase order to create a new purchase order with the correct items and cancel the issued purchase order.
To delete an item from a purchase order:
- In the Main Menu search for and select Purchase Orders. The Purchase Orders screen opens.
- Select the purchase order with the item(s) to delete.
- Right-click and select Edit. The Edit Purchase Order screen opens.
- Select the Purchase Order Items tab.
- Select the item(s) to delete. Use Ctrl+Click or Shift+Click to select multiple items.
- Right-click and select Mark For Delete.
- Click OK.
Copy a Purchase Order
- From the Main Menu search for and select Purchase Orders. The Purchase Orders screen opens.
- Select the purchase order to copy.
- Right-click and select Tools > Copy. The Copy Purchase Order screen opens.
- Enter the information for the new purchase order.
- Check Copy Documents to copy the documents from the purchase order to the new purchase order.
- Check Copy Notes to copy the notes from the purchase order to the new purchase order.
- Check Copy PO Item Distributions to copy the purchase order item distributions from the purchase order to the new purchase order. If unchecked, the purchase order item distributions use the default distribution.
- Click OK. The Edit Purchase Order window opens for the new purchase order. Edit information as needed.
- Click OK.
Close a Purchase Order
You can close issued purchase orders.
- From the Main Menu search for and select Purchase Orders. The Purchase Orders window opens.
- Select the purchase orders to close. Use Ctrl+Click or Shift+Click to select multiple purchase orders.
- Right-click and select Tools > Close. You receive a message confirming you want to close the purchase order(s).
- Click Yes. The purchase orders updates to a Closed status.
Cancel a Purchase Order
You can cancel purchase orders that are at an Entry, Awaiting Approval, On Hold, Rejected, Open or Issued status. If you need to cancel a closed purchase order, you must void the receipt before you can cancel the purchase order.
To cancel a purchase order with unreceipted items:
- From the Main Menu, search for and select Purchase Orders. The Purchase Orders screen opens.
- Select the purchase order(s) to cancel. Use Ctrl+Click or Shift+Click to select multiple purchase orders.
- Right-click and select Tools -> Cancel. You receive a message confirming you want to cancel the purchase order(s).
- Click Yes. The purchase order(s) updates to a Cancelled status.
To cancel a purchase order with receipted items :
- From the Main Menu, search for and select Purchase Orders. The Purchase Orders screen opens.
- Select the purchase order to cancel. Use Ctrl+Click or Shift+Click to select multiple purchase orders.
- Right-click and Edit.
- Select the Actuals tab.
- Select the item receipts to void.
- Right-click and select Void Receipt. A void receipt confirmation message opens.
- Click Continue. You return to the Purchase Orders screen.
- Select the purchase order to cancel.
- Right-click and select Tools > Cancel. You receive a message confirming you want to cancel the purchase order.
- Click Yes. The purchase order updates to a Cancelled status.
Delete a Purchase Order
You can delete purchase orders that are at an Entry, Awaiting Approval, On Hold or Rejected status. You cannot delete issued purchase orders; you can only cancel them. You cannot delete closed purchase orders since all items are received.
To delete a purchase order at a status of Entry, Awaiting Approval, Open, On Hold or Rejected:
- From the Main Menu, search for and select Purchase Orders. The Purchase Orders screen opens.
- Select the purchase orders to delete. Use Ctrl+Click or Shift+Click to select multiple purchase orders.
- Right-click and select Mark For Delete.
- Click Save.
Purchase Order Security
Access to Purchase Orders
Access to purchase orders is controlled by the Access to Purchase Orders access privilege. This includes the ability to add, edit, delete, copy and view purchase orders. Roles and/or users assigned to the privilege can add, change, delete, copy and view purchase orders if the value entered into the Value field is ALL. To allow only view access and not allow roles/user to copy purchase orders, enter VIEW into the Value field. If no roles/users are assigned to the privilege, it is considered inactive and all users can add, change, delete, copy and view purchase orders. If there is no value entered into the Value field the role/user does not have access to purchase orders.
Allow Access to Purchasing/Vouchers by Department
This access privilege controls who can view purchase orders by department. Roles and/or users assigned to this privilege can view purchase orders with departments they are assigned to view using the Assign Details option. If no roles/users are assigned to this access privilege, it is considered inactive and all roles/users have access to all departments' purchase orders. If a user is assigned (activating the access privilege), all unassigned roles/users are unable to view any departments' purchase orders.
Allow Cancel/Close Purchase Order
Cancelling and closing purchase orders is controlled by the Allow Cancel/Close Purchase Order access privilege. Roles and/or users assigned to the privilege can cancel and close purchase orders. If no roles/users are assigned to the privilege, it is considered inactive and all roles/users can close and cancel purchase orders.
Allow Entry of PO Items not on Requisitions
This access privilege controls the ability to add non-requisition items to purchase orders. Roles and/ or users assigned to this privilege can add non-requisitioned items to a purchase orders. If no roles/users are assigned to the privilege, it is considered inactive and all roles/users can add any line item to a purchase order.
View Purchase Orders
Viewing purchase orders is controlled by the View Purchase Orders access privilege unless a role/user is assigned the Access to Purchase Orders privilege which automatically gives view access. Roles and/or users assigned to the privilege are able to view purchase orders. If no roles/users are assigned to the privilege, it is considered inactive and all roles/users can view purchase orders.
Comments
8 comments
Does the purchase order create an encumbrance to reserve allocated funds against budgets and actuals?
0 upvotes
Hi Brooke,
In the GL? - no. We have been campaigning for a while now for this functionality.
I have developed a custom process that generates this data and incorporates it into GL reporting. Let me know if you want further details on it but I would also encourage you to log this as an enhancement as it is a large missing piece of financial data.
0 upvotes
Could add the email remind automatic send to the person who need to approve the PO request?
0 upvotes
Hi Tripp,
Could you clarify what you mean? I'm not sure I understand your question.
Thanks,
Maggie
0 upvotes
I am asking that an email notification can be added to facilitate the approver to see the reminder and approve the PO.
0 upvotes
Hi Tripp,
Have you seen this article? https://supportcenter.ungerboeck.com/hc/en-us/articles/204560518-Email-Notifications-for-Requisition-or-Purchase-Order-Approvals
I think this is what you are looking for. If not, let us know and we'll try to assist further.
Thanks,
Maggie
0 upvotes
hi Maggie,
yes ,it is useful ,thanks for the sharing.
0 upvotes
Hi Team - what is the purpose of the Reinstate option here? I can't find any info on support centre other than a cancelled PO can't be reinstated.
Thanks,
Mudit
0 upvotes
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