Purchase Order Work Flow
Managing Purchase Orders for Distributor items (non-sales order specific items) involves some basic steps which are outlined here:
1. Enter the items to be ordered.
2. Print the Purchase Order and transmit to the Vendor
3. Enter an acknowledgement of the Purchase Order.
4. Post the activity to A/P and G/L in order to pay the bills.
5. If the job is incomplete, enter the fact of a back order, if not, mark as completed.
Here is some more detail on how you perform these steps in Simple Accounting:
Step #1: ENTERING A PURCHASE ORDER
1. Open the Purchase Order Browse.
2. Press [Ins] to begin entering a new P.O
3. Fill out the header fields
4. Press [Ins] to add a separate line item for each item to be ordered.
5. Press [OK] to save the Purchase Order.
Step #2: PRINT PURCHASE ORDER
1. If youre not already there, open the Purchase Order Browse
2. Select the Purchase Order to print. If has not been printed, it will have not P.O. number and will be displayed in purple.
3. Press the [Print] button and select Purchase Order.
After the Purchase Order is printed, its color will change to green indicating it is ready to go!
Step #3: ENTER ACKNOWLEDGEMENT
When the vendor sends you back a Job ID for one or more line items on the P.O.:
1. Open the Purchase Order Browse
2. Select the Purchase Order to edit.
3. Press the [Change] button.
4. Select the first line to enter the Job ID, then press [Change].
5. Enter the Job ID into the line item and press [OK].
6. Repeat steps #4-5 for each line to be acknowledged.
7. Press [OK] to save the Purchase Order.
Step #4a: RECEIVE PRODUCTS
When the vendor sends you back a Job ID for one or more line items on the P.O.:
1. Open the Purchase Order Browse
2. Select the Purchase Order to edit.
3. Press the [Change] button.
4. Select the first line to receive in and press [Change].
5. Enter the quantity to receive and, optionally, the Vendor Invoice and Freight, into the line item, then press [OK].
6. Repeat steps #4-5 for each line to be received.
7. Press [OK] to save the Purchase Order.
#4b: POSTING TO A/P & G/L
When you save the P.O. after receiving in line items, any Vendor Bills to be posted to A/P are automatically posted. Inventory is automatically updated as well.
#4c: BACK ORDERS
When you save the P.O. after receiving in line items, if all lines were received, the Purchase Order is automatically marked as completed. If you do not receive in all line items, you are asked (before saving) if you wish to put the remaining lines on back order or simply close out the P.O. without receiving the remaining line items.
