> Purchase Orders Introduction

Purchase Orders Introduction

The Purchase Order module is an integral part of the distribution and manufacturing functions. Features include a Goods Received Notes Suspense System (GRN) for Accounts Payable invoice matching. Other features include a Requisition System as well as a Supplier's Performance report, along with free-format requisitions and foreign currency options. Goods can be received directly into a warehouse or can go through an inspection phase. Various pricing mechanisms can be used, such as contracts with suppliers, foreign prices, the warehouse cost or last cost from the supplier.

Purchasing is a term used in the industry and management to denote the function of and the responsibility for procuring materials, supplies, and services.

A purchase order is the purchaser's document used to formalize a purchase transaction with a supplier. A purchase order, when given to a supplier, should contain statements of the quantity, description, and price of the goods or services ordered; agreed-to terms as to payment, discounts, date of performance, and transportation; and all other agreements pertinent to the purchase and its execution by the supplier.

Configuring Purchase Orders

This task outlines the procedures you should follow to set up your Purchase Order module before you begin to process transactions.

Some of these steps are optional and will depend on how you intend implementing this module.

[Note]

The configuring of purchase order Requisitions is described in the Requisition System Introduction.

  1. Navigate to the Set Key Information program.

    Indicate the properties and numbering method you require for Purchase orders, Buying groups, Goods in transit and GRN numbers.

  2. Purchase Order Setup

    Define the Configuration, Preferences, History and Tax setup options you require for Purchase orders.

  3. Use the Alternate Delivery Addresses program to define alternate delivery address details which can be used during Purchase order entry.

  4. Use the Price Unit of Measure program to define conversion factors to apply when purchasing items where the unit of measure in which you price the item differs from the unit of measure in which you order the item.

  5. Use the Standard Comments program to define standard coded comments to use on purchase orders.

  6. Use the Supplier Comments program to define supplier coded comments to use on purchase orders.

  7. Use the Stock Code Comments program to define stock code coded comments to use on purchase orders.

  8. Use the Purchase Order Discounts program to define order discount codes which you can enter against your suppliers.

  9. Use the Buyers program to define the persons in your company who are responsible for purchasing stock items.

    This only applies if you are validating the buyer when creating purchase orders (Purchase Orders Setup).

  10. Use the Currencies program to define the exchange rates for the currencies in which you will be processing purchase orders.

    This step is required if you want to process transactions for foreign currency suppliers.

  11. Use the Suppliers program to define details of the suppliers for whom you will be processing purchase orders.

  12. Use the Supplier Stock Code Cross Reference program to define cross-references between SYSPRO stock codes and supplier stock codes.

    This only applies when the Supplier/stock code interchange system is required (Inventory Setup).

  13. Use the Purchase Order Format program to define the stationery formats required for printing your purchase order documents.

    A purchase order format must be defined before you can use the Purchase Order Print program.

  14. Use the Inspection Document Format program to define the stationery formats required for printing inspection, reject and scrap documents for transactions created using the Purchase Order Inspection program.

Purchase Orders Period End Processing

There is no procedure for closing the Purchase Order module at the end of the month or year.

You can, however, use the Purchase Order Purge program to delete Purchase orders according to the number of days you indicated that you wanted to retain them, and to update the stock descriptions for stocked merchandise purchase order lines with the description from the current Inventory master file.