Setting Up Purchase Order Preferences (04-90)

Overview

This selection is used to set up your Purchase Order preferences. It must be run before any Purchase Orders are entered.

Table of Contents

General Instructions

The following information is specified in this selection:

  • The pre-prompts for Purchase Order Entry
  • Whether an entered purchase order must be printed before further processing can be done on it (receiving or invoice entry)
  • Whether Locators are entered during P/O Receiving Entry
  • Whether duty is calculated on freight for foreign vendors
  • The formula for costing inventory items
  • Whether the system automatically interfaces DFI amounts
  • Whether the Net Cost is recalculated when the P/O Cost is modified
  • The method of handling the cost of inventory items
  • Whether P/O Receiving Update automatically maintains Field 15, ‘Last PO Cost’ in the Inventory Master File.
  • Whether the system recalculates DFI and Accrual amounts when the invoice amount is changed in P/O to A/P Entry.
  • Whether the system retains the remaining balance in P/O to A/P when the invoice amount is modified.
  • Vendor code maintenance, to tell PO to AP Update where to post the discount Amounts in General Ledger.Purchase Orders 288
  • Reports and Picking/Packing sheets that print at P/O Receiving after the Audit.

Preferences

Click image to enlarge.

Preference
Description

Auto Generate PO#:
(Y/N)

Enter Y to auto-generate Purchase Order numbers. We recommend using this option (especially if you are using Auto Build of POs (04-54-03) for Order Processing and/or Service) as it helps ensure that Purchase Order numbers are unique across your company.

Enter N and you will need to manually enter the Purchase Order Number during Purchase Order Entry (04-01).

Last PO#:
If ‘Auto Generate PO#’ is set to Y, enter the Last P/O Number that was used (if applicable). The system will increment this number by one and start auto-generating with that number.

Pre-Prompts
The following five preferences are used to specify the information that will pre-prompt during Purchase Order Entry.

Bill to Branch ID #
Enter the branch (Inventory or Non-Inventory) that will pre-prompt in the ‘Bill To’ field during Purchase Order Entry.

FOB (Ship/Dest/’ ‘)
(SHIP/DEST)

Enter “SHIP” if the P/O shipping charges are paid by your company. ‘SHIP’ automatically appears in the ‘FOB’ field during Purchase Order Entry.

Enter “DEST” if the P/O shipping charges are paid by the vendor. ‘DEST’ automatically appears in the ‘FOB’ field during Purchase Order Entry.

Leave this field blank if no information should pre-prompt in the ‘FOB’ field during Purchase Order Entry.

NOTE: If an entry has been made in the ‘FOB (SHIP/DEST)’ field in A/P Vendor Master (11-30), it will override the entry made in this field.

Buyer’s ID#
Enter the Employee Number of your company’s buyer. The Employee Number and Employee Name will automatically appear in the ‘Buyer’ field during Purchase Order Entry.

Leave this preference blank if your company has more than one buyer or you do not want any information to pre-prompt in the ‘Buyer’ field.

Ship Via
Enter the shipping provider (USPS, UPS, FedEx, etc.) that will pre-prompt in the ‘Ship Via’ field during Purchase Order Entry. Enter “BEST” or leave the field blank if you do not want to enter a specific career.

A shipping provider can be set up for each vendor in Vendor P/O Address Maintenance (04-51). The entry in the ‘Ship Via’ field of that selection overrides the entry for this preference.

Normal Receiving
Location
Enter the branch that will pre-prompt in the ‘Enter Branch ID’ field during Purchase Order Entry.

If you have a central warehouse, you might want to enter that location for this preference.

Entry Print – Audit
Report?
If Y, the system requires you to print the P/O Audit (04-02) before receiving any items on the Purchase Order.

If N, printing of the Audit is not allowed.

Entry Print – Vendor’s Copy?
If Y, the system requires you to print the Vendor’s Copy (04-03) before receiving any items on the Purchase Order. Print this report if you want to send a copy of the P/O to the Vendor or require an
additional copy for your own use. This copy can have P/O Cost or NO cost printed.

If N, printing of the Vendor’s Copy is not allowed.

Entry Print – Warehouse Copy?
If Y, the system requires you to print the Warehouse Copy (04-04) before receiving any items on the Purchase Order. Print this report for use by the Receiving Department.

If N, printing of the Warehouse Copy is not allowed.

Print Post Receiving Labels
Enter Y to print labels for received items.

Enter Locator Locations During P/O Receiving Entry?
Enter Y if you want to assign valid locations (or accept the prompted ‘RD’) at the time of Purchase Order Receiving.

Enter N if you want to accept the prompted ‘RD’ for all locators.

Calculate Duty On Freight For Foreign Vendors?
(Y/N)

Enter Y if you have Foreign Vendors and need freight to carry a cost for duty calculation.

Enter N if you do not have any Foreign Vendors or do not need to calculate duty to include the cost of freight.

Screen 2

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The following eight preferences are added to or subtracted from the PO Cost to calculate the ‘Net Cost’ field of P/O Entry and Maintenance.

Preference
Description

Indicate which of the following items are to be included in computing the cost of Inventory items (the ‘Net Cost’ field of Purchase Order Entry):

+ Freight **
(Y/N)

Enter Y and the system adds the amount in Field 23 in Inventory Master Inq/Maint to the PO Cost. If there is no amount in Field 23, the percentage in the ‘Freight Percent’ field in A/P Vendor Master (11-30) is multiplied by the PO Cost and then the result is added to the PO Cost.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Rebates, Co-Ops, Discounts and Funds described in this section.)

– Accrued Rebates
(Y/N)

Enter Y and the system multiplies the percentage in the ‘R1’ field (on the PO detail line) by the PO Cost and the result is then subtracted from the PO Cost. If a dollar amount was entered in the ‘R1’ field instead of an Accrued Rebate percentage, that dollar amount is subtracted from the PO Cost.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

– DFI Rebates
(Y/N)

Enter Y and the system multiplies the percentage in the ‘R2’ field (on the PO detail line) by the PO Cost and the result is then subtracted from the PO Cost. If a dollar amount was entered in the ‘R2’ field instead of a DFI Rebate percentage, that dollar amount is subtracted from the PO Cost.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

– Accrued Co-Op
(Y/N)

Enter Y and the system multiplies the percentage in the ‘C1’ field (on the PO detail line) by the PO Cost and the result is then subtracted from the PO Cost. If a dollar amount was entered in the ‘C1’ field instead of an Accrued Co-Op percentage, that dollar amount is subtracted from the PO Cost.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

– DFI Co-Op
(Y/N)

Enter Y and the system multiplies the percentage in the ‘C2’ field (on the PO detail line) by the PO Cost and the result is then subtracted from the PO Cost. If a dollar amount was entered in the ‘C2’ field instead of a DFI Co-Op percentage, that dollar amount is subtracted from the PO Cost.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

– Payment Discount
(Y/N)

Enter Y and if discount terms for the P/O have been entered, they are used, along with the discount preferences entered on Screen 4 of this selection, to calculate the Payment Discount. The resulting Payment Discount is then subtracted from the PO Cost.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

– Key City Funds
(Y/N)

Enter Y and the system multiplies the percentage in the ‘D1’ field (on the PO detail line) by the PO Cost and the result is then subtracted from the PO Cost. If a dollar amount was entered in the ‘D1’ field instead of a Key City Fund percentage, that dollar amount is subtracted from the PO COST.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

– Market Dev Funds
(Y/N)

Enter Y and the system multiplies the percentage in the ‘D2’ field (on the PO detail line) by the PO Cost and the result is then subtracted from the PO Cost. If a dollar amount was entered in the ‘D2’ field instead of a Market Dev Fund percentage, that dollar amount is subtracted from the PO COST.

Enter N and the selection uses the PO Cost as the Net Cost (after adding or subtracting the Freight, Rebates, Co-Ops, Discounts and Funds described in this section.)

Automatically Interface
‘DFI’ Amounts
(Y/N)

Enter Y to automatically interface the DFI amounts. When the PO-AP Audit/Update selection (04-21) is run, if DFI amounts are to be interfaced automatically, no DFI Register is printed and the amounts are automatically written to the Accounts Payable Detail file as credit memos.

Enter N if DFI amounts are not automatically interfaced. When the PO-AP Audit/Update selection is run, a DFI register is printed for any adjustments that need to be made through A/P Invoice Entry (11-01).

Re-Calculate Net Cost
When P/O Cost Modified
In P/O Maint.
(Y/N)

Enter Y and the system re-calculates the Net Cost when the PO Cost is modified in P/O Maintenance (04-50).

Enter N and the Net Cost remains the same regardless of PO cost modification.

Screen 3

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Inventory Cost Interfaces

2. Revise ‘Vendor Price’ with the ‘Net Cost’ Field using the Weighted Average Method
With this option, the Purchase Order application automatically adjusts the cost of inventory items using the weighted average method. Extreme care must be exercised in using this option. The item quantity onhand must be accurate for this option to correctly adjust the cost of inventory.

Example of Weighted Average:
A Purchase Order is being received with 2 of the same item at $110.00. Inventory system has 10 onhand valued at $100.00 each. The system computes the new Weighted Average value by first computing the total value onhand before the new items come in, which in our example is $1,000.00. Then the system computes the total value of incoming goods, which is $220.00. It adds the totals together to get the new value of all items onhand, which in this example is $1,220.00. It then divides the grand total by the total quantity onhand, and the result is a new Weighted Average inventory cost.

The formula for this example is as follows:
{(10 x $100.00) + (2 x $110.00)} / (10 + 2) =
$101.67

As you can see, the quantity onhand plays a very important role in changing the cost of inventory items. Because of this, it is imperative that inventory quantitiesPurchase Orders 295 are accurate. If they are not, choose Option 3 (Manual Change ‘Vendor Price’) and then switch to Selection 2 when the quantities are accurate.

3. Manual Change ‘Vendor Price’ (No Interface)
With this option, the cost of goods in Inventory is not modified by Purchase Order Update. Instead, Field 13 in Inventory Master Inq/Maint (03-01) must be updated manually.

You should choose this option if your company is not using the Weighted Average Method of Inventory Valuation.

IMPORTANT: This option must be used until a full physical inventory is taken.

4. Revise ‘Vendor Price’ with the ‘Net Cost’ Filed using the Weighted Average Method also Adjust ‘Unit Cost’ to maintain the same relationship to ‘Vendor Price’
With this option, the system automatically adjusts the cost of inventory items using the Weighted Average Method (discussed in Option 2). Additionally, the Unit Cost is automatically adjusted to maintain the same relationship (with the Vendor Cost) that existed between original Unit Cost and Vendor Price.

IMPORTANT: Once this option is selected, you cannot change back to Option 3 (Manual Change ‘Vendor Price).

Preference
Description

Have P/O Receiving Update Automatically Maintain Field 15 (Last P/O Cost) in the Inventory Master File?
If Y, the system maintains the Last P/O Cost for items received at the time of P/O Receiving Update (04-12).

Screen 4

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Vendor Code Maintenance/Input.
NOTE: This screen only displays if the ‘Payment Discount’ field was set to Y on Screen 2.

It is used to specify the A/P Account Types that will post to the Inventory Income G/L Account (as opposed to the ‘Regular’ Income G/L Account) during A/P Disbursement Update (11-12). Remember that Inventory Income G/L Accounts are set up in Auto I/F Post Acc Entry (15-14) as Source ‘DSM’, Division ’00.’

The Account Type for a Vendor is set up in the ‘Type’ field of A/P Vendor Maintenance (11-30, Second Screen).

Examples of Vendor Types include:

  • A – Audio
  • V – Video
  • S – Service
  • R – Rent
  • L -Loan
  • U – Utility
  • F – Freight
  • M – Merchandise
  • O- Other

Specifying the A/P Account Types on this screen prevents the discounts for Merchandise Vendors from being posted to the same account as discounts for Non-Merchandise Vendors.

EXAMPLE: If the Vendor Type ‘M’ is set up on this screen, during A/P Disbursements Update (11-12), the discount for any Type ‘M’ vendor will post to the Inventory Income G/L Account. If Type ‘M’ was not set up on this screen, the discount would post to the ‘Regular’ Income G/L Account (Source ‘DIS’, Division ’00).

To set up the Vendor Types on this screen:

  1. Enter “A” at the prompt.

  1. Enter up to 30 Vendor Types (A, V, S, R, etc.) without commas or spaces.

  1. Enter “C” at the prompt to change Vendor Types that were already set up.

Screen 5

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The following options are used to specify whether the calculation of the Payment Discount is based full PO Cost or the PO Cost minus DFI Amounts. Additionally, you can choose whether Accruals should be calculated on the full PO Cost or the PO Cost minus the DFI Amounts and/or the Payment Discount.

Preference
Description

Indicate which of the following items are to be deducted from the P/O Cost before calculating the Payment Discount.

-DFI Rebates
(Y/N)

If Y, DFI Rebates are deducted from P/O Cost before calculating the payment discount.

If N, DFI Rebates are deducted from P/O Cost after calculating the payment discount.

-DFI Co-Op
(Y/N)

If Y, DFI Co-Op are deducted from P/O Cost before calculating the payment discount.

If N, DFI Co-Op are deducted from P/O Cost after calculating the payment discount.

Indicate which of the following items are to be deducted from the P/O Cost before calculating the Accruals.

-DFI Rebates
(Y/N)

If Y, DFI Rebates are deducted from P/O Cost before calculating the accruals.

If N, DFI Rebates are deducted from P/O Cost after calculating the accruals.

-DFI Co-Op
(Y/N)

If Y, DFI Co-Op are deducted from P/O Cost before calculating the accruals.

If N, DFI Co-Op are deducted from P/O Cost after calculating the accruals.

-Payment Discounts
(Y/N)

If Y, Payment Discounts are deducted from P/O Cost beforecalculating the accruals.

If N, Payment Discounts are deducted from P/O Cost after calculating the accruals.

Preference
Description

Recalculate DFI and ACCRUALS When Invoice Amount Is Changed?
(Y/N)

If Y, the DFI and Accrual amounts are recalculated when the ‘Total’field is changed in P/O-A/P Entry (04-20). The percentages in Fields 12-17 in Vendor Master (11-30) are used for the recalculation.

If N, the DFI and Accrual amounts need to be manually recalculated when the Total field is changed in P/O-A/P Entry.

Retain Remaining Balance In P/O To A/P When Invoice Modified?
(Y/N)

If Y, a running total is kept in Received Not Invoiced (4-44) when the amount in the ‘Total’ field is changed in P/O-A/P Entry (4-20). The total is kept until the remaining balance amount is invoiced or manually removed through P/O-A/P Entry (by entering “Delete” in the Invoice field).

If N, a running total is not kept in Received Not Invoiced when the amount in the ‘Total’ field is changed in P/O-A/P Entry.

NOTE: If this flag is set to ‘N’ and multiple invoices are entered for the same purchase order number in PO – AP Entry (04-20), only the last invoice number will appear in Receiving History (04-45), after PO – AP Audit / Update (04-21) has been run. If this flag is set to ‘Y’, all the invoice numbers entered will appear in Receiving History.

Screen 6

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Preference
Description

Selection of various reports to print during Purchase Order Receiving Audit, relative to items received:

1. Packing Sheets for all Automatic Special Order O/P Orders?
(Y/N)

Enter Y to print the Packing Sheet, which lists all customer orders from Order Processing that are attached to a Purchase Order (via Automatic Special Order) that was just received.

This packing sheet is the same as the one that prints through Picking/Packing Sheets Print (02-08-10).

Once the packing sheet is printed, the status of the OP order is changed to ‘1’. If the ‘Print Delivery Labels’
preference is set to Y in OP Routing Preferences (02-08-90-02) the Delivery Label file is also built.

2. Report of all O/P orders with a generation greater than 0?
(Y/N)

Enter Y to print customer orders from Order Processing, which are not attached to a Purchase Order, that contain backordered items that were just received (at the same branch) on a Purchase Order.

3. Report of all O/P orders?
(Y/N)

This will print all DD’s and SO’s which have on their order any items just received.

4. Report of all Transfers?
(Y/N)

This will print items just received that are on a transfer request to another branch.

5. Report of all Customer Service Orders?
(Y/N)

This will print items just received that are on a Customer’s Workorder.

6. Report of all O/P Orders w/unfilled Locator items (w/Delivery Dates)?
(Y/N)

This will print items just received that are on a customer’s order which do not have a pre-designated locator number assigned and the orders have a valid delivery date.

7. Release to unattached orders?
(Y/N/A)

This selection controls the release of purchase orders to unattached orders.

Y – Will always release the PO to unattached orders.
N – Will never release.
A – Will ask the operator every time.

If you set the flag to ‘N’ the purchase order can still be released through selection 4-06 if licensed.

8. Update unit cost in vendor price protection?
(Y/N)

Y – Automatically updates the unit cost in 3-1 after the update has been completed in 4-31.

N – Will not automatically update the unit cost in 3-1.

9. Update Attached Serial #’s to order processing?
(Y/N)

Y – Updates order processing with the received serial numbers for attached orders.

N – Received serial numbers will not update to order processing.

10. RF – Disallow Scan of Barcode When Invalid Item # is Entered?
(Y/N)

If Y, you will not be able to associate a barcode with an item number during RF P/O Receiving when an invalid item number or barcode is initially entered.

NOTE: This prevents you from accidentally associating the wrong bar code with an item during the RF P/O Receiving process.

If N, the system will allow you to associate a barcode with an item number during RF P/O Receiving when an invalid item number or barcode is initially entered.

Please see the P/O Receiving section of the RF Processing documentation for more information.

Screen 7

The Vendor Copy and Warehouse Copy of the Purchase Order is now printed using GUI printing. In 21.500, a laser printer is required to print the Vendor and Warehouse Copy. Please note that no logos are printed on these audits and they are no longer viewable in a spooler.

Click image to enlarge.

Preference
Description

Font Name
The default is Verdana. You can change it, but do so with caution. If the PC attached to the printer does not have the font or the font name is spelled differently (it’s case-sensitive) there will problems with the invoice print.

If you notice that the font is printing too large or too small on the invoice or that the character spacing is too wide or too narrow, try adjusting the Font Scaler.

You can also try changing the Font Adj preferences on the Convergence setup screen. Please refer to the Convergence setup section of this document for more information.

Font Scaler
The font scaler makes all of the text on the invoice proportionally smaller or larger.

The default setting is 80% (for the Verdana font). You may need to adjust this setting to work with your system.

Leave extra room at bottom
This is the amount of white space that appears at the bottom of the page. Select None, Half Inch, or Quarter Inch.

Print Company Name
Check this box to print the company name.

Company Address
Check this box to print the company address in the upper left area of the invoice.

If you are using a logo on the invoice or using paper with your company name already printed on it, leave this box unchecked (the logo and company address print in the same place).

Print Bill To name
Prints the PO Bill To name in the upper left area of the invoice.

NOTE: You cannot print both the company name and bill to name on the invoice. You can print one or the other or choose to print no name on the invoice.

NOTE: This field is not available in the pre-release of 21.500.

Print Bill To address
Prints the PO Bill To address in the upper left area of the invoice.

NOTE: You cannot print both the company address and bill to address on the invoice. You can print one or the other or choose to print no name on the invoice.

NOTE: This field is not available in the pre-release of 21.500.

Print Terms
Prints the payment terms of the PO in the top center area of the invoice

Print Discount
Prints the discount information for the PO in the top center area of the invoice.

Turn Shading Off
Check this box to remove the gray shading from the printed page. Shading provides additional contrast, making the text on a page easier to read.

Print Vendor Phone
Check this box to print the vendor’s phone number.

PDF File prints
One file for each PO
One file for each run
Always Ask
When printing the Vendor’s Copy or Warehouse Copy to a PDF File and there is more than one purchase order in the run, you can choose to combine all purchase orders into single PDF file or create a separate PDF file for each purchase order. Select one of the following options:

Select ‘One file for each PO’ and a separate PDF file will be created for each purchase order in the Vendor’s Copy or Warehouse Copy run.

Select ‘One file for each run’ and all POs in the Vendor Copy or Warehouse Copy run will be combined into a single PDF file.

Select ‘Always ask’ and each time the Vendor’s Copy and Warehouse Copy is printed (and there is more than one purchase order in the run) the system will ask you if you want to combine all purchase orders into a single PDF file or create a separate PDF file for each purchase order.

Print Field 27+Extended Field 1
Check this box to print the entries in Field 27 and Extended Field 1 (from Inventory Master Inq/Maint (03-01)) on the Vendor and Warehouse Copy. The entries print directly below the item description

Print Extended Field 2+4
Check this box to print the entries in Extended Field 2 and Extended Field 4 (from Inventory Master Inq/Maint (03-01)) on the Vendor and Warehouse Copy. The entries print below the item description

Do NOT print 2nd Desc
Check this box and an item’s second description does not print on the Vendor and Warehouse Copy.

Uncheck this box to include the second description.

Print Customer ID on attached orders
(Warehouse Copy)
Check this box and if the PO is attached to a customer order (in Order Processing), the customer number prints on Warehouse Copy.

Print Customer Name on attached orders
(Warehouse Copy)
Prints a barcode of the Purchase Order Number on the Warehouse copy.

Print Field 27 as Mfg Sku
(Warehouse Copy)
Check this box and the entry in Field 27 of Inventory Master Inq/Maint (03-01) will print as the MFG SKU on the Warehouse Copy. The MFG SKU prints to the left of the item description.

If this box is unchecked, the entry in Field 26 of Inventory Inq/Maint will print as the MFG SKU.

No Prices
(Warehouse Copy)
Check this box to exclude prices from the Warehouse Copy.

Print ‘Accepted by’ Line
(Vendor Copy)
Prints ‘Accepted by’ (with a blank line) on the Vendor copy to allow the signature of the person accepting it.

Print Discounts and Rebates
(Vendor Copy)
Prints any discount and/or rebate amounts entered in the ‘C1’, ‘C2’, ‘R1’, ‘R2’, ‘D1’, and/or ‘D2’ fields on the PO. This information prints below the item description on the Vendor’s Copy.

Print Customer Name and Order #
(Vendor Copy)
Check this box and when a purchase order linr is attached to a line on an open Order Processing order, the customer’s name and OP Order # will print below the item description on the Vendor’s Copy.

Print Field 27 as MFG Sku
(Vendor Copy)
Check this box and the entry in Field 27 of Inventory Master Inq/Maint (03-01) will print as the MFG SKU on the Vendor Copy. The MFG SKU prints to the left of the item description.

If this box is unchecked, the entry in Field 26 of Inventory Inq/Maint will print as the MFG SKU.

Print Brand on Line
(Vendor Copy)
Prints a ‘Brand’ column (to the right of the ‘Description’ column) that displays the Brand of each item on the PO.

If the box is unchecked, the ‘Brand’ column does not appear on the Vendor Copy.

Print ‘ATTN’ Line
(Vendor Copy)
Check this box and the entry in the ‘Attention To’ field of Vendor Master (11-30) prints in the ‘Ordered From’ box on the Vendor Copy (above the Vendor Name).
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