Purchase Orders allow us to Order and Receive both Stock and Customer Orders.
When you select the Purchase Order option in the Items menu, the system first takes you to a Purchase Order Browse screen where you can see purchase orders already in the system. By default it shows the current purchase orders, you can change the criteria and search by various options. You can edit an existing purchase order, or create a new one.
Customer Orders are items that customers are ordering from you. They can be included in your Purchase Orders
Creating a Purchase Order
Create a Purchase Order by selecting Items / Orders / New, and then confirm the Supplier Name. Note: If the Supplier has an outstanding purchase order in the list, you can select it first to make it the default Contact.
When you create a new Purchase Order it is initially blank.
You can add lines manually by simply entering the part numbers. If you enter a part number that does not exist you have an option to create a new stock item. The system can also check the Price Files to help enter details when creating a new stock item.
You can add lines automatically by selecting 'Auto-Add' from the left menu. You can Auto-Add Customer Orders or stock items that meet a re-order criteria.
You can Auto-Add customer orders by selecting the Customer Orders option. This will add any 'Provisional' customer orders that have that supplier set.
You can Auto-Add stock items based on:
- Supplier – You can have any number of suppliers for any item and you can set different supplier part numbers and pack quantities for each supplier.
- Selected Brands – You can select specific Brands.
- Selected Categories – You can select specific Categories.
The stock ordering criteria can be based on:
- Minimum and Optimum quantity - So if the minimum quantity was 3 and the optimum quantity was 5. If the stock quantity was 3 it would not order anything. If it was 2 it would order 3 to bring it up to the optimum of 5. If it was 0 it would order 5.
- Past sales history - So if we set the dates to the same quarter last year (To get Seasonal figures). It would then work how many were sold in that period (say 12), it would then calculate per month (12 / 3 = 4). If we then said we would want to keep 1.5 months stock it would be adjusted to (4 * 1.5 = 6). If we had 2 in stock it would order 4 to bring us up to 6.
You can also set to add lines to a 'Held' purchase order in the Sales 'Edit' screen set to include or exclude customer orders.
The Cost price on a Purchase Order is normally the Supplier Last Cost (in Stock Items under the Suppliers tab), if that is zero then it will use the Last Cost field (in Stock Items under the Inventory tab), and if that is zero (or more than 5.00 different) then it will use the main (averaged) cost price.
Holding a Purchase Order
Holding a purchase order allows you to save the purchase order but without marking the order as ORDERED.
Placing a Purchase Order
Click the order button to place a purchase order.
When the Purchase Order is saved it brings up a Print Confirmation screen. From here you can select various options:
- Print – Displays the Default printer and Form. You can change if required
- Email – the purchase order will be emailed to the Supplier email address
- File - The purchase order details can be written to a File. Evopos supports many different formats of Electronic Ordering (EDI)
For more information on Electronic Ordering files (EDI) see: Other 3rd Party Linking
If you do want to Print (or select any other of these options), you can select Cancel from the left menu (The Order will still be saved)
Most users would create the purchase order first (and use it for ordering) and then recall it and mark Received when the order is delivered. However it is possible to create and receive a purchase order at the same time if required.
When the parts on the Purchase order are supplied we can bring up the Purchase Order and just mark which line have or have not been received by confirming the quantity in the Received column. You may find it quicker to select Auto Receive from the left menu to mark all the lines received, and then change the ones that did not arrive (if applicable).
Defaults for Purchase Orders
You can set common defaults for each supplier in the Purchase Tab of the Contacts record. This includes:
- Supplier Account Reference – This is the Account number your supplier gives to you
- Number of days the supplier normally takes to supply - This is used to set the ETA date on each line of a purchase order. You can edit this as you become aware of any changes to the ETA
- Custom Message – You can set a message specific to that supplier. It could be for Delivery instructions or any common conditions. You can over-write this on the the actual Purchase Order
- Default Order type - You can set the default to one of the following options:
- Supply or Back order Urgent
- Supply or Cancel Urgent
- Supply or Back order Normal
- Supply or Cancel Normal
- Supply or Back order Urgent
Purchase Order Header can have the following Status:
- Partial Received
Each Purchase Order Line can have the following Status:
Each Customer Order Line can have the following Status:
Receiving a Purchase Order
To you receive goods you would bring up the purchase order (or create a new one) and set the Received Qty to the quantity being received. You can select Auto Receive on the left menu to mark all lines as being received.
Note: You can create a purchase order and receive it in one go.
When you have marked one or more line as Received and select Save, it will first give you the option to re-print or export the Purchase Order
It will then bring up a screen where you can enter details relating to the goods being received.
- Update Retail Option - Options: Update with No Prompt, Prompt if Different, No Update. If Updated the main Retail is set to the Retail amount on the Purchase Order line (if you have edited it)
- Supplier Inv/Ref - The Supplier Invoice Number or a Reference if you only have a Delivery note
- Date Received - The Date the good were actually received
- Other Costs - This is for Other Costs not being invoiced by that supplier at that time. For example there could be separate Shipping costs.
- Update Cost in Stock File - This option will update the main cost price with the Average Unit Cost, so that if we had 2 @ 13.00 already in stock and you received another 2 @ 14.00 then the system would calculate you had 4 @ an average cost of 13.50. The Freight plus the Other Costs (As above) are split pro-rata against all the items being received.
- Update Cost in Price Books - This option will update the cost price in all suppliers price book with a matching Part Number
- Create Purchase Transaction - This will create a Purchase Transaction for the goods being received. You can confirm amounts and if Paid on later screens.
Confirm details and then select Receive from the left menu
If there are any new units being received it should bring up a screen where you can confirm VIN numbers, colours, prices and engine numbers for each unit. If this screen does not come up, then check the stock item and ensure the Type is set to New Unit and the Model is set to a valid Model Template.
The actual Cost price confirmed is always updated in the stock item in the Last Cost field (under Inventory tab) and the Supplier Last Cost field (under Suppliers tab). Note This is the actual price and NOT to the averaged cost price
If a line is a Customer Order it will:
- Check if it is on a current Sales Order and prompt to update prices if different
- Check if it is on a current Job and prompt to update if prices different
Evopos will then display a Goods Received Note and give you the option to print it. We recommend printing the Goods Received Note and physically matching it up to the supplier invoice, so you would know that the items have been received before you enter / pay the purchase transaction. Note: If the totals are different you may need to amend the cost price of the appropriate stock items to ensure the stock value is correct. If the item was Invoiced profit figures are correct.
Depending on your Label settings you may then get an option to print Labels for the received stock. Stock items would have a Stock Label, customer orders would have a special customer order label with the customer details Name and Phone Number).
Deleting a line
To remove/delete a line from a purchase order:
- Select the line by clicking on the grey box on the far left of the row
- Press the delete key on your keyboard
- Confirm to delete the line
If you are removing a customer order, it will set the customer order back to provisional.
Reversing a Purchase Order
To reverse a purchase order we need to create another order to credit the original.
You can do this by:
- Creating a new purchase order for the same supplier
- Clicking the options button
- Choosing the Credit Purchase Order option
- Select the purchase order you want to credit from the drop down
- Check the reverse quantities tick box
- Click OK
- This will import the lines into the current purchase order with reversed quantities
- You can then receive the purchase order which will adjust your items
Often you will want to sell individual quantities of an item, but when ordering from a supplier you need to order in Packs. Evopos allows you to have different purchase pack quantities for different suppliers even on the same item.
The main thing supplier pack quantities do is when you print a purchase order is it divides the quantity by the pack qty so if ordering 200 and a pack qty of 100 it says 2 x Widget (100 Pack). However, it will say the individual quantities on the purchase order screen.
The other thing it does is round the quantity up to the nearest pack qty so if the order criteria said to order 183 it will round it up to 200
Evopos handles this automatically, providing you specify the Supplier Pack quantity for each supplier for that item.
You can also set a Sales pack qty which will simply sell the sales Pack Qty by default rather than 1. If there are different prices for different packs you will either need to set in Price Levels or create separate part numbers for each pack and transfer stock between them
Setting Supplier Pack Quantities
- Go to Items, then Stock Items, then select the relevant part number.
- Then, in the Suppliers tab for that item, providing you have a Supplier selected, you will see a field which says Buy Pack Quantity. Here you can add the amount in the pack (E.g. 100 as discussed above).
- Note: You need to set the Optimum and Minimum Stock Qty's based on the individual quantities, not the pack quantities. The purchase order quantity will round up to the nearest pack quantity so if the pack quantity was 100 and you set the optimum Qty to 20 it would round it up to 100. If you always wanted to end up with 5 packs after you placed an order you would set the Optimum Qty to 500. This will ensure full packs will always be printed on the Purchase Order.
Ordering and Receiving Packs
- The purchase order screen will always show the individual units of the item. When using Auto-Add to add items the system should automatically round up to the nearest multiple of the Pack Quantity. There is also a note in the description which says (Pack: 100).
- When you print/export the Purchase Order, the quantity will show as the number of packs required, not the number of individual items. For example 2 x Widget (100 Pack).
- If you don't want the Purchase Order to display single pack quantities, you will need to use the report named.
- This will display the individual item quantity (E.g. 100) and not the single pack quantity.
- Once the packs arrive and you receive them into stock, you will use the individual units again for example if the order printed 2 x Widget (100 Pack) you would receive 200.