Purchase Transactions

Purpose

A Purchase Order is a request for items or services from a vendor. It indicates from whom you are ordering, what items/services are being ordered, etc. A number of other fields give additional miscellaneous information. A Purchase Order is also used to update quantities of items on order.

 

Usage

1. Select a vendor, date, and document number.

Use the lookup to pull up an existing vendor. When you select a vendor, the remit address and shipping address are automatically filled in.

The date is defaulted to whatever date you picked at program startup. You can change this either by typing in a new date or by using the calendar lookup.

The document number is located on the upper right part of the form. This is a unique, required identification number that is used by Integral Accounting to keep track of purchase orders. You can change this value to whatever you wish, as long as the new number has not been used on another transaction. The last number used is displayed for your reference.

The document number really works in two different ways:

If you have already changed some information on the form, this number is used as the unique ID number for the transaction you are currently editing.

If there is no changed information on the form or if this is a new form, changing the document number will pull up the information for the transaction with that number. If no transaction exists with that number, then Integral Accounting will create a new transaction.

2. Enter items and quantities.

Select an item in the grid, and then select the quantity. Do this for each item that will appear in the transaction. You can then edit the other miscellaneous parts of the grid.

Item - this is the item you are purchasing. Select it either by typing in an Item ID or by using the lookup. Once you have selected the item it will fill the rest of the required information into the grid for you. It will fill in the description and default to a quantity of one, also filling in Units and Price.

Quantity - select a quantity. Quantity refers to the number of Units of the item ordered. For example, assume you are ordering paper. In the item card for paper you have set up some price break levels, one of which is Ream. If you select Ream in the Units field of the grid, and then select 5 for the Quantity, then you are ordering 5 Reams of Paper.

Description - this is a the description of the item from the inventory card. You can edit the description by clicking directly in the description field and changing it.

Account - this is the account which will be used to track the inventory item. Either type in an account number or use the lookup to select from your chart of accounts.

Units - this field will be automatically filled in with the correct unit for the item, whether it be Each, Dozen, Case, Quire, etc. If you wish, you can change the Units field, either by typing in a unit name or by selecting it from the drop down list that appears when you click in the Units field. This list comes from any Pricing structures you may have set up when you created the item.

Project - if you are buying these items for a particular project, select that project in this field.

Unit Cost - this specifies how much the vendor is charging you for each unit of the item. Fill this in from the vendor's price sheet, or whatever list of such information you may have from the vendor.

Total - this is calculated by multiplying the Qty by the Price. This is the total that will be billed to you for that particular row of the grid.

3. Edit miscellaneous information

This information is located in the middle of the form, above the grid.

Vendor Invoice Number - this is the number or code on the invoice sent to you by the vendor. This is a required field, and its value must be unique.

Shipping Method - this is to declare how the order will be shipped to you, whether it be by air express, the U.S. Postal Service, next day delivery, etc. You can select the shipping method from the drop down list provided by clicking on the arrow on the right side of the box. For information on editing the available shipping methods, see Lists -- Shipping Methods.

Ordered By - this field is for keeping track of which of your employees ordered which items from which vendors. Select the employee from the drop down list.

Payment Terms - select the Payment Terms from the drop down list. The source for this is the list you created when setting up your company. Payment Terms declare what sort grace periods your vendor is allowing you. For more information on creating and editing these see Lists -- Payment Terms.

Date Requested - This is the date by which you want the indicated item(s) to arrive.

4. Check the totals.

Subtotal - this is a fixed field (hence the gray color). You cannot directly change the information in it. Instead, the information is calculated by adding up the prices of all the items on the order.

Discount - In the Discount field enter a percentage. The entire order is then discounted by that percentage. This is then subtracted from the subtotal.

Miscellaneous Charges - in this field fill in other charges that may not have been provided for by Integral Accounting. For example, you might put tax amounts in this field. Either enter an amount or a percentage.

Freight - this is the amount the vendor is charging to ship the items to you. Fill in the correct value and it will be added to the total.

Total - Total is another nonenterable field, and represents the amount for which you will be billed the amount due to the vendor.

5. Convert.

A purchase order can not be posted. You can only Save it or Convert it. If you save it, it is placed in Integral Accounting records for later review. If you later want to receive items against that purchase order, you can call it up using the document number lookup and then click Clone and change the cloned record to type receiving. This will convert the purchase order into a receiving which, after editing, you can then post. If you wish to delete the PO, do not clone it but just change the type of the existing PO to a receiving. We recommend the latter so that your inventory Quantities on Order will be correct and up to date, and so that the system will not become filled with hundreds of old purchase orders.

Special Notes on RMA's:

RMA's are used to return merchandise to a vendor and relieve inventory. An RMA can be credited to the vendor account like a credit memo or posted like a cash return and immediately debit your cash account.

RMA Number: Required for posting

RMA Date: Date merchandise returned

Returned By: Salesperson who returned merchandise

Check Number: Required only if you entered a refund amount in the Refund Amount box above. Refunds may be credited to Bank Accounts (Refund check in hand) or Credit Card Accounts (If Paid on Credit Card)

Balance Due must be zero (ie: refund must be for full amount) in order to Post

Restocking Charges: Always entered as negative; this amount reduces the amount of your refund.