The Purchase Order is the primary data entry document for purchasing and controlling stock acquisition. This document enables the user to create a new Purchase Order, or search for an existing Purchase Order. Purchase Order processing usually involves phases 2, 3, and 4.
1. Purchase Quotation - Price Request 2. Purchase Order - Data entry 3. Goods Received - Review 4. Purchase Invoice - Accounting entries
Reports > Status > Purchase Orders: To view open (un-received or un-invoiced) Purchase Orders. Reports > Creditor > Aged Trial Balance, Show Detail: To view un-paid Purchase Invoices.
Purchase Order document
- The Purchase Order may be emailed to a supplier for the order to be filled. - The Purchase Order can be made to reflect exactly what is purchased before it is progressed to the Goods Received document. - The Goods Received document can be edited to refelect actual goods received, (in the event it differs from the Purchase Order), before progressing to Purchase Invoice. - There are no accounting entries until the order reaches the Purchase Invoice phase. - A Purchase Order can be left open and unprocessed for an indefinite period of time. - 'Cancel' from the ribbon is used by the operator to cancel a Purchase Order, should the need arise. As a further step (not essential), the operator may wish to delete the actual Order No, by clicking 'Delete' with the caret in the Order No field.
Name Key
Right Mouse click, or F12, to select an established Creditor.
Order No
Striking ENTER to pass through the Order No field will allocate a unique incremental Order No. It is permissable to key an Order Number manually, or enter an additional order number in the Cust Order No field. To find an existing order number, right click to search.
Purchase Order Body
Enter Items and Products to be ordered in the body of the Purchase Order.
Delivery Key will populate Ship To Address.
An Alternative Delivery Key, Name and Address, may be selected.
Ship To may be manually edited.
Number of Items to be ordered.
Select the Product Code. ENTER or TAB will add the details the Product.
Price is the Current Cost of the Product defined in the Stock Account. Price can be over-written in the Purchase Order. Invoiced purchase price for a product will update current Cost in the Stock Account.
Displays the number of items to be received on the NEXT 'Goods Recieved' document.
Registered / Un-registered (purchase) optional
10 Items un-registered. Clicking the '*Register' button will update the Stock Account and remove this figure. See next page for more detail.
Altering the price column will dynamically adjust the extension. If the extention is altered, click 'Calc Price' from the ribbon to adjust the price.
Typically a Purchase Order will be associated with the INVENTORY Ledger. However, for non-inventory related purchases, it is permitted to purchase goods and services at cost directly to TRADING or WIP accounts. Where each line of a order needs to be associated to a different Ledger accounts, Documents > Purchase > Job Order provides this facility. The Creditor Posting document can alternative be used to record the purchase of business overheads, usually to trading accounts.
'*Register' from the ribbon is a non-essential option, not compulsory. It may be used where it is likely that a Purchase Order would remain open / un-processed for a period of time and the user wishes to update the Stock Account.
Register Suppliers Orders
- This figure shows Items within a Purchase Order, currently un-registered. That is, the Suppliers Orders field in the Stock Account is not yet updated. - '*Register' from the ribbon will update the un-registered figure in Purchase Order. Often resulting in un-registered becoming blank / zero (until such time as further items are added to the Purchase Order, which would be new additions and un-registered). - '*Register' from the ribbon will update the Suppliers Orders field in the Stock Account to reflect the Items as on order in relation to the Purchase Order document. Ship Date in the Purchase Order is used to populate Due Date in the Stock Account when using the '*Register' button. - 'Cancel' from the ribbon of the Purchase order will reverse any Items registered.
Example: 0 Items currently in Stock Account
Stock
Available For Sale
Uninvoiced Quantity
Suppliers Orders
Due Date
Uninvoiced
Purchase Order
0
0
0
0
-
0
Purchase Order + Register
0
0
0
10
Ship Date
0
Purchase Order + Goods Received
10
10
10
0
-
10
Purchase Invoice
10
10
0
0
-
0
'*Register' updates the Stock Account
Page 3 Purchase Order
'*Receive Goods' from the Purchase Order Ribbon
- Typically, when the goods along with the suppliers invoice are physically in the possession of the LILAC user, the Purchase Order is progressed to the Goods Received document phase by clicking '*Receive Goods'. - '*Receive Goods', as well as progressing to the Goods Received document, places Purchase Order quantities into the Stock Account fields: • Stock - Items are received and in stock. • Available for Sale - Items are received and available for sale. • Uninvoiced Qty - Goods Received quantities are currently uninvoiced. • Uninvoiced - Goods Received quantities are currently uninvoiced. • Suppliers Orders - Are removed from the Stock Account that may have resulted from a previous '*Register'. The order is now received, and no longer on order.
Goods Received is an internal document which may act as a packing slip. The Goods Received document allows the user to review (and adjust if necessary). Ideally Price, Extension, and GST are accurate, in preparation for the generation of the Purchase Invoice.
'*Receive Goods' updates the Stock Account
'Invoice >' from Goods Receieved Ribbon
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A closed accounting record is now created in the LILAC database. Purchase Invoices are retrieved by Supplier and Invoice No key.
To pay an invoice go to: Documents > Creditor > Payment.
The Purchase Invoice is predominantly for internal purposes. It creates the accounting entries, and will mark the Goods Received document as closed.
The corresponding Purchase Order will be marked as Received and Invoiced.
'Invoice >' updates the Stock Account
Creditor Payment
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Purchase to Inventory Account (Default)
Purchase Invoice 123456 - The INVENTORY Account, on the Balance Sheet as a Current Asset, is debited, increased. - The CREDITOR Account, on the Balance Sheet as a Current Liability, is credited, increased. - The GST : PURCHASE Account, on the Balance Sheet as a Current Liability, is debited.
Creditor Payment 000002 - BALANCE : CASH AT BANK is credited. - The CREDITOR Account is debited.
Purchase Order
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Buttons from the ribbon allow sequential Purchase Order Processing
Purchase Order
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Prerequisites: Product records must established in the database at Documents > Stock Account. The supplier that is selling the goods must exist in the database via the Documents > Creditor > Account.
Four Phase Purchasing is available: Purchase Quotation (Price Request) > Purchase Order > Goods Received > Purchase Invoice
Phase I: Purchase Quotation (Price Request). This document would typically be sent to a supplier to request prices or a quotation. This document can be used where necessary as a first step in Purchase Order Processing.
Phase II: The Purchase Order will in most cases be the beginning of Purchase Order Processing. This document may be manually created by the operator (or electronically created by the Stock Control system). A Purchase Order is stored in the database under a two-part key comprising the key for the creditors account for the supplier, and an order number, which may be incrementally allocated by the software, or manually set by the operator.
Generally supplier details, product selections, prices, discounts, etc are established, then printed or emailed for the supplier - address and email details are stored with Creditors Account data.
Phase III takes place when the goods (or services) are physically received. The original Purchase Order is brought back to the screen either with reference to the order number details if provided by the supplier, or by the use of LILAC's database search facilities. The quantities to receive are amended if required, and the Receive button is clicked to create a Goods Received document in the database to reflect the arrival of the goods. This is the stage at which the Stock quantities are increased if the purchase was into the Inventory ledger, so that the goods are seen to be available for resale or internal consumption.
Phase IIII takes place when the Invoice documentation arrives from the supplier with accurate pricing and other financial data such as freight, tax and duty charges. The Goods Received document is brought back to the screen, and any adjustments required to the financial aspects of the purchase are made, the invoice number and date are entered and the Invoice button is clicked. This results in the creation of a Purchase Invoice document in the database to reflect the information provided by the supplier on the actual invoice document. This is the stage at which all appropriate accounting entries are automatically created in the LILAC double-entry, multi-ledger database.
Sales Exec field is not mandatory, but needs to be established at Documents > Parameters > Sales Execs, if the feature is to be used on this document.
The Delivery Key will populate the SHIP TO fields. The Delivery Key is a search only field that corresponds to a Name Address record. This can be established via Documents > Name and Address > Name and Address. SHIP TO instructions can be entered manually within a Purchase Order.
If the Cost Items As Sub Accounts feature setting is not set to = 'Y' in the company data, then Work Centres (Jobs - Work Centres) must exist in the system.
Click the Receive button to record the actual physical receipt of goods. This assumes that a delivery docket or packing slip accompanies the goods, and this quotes the order number permitting the convenient retrieval of the original order document from the database. Failing this use the Search function on the Name Key field to find the supplier, and then the Search function on the Order No field to locate the correct order document. Then fill in the number of units received and click the left mouse button on the Receive button.
Name Key: Type in the suppliers key (or click the right mouse button) and select the key from the list. Order No: Enter past this field to create a new purchase order. Otherwise type in the order number (or click the right mouse button) and select the order number from the list. Date: Type in the date the order was created. If a new order is being created, this field will default to the Working Date. Supplier: Displays the name and address of the supplier.
Purchase Order
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Ship To: Displays the delivery location. Delivery Key: Type in the delivery key (or click the right mouse button) and select the key from the list. This will then change the Ship To details accordingly. This field will default to the street address of the company the user to currently signed in to. Sales Exec: Type in the sales exec key (or click the right mouse button) and select the key from the list. Ship Date: Type in the expected ship date for this order. Carrier: Type in the carrier key (or click the right mouse button) and select the key from the list. Operator: Displays the key for the data entry operator. Currency: Displays the currency the creditor account is to be maintained in. This field should be left blank if the account is maintained in Australian dollars. Ledger: Type in the ledger key (or click the right mouse button) and select the key from the list. If the purchasing is to be processed into stock, specify the INVENTORY ledger. If the purchasing is to be processed against a job specify the WIP ledger. Main: Type in the account key (or click the right mouse button) and select the key from the list. Leave this field blank if processing into stock. Otherwise specify the job number. Sub: Type in the sub account key (or click the right mouse button) and select the key from the list. Leave this field blank if processing into stock. Otherwise specify the work centre or the cost item or leave blank. Sub Total: Tax Exempt Sub-Total Freight: This field should be left blank. The freight will actually be entered in on the goods received document. GST: Displays the total amount of GST payable on the purchase order. This field is typically only used as a guide to the cost of the purchase. The real cost will be entered in on the corresponding goods received document. Total: Displays the total amount payable on the purchase order. This field is typically only used as a guide to the cost of the purchase. The real cost will be entered in on the corresponding goods received document.
Items: Type in the number of items to be ordered. Product Code: Type in the product’s key (or click the right mouse button) and select the key from the list. Part Number: This field is only seen if the Part No Support feature setting is set to Y. Displays the part number that is associated with the product master record.
Unit No Displays the of measure which the stock is to be purchased in. Description Yes Displays the product description from the product master record.
Discount Yes This field is only seen if the users signed in level is greater than level 3. Type in a percentage discount to be applied to this line. GST Amount: This field is only seen if the users signed in level is greater than level 3. This field displays the total amount of GST payable for this order line. Extension: This field is only seen if the users signed in level is greater than level 3. This field displays the total amount payable for this order line. To Receive: Type in the number of items to be received on the next goods received document. This should correspond to the documentation received from the supplier. Received: Displays the total number of items, (for this line), received but not invoiced. Invoiced: Displays the total number of items, (for this line), invoiced.
Transaction Processing Button Description: Receive> Clicking the Receive> button will create a Purchase - Goods Received document with the items specified by a non zero To Receive field.
From Here: Once a delivery docket or packing slip has arrived, bring up the purchase order. Type in the quantity of items to receive, and then click the Receive button. This can be repeated as many times as needed until the purchase order has been completed.
Purchase Order
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Cancel Purchase Order
A Purchase Order can be cancelled if: - There are any values in the To Receive column of the Purchase Order
Once the Purchase Order document is progressed to Goods Received: A Purchase Order cannot be cancelled if: - There is a live Goods Received document - There is a confrmed Goods Received document
That is, 'Cancel!' from the ribbon of the Goods Received document needs to be clicked. This however is only permissable in the Goods Received document if it is live, ie, has not progressed to Purchase Invoice
