Great Plains Purchase Order Processing

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Great Plains Purchase Order Processing

• Justin Gonzales
• Jason Hansen
• Erich Meschkat
• Mike Nelson

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Purchase Order Processing

• Purchase Order Processing A process beginning
  in the first stage of the Expenditure Cycle in
  which Purchase Orders are generated, tracked, and
  matched against other documents so that goods,
  supplies, and services may ordered and vendors
  can be paid.

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Purchase Order Processing

• Purchase Order a document or electronic form
  that formally requests a supplier to sell and
  deliver specified products at designated prices.
• Blanket Purchase Order a commitment to purchase
  specified items at designated prices from a
  particular supplier for a set time period, often
  1 year.

Romney and Steinbart, pp. 421-422
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Purchase Order Processing

• What it Accomplishes
• Ordering goods, supplies, and services so that
  purchase requisitions may be fulfilled.
• Who does it
• Purchasing Agents/Buyers
• When this process happens
• In the Ordering stage of the Expenditure Cycle.
• Usually POP begins upon the receipt of a purchase
  requisition and continues through the Receiving
  and Payment stages of the Expenditure Cycle.

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Purchase Order Processing

• Where it fits in with other applications
• Receiving Valid P.O. is matched against
  receiving report to make sure goods were ordered.
• Paying a Vendor Valid P.O. and Receiving Report
  are matched against an invoice before a vendor is
  paid.

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Purchase Order Processing

• When inventory gets low, a purchase order
  requests more from vendor.
• PO can be set up to be automatic or manually done
  with inventory is noticed to be low.
• When vendor accepts, PO becomes contract.
• Vendor sends product and invoice.
• Receiving dept. counts and verifies product.
• Invoice and receiving report sent to Accounts
  Payable and matched to PO.

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Purchase Order Processing
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Purchase Order Processing

• Before Purchase Order Setup
• Set up Payables Management
• Create vendor cards
• Enter beginning inventory quantities
• Set up item records (be sure to assign price
  lists and vendor items)
• Set up sites
• Set up inventory and purchasing accounts in the
  Posting Accounts Setup window
• Purchase Order Setup
• Tools gtgt Setup gtgt Purchasing gtgt Purchase Order
  Processing
• Purchase Order and Receipt numbering
• Site Options
• Maintain History

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Purchase Order Processing

• Purchase Order Entry
• Transactions gtgt Purchasing gtgt Purchase Order
  Entry
• 4 categories of purchase orders
• Standard From the supplier to your business
• Drop Ship From the supplier directly to the
  customer
• Blanket Ships in certain quantities on certain
  dates
• Drop Ship/ Blanket combines above approaches
• PO number
• Vendor ID
• Buyer ID
• Item ID Item Vendors Maintenance screen
• Purchase Order Generator
• Recommends purchase orders based on a reorder
  point set by the buyer.

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Purchase Order Processing

• POP reports
• Analyze
• -purchase activity
• - Invoice Cost Variance
• Follow activity -

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Purchase Order Processing

• Conclusion
• REDUCE TIME and EFFORT -
• Set up predefined parameters
• Map purchase order line numbers to line items,
  automatically.
• Track and update all landed costs associated
  with an inventory item, as well as automatically
  assign or modify costs on purchase orders as
  items are received.
• Remove or replace line items without special
  editing actions

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Purchase Order Processing

• Thank You
• Any Questions?