Dynamics GP Insights to Distribution - Purchase Orders

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Dynamics GP Insights to Distribution: Purchase Orders

Dynamics GP includes powerful distribution functionality that will help you more

easily and effectively manage your distribution operations. This book covers some

of the more important and effective aspects of the Dynamics GP distribution

solution.

This book contains explanations and directions for using specific functions within

Dynamics GP. It also includes links to videos that support specific functionality.


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Table of Contents

Purchase Order Processing ................................ 3

Basic Purchase Orders ............................................................................................ 3

Changing Purchase Accounts on PO Receipts ................................................. 9

Add OTHER Distribution Entries to Change PO Receiving Transaction

PURCH Account ........................................................................................................ 11

Why cant I return a PO shipment/receipt on the Returns Transaction

Entry window? ......................................................................................................... 12

Purchase Orders from Sales Orders ................................................................. 14

Entering Landed Cost Invoices ........................................................................... 15


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Purchase Order Processing

Basic Purchase Orders

The purchase order functionality in Dynamics GP allows you to create purchase

orders, and receive and invoice purchased items.

Navigate to open the Purchase Order Entry screen: Transactions >> Purchasing

>> Purchase Order Entry.

Accept the default type, and tab through the PO Number, to the Vendor ID. Enter

or lookup the Vendor ID for the purchase order.

Any purchase order can have as many detail lines as youd like. You can enter

inventory items and/or non-inventory items. Dynamics GP will use defaults

values from the item, vendor, and system to fill in much of the required data for a

purchase order. You can drill-down from the purchase order line to see additional

information in the Purchasing Item Detail Entry screen. Just click on the blue

expansion arrow to the right of the Item field label:


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If you want to change the general ledger account number to which the purchase

will be charged, you can do it in the Purchasing Item Detail Entry screen. You can

also change the date fields to enhance reporting and management of purchase

orders.


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When youve completed entry for the purchase order, you can click on Save to

save it in Dynamics GP. You can go back to edit or review it in the future.

To receive and invoice the purchase order, you have two options:

1.) You can receive and invoice the purchase in one transaction

2.) You can receive the purchase in one transaction, and then enter and apply

the vendors invoice at a later time.

To receive the purchase you can navigate to the Receivings Transaction Entry

screen: Transactions >> Purchasing >> Receivings Transaction Entry. Or you

can open the purchase order in the Purchase Order Entry screen, click on

Actions and select Receive the PO Items.


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If you start at the Receivings Transaction Entry screen, select the Type as

Shipment or Shipment/Invoice and tab to the Vendor ID. Enter or Lookup the

Vendor ID. Click on the Auto-Rcv button to easily lookup the open purchase

order items.

Mark the items you want to receive. Ensure that the Qty Shipped quantity is

the correct amount to receive, and click on the Receive button.

This will populate the information you need for the Receivings transaction. You

can then save the transaction into a batch, or post it.


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This will receive the purchased items into inventory or debit the purchasing

account for the amount of a non-inventory item. It will also create an un-invoiced

receipt transaction that can be matched to the vendors invoice at a later time.

Navigate to the Purchasing Invoice Entry screen to enter the vendors invoice and

match it to the receipt: Transactions >> Purchasing >> Enter/Match Invoices.


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Tab past the Receipt Number. Enter the vendors invoice number in the Vendor

Doc. Number field. Enter or lookup the Vendor ID. Tab past the Currency ID.

Click on the Auto-Invoice button to open the Select Purchase Order Items

screen. Select the items to invoice, and verify the quantity in the Qty Invoiced

field. Click on the Invoice button to complete the Purchasing Invoice Entry screen.

Save the transaction to a batch or post the transaction.


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This will create an invoice transaction in accounts payable.

Purchase Order Processing video: http://youtu.be/sI4EqEgpcuc

Changing Purchase Accounts on PO Receipts


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If you want to change the purchases account on a PO receiving transaction but

dont want to go back to each line item to change the account, you can add

additional distribution lines with the Type = OTHER. You would enter a credit to

the default PURCH account(s) and then enter a debit to the new/correct

account(s). This feature can also be used if additional accounting entries related

to the transaction are needed (to record use tax, for example). As long as you use

the OTHER distribution type and have the total debits = total credits for the

additional entries, there wont be any distribution error messages.


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Add OTHER Distribution Entries to Change PO Receiving Transaction PURCH

Account

If you want to change the purchases account on a PO receiving transaction but

dont want to go back to each line item to change the account, you can add

additional distribution lines with the Type = OTHER. You would enter a credit to

the default PURCH account(s) and then enter a debit to the new/correct

account(s). This feature can also be used if additional accounting entries related

to the transaction are needed (to record use tax, for example). As long as you use

the OTHER distribution type and have the total debits = total credits for the

additional entries, there wont be any distribution error messages.


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Why cant I return a PO shipment/receipt on the Returns Transaction Entry

window?

You may have wanted to enter a return transaction to record a return of goods to

a vendor or to reverse out a receipt that was posted incorrectly but were unable

to do so because the receipt/shipment did not show up on the Returns

Transaction Entry window. There are two main reasons this can happen:


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1) the wrong return type (return vs. return with credit) has been selected and

2) the item quantity has already been removed by means of an inventory

decrease adjustment. So, when you want to enter a PO return, you need to make

sure you know all the details about the PO and its receipts. You can review the PO

on the inquiry window (Inquiry>Purchasing>PO Documents).

If the items to be on the return were shipment receipt that has NOT been

matched to an invoice, the return type must be RETURN. If the items to be returns

were on a shipment receipt that has been matched to an invoice, the return type

must be RETURN w/CREDIT.

If you have confirmed that youre using the correct return type and the receipt is

still not showing up, determine if the items have been issued out already. This can

be determined by reviewing the Inventory Receipts Inquiry window

(Inquiry>Inventory>Receipts). Locate the shipment/receipt and check the

corresponding quantity sold. You cant return any that have been recorded as

sold Dynamics GP thinks those items are gone so theres no way you could

return them to the vendor. If this is the case, the return is most likely being

attempted to clear out an unmatched PO receipt (rather recording a true return

of goods to the vendor). The PO can be cleared out by changing the status of the

PO to Closed on the Edit PO window. After clearing out the PO, be sure to

double check the GL and make sure that all accounts involved, especially the PO

Accruals account, are correct; an adjustment GL journal entry may be necessary.

Also, keep in mind that after a receipt is returned, the same quantity on the same

line item cannot be received again. If replacement times are being shipped by the

vendor, a line for those items needs to be added to the PO.


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Purchase Orders from Sales Orders

Most GP users are familiar with the SOP-to-POP integration with which you can

easily create a PO from a Sales Order. However I'm guessing that most users don't

know that a similar function exists with which you can easily create PO's for a

large number of sales documents at one time.

This is how you do it:

Navigate to the Sales Inquiry Restrictions screen: Inquiry >> Sales >> Restrict Sales

Documents.

Create a range to select all the sales documents you want to be considered when

creating PO's. You can create a new one or use an existing inquiry.

Click on the "Inquiry" button.

This screen will pop up that shows all the sales documents selected.


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Next, click on the "Purchase" button, and the Purchase Order Preview screen will

pop up; the same one you're used to with the SOP-to-POP function.

This can be very useful in a high volume distribution business.

I didn't know about it, until a client showed me. Neat stuff.

Entering Landed Cost Invoices

The Landed Cost functionality in Dynamics GP helps you accurately capture the

actual cost of inventory receipts.

Every time this issue comes up, I have to figure it out, again; how do you match a

landed cost vendor's invoice to the receipt. The trick is to check the "LC" (Landed

Cost) check box on the entry line.


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Once you do that, you can look up the "Item" and you will see the landed cost

items, not your inventory item master file. Select the landed cost item you want

to invoice, and then click on the expansion arrow next to the "Matched to

Shipment" field label.

Here's an example:

These are the landed costs applied to the receiving transaction:

These are unmatched landed costs for the "Insurance" item, from two different

receipts. Find the receipt you're looking for and check the "Match" box.


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Now the landed cost item from the receipt has been matched to the vendor's

invoice, and it is ready to post.

Related video: http://www.youtube.com/watch?v=miuFwl5lytk


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Published by Rose Business Solutions, Inc.

Contributing Authors:

Steve Chapman

Francisco Hilyard

Steven Johnston

Liane McIlraith

Doug Pitcher

Dynamics GP Insights to Distribution - Purchase Orders

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