Introduction

The Purchase Ordering System has three modules:

• Orders
• Deliveries
• Item Invoices

It is or can be, integrated with the:

• Inventory Management system‍ , either fully in the context of quantities management or partially in the context of non-stocked goods and services. 
•  Approval process‍.

Invoicing without a prior Purchase Order

Not all Orders need to be entered into the system. Small low-value Items such as stationery or refreshments can be processed using Batch Invoicing‍, without the necessity of a preceding Purchase Order. This, however, can be a security risk as it bypasses the Ordering process. If this is a concern, remove the Batch Invoicing option as a menu option‍, or severely restrict its usage. This will mean that all Invoices are processed using Item Invoices. 

Enforcing a prior Purchase Order

Item Invoices for things like electricity, water, or rent can still be entered without a preceding Purchase Order. 

However, you have the option to enforce the entry of prior Purchase Orders against selected Suppliers by checking Order Required in their master record. The Invoice will subsequently undergo an Invoice/Order Matching process. If the Invoice exactly matches the Order in respect of all Lines, Quantities, and Prices, then the Invoice is automatically processed without the need to enter it into the system.
 

Best Control Practices

To introduce the strictest possible control over your Purchasing System:

• Limit access to the Batch Entry facility.
• Enforce Order Entry against most Suppliers.
• Ensure that only authorised personnel have access to the Supplier Master record maintenance function.

Prerequisites

The Purchase Ordering facility has several prerequisites. These include setting up the:

• Supplier (Vendor) Master Record‍ 
• Inventory Master table (Stock or Non-Stock)‍ 
• Code tables including General Ledger Codes, Taxes, and Currencies‍ 

See:

Purchase Orders Overview (17.0) - AIQ Academy

Purchase Order Entry - Pre-requisites (17.1) - AIQ Academy

Purchase Order Entry (17.2) - AIQ Academy

Purchase Deliveries (17.3) - AIQ Academy

Purchase Orders /Delivery Queries (17.4) - AIQ Academy

How do I Implement Purchase Approval for Non-Budget Holders?‍ 

How do I Implement Purchase Approval for Budget Holders?‍ 

How does Purchase Batch Invoicing Work?‍ 

How do I use the Client Administration facilities to add Users and Control their Access Permissions? ‍ 

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Create a Purchase Order 

Step One: Enter a new Purchase Order

Go to Purchases > Orders > New Order. This opens the Purchase Order screen.
 

Step two: Complete the Purchase Order Details tab

In the upper section of the screen:

• Purchase Order No: This is controlled in Company Details and Settings. If auto-numbering is on, then the P.O. Number will auto-generate. Otherwise, supply a unique Order No.
• Supplier (Vendor): Select from the dropdown provided. This populates the Supplier’s (Vendor’s) details on the Order Header. 

 

 

• Order Date: This defaults to today’s date, but you can change it using the dropdown.
• External Ref: This is your own reference number to help you keep track of your Orders. It could, for example, be the Supplier’s (Vendors) Inventory Code.
• Expected Delivery Date: This defaults to today’s date, but you can change it using the dropdown. It defines which Orders are Overdue for delivery.
• Use ACC VAT (Tax) Code: This indicates that this Rate of VAT (Tax) is for all Lines in this Order instead of the VAT (Tax) Codes associated with the Items. When used it is a default, but you can override it on any line.
• BI Code: Some Suppliers (Vendors) always deliver to the same part of the Company which they represent with an optional BI Code from the Supplier (Vendor) Master Record. It is not a mandatory entry as you may not want to use Extended Business Analysis, or your Order might use several BI Codes. If a BI Code exists, it will appear on each line of the Order where you can override each individually. However, if you are using Purchase Order approval, then you can only use one BI Code per Order.
• Supplier (Vendor) Area: This defaults from the Supplier’s (Vendors) Master Record but you can override it here.
• Requester: This is an optional field. It is the person ordering the goods and will receive them.
• Supplier (Vendor) Contact: This is the Primary Contact from the Supplier’s (Vendors) Master Record.

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In the lower section of the screen:
 

Click Display Lines Only to hide the Supplier (Vendor) Detail in the upper half of the screen. Click again to restore. 

Similarly, click the arrow icon at the start of each Order Line to display/hide details from the Inventory file for the Product nominated on that Line.

• Item: This comes from the Inventory Product file. Use the dropdown together with its Description and default GL Posting Code which you can change if required.
• GL Account Code: This comes from the Supplier’s (Vendors) Master record (if any) and then the GL Account Code from the Product file overrides it. You can override it using the dropdown or by keying in a GL Code.
• BI Code: If you are using Extended Business Analysis then supply a BI Code. It might come from the Order Header; in which case you can still override it here.
• Qty: Enter the Quantity of Items required from the Supplier (Vendor).
• Unit Price: This comes from the Last Cost field on the Inventory Master Record, but you can override it here.
• VAT (Tax): This either comes from the Order Header (which in turn comes from the Supplier’s (Vendors) Master record) or from the VAT (Tax) Rate associated with this Item on the Inventory file. In both cases, it is a default rate, but you can override it here.
• Disc. Rate, Disc. Amount: If there is a Discount Percentage on the Supplier’ (Vendor) Record, then this will apply. You can either accept this Rate and Calculation or you can put in a fixed amount in the Disc. Amount field and the system will work out the percentage. 
• Line Note: You can add a Note to each Order Line.
• Exchange Rate: If the Supplier is a Foreign Currency Supplier (Vendor) then, at the start of the Order, an Exchange Rate from the Currency table will appear at the lower end of the screen, which you can override if necessary. In this instance, the Order Lines costs will be calculated taking the Exchange Rate into account. The totals for both Currencies (Base and Foreign Currency) appear at the bottom of the Order.

Step three: Complete the Additional Details tab

In this tab, you can modify the Delivery Details inherited from the Supplier’s Master Record such as:

• Discount: The Discount Percentage which, if you’ve already entered all your Order Lines, will apply retrospectively. 
• Note Printed on Purchase Order: Here you can also add a Note to appear on the Supplier’s (Vendor's) Order.

Step four: Complete the Notes tab

The Notes tab allows you to add internal Notes to the Order. 

1. Click Add New Note.
2. Enter your note.
3. Click Save. 

See:

How do I Implement Extended Business Analysis?‍ 

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Order Status and Approval

Status with Purchase Approval

After saving, the Order will bypass Purchase Approval if:

• You leave Purchase Approval Enabled unticked in Company Details & Settings.

• If you tick Exclude from Approval in Supplier Accounts.

If you bypass Purchase Approval, the Order's Status will be Reserved in the Orders – Not Yet Delivered grid. In the Actions dropdown Receive All & Invoice will be available.

Status without Purchase Approval

If you use Purchasing Approval, the Order grid will display the approval status in the Orders – Not Yet Delivered grid. In the Actions dropdown, Receive All & Invoice will not be available until the order has been approved.

 

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View and Edit Orders

Once you reserve an Order, it is saved. You can recall the Order at any time before full delivery to amend and/or re-issue it.

1. Go to Purchases > Orders and find it in the grid.
2. If the Order delivery is complete, Receice All & Invoice will be unavailable in the Orders - Delivered, Not Yet Invoiced grid.
   
   
   

3. Click the Order No. to open the Purchase Order. 
   
   If the Order delivery is complete, all fields will be greyed out meaning you cannot edit them. 
   
   If they are not greyed out, make any required changes. You can delete Lines, add new lines, change Quantities and Prices, Vat Rates, add Line Notes, and amend GL Codes and BI Codes. Click the arrow or the Item Code dropdown to make any edits. 
   
   
   

4. Click Save.

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Close, Duplicate, Cancel, Print, and Email Orders

Cancelling Orders

You can close an order at any time by opening the order and clicking Cancel Order. This will update the status of the order to Cancelled.

Duplicating an Order

You can duplicate or copy an order at any time. The duplicate order can have completely different line details than the original, but you may want just the original header information to remain.
 

You can also duplicate closed orders even though all the details for the closed order are greyed out (read-only).

1. Click Duplicate to create a replica order.
2.  Add a new External Ref. 
3. Modify it, including adding new Order Lines, as you require.
4. Click Save. The old Order will remain in the system as it was.
5. Email the new Revised Order. 

Alternatively:
 

• Go to Purchases > Orders > Actions to Duplicate an Order. You can also cancel an order here.
  
  

Printing an Order

1. Go to Purchases > Orders. 
2. In the Print column, print a PDF Order that you can email to the Supplier (Vendor). 

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View Deliveries 

Viewing Deliveries

To view which deliveries you have received, either:

• Go to Deliveries and select View Deliveries from the relevant Actions dropdown.
• Open the relevant Purchase Order and click View Deliveries.
  
  

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Receive All Orders and Invoice (Non-Stock Items)

When you obtain services from a Supplier (Vendor) that have been approved where relevant, you need to receive and invoice them (in full or partial). 

1. To receive deliveries, click Receive All & Invoice against the relevant Order No. in the Orders - Not Yet Delivered grid. This creates a Purchase Invoice with the current date and the status of Full Delivery.
   
   
   
   
2. Complete the Purchase Invoice. For a partial delivery, change the quantities.
3. Click Save. The status will update to Complete.

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Receive Orders and Match Invoices (Stock Items)

When your Supplier (Vendor) delivers goods, you need to receive and invoice them (in full or partial).  

Step One: Receive Orders

1. To receive deliveries, click Receive against the relevant Order No. in the Orders - Not Yet Delivered grid. This opens the Purchase Deliveries screen.
   
   
   
   
2. In This Delivery, enter the appropriate quantity or click Receive All. To undo the Delivery Quantities, click Reset. 
   
   
   
   
3. Click Save or from the Save dropdown, select Save and Print Order to produce a Goods Receipt Note for your records. 

Step Two: Create Matching Invoices

1. Go to Purchases > Deliveries and find your delivery.
2. In the relevant Actions dropdown, click Invoice. You can now view the invoice by going to Purchases > Item Invoices > Item Invoice.
   
   
   
   
3. Click the Item Invoice No. to open the Purchase Invoice.
   
   
   
   
4. If the Invoice details do not agree with your Delivery Records, then:

• If quantities differ, change the Quantity on this Invoice to match your quantities.
• If there are price differences and you’re willing to accept them, adjust the Unit Price.
• If there are additional charges against a Line, add a new line with the same Item Code, a quantity of 0.00, and put the extra charge in the Net column. This additional cost will be used in the calculation of the overall Average Cost for the Item.
• If you receive more than you ordered, then you cannot increase the quantity. You must go back to the Order first and increase the quantity there and then deliver it.
  
  

  
  

6. Click Save. If the saved Invoice now matches the Delivered Order, then the Order will be fulfilled and disappear from the system. You can Cancel an Order at any time. If there are partial Deliveries in the system, you can still cancel the remainder of the Order.

To view complete details, you can run a "Goods Received Listing" Report in the Report Manager‍. This gives a full view of the status of the originating Purchase Order through to the Purchase Invoice stage.
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