Basic Sales and Purchase ProcessesLesson 9

Processing Purchases of Stock Items

Back to D100: Inventory Order Management Basics

Lesson 9: Processing Purchases of Stock Items

Part 2: Basic Sales and Purchase Processes

For most companies, the majority of purchase orders are purchases to inventory, and the bills are generated aer the ordered goods and services have been received from the vendors. This lesson explains how to process purchase orders with stock items being received before the related AP bills are prepared for the vendors for the purchased goods and services.

Purchases of Stock Items: General Information

In Acumatica ERP, you can process purchases of stock items: purchases in which the bills are generated aer the ordered goods and services have been received into inventory from the vendors.

Learning Objectives

In this lesson, you will do the following:

  • Create a purchase order with stock items
  • Prepare a purchase receipt for an existing purchase order
  • Release a purchase receipt
  • Enter the accounts payable bill for the receipt
  • Process the purchase order and the related inventory documents and accounts payable documents

Applicable Scenario

You process a purchase order if you need to record a purchase of stock items with item quantities updated in inventory and to prepare a bill for the purchased goods to the vendor of the goods. Your purchase process includes entering a purchase order, processing the purchase receipt when the purchased items are received to inventory, and preparing a bill to the vendor.

Process of Purchasing of Stock Items

A purchase process typically includes entering a purchase order, processing the purchase receipt when the purchased items are received to inventory, and preparing a bill to the vendor. In general, the Purchase Orders (PO301000) form is the starting point for creating a purchase order. In Acumatica ERP, for processing purchases of inventory items, purchase orders of the Normal type are used. In a new purchase order created on the Purchase Orders form, you should first select the vendor. Then on the Details tab, you list the stock items to be purchased from the vendor. You can add stock items by clicking the Add Items button on the table toolbar of the Details tab and selecting from only the vendor's items or from the entire list of stock items. Once the purchased items have been received to inventory, you need to create a purchase receipt (or multiple partial receipts). When a purchase receipt is released, the system automatically generates a corresponding inventory receipt, with the date and posting period of the purchase receipt. On release of the inventory receipt, the system updates the inventory on hand with the quantity and cost of the received goods and generates a batch of GL transactions to update account balances in the general ledger. If all the lines in the purchase order have been received in full, the system assigns the purchase order the Completed status. Then you need to create a bill to increase the vendor's balance in the system with amount to be paid for received goods. If all the lines in the purchase order have been billed in full, the system assigns the purchase order the Closed status. For more information on the rules that affect line closing and completion, see Stock Item Lines in Purchase Orders.

Workflow of Purchasing Stock Items

The following diagram represents the general workflow of the processing of a purchase order in Acumatica ERP, in which a purchase receipt is processed before the bill is generated. Purchases of Stock Items: Process Activity

The following activity demonstrates how to prepare and process to completion a purchase order with items received to inventory before the vendor is billed.

Story

Suppose that you are Regina Wiley, a purchasing manager in the SweetLife Fruits & Jams company. On January 30, 2025, you are purchasing the following fruits from the Glory Fruit Case vendor: 100 pounds of apples, 200 pounds of oranges, and 50 pounds of lemons. The purchased fruits are to be delivered to the main office's warehouse. As the purchasing manager, you need to enter and process a purchase order, process a purchase receipt, and create a bill that should be paid to the vendor for the received fruits.

Configuration Overview

In the U100 dataset, for the purposes of this activity, the following tasks have been performed:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
  • Inventory and Order Management, which provides the standard functionality of inventory and order management
  • Inventory, which gives you the ability to maintain stock items by using forms related to the inventory functionality and to create and process sales and purchase documents that include stock items
  • On the Vendors (AP303000) form, the GLORYFRUIT (Glory Fruit Case) vendor has been configured.
  • On the Stock Items (IN202500) form, the APPLES, LEMONS, and ORANGES stock items have been created.

Process Overview

In the process of purchasing stock items, you create a purchase order on the Purchase Orders (PO301000) form and add the purchased items to it. When the items have been received, on the Purchase Receipts (PO302000) form, you create a purchase receipt for the ordered items. On release of the purchase receipt, the system automatically generates an inventory receipt to reflect the receipt of the items in inventory. Then on the Bills and Adjustments (AP301000) form, you create an accounts payable bill to the vendor.

System Preparation

Before you start creating and processing a purchase order to completion, you should do the following:

  1. Launch the Acumatica ERP website with the U100 dataset preloaded and sign in to the system as purchasing manager Regina Wiley by using the wiley username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the business date in your system is set to 1/30/2025. If a different date is displayed, click the Business Date menu button, and select 1/30/2025 from the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Reviewing the Quantity of Items in the Warehouse To review the quantity of items in the WHOLESALE warehouse, you should do the following:

  1. Open the Inventory Valuation (IN615500) report form.
  2. On the Report Parameters tab, specify the following settings: a. Company/Branch: HEADOFFICE - SweetLife Head Office and Wholesale Center b. Warehouse: WHOLESALE c. Report Format: Summary Leave other settings unchanged.
  3. On the form toolbar of the report form, click Run Report. The print form of the report opens. Review the report.
  4. Memorize or write down the quantity of items with the following inventory IDs:
  • APPLES
  • LEMONS
  • ORANGES In Step 3, you will compare the original quantity of these items with the resulting quantity.

Step 2: Creating a Purchase Order To create a purchase order, do the following:

  1. On the Purchase Orders (PO301000) form, add a new record.
                  To open the form for creating a new record, type the form ID in the Search box, and on the
              Search form, point at the form title and click New right of the title.
  2. In the Summary area, specify the following settings:
  • Type: Normal
  • Vendor: GLORYFRUIT
  • Date: 1/30/2025
  • Promised On: 1/30/2025
  • Description: Purchase of fruits
  1. On the Details tab, on the table toolbar, click Add Row and specify the following settings in the added row:
  • Branch: HEADOFFICE
  • Inventory ID: APPLES
  • Warehouse: WHOLESALE
  • Order Qty.: 100
  • Unit Cost: 2.29
  1. On the table toolbar, click Add Row and specify the following settings in the second row:
  • Branch: HEADOFFICE
  • Inventory ID: LEMONS
  • Warehouse: WHOLESALE
  • Order Qty.: 50
  • Unit Cost: 2.59
  1. On the table toolbar, click Add Row and specify the following settings in the third row:
  • Branch: HEADOFFICE
  • Inventory ID: ORANGES
  • Warehouse: WHOLESALE
  • Order Qty.: 200
  • Unit Cost: 1.85
  1. On the form toolbar, click Save.
  2. On the form toolbar, click Remove Hold. Now you can continue processing the purchase order, which has the Open status.

Step 3: Processing the Purchase Receipt To create a purchase receipt for the purchase order, do the following:

  1. While you are still viewing the Purchase of fruits purchase order on the Purchase Orders (PO301000) form, on the form toolbar, click Enter PO Receipt. The system prepares the purchase receipt for the selected purchase order and opens it on the Purchase Receipts (PO302000) form.
  2. On the form toolbar, click Save. Review the details of the prepared purchase receipt. Make sure that the Create Bill check box is cleared in the Summary area. (In the next step, you will prepare the bill manually.)
  3. On the form toolbar, click Release. Wait for the system to complete the operation.
  4. On the Other tab, click the IN Ref. Nbr. link. The inventory receipt opens on the Receipts (IN301000) form in a pop-up window. Review the details of the generated inventory receipt. Make sure the inventory receipt has the Released status. Close the inventory receipt.
  5. Open the Inventory Valuation (IN615500) report form.
  6. On the Report Parameters tab, specify the following settings:
  • Company/Branch: HEADOFFICE - SweetLife Head Office and Wholesale Center
  • Warehouse: WHOLESALE
  • Report Format: Summary Leave the default settings for the other parameters.
  1. On the form toolbar of the report form, click Run Report. The print form of the report opens. Review the report. Make sure that the report reflects the receipt (to the warehouse) of the purchased items and their availability.

Step 4: Processing the AP Bill To process the AP bill to the GLORYFRUIT vendor, do the following:

  1. Open the purchase receipt that you have processed earlier in this activity on the Purchase Receipts (PO302000) form.
  2. On the form toolbar, click Enter AP Bill. The system generates an accounts payable bill to the vendor of the goods and shows the created document on the Bills and Adjustments (AP301000) form.
  3. On the form toolbar, click Save.
  4. Click Remove Hold, which gives you the ability to release the bill.
  5. Click Release.
  6. Return to the purchase order to the GLORYFRUIT vendor on the Purchase Orders (PO301000) form, and review its details. Notice that the order now has a status of Closed, as shown in the following screenshot. On the PO History tab, notice that the information about the purchase receipt and accounts payable bill that were prepared for the order is displayed. According to this information, the purchased items have been received to inventory and billed in full, so the purchasing process is completed. Figure: Purchase order processed to completion