Back to D200: Inventory Order Management Extended Scenarios

Lesson 7: Processing Purchases for Sale

Part 2: Sales with Insuﬀicient Stock

This lesson explains how you can fulfill a sales order for which the quantity of a stock item is insuﬀicient. You will also learn how you can link sales orders to existing purchase orders and receipts to allocate the items to the related sales orders.

Purchases for Sale: General Information

If your company sells certain items that are purchased only when sales orders for these items exist, a sales order may result in multiple purchase orders for diﬀerent vendors, and a purchase order may include items from multiple sales orders. These factors could make it diﬀicult to track the fulfillment of sales orders. In Acumatica ERP, you can link sales orders to existing purchase orders and receipts, so that the system will allocate the items listed on purchase receipts to specific sales orders.

Learning Objectives

In this lesson, you will do the following:

Become familiar with the processing of purchases for sale in Acumatica ERP
Create a sales order, and mark the items to be purchased for the sale
Create a purchase order linked to a sales order
Process the sales order and related purchase documents, inventory documents, and accounts payable documents

Applicable Scenarios

You may need to process purchases for sale in the following cases:

You need to process a sales order that includes items that your company does not have in stock; such items are purchased only for specific sales orders.
You have multiple warehouses and perform purchasing only to particular larger warehouses (distribution centers). During the processing of a purchase for sale, the system will generate the required transfers between warehouses, so you can easily track where the particular sales order is in the fulfillment process.
You need to promptly fulfill a sales order line for which the quantity of the item is insuﬀicient. Aer you have shipped the available quantity of the item (if any units are available), you need to order the quantity that was unavailable at the time of shipping.

Creation of Sales Orders with Items Requested for Purchase

If the quantity of an item added to a sales order is fully or partially out of stock, you can purchase the remaining quantity. You specify that the remaining quantity should be purchased for the order by selecting the Mark for PO check box for the line on the Details tab of the Sales Orders (SO301000) form. The quantity initially allocated for the sales order remains allocated, while the quantity that must be purchased remains unallocated. If you click Remove Hold on the form toolbar, the system creates a purchase request for this sales order on the Create Purchase Orders (PO505000) form. By default, for each line, the system specifies the vendor, which is set as default for a stock item specified in this line. You can change the vendor, if needed. From the purchase requests, you generate purchase orders that will be linked to the original sales order. Once you prepare and release the purchase receipt for the purchase order, the items become available for shipping, so you can complete the processing of the sales order.

Workflow of a Purchase for Sale

For a sales order that includes stock items intended for purchasing, the typical processing involves the actions and generated documents shown in the following diagram. Part 2: Sales with Insuﬀicient Stock | 61

Purchases for Sale: Linking Sales and Purchase Documents

The following sections describe how you can establish connections between sales orders and the purchase documents that relate to these sales orders.

Linking Sales Orders to Purchase Orders

You can link a line of a sales order with the Mark for PO check box selected to an existing purchase order, for instance, if you have created a new sales order that lists the same items as an open purchase order does. To link a sales order line to a purchase order line, on the Details tab of the Sales Orders (SO301000) form, you need to click the sales order line and then click PO Link on the table toolbar. In the Purchasing Details dialog box, which opens, you should select the unlabeled check box in the needed line of the needed purchase order, and click Save. If the linked purchase order or purchase order line has become completed, the Completed check box remains cleared in the sales order line, and on the Details tab of the Sales Orders form, the system shows the warning message in this line about the completion of the linked purchase order line. Also, the Completed check box remains cleared in the line split in the Line Details dialog box. You can do either of the following in the sales order line:

Select the Completed check box to complete the line
Link the line to another purchase order line by clicking PO Link and selecting this purchase order in the Purchasing Details dialog box

Linking Purchase Receipts to Sales Orders

Items marked for purchase in a sales order may be received to warehouses other than the warehouse specified on the sales order. If the users properly specify the links between the purchase receipts and purchase orders, Acumatica ERP enables the tracking of sales order fulfillment, reserves the received items for sales orders, and automates the transfers of the items to the needed warehouses. To make it possible to track items in receipts to the original sales orders, when you create these receipts, you need to link each receipt to the corresponding purchase order in one of the following ways:

Open the purchase order on the Purchase Orders (PO301000) form, and create a receipt for it by clicking Enter PO Receipt on the More menu
Create a receipt on the Purchase Receipts (PO302000) form, and link all the related purchase orders or purchase order lines to this new receipt by clicking Add PO or Add PO Line on the table toolbar Aer a purchase receipt has been properly linked to all the related purchase orders, you will be able to track the stage of fulfillment for each line of the original sales order. On release of the purchase receipt, the quantities of items required for the sales orders are deducted from the item quantities available for shipping. If items are received to a warehouse other than the warehouse specified on the sales order, the system will generate a transfer request, which you can use to create a transfer order by using the Sales Orders (SO301000) form for a single transfer order, or by using the Create Transfer Orders (SO509000) form for multiple transfer orders.

Purchases for Sale: Process Activity

In this activity, you will learn how to process a purchase of items that are not in stock for a particular sales order, and how to process the sales order to completion aer receipt of the items that were purchased for sale.

Story

Suppose that the GoodFood One Restaurant customer has ordered tropical fruits (15 pounds of papayas and 10 pounds of lychees) on SweetLife's website. SweetLife's warehouses do not have the appropriate conditions for keeping delicate tropical fruits; also, these fruits are ordered rarely and in small quantities. To provide fresh and high-quality fruits to the customers, the sales manager purchases these tropical fruits on demand from the All Fruits Mall company, and once the fruits are delivered to the retail warehouse of the SweetLife store, they are immediately shipped to the customer that ordered them. Acting as sales manager Regina Wiley, you need to process the sales order and the related purchase order in the system.

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
Sales Order to Purchase Order Link, which provides the ability to link sales orders to existing purchase orders and receipts, and to create new purchase orders for existing sales orders
On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been created.
On the Vendors (AP303000) form, the ALLFRUITS (All Fruits Mall) vendor has been created.
On the Stock Items (IN202500) form, the PAPAYAS (Fresh papayas 1 lb) and LYCHEES (Fresh lychees 1 lb) stock items have been created. For each item, the ALLFRUITS vendor has been added on the Vendors tab.

Process Overview

In this activity, to process a sales order that includes stock items that must be purchased for sale, you will first create a sales order on the Sales Orders (SO301000) form and add all of the stock items that were ordered by the customer. Because the items are not in stock, you will mark them for purchasing in the sales order; to ship these lines, you have to receive the purchased items at the warehouse specified in the sales order lines. When you mark items for purchasing, the system creates purchase requests of the SO to Purchase type. You will create purchase orders by mass-processing purchase requests of this type on the Create Purchase Orders (PO505000) form. Each purchase order generated from a purchase request or from multiple requests will be linked to the related sales order. When you receive the items of each linked purchase order to inventory, the items will be allocated directly to the related sales orders. Aer all purchased items have been received to inventory, you will process the sales order to completion. That is, you will ship the items to the customer and prepare the invoice for the customer.

System Preparation

Before you start processing a sales order that includes stock items that must be purchased for sale, you should do the following:

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 today’s date. For simplicity, in this activity, you will create and process all documents in the system on this business date.
On the Company and Branch Selection menu in the top pane of the Acumatica ERP screen, select the SweetLife Store branch.

Step 1: Creating a Sales Order To create the sales order for GoodFood One Restaurant, do the following:

On the Sales Orders (SO301000) form, create an order with the following settings:

Order Type: SO
Customer: GOODFOOD
Description: Website order #00782 (tropical fruits)

On the Details tab, add rows with the settings shown in the following table.

    Branch                Inventory ID           Warehouse               Quantity                Unit Price

    RETAIL                PAPAYAS                RETAIL                  15                      5.56

    RETAIL                LYCHEES                RETAIL                  10                      10.99

   Notice that the system displays warnings on the Details tab and in the Quantity column of both lines
   indicating that the specified quantity is not available in the selected warehouse.

On the form toolbar, click Save. The sales order is saved with the Open status.

Step 2: Marking the Stock Items to Be Purchased for Sale To mark the stock items for purchase in the sales order, do the following:

While you are still viewing the order on the Sales Orders (SO301000) form, in the PAPAYAS line of the Details tab, select the Mark for PO check box, and make sure that Purchase to Order is selected in the PO Source column.
In the LYCHEES line, select the Mark for PO check box, and make sure that Purchase to Order is selected in the PO Source column.
On the form toolbar, click Save.

Step 3: Creating a Purchase Order That Is Linked to the Sales Order To create a purchase order for the stock items that are marked for purchase, do the following:

While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu, click Create Purchase Order.
On the Create Purchase Orders (PO505000) form, which opens, select the unlabeled check boxes in the two lines with SO to Purchase specified as the Plan Type. (The SO to Purchase plan type indicates that this line is a purchase request.)
In both of these lines, make sure that the stock items have the following settings: a. Vendor: ALLFRUITS b. Warehouse: RETAIL
On the form toolbar, click Process to process the purchase requests that you have selected. The system creates a purchase order for the ALLFRUITS vendor, and opens it on the Purchase Orders (PO301000) form.
In the Description box of the Summary area, type Purchase for website order #00782.
On the Details tab, click the PAPAYAS line, and on the table toolbar, click View Demand. The Demand dialog box, which opens, shows the sales order to which this purchase order line is linked.
Click Close to close the dialog box.
On the Details tab, do the following:

In the Unit Cost column of the PAPAYAS line, specify 5.
In the Unit Cost column of the LYCHEES line, specify 9.

On the form toolbar, click Remove Hold.

Step 4: Processing the Purchase Order To process the purchase order to completion, do the following:

While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter PO Receipt on the form toolbar.
On the Purchase Receipts (PO302000) form, which opens, review the details of the prepared purchase receipt, and make sure that both purchase order lines have been added with the appropriate quantities.
In the Summary area, select the Create Bill check box to make the system generate the bill automatically on release of the purchase receipt.
On the form toolbar, click Release to release the purchase receipt. The system releases the purchase receipt, which is assigned the Released status.
On the Billing tab, review the only line in the table, which shows the generated bill, and make sure that the bill has the Open status, reflecting that it has been released.
On the Other tab, click the IN Ref. Nbr. link.
On the Receipts (IN301000) form, which opens in a pop-up window, review the generated inventory receipt. Make sure that the inventory receipt has the Released status.
Close the Receipts form.
Now the items are in stock in the RETAIL warehouse and can be shipped to the GoodFood One Restaurant customer.

Step 5: Processing the Sales Order to Completion To process to completion the sales order that you have created in this activity, do the following:

On the Inventory Allocation Details (IN402000) form, select PAPAYAS as the Inventory ID and RETAIL as the Warehouse.
On the Item Plans tab, review the only line in the table, which has 15 in the Qty. column. This indicates that 15 PAPAYAS units are allocated directly for the sales order for which you have processed the purchase.
Select LYCHEES as the Inventory ID. In the only table line, make sure that 10 is specified in the Qty. column. This indicates that 10 LYCHEES units are also allocated for the sales order for which you purchased them.
In the table, double-click the line to open the sales order on the Sales Orders (SO301000) form.
On the Details tab, click the PAPAYAS line, and on the table toolbar, click PO Link.
In the Purchasing Details dialog box, which opens, review the purchase order to which this sales order line is linked.
Close the dialog box.
On the Details tab, click the LYCHEES line, and on the table toolbar, click Line Details.
In the Line Details dialog box, which opens, review the allocation line, which shows that the ordered items are allocated in the RETAIL warehouse. 10.Click OK to close the dialog box. 11.On the form toolbar of the Sales Orders form, click Create Shipment. 12.In the Specify Shipment Parameters dialog box, which opens, make sure that today's date is specified in the Shipment Date box and the RETAIL warehouse is specified in the Warehouse ID box, and click OK. The dialog box is closed. The system creates a shipment and opens it on the Shipments (SO302000) form. 13.On this form, review the details of the shipment, and make sure that both lines have been added with the appropriate quantities. 14.On the form toolbar, click Confirm Shipment to confirm the shipment, and then click Prepare Invoice to prepare the invoice for the customer. 15.On the Invoices (SO303000) form, which opens, review the details of the prepared invoice. 16.On the form toolbar, click Release to release the invoice. 17.Return to the Sales Orders form with the Website order #00782 (tropical fruits) sales order for the GOODFOOD customer open, and notice that it has the Completed status, as shown in the following screenshot.
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   Figure: Sales order processed to completion
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