Lesson 5

Purchasing Non-Stock Items and Services with

Back to D220: Non-Stock and Service Items OrderMgmt

Lesson 5: Purchasing Non-Stock Items and Services with

Receipts

The topics of this lesson describe how to prepare and process purchase orders containing non-stock items and services that have to be included in the corresponding purchase receipts.

Purchases of Non-Stock Items and Services with Receipts: General Information

Non-stock items in Acumatica ERP, which are defined on the Non-Stock Items (IN202000) form during implementation, are used to represent products that cannot be stocked in warehouses (such as services or charges) or physical entities whose quantities you do not need to track. In Acumatica ERP, you can process purchases of non-stock items and services with purchase receipts. The following sections explain how to process a purchase of non-stock items and services with receipts, and which documents are prepared during the processing of the purchase.

Learning Objectives

In this lesson, you will do the following:

  • Enter a purchase order for a purchase of non-stock items including services
  • Prepare a purchase receipt for the purchase order
  • Prepare an AP bill that corresponds to the purchase order

Applicable Scenario

You process a purchase order for non-stock items (potentially including services) and process the corresponding purchase receipt if you need to prepare a bill to pay the vendor for the purchased non-stock items. The standard purchase process of non-stock items includes entering a purchase order, processing the purchase receipt when the purchased non-stock items are received, and preparing a bill to the vendor.

          Purchases of services are usually processed without purchase receipts also being processed in the
          system. You might want to process a purchase of a service with a corresponding purchase receipt if
          you want the receipt to serve as proof that the work was finished. If the service is paid by the hour,
          the receipt is also needed to track the actual number of hours, which may differ from the expected
          number of hours in the purchase order.

Purchase of Non-Stock Items (Including Services) with a Corresponding Receipt In Acumatica ERP, you create a purchase order by using the Purchase Orders (PO301000) form. You use a purchase order of the Normal type for processing a standard purchase of non-stock items (including services). When you create a new purchase order, you first select the vendor and the Normal type in the Summary area. Then on the Details tab, you add lines with the non-stock items, including services, to be purchased from the vendor. For this scenario, once the purchased items have been received, you need to create a purchase receipt on the Purchase Receipts (PO302000) form.

Then you need to create an AP bill to increase the vendor's balance in the system with the amount to be paid for the received items. You can review the AP bill on the Bills and Adjustments (AP301000) form. If all the lines in Lesson 5: Purchasing Non-Stock Items and Services with Receipts | 26

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 Non-Stock Lines in Purchase Orders.

Workflow of a Purchase of Non-Stock Items with a Receipt When you process a purchase of non-stock items (including services) with a purchase receipt, the typical processing of a purchase order involves the actions and generated documents shown in the following diagram. Lesson 5: Purchasing Non-Stock Items and Services with Receipts | 27

Purchases of Non-Stock Items and Services with Receipts: To Process a Purchase of Non-Stock Items

In this activity, you will prepare and process a purchase order for non-stock items that must be included in a purchase receipt. This activity involves non-stock items that are not services.

Story

Suppose that the SweetLife Store gives a free magnet with a SweetLife Fruits & Jams advertisement to every customer who buys goods in the retail shop. Further suppose that today one of the managers has reported that the supply of magnets is extremely low. As a purchasing manager, you need to enter and process a purchase order for the Wingman Printing Company, from which SweetLife buys these magnets. You also need to process the corresponding purchase receipt and AP bill.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

  • On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
  • On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been defined.
  • On the Non-Stock Items (IN202000) form, the MAGNETS (A box of magnets with company advertisement, 50pcs) non-stock item has been defined, and the Require Receipt check box has been selected for this item on the General tab. This indicates that when this item is purchased, it needs to be included in a purchase receipt.

Process Overview

In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the MAGNETS non-stock item to it. When the magnets have been received, on the Purchase Receipts (PO302000) form, you will then create a purchase receipt for them. On release of the purchase receipt, the system automatically generates an inventory receipt, which creates a GL batch. Then on the Bills and Adjustments (AP301000) form, you will create an AP bill to pay the vendor.

System Preparation

Before you start processing the purchase order, you should do the following:

  1. Launch the Acumatica ERP website with the U100 dataset preloaded and sign in to the system as a sales and purchasing manager by using the wiley username and 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 today’s date. 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, select the SweetLife Store branch.

Step 1: Creating a Purchase Order To create a purchase order for the magnets, do the following: Lesson 5: Purchasing Non-Stock Items and Services with Receipts | 28

  1. On the Purchase Orders (PO301000) form, add a new record.
  2. In the Summary area, specify the following settings:
  • Type: Normal
  • Vendor: PRINTICO
  • Description: Purchase of magnets
  1. On the table toolbar of the Details tab, click Add Row.
  2. Specify the following settings in the added row:
  • Branch: RETAIL
  • Inventory ID: MAGNETS
  • Warehouse: RETAIL
  • Order Qty.: 20
  • Unit Cost: 100
  1. On the form toolbar, click Remove Hold. Notice that the purchase order is assigned the Open status.

Step 2: Processing the Purchase Receipt To create the purchase receipt for the purchase order, do the following:

  1. While you are still viewing the 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.
  3. 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.)
  4. On the form toolbar, click Release.
  5. On the Other tab, click the IN Ref. Nbr. link, and review the details of the generated inventory receipt, which the system opens on the Receipts (IN301000) form. Make sure that the inventory receipt has the Released status.
  6. Close the Receipts form.

Step 3: Processing the AP Bill To process the AP bill associated with the purchase order and purchase receipt, do the following:

  1. While you are still viewing the purchase receipt on the Purchase Receipts (PO302000) form, on the form toolbar, click Enter AP Bill. The system generates an AP bill for the vendor of the goods and opens the created document on the Bills and Adjustments (AP301000) form.
  2. On the form toolbar, click Remove Hold, and then click Release to release the bill.
  3. In the only row on the Details tab, click the link in the PO Number column to view the associated purchase order.
  4. On the Purchase Orders (PO301000) form, which opens, review the details of the purchase order. Notice that the order now has a status of Closed, as shown in the following screenshot. On the PO History tab (also shown in the screenshot), notice that the le pane lists the corresponding purchase receipt, and the right pane lists the AP bill that was prepared for the order. The inclusion of these documents on the tab indicates that the purchased magnets have been received and billed in full, so the purchasing process is completed. Lesson 5: Purchasing Non-Stock Items and Services with Receipts | 29
        Figure: The purchase receipt and AP bill for the closed purchase order

Purchases of Non-Stock Items and Services with Receipts: To Process a Purchase of

Services

In this activity, you will prepare and process a purchase order for non-stock items that must be included in a purchase receipt. This activity involves non-stock items that are services.

Story

Suppose that a manager has reported that a computer in the SweetLife Store does not work. Your system administrator has contacted the company that provides computer services, Compulink and Co., and the company has sent a service technician to repair the computer. Acting as a purchasing manager, you will process the relevant documents in the system. Because Compulink and Co. charges for repair services by the hour, you will prepare the purchase order aer the technician finishes the job. You will also process a purchase receipt for this job to verify that the job was completed and the computer works now. You will then process the corresponding AP bill.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

  • On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
  • On the Vendors (AP303000) form, the COMPULINK (Compulink and Co.) vendor has been created.
  • On the Non-Stock Items (IN202000) form, the MAINTENANCE (Repair of hardware) non-stock item has been created.

Process Overview

In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the purchased service to it. On the Purchase Receipts (PO302000) form, you will then create a purchase receipt for the ordered items. On release of the purchase receipt, the system automatically generates an inventory receipt to create a GL batch. Then on the Bills and Adjustments (AP301000) form, you create an AP bill to pay the vendor. Lesson 5: Purchasing Non-Stock Items and Services with Receipts | 30

System Preparation

Before you start processing a purchase order that includes non-stock items that must be included in a purchase receipt, you should do the following:

  1. 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.
  2. On the Company and Branch Selection menu in the top pane of the Acumatica ERP screen, select the SweetLife Store branch.
  3. On the Purchase Orders Preferences (PO101000) form (Other section on the General tab), select the Process Service Lines from Normal Purchase Orders via Purchase Receipts check box. With the check box selected, service lines from Normal purchase orders must be included in the corresponding purchase receipts.

Step 1: Creating a Purchase Order To create a purchase order for the computer repair service, do the following:

  1. On the Purchase Orders (PO301000) form, add a new record.
  2. In the Summary area, specify the following settings:
  • Type: Normal
  • Vendor: COMPULINK
  • Description: Repair of a computer in the shop
  1. On the Details tab, click Add Row on the table toolbar.
  2. Specify the following settings in the row:
  • Branch: RETAIL
  • Inventory ID: MAINTENANCE
  • Warehouse: RETAIL
  • Order Qty.: 3 This indicates that the repair service is going to take three hours to complete; each unit represents one hour of work.
  • Unit Cost: 20
  1. On the form toolbar, click Remove Hold. Notice that the purchase order has the Open status.

Step 2: Processing the Purchase Receipt To create the purchase receipt for the purchase order, do the following:

  1. While you are still viewing the 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.
  3. 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.)
  4. On the form toolbar, click Release. Lesson 5: Purchasing Non-Stock Items and Services with Receipts | 31

Step 3: Processing the AP Bill To process the AP bill associated with the purchase order, do the following:

  1. While you are still viewing the purchase receipt on the Purchase Receipts (PO302000) form, on the form toolbar, click Enter AP Bill. The system generates an AP bill for the vendor of the goods and shows the created document on the Bills and Adjustments (AP301000) form.
  2. On the form toolbar, click Remove Hold, and then click Release to release the bill.
  3. In the only row on the Details tab, click the link in the PO Number column to view the associated purchase order.
  4. On the Purchase Orders (PO301000) form, which opens, review the details of the purchase order. Notice that the order now has a status of Closed, as shown in the following screenshot. On the PO History tab (also shown in the screenshot), notice that the le pane lists the corresponding purchase receipt, and the right pane lists the AP bill that was prepared for the order. The inclusion of these documents on the tab indicates that the purchased service has been received and billed in full, so the purchasing process is completed.
        Figure: The purchase receipt and AP bill for the closed purchase order

Lesson 6: Purchasing Services Without Receipts | 32