Back to D220: Non-Stock and Service Items OrderMgmt

Lesson 6: Purchasing Services Without Receipts

The topics of this lesson describe how to prepare and process purchase orders containing services that do not have

to be included in the corresponding purchase receipts.

Purchases of Services Without Receipts: General Information

Non-stock items in Acumatica ERP 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. If a non-stock item is included in a purchase order, the item’s settings determine whether the item must be included in a corresponding purchase receipt. The following sections explain how to process a purchase order with services that will not be included in purchase receipts for the order. They also explain 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 service that does not need to be included in the corresponding purchase receipt
Prepare an AP bill for the purchase order

Applicable Scenario

You may need to process a purchase order that includes services. Purchases of services are usually processed without purchase receipts and the corresponding bills are created in the system.

          Some services may need a receipt. For example, you may want to track the quantity of hours spent on
          rendering the service or you may want proof of receiving the service.

Purchase of Services Not Included in Receipts

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 services. When you create a new purchase order, you first select the Normal type and the vendor in the Summary area. Then on the Details tab, you add lines with items and services to be purchased from the vendor. These lines include services that do not need to be added to the purchase receipt for the order. Once the purchased services have been provided, you need to create an AP bill on the Bills and Adjustments (AP301000) form to increase the vendor's balance in the system by the amount to be paid for the received services.

Workflow of a Purchase of Services Without a Purchase Receipt

Services that do not require purchase receipts may or may not be included in purchase orders with items that require a corresponding purchase receipt. If you are processing a purchase order with only services that do not require a receipt, the typical processing of a purchase order involves the actions and generated documents shown in the following diagram. Lesson 6: Purchasing Services Without Receipts | 33

Purchases of Services Without Receipts: Process Activity

In this activity, you will prepare and process a purchase order that includes a line for a service that does not need to be included in a purchase receipt when it is purchased. For simplicity, this lesson focuses on purchases of only services that do not require corresponding purchase receipts. However, this activity demonstrates a purchase of both a service that does not need to be included in a purchase receipt and a stock item that does need to be included in a purchase receipt.

Story

Suppose that you, as a purchasing manager for SweetLife Fruits & Jams, urgently need to buy some jars for packing SweetLife’s produced jam, which is sold in the retail store. The company buys these jars (which are tracked as stock items in the system) from Jar Co., which oﬀers free delivery of the jars. You order the jars, but you will not be able to use Jar Co.'s regular delivery service because its soonest free delivery is in three days. Because you are in urgent need of the jars, you agree to pay Jar Co. an extra service fee to arrange for delivery by a third party. You have defined this delivery in the system as a service that does not need to be included in a purchase receipt. Thus, you need to process a purchase order for Jar Co. that includes both the jars (at their normal price) and the expedited delivery service. You also need to process the corresponding purchase receipt (which includes only the jars) and AP bill (which includes the jars and the expedited delivery service). Lesson 6: Purchasing Services Without Receipts | 34

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 JARCO (Jar Co.) vendor has been defined.
On the Non-Stock Items (IN202000) form, the URGDELIVERY (One-time delivery service) non-stock item has been defined, and the Require Receipt check box has been cleared for this item on the General tab. This indicates that when this item is purchased, it does not need to be included in a purchase receipt.
On the Stock Items (IN202500) form, the JAR96 (Glass jar 96 oz., 24 pcs) stock item has been defined. Because stock items are by definition items whose movements are tracked in inventory, when they are purchased, they must be included in the purchase receipt corresponding to the purchase order.
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               For details about the process of purchasing stock items, see Purchases of Stock Items: Process
               Activity.
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Process Overview

In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the purchased expedited delivery service and jars to it. Although the service does not need to be included in a purchase receipt, because the jars are stock items, you will process a purchase receipt for them on the Purchase Receipts (PO302000) form. 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 of services without a receipt, you should do the following:

On the Purchase Orders Preferences (PO101000) form, make sure that the Process Service lines from Normal Purchase Orders via Purchase Receipts check box is cleared so that the system does not include service lines in purchase receipts.
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 Purchase Order To create a purchase order that includes the jars and the expedited delivery service, do the following:

On the Purchase Orders (PO301000) form, add a new record.
In the Summary area, specify the following settings:

Type: Normal
Vendor: JARCO
Description: Purchase of jars

On the table toolbar of the Details tab, click Add Row.
Specify the following settings in the added row:

Branch: RETAIL
Inventory ID: JAR96 Lesson 6: Purchasing Services Without Receipts | 35
Warehouse: RETAIL
Order Qty.: 5
Unit Cost: 30

On the table toolbar of the Details tab, click Add Row.
Specify the following settings in the added row:

Branch: RETAIL
Inventory ID: URGDELIVERY
Order Qty.: 1
Unit Cost: 20

On the form toolbar, click Remove Hold. Notice that the purchase order is assigned the Open status.

Step 2: Processing the Purchase Receipt for the Jars Although the URGDELIVERY non-stock item does not need to be included in a purchase receipt, the purchase order also consists of the JAR96 stock item. When this item is purchased, it needs to be included in the corresponding purchase receipt, because the movements of all stock items are carefully tracked in inventory. Thus, you still need to create a purchase receipt. Create the purchase receipt for the purchase order as follows:

While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter PO Receipt on the form toolbar. The system prepares the purchase receipt for the selected purchase order and opens it on the Purchase Receipts (PO302000) form.
Review the purchase receipt. Notice that the line with the URGDELIVERY service, which had been included in the purchase order, is absent in the purchase receipt. This is because the Require Receipt check box is cleared for the non-stock item on the Non-Stock Items (IN202000) form.
On the form toolbar, click Save.
Review the details of the prepared purchase receipt. Notice that the Create Bill check box is cleared in the Summary area. (You will create the bill manually in the next step.)
On the form toolbar, click Release.

Step 3: Processing the AP Bill To process the AP bill related to the purchase order, do the following:

Return to the purchase order that you have processed earlier in this activity on the Purchase Orders (PO301000) form, and click Enter AP Bill on the More menu. The system generates an AP bill for the vendor of the goods and shows the created document on the Bills and Adjustments (AP301000) form.
In the Description box, enter Purchase of jars with expedited delivery.
On the form toolbar, click Remove Hold.
Click Release.
Return to the purchase order for JARCO on the Purchase Orders form, and review its settings. Notice that the order now has a status of Closed, as shown in the screenshot below.
On the PO History tab, notice the following:

The le pane lists the purchase receipt, which includes only the received stock item from this purchase order. Lesson 6: Purchasing Services Without Receipts | 36
The right pane lists the AP bill that you prepared for the purchase order. It includes the received stock item and a service item. The inclusion of these documents on the tab indicates that the purchased jars have been received and the jars and the delivery have been billed in full, so the purchasing process is completed.

Figure: The corresponding purchase receipt and AP bill for the closed purchase order Lesson 7: Drop Shipments of Non-Stock Items | 37