Back to D220: Non-Stock and Service Items OrderMgmt

Lesson 7: Drop Shipments of Non-Stock Items

The topics of this lesson explain how to process sales and purchase orders for non-stock items that your company will sell and then drop-ship to the customer.

Drop Shipments of Non-Stock Items: General Information

In Acumatica ERP, you can create sales orders whose goods are intended for drop shipping. Drop shipping means that a customer orders the goods from your company, pays your company for the order, and receives the goods (which your company has ordered) directly from one of your vendors. In the system, you define these goods as non- stock items because your company does not keep them in stock. If the Drop Shipments feature is enabled on the Enable/Disable Features (CS100000) form, you can mark particular non-stock items for drop shipping and create drop-ship orders for these items.

Learning Objectives

In this lesson, you will do the following:

Process a sales order for non-stock items to be drop-shipped
Mark items for drop shipment in a sales order
Create a drop-ship purchase order for the sales order and process the drop shipment to completion

Applicable Scenario

You use a drop shipment to fulfill a sale of non-stock items that your company does not keep in its warehouses. Instead, your company processes the needed documents to have your vendor ship the items directly to the customer.

Drop-Shipping Process To process a sale with drop shipment, you create a sales order of the SO order type on the Sales Orders (SO301000) form, and add the non-stock items ordered by the customer. On the Details tab of the form, you mark the non- stock items for drop shipping by selecting the check box in the Mark for PO column and selecting Drop-Ship in the PO Source column, which means that the items will be ordered from the vendor and shipped directly to the customer. When you mark items for drop shipping and save the sales order with the Open status, the system creates purchase requests of the Drop-Ship plan type. You then create a drop-ship purchase order by processing Drop-Ship purchase requests on the Create Purchase Orders (PO505000) form. This drop-ship purchase order contains links to the related sales order. The items from this purchase order are not shipped to the company's warehouse; rather, they are shipped directly to the customer. Aer you have received confirmation that the customer has received the items from the vendor, you prepare and release the purchase receipt for the drop-ship purchase order. When you release the purchase receipt (which is listed as a shipment document for the sales order on the Sales Orders form), the status of the drop-ship purchase order and sales order is changed to Completed. You can then prepare a sales invoice for the customer. Lesson 7: Drop Shipments of Non-Stock Items | 38

Workflow of a Sale with Drop Shipment

For a sales order with non-stock items intended for drop shipment, the typical processing involves the actions and generated documents shown in the following diagram.

Drop Shipments of Non-Stock Items: Process Activity

In this activity, you will prepare a sales order with non-stock items marked for drop shipping and process this sales order to completion.

Story

Suppose that the FourStar Coﬀee & Sweets Shop (COFFEESHOP) customer has ordered two rare teas at SweetLife’s store. Although these teas are presented in SweetLife’s website catalog, the company does not keep them in the wholesale or retail warehouse; they are defined in Acumatica ERP as non-stock items. When a customer orders these teas, SweetLife drop-ships them from the Tea & Spices (TEACOMPANY) vendor, which regularly stocks these teas, directly to the customer who ordered the teas. To fulfill the customer’s request, acting as the sales manager of the SweetLife Store, you need to process a drop shipment.

Configuration Overview

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

On the Enable/Disable Features (CS101000) form, the Drop Shipments feature, which provides the ability to create and process sales orders with drop shipment, has been enabled.
On the Customers (AP303000) form, the COFFEESHOP customer has been created. Lesson 7: Drop Shipments of Non-Stock Items | 39
On the Vendors (AP303000) form, the TEACOMPANY vendor has been created.
On the Non-Stock Items (IN202000) form, the EMPTEA and KINGTEA non-stock items have been created. For each of these items, the TEACOMPANY vendor has been added to the Vendors tab. Also, the Require Receipt and Require Shipment check boxes have been selected for these items on the General tab. These settings are required to process drop-ship sales.

Process Overview

In this activity, to process a sale with drop shipment, you will create a sales order of the SO order type on the Sales Orders (SO301000) form; on the Details tab, you will add the items ordered by the customer. Because the items are not kept in stock, you will mark each of them for drop shipping by selecting the check box in the Mark for PO column and selecting Drop-Ship in the PO Source column, which means that the items will be ordered from the vendor and shipped directly to the customer. You will then create a drop-ship purchase order by processing purchase requests of the Drop-Ship plan type on the Create Purchase Orders (PO505000) form. The drop-ship purchase order generated from purchase requests, which can be viewed and processed further on the Purchase Orders (PO301000) form, contains links to the related sales order. Aer you have received confirmation that the customer has received the items from the vendor, on the Purchase Receipts (PO302000) form, you will prepare and release the purchase receipt for the drop-ship purchase order. You will then prepare an invoice for the customer by using the Invoices (SO303000) form.

System Preparation

Before you start processing a sales order with non-stock items marked for drop shipping, 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 1/30/2025. If a diﬀerent date is displayed, click the Business Date menu button and select 1/30/2025 on the calendar. 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 a sales order, do the following:

On the Sales Orders (SO301000) form, add a new record.
In the Summary area, specify the following settings:

Order Type: SO
Customer: COFFEESHOP
Description: Website order #00785 (tea)

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

Branch: RETAIL
Inventory ID: EMPTEA
Warehouse: RETAIL
Quantity: 10
Unit Price: 47.99

On the table toolbar of the Details tab, click Add Row. Lesson 7: Drop Shipments of Non-Stock Items | 40
Specify the following settings in the added row:

Branch: RETAIL
Inventory ID: KINGTEA
Warehouse: RETAIL
Quantity: 10
Unit Price: 54.99

On the form toolbar, click Save. Notice that the sales order is assigned the Open status.

Step 2: Marking the Items for Drop Shipment You mark the items for drop shipment as follows:

While you are still viewing the sales order on the Sales Orders (SO301000) form, for each line on the Details tab, do the following: a. Select the Mark for PO check box. b. In the PO Source column, select Drop-Ship.
On the form toolbar, click Save.

Step 3: Creating a Drop-Ship Purchase Order To create a drop-ship purchase order from purchase requests, 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 rows with SO to Drop-Ship specified as the Plan Type (which are the lines that are related to the sales order that you have prepared).
In both of the rows, make sure that TEACOMPANY is specified in the Vendor column.
On the form toolbar, click Process to process the purchase requests you have selected. The system creates a drop-ship purchase order for the TEACOMPANY vendor and opens it on the Purchase Orders (PO301000) form.
On the Details tab of this form, review the Sales Order Nbr. column, which shows the number of the sales order to which this purchase order lines are linked.
In the Description box of the Summary area, type Purchase for website order #00785.
On the form toolbar, click Remove Hold.

Step 4: Processing the Drop-Ship Purchase Order Suppose that you have been notified that the customer has received the ordered teas. To process the drop-ship 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 the system opens with the created receipt, 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. Lesson 7: Drop Shipments of Non-Stock Items | 41
On the form toolbar, click Release. Notice that the purchase receipt is assigned the Released status.
On the Billing tab, review the only line in the table, which shows the generated bill, and make sure the bill has a status of Open.

Step 5: Processing the Sales Invoice for the Customer To complete the processing of a sale with drop shipment, you need to generate an invoice to the customer. Do the following:

On the Sales Orders (SO301000) form, open the sales order for the COFFEESHOP customer that you have created earlier in this activity.
On the form toolbar, click Prepare Invoice.
On the Invoices (SO303000) form, which opens, make sure that both items have been included in the invoice.
On the form toolbar, click Release to release the invoice.
Return to the sales order on the Sales Orders form, and notice the Completed status, which reflects that you have processed the sales order to completion. Then on the Shipments tab, review the only row, which indicates the shipment for the order. Notice that the purchase receipt that you have processed is listed as a shipment for this sales order and that the reference number of this purchase receipt is shown in the Document Nbr. column of the row. The following screenshot shows the Completed sales order with drop shipment.
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   Figure: The completed sales order with drop shipment
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Additional Materials | 42

Additional Materials

This part of the guide provides the following information related to the processes and scenarios covered in the corresponding lessons of the guide:

Additional information related to the processes
Transactions generated as a result of the processes
Details about the reports, inquiries, and forms you can use to review and gather information related to the processes
Explanations on how to perform mass-processing operations related to the processes

Appendix 1: Creating Non-Stock Items

This appendix provides configuration prerequisites for the creation of non-stock items and the list of forms and reports related to non-stock items.

Non-Stock Items: Configuration Prerequisites

Before starting to create a non-stock item, you must be sure that the system has been configured properly and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

To be able to process sales and purchase orders that include non-stock items, you need to enable the Inventory and Order Management feature on the Enable/Disable Features (CS100000) form. If you want to configure the processing of sales and purchases orders that include non-stock items with shipments and purchase receipts, you should also enable the Inventory feature. If the Inventory feature is not enabled, you can process sales and purchases only directly, by using AR invoices and AP bills rather than sales orders and purchase orders.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin creating non- stock items:

The performing of the minimum system configuration. For details, see Company Without Branches: General Information.
On the Tax Categories (TX205500) form, the definition of the necessary tax categories, which you will assign to the new non-stock item.

Non-Stock Items: Related Forms and Reports

This topic describes the forms and reports you may want to review to gather information about non-stock items.

         If you do not see a particular report or form that is described, you may have signed in to the system
         with a user account that does not have access rights to the report or form. Contact your system
         administrator to obtain access to any needed reports or forms.

Additional Materials | 43

Reviewing Sales Prices

You can review the sales prices of a particular non-stock item by clicking Sales Prices on the More menu of the Non- Stock Items (IN202000) form while you are viewing the item. The system navigates to the Sales Prices (AR202000) form, where you can review any sales prices that have been specified for the selected non-stock item. On this form, you can also add a new sales price for the non-stock item. For details of managing sales prices, see Sales Prices: General Information.

Reviewing Vendor Prices

You can review the vendor prices of a particular non-stock item by clicking Vendor Prices on the More menu of the Non-Stock Items (IN202000) form. The system navigates to the Vendor Prices (AP202000) form, where you can review any vendor prices that have been specified for the selected non-stock items. On this form, you can also add a new vendor price for the non-stock item. For details on managing vendor prices, see Vendor Prices: General Information.

Reviewing Sales Order Details by Inventory Item

If you want to view detailed information about open sales orders, you use the Sales Order Details by Inventory Item (SO611500) report. You can view sales order details for all items, grouped by inventory item, or select a particular non-stock item among the parameters you use to run the report.

Reviewing Purchase Order Details by Inventory Item

If you want to view detailed information about the open lines in purchase orders of the Normal or Drop-Ship type, you use the Purchase Order Details by Inventory Item (PO611500) report. You can view this information on all items, grouped by inventory item, or select a particular non-stock item among the parameters you use to run the report.

Appendix 2: Creating Service Items

This appendix provides configuration prerequisites for the creation of service items and the list of forms and reports related to service items.

Service Items: Configuration Prerequisites

Before you start configuring a service item, you must be sure that the system has been configured properly and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin creating non- stock items:

The performing of the minimum system configuration. For details, see Company Without Branches: General Information.

               While the U100 dataset you are going to use to configure a non-stock item has predefined
               posting classes, in a production environment you can configure a non-stock item without
               posting classes.

On the Tax Categories (TX205500) form, the definition of the necessary tax categories, which you will assign to the new non-stock item.

Service Items: Related Forms

This topic describes the forms and reports you may want to review to gather information about non-stock items.

          If you do not see a particular report or form that is described, you may have signed in to the system
          with a user account that does not have access rights to the report or form. Contact your system
          administrator to obtain access to any needed reports or forms.

Reviewing Sales Prices

Reviewing Vendor Prices

You can review the vendor prices of a particular non-stock item by clicking Vendor Prices on the More menu of the Non-Stock Items (IN202000) form while you are viewing the item. The system navigates to the Vendor Prices (AP202000) form, where you can review any vendor prices that have been specified for the selected non-stock items. On this form, you can also add a new vendor price for the non-stock item. For details on managing vendor prices, see Vendor Prices: General Information.

Reviewing Sales Order Details by Inventory Item

Reviewing Purchase Order Details by Inventory Item

Appendix 3: Selling Non-Stock Items with Shipping

This appendix provides additional information about sales of non-stock items with shipping.

Sales of Non-Stock Items with Shipping: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the processing of sales of non-stock items with shipping, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist

Before you begin processing sales of non-stock items with shipping, you should make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form                                                      Criteria to Check

Sales Orders Preferences (SO101000)                       Make sure that all necessary settings related to sales
                                                          orders have been specified, as described in Order Man-
                                                          agement Basic Configuration: General Information.

Enable/Disable Features (CS100000)                        Make sure that the Inventory feature is enabled.

Order Types (SO201000)                                    Make sure that the SO order type is active and has
                                                          been configured, as described in Sales Order Types:
                                                          Implementation Activity.

Customers (AR303000)                                      Make sure that all needed customers have been de-
                                                          fined in the system, as described in Customers: Imple-
                                                          mentation Activity.

Non-Stock Items (IN202000)                                • Make sure that all non-stock items have been de-
                                                            fined in the system, as described in Non-Stock
                                                            Items: Implementation Activity.

Make sure that the Require Shipment check box is selected for non-stock items that you plan to ship.

Other Settings That Aﬀect the Workflow You can aﬀect the workflow of processing sales of non-stock items with shipping by specifying additional settings as follows:

To cause shipments to be created with the On Hold status (so that the user can verify them before processing them further), select the Hold Shipments on Entry check box on the Sales Orders Preferences (SO101000) form.
To cause the shipment dates to appear in invoices as invoice dates, select the Use Shipment Date for Invoice Date check box on the Sales Orders Preferences form.
To cause general ledger batches generated during the processing of sales documents to be posted automatically, select the Automatically Post on Release check box on the General Ledger Preferences Additional Materials | 46
```
    (GL102000) form. For information on processing general ledger batches, see GL Transactions: General
    Information.
```

Sales of Non-Stock Items with Shipping: Generated Transactions

To be able to process a sale of non-stock items, you create and process a sales order. The following sections describe the GL transactions generated during the processing of the documents for a sale of non-stock items.

          Sales orders of the SO type and shipment documents do not produce any GL transactions.

Transactions Generated for a Sales Invoice

When you create and release a sales invoice with one line with a non-stock item, the system generates the following general ledger transactions.

Account                   Source of Account                        Debit                     Credit

Accounts Receivable       Customer                                 Amount                    0.00
account

Sales account             Depends on the settings of the           0.00                      Amount
                          order type on the Order Types
                          (SO201000) form

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices (SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form. If your company sells non-stock items, you may want to recognize the expenses for these items when they are sold to accurately calculate revenue or for other accounting purposes. To do this, you need to select Sales in the Post Cost to Expenses On box on the Non-Stock Items (IN202000) form for the non-stock item. When the item is sold, on release of the sales invoice,additional transactions are added to the batch and the following transactions are generated.

Account                       Source of Account            Debit                         Credit

Accounts Receivable ac-       Customer                     Amount                        0.00
count

Sales Revenue account         Depends on the settings      0.00                          Amount
                              of the order type on the
                              Order Types (SO201000)
                              form

Expense Accrual account       Depends on the settings      0.00                          Amount
                              specified on the Posting
                              Classes (IN206000) form
                              for the posting class of
                              the item

Additional Materials | 47

 Account                      Source of Account             Debit                        Credit

 COGS account                 Depends on the settings       Amount                       0.00
                              specified on the Posting
                              Classes form for the post-
                              ing class of the item

Sales of Non-Stock Items with Shipping: Related Reports and Forms

In the following sections, you can find details about ways to gather information about sales of non-stock items that have been processed or are being processed in the system.

           If you do not see a particular report or form that is described, you may have signed in to the system
           with a user account that does not have access rights to the report or form. Contact your system
           administrator to obtain access to any needed reports or forms.

Tracking the Status of Order Fulfillment

To track how a sales order is being fulfilled, you can check its status in the Summary area of the Sales Orders (SO301000) form. On the Totals tab of this form, you can also check the quantities and amounts that are not yet shipped and not yet billed, and the amount that is not yet paid.

Printing Invoices

To prepare a printable form of the sales invoice that is being processed, you use the Invoice & Memo (SO643000) report. While you are viewing a sales invoice on the Invoices (SO303000) form, you can navigate to this report by clicking Print Invoice on the More menu. The system opens the printable version of the sales invoice on the Invoice & Memo report; then you can review the sales invoice and print it by clicking Print on the report toolbar.

Sales of Non-Stock Items with Shipping: Mass Processing of Documents

The following sections explain how to process multiple sales documents, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Shipments Shipments can be mass-created for sales orders. To create shipments for multiple sales orders at a time, you open the Process Orders (SO501000) form and select the Create Shipment action, as well as any other selection criteria to narrow the listed sales orders. Then you select the unlabeled check boxes in the rows of the orders to be processed, and click Process on the form toolbar. The system prepares shipments for the selected sales orders. As an alternative to creating shipments for only the selected orders, you can click Process All to create shipments for all the listed orders.

Mass-Confirming Shipments Shipments can be mass-confirmed. To confirm multiple shipments at a time, you open the Process Shipments (SO503000) form and select the Confirm Shipment action, as well as any other selection criteria to narrow the listed shipments. Additional Materials | 48

Then you select the unlabeled check boxes for the shipments to be processed, and click Process on the form toolbar. The system confirms the selected shipment documents. Instead of confirming only the selected shipments, you can click Process All to confirm all the listed shipments.

Mass-Creating Invoices Sales invoices can be mass-created for sales orders or for the shipments that correspond to sales orders. To create multiple sales invoices for sales orders, you open the Process Orders (SO501000) form. To create multiple sales invoices for shipments, you open the Process Shipments (SO503000) form. On either form, you select the Prepare Invoice action, as well as any other selection criteria to narrow the listed documents. Then you select the unlabeled check boxes for the sales orders or shipments to be processed, and click Process on the form toolbar. The system prepares invoices for the selected documents. Alternatively, you can click Process All to create invoices for all the listed documents.

Mass-Printing Pick Lists For multiple shipments with the On Hold or Open status, you can mass-print pick lists by using the Process Shipments (SO503000) form. On this form, you select the Print Pick List action, as well as any other selection criteria to narrow the listed shipments. Then you select the unlabeled check boxes for the shipments for which you need to print pick lists, and click Process on the form toolbar. As an alternative to printing pick lists for only the selected shipments, you can click Process All to print pick lists for all the listed documents.

Mass-Printing Invoices You can print multiple sales invoices at a time by using the Process Invoices and Memos (SO505000) form. On this form, you select the Print Invoice action, as well as any other selection criteria to narrow the listed sales invoices. Then you select the unlabeled check boxes for the sales invoices to be printed, and click Process on the form toolbar. As an alternative to printing only the selected sales invoices, you can click Process All to print all the listed sales invoices.

Appendix 4: Selling Services

This appendix provides additional information about sales of services.

Sales of Services: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the processing of sales of services, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist

Before you begin processing sales of services, you should make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist. Additional Materials | 49

Form                                                       Criteria to Check

Sales Orders Preferences (SO101000)                        Make sure that all necessary settings related to sales
                                                           orders have been specified, as described in Order Man-
                                                           agement Basic Configuration: General Information.

Order Types (SO201000)                                     Make sure that the SO or IN order type is active and has
                                                           been configured, as described in Sales Order Types:
                                                           Implementation Activity. (If needed, you can set up and
                                                           activate both of these order types.)

Customers (AR303000)                                       Make sure that all needed customers have been de-
                                                           fined in the system, as described in Customers: Imple-
                                                           mentation Activity.

Non-Stock Items (IN202000)                                 Make sure that all non-stock items have been defined
                                                           in the system, as described in Non-Stock Items: Imple-
                                                           mentation Activity.

Other Settings That Aﬀect the Workflow To cause general ledger batches generated during the processing of sales documents to be posted automatically, select the Automatically Post on Release check box on the General Ledger Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions: General Information.

Sales of Services: Generated Transactions

          Sales orders of the SO type do not produce any GL transactions.

Transactions Generated for a Sales Invoice

When you create and release a sales invoice with one line with a non-stock item that does not require shipping, the system generates the following general ledger transactions.

Account                   Source of Account                       Debit                      Credit

Accounts Receivable       Customer                                Amount                     0.00
account

Sales account             Depends on the settings of the          0.00                       Amount
                          order type on the Order Types
                          (SO201000) form

Sales of Services: Related Report

In the following sections, you can find details about ways to gather information about sales of services that have been processed or are being processed in the system.

          If you do not see a particular report or form that is described, you may have signed in to the system
          with a user account that does not have access rights to the report or form. Contact your system
          administrator to obtain access to any needed reports or forms.

Printing Invoices

To prepare a printable form of the invoice that is being processed, you use the Invoice & Memo (SO643000) report. While you are viewing a sales invoice on the Invoices (SO303000) form, you can navigate to this report by clicking Print Invoice on the More menu. The system opens the printable version of the invoice on the Invoice & Memo report; then you can review the invoice and print it by clicking Print on the report toolbar.

Sales of Services: Mass Processing of Documents

The following sections explain how to process multiple sales orders and related documents, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Invoices Invoices can be mass-generated for sales orders or for the shipments that correspond to sales orders. To prepare multiple invoices for sales orders, you open the Process Orders (SO501000) form. To prepare multiple sales invoices for shipments, you open the Process Shipments (SO503000) form. On either form, you select the Prepare Invoice action, as well as any other selection criteria to narrow the listed documents. Then you select the unlabeled check boxes in the rows of the sales orders or shipments to be processed, and click Process on the form toolbar. The system prepares invoices for the selected documents. As an alternative to creating invoices for only the selected documents, you can click Process All to create invoices for all the listed documents.

Mass-Printing Invoices You can print multiple sales invoices at a time by using the Process Invoices and Memos (SO505000) form. On this form, you select the Print Invoice action, as well as any other selection criteria to narrow the sales invoices to be listed. Then you select the unlabeled check boxes in the rows of the invoices to be printed, and click Process on the form toolbar. Instead of printing only the selected invoices, you can click Process All to print all the listed invoices.

Appendix 5: Purchasing Non-Stock Items and Services with Receipts

This appendix provides additional information about purchases of non-stock items and services with purchase receipts. Additional Materials | 51

Purchases of Non-Stock Items and Services with Receipts: Implementation

Checklist

The following sections provide details you can use to ensure that the system is configured properly for the processing of purchases of non-stock items (including services) with purchase receipts, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist

We recommend that before you initially process purchases of non-stock items which may include services, you make sure the needed settings have been specified, and entities have been created, as summarized in the following checklist.

Form                                                      Criteria to Check

Purchase Orders Preferences (PO101000)                    • Make sure that all necessary settings related to pur-
                                                            chase order management have been specified as
                                                            described in Order Management Basic Configuration:
                                                            General Information.

Make sure that the Process Service lines from Normal Purchase Orders via Purchase Receipts check box (in the Other section of the General tab) is selected.
Vendors (AP303000) Make sure that all needed vendors have been created as described in Vendors: General Information.
Non-Stock Items (IN202000) Make sure that all non-stock items have been config- ured as described in Non-Stock Items: Implementation Activity.
```
                                                        Also, make sure that the Require Receipt check box
                                                        (in the Item Defaults section of the General tab) is se-
                                                        lected in the settings of each non-stock item for which
                                                        a purchase receipt will be processed when the item is
                                                        purchased.
```
Enable/Disable Features (CS100000) Make sure that the Inventory feature is enabled to be able to create purchase receipts.

Other Settings That Aﬀect the Workflow You can aﬀect the workflow of processing purchases by specifying additional settings:

To cause an accounts payable bill to be created automatically on release of a purchase receipt by default, select the Create Bill on Receipt Release check box on the Purchase Orders Preferences (PO101000) form (in the Other section of the General tab). In this case, when a user creates a purchase receipt on the Purchase Receipts (PO302000) form, the system automatically selects the Create Bill check box in the Summary area. (The user can clear this check box for a particular receipt, if needed.)
To cause the system to automatically release accounts payable bills that are generated on release of purchase receipts, select the Release AP Documents Automatically check box on the Purchase Orders Preferences form. For information on processing bills, see AP Bills: General Information. Additional Materials | 52
To cause purchase receipts to be created with the On Hold status (so that users can verify them before processing them further), select the Hold Receipts on Entry check box on the Purchase Orders Preferences form (in the Other section of the General tab).
To cause the system to automatically release inventory receipts generated on release of purchase receipts, select the Release IN Documents Automatically check box on the Purchase Orders Preferences form (in the Other section of the General tab).
To cause the system to automatically post general ledger batches generated during processing purchase documents, select the Automatically Post on Release check box in the Posting Settings section of the General Ledger Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions: General Information.

Purchases of Non-Stock Items and Services with Receipts: Generated Transactions

To process a purchase of non-stock items and services for which a receipt is required, you create an AP bill and a receipt. On release of these documents, the system generates GL transactions described in the following sections.

Transaction Generated on AP Bill Release

When an AP bill prepared for a purchase order (or for purchase receipt) is released, the system creates a batch of the following entries.

Account                             Source of Account           Debit                       Credit

Accounts Payable account            Vendor                      0.00                        Amount

PO Accrual account                  Item                        Amount                      0.00

You can view the reference number of the GL batch generated for a particular AP bill in the Batch Nbr. box on the Financial tab of the Bills and Adjustments (AP301000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.

Transaction Generated on Release of an Inventory Receipt

When the inventory receipt for the purchase receipt is released, the system creates a batch of the following entries.

Account                             Source of Account           Debit                       Credit

Expense account                     Vendor                      Amount                      0.00

Inventory Purchase Accrual ac-      Item                        0.00                        Amount
count

You can view the reference number of the GL batch generated for a particular receipt in the Batch Nbr. box on the Financial tab of the Receipts (IN301000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form. Your company may want to recognize expenses when a non-stock item is sold—that is, to post the item’s cost to an expense account when it is sold. To do this, you need to select Sales in the Post Cost to Expenses On box on the Non-Stock Items (IN202000) form for the non-stock item. With this setting, if the Inventory feature is enabled on the Enable/Disable Features (CS100000) form and the item is purchased, the system creates a batch of the following transactions on release of the inventory receipt. The Expense Accrual account is used instead of the Expense account. The item’s cost is posted to the Expense account on release of a sales invoice. Additional Materials | 53

 Account                      Source of Account              Debit                         Credit

 PO Accrual account           Posting class settings         0.00                          Amount
                              on the Posting Classes
                              (IN206000) form

 Expense Accrual account      The posting class settings     Amount                        0.00
                              on the Posting Classes
                              form

If the Inventory feature is disabled, on release of an AP bill, the system creates a batch of the following transactions.

 Account                      Source of Account              Debit                         Credit

 Accounts Payable ac-         Vendor                         0.00                          Amount
 count

 Expense Accrual account      Item                           Amount                        0.00

Purchases of Non-Stock Items and Services with Receipts: Related Reports and

Forms

In the following sections, you can find details about ways to gather information about the purchases of non-stock items or services that have been processed or are being processed in the system.

           If you do not see a particular report or form that is described, you may have signed in to the system
           with a user account that does not have access rights to the report or form. Contact your system
           administrator to obtain access to any needed reports or forms.

Reviewing Purchase Order Information

If you need to review all information related to a purchase order—including the order total, open quantities, unbilled quantities and amounts, and related purchase receipts and accounts payable bills with their dates, amounts, and current statuses—you first open the particular purchase order on the Purchase Orders (PO301000) form. Then on the More menu, you click Purchase Order Receipt and Billing History to open the Purchase Order Receipt and Billing History (PO643000) report for this purchase order.

If you need to find a purchase receipt linked to a particular purchase order, you can open the purchase order on the Purchase Orders (PO301000) form and review the PO History tab. The le table on this tab lists all the purchase receipts that have been prepared for the order, and the table footer shows the summary information for all listed documents. To review the details of any receipt, you click its reference number in the Receipt Nbr. column; the system opens the purchase receipt for review on the Purchase Receipts (PO302000) form.

If you need to find an AP bill linked to a particular purchase order, you can open the purchase order on the Purchase Orders (PO301000) form and review the PO History tab. The right table on this tab lists all the AP documents that have been prepared for the order, and the table footer shows the summary information for all Additional Materials | 54

listed documents. To review the details any listed bill, you click its reference number in the Reference Nbr. column; the system opens the AP bill for review on the Bills and Adjustments (AP302000) form.

Reviewing the Unbilled Quantities of a Purchase Order

To check whether a purchase order has quantities of items and amounts that have not yet been billed, you can review the Unbilled Quantity and Unbilled Amount boxes on the Other tab of the Purchase Orders (PO301000) form.

Printing a Purchase Order

To prepare a printable version of the purchase order that is being processed, you use the Purchase Order (PO641000) report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print the purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version of the document on the Purchase Order report; then you can review the order and print it by clicking Print on the report toolbar.

Purchases of Non-Stock Items and Services with Receipts: Mass Processing of

Documents

The following sections explain how to mass-process purchase orders and related documents, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Releasing Purchase Receipts You can release multiple purchase receipts at the same time by using the Release Purchase Receipts (PO501000) form. On this form, you select the unlabeled check boxes for the purchase receipts to be processed and click Process on the form toolbar to release the selected purchase receipts. Alternatively, you can click Process All to release all the listed purchase receipts.

Printing and Emailing Multiple Purchase Orders

If needed, you can print or email multiple purchase orders at the same time by using the Print/Email Purchase Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you select the Print Purchase Order or Email Purchase Order action, as well as any other selection criteria to narrow the orders to be listed. Then you select the unlabeled check boxes for the orders to be printed or emailed, and click Process on the form toolbar to print or email the selected orders. As an alternative to printing or emailing only selected orders, you can click Process All to print or email all the listed purchase orders.

Consolidating Purchase Orders or Lines into a Single Purchase Receipt

Instead of preparing an individual purchase receipt for each purchase order, you can add multiple purchase orders of one vendor to a single purchase receipt; you can also add individual lines of one purchase order or multiple purchase orders. To do this, you create a new purchase receipt of the Receipt type manually on the Purchase Receipts (PO302000) form; you then click Add PO on the table toolbar of the Details tab and add the lines of multiple purchase orders with the same vendor to the purchase receipt. If you click Add PO Line on the table toolbar, you can add purchase receipt lines. Additional Materials | 55

Consolidating Purchase Receipts or Lines into a Single Bill

Instead of preparing an individual accounts payable bill for each purchase receipt, you can add multiple purchase receipts of one vendor to a single bill; you can also add individual lines of one purchase receipt or multiple purchase receipts. To do this, you create a new accounts payable bill manually on the Bills and Adjustments (AP301000) form and make sure that the Tax Settings option is selected in the Tax Calculation Mode box on the Financial tab. You then click Add PO Receipt on the table toolbar of the Details tab and add the lines of multiple purchase receipts with the same vendor to the bill. If you click Add PO Receipt Line on the table toolbar, you can add purchase receipt lines.

Appendix 6: Purchasing Services Without Receipts

This appendix provides additional information about purchases of service items without a purchase receipt.

Purchases of Services Without Receipts: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the processing of purchases of services that will not be included in a purchase receipt, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist

We recommend that before you initially process purchases of services without receipt, you make sure the needed settings have been specified, and entities have been created, as summarized in the following checklist.

 Form                                                     Criteria to Check

 Purchase Orders Preferences (PO101000)                   • Make sure that all necessary settings related to pur-
                                                            chase order management have been specified as
                                                            described in Order Management Basic Configuration:
                                                            General Information.

Make sure that the Process Service lines from Normal Purchase Orders via Purchase Receipts check box (in the Other section of the General tab) is cleared.
Vendors (AP303000) Make sure that all needed vendors have been config- ured as described in Vendors: General Information.
Non-Stock Items (IN202000) Make sure that all non-stock items to be purchased have been configured, as described in Non-Stock Items: Implementation Activity.

                                                        For each non-stock item that does not need to be in-
                                                        cluded in a purchase receipt when the item is pur-
                                                        chased, make sure that the Require Receipt check
                                                        box (in the Item Defaults section of the General tab) is
                                                        cleared.

Additional Materials | 56

Other Settings That Aﬀect the Workflow You can aﬀect the workflow of processing purchases of services without receipt by selecting the Automatically Post on Release check box on the General Ledger Preferences (GL102000) form to cause the system to automatically post GL batches generated during processing purchase documents. For information on processing GL batches, see GL Transactions: General Information.

Purchases of Services Without Receipts: Generated Transactions

To process a purchase of services without receipt, you create an AP bill. On release of the AP bill, the system generates GL transactions described in the following section.

Transaction Generated on AP Bill Release

When an AP bill prepared for a purchase order is released, the system creates a batch of the following entries.

 Account                            Source of Account           Debit                       Credit

 Accounts Payable account           Vendor                      0.00                        Amount

 PO Accrual account                 Item                        Amount                      0.00

Purchases of Services Without Receipts: Related Reports and Forms

In the following sections, you can find details about ways to gather information about the purchases of services that have been processed or are being processed in the system.

           If you do not see a particular report or form that is described, you may have signed in to the system
           with a user account that does not have access rights to the report or form. Contact your system
           administrator to obtain access to any needed reports or forms.

Reviewing Purchase Order Information

listed documents. To review any listed bill, you click its reference number in the Reference Nbr. column; the system opens the AP bill for review on the Bills and Adjustments (AP302000) form.

Reviewing the Unbilled Quantities of a Purchase Order

Printing a Purchase Order

Purchases of Services Without Receipts: Mass Processing of Documents

The following sections explain how to mass-process purchase orders, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Printing Purchase Orders You can print multiple purchase orders at the same time by using the Print/Email Purchase Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you select the Print Purchase Order action, as well as any other selection criteria to narrow the orders to be listed. Then you select the unlabeled check boxes for the purchase orders to be printed, and click Process on the form toolbar. As an alternative to printing only selected orders, you can click Process All to print all the listed purchase orders.

Mass-Emailing Purchase Orders If needed, you can email multiple purchase orders at the same time by using the Print/Email Purchase Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you first select the Email Purchase Order action, as well as any other selection criteria to narrow the orders to be listed. Then you select the unlabeled check boxes for the purchase orders to be emailed, and click Process on the form toolbar. As an alternative to emailing only selected orders, you can click Process All to email all the listed purchase orders.

Appendix 7: Drop Shipments of Non-Stock Items

This appendix provides additional information about sales of non-stock items with drop shipping. Additional Materials | 58

Drop Shipments of Non-Stock Items: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the processing of sales of non-stock items intended to be drop-shipped, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist

Before you initially process sales with drop shipment, you should make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form                                                       Criteria to Check

Enable/Disable Features (CS100000)                         Make sure that the Drop Shipments feature is enabled.

Sales Orders Preferences (SO101000)                        Make sure that all necessary settings related to sales
                                                           orders and purchase orders have been specified as de-
Purchase Orders Preferences (PO101000)
                                                           scribed in Configuration of Order Management: Imple-
                                                           mentation Activity.

Order Types (SO201000)                                     Make sure that the SO order type is active and has
                                                           been configured as described in Sales Order Types: Im-
                                                           plementation Activity.

Vendors (AP303000)                                         Make sure that all needed vendors have been config-
                                                           ured as described in Vendors: Implementation Activity.

Customers (AR303000)                                       Make sure that all needed customers have been con-
                                                           figured as described in Customers: Implementation Ac-
                                                           tivity.

Non-Stock Items (IN202000)                                 Make sure that all non-stock items are configured as
                                                           described in Non-Stock Items: Implementation Activity.

Other Settings That Aﬀect the Workflow You can aﬀect the processing workflow by specifying additional settings as follows:

To process service lines marked for drop shipment on the Sales Orders (SO301000) form with receipt, select the Process Service Lines from Drop-Ship Purchase Orders via Purchase Receipts on the Purchase Orders Preferences (PO101000) form.
To cause sales orders of a particular order type to be created with the On Hold status (so the user can verify them before processing them further), select the Hold Orders on Entry check box for the order type on the Order Types (SO201000) form. For more information on other order type settings aﬀecting the workflow of sales orders, see Sales Order Types: General Information.
To cause the system to automatically create an accounts payable bill on release of a purchase receipt by default, select the Create Bill on Receipt Release check box on the Purchase Orders Preferences form. In this case, when a user creates a purchase receipt on the Purchase Receipts (PO302000) form, the system automatically selects the Create Bill check box. (The user can clear this check box for a particular bill.) For information on processing bills, see AP Bills: General Information.
To cause the system to automatically post general ledger batches generated during the processing of sales and purchase documents, select the Automatically Post on Release check box on the General Ledger Additional Materials | 59
```
    Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions:
    General Information.
```

Drop Shipments of Non-Stock Items: Generated Transactions

To be able to process a sale of non-stock items intended for drop shipment, you create and process a sales order and a purchase order. The following sections describe the GL transactions generated during the processing of the documents for a sale of non-stock items for drop shipment.

          Sales orders of the SO type do not produce any GL transactions.

Transactions Generated for a Sales Invoice

When you create and release a sales invoice with a line with a non-stock item, the system generates the following general ledger transactions.

Account                   Source of Account                        Debit                     Credit

Accounts Receivable       Customer                                 Amount                    0.00
account

Sales account             Depends on the settings of the           0.00                      Amount
                          order type on the Order Types
                          (SO201000) form

Transactions Generated on AP Bill Release

When an accounts payable bill prepared for a purchase order (or for purchase receipt) is released, the system creates a batch of the following transactions.

Account                             Source of Account           Debit                       Credit

Accounts Payable account            Vendor                      0.00                        Amount

PO Accrual account                  Item                        Amount                      0.00

Drop Shipments of Non-Stock Items: Related Reports and Forms

In the following sections, you can find details about the reports, inquiry forms, and dialog boxes you may want to review to gather information about sales with drop shipment that have been processed or are being processed in the system.

          If you do not see a particular report or form that is described, you may have signed in to the system
          with a user account that does not have access rights to the report or form. Contact your system
          administrator to obtain access to any needed reports or forms.

Finding Purchase Requests Pending Drop Shipment

You can find purchase requests of the SO to Drop-Ship type on the Create Purchase Orders (PO505000) form. On the form, you can filter purchase requests by any of the following criteria: warehouse, vendor, order type, order number, inventory ID, item class, customer, product manager, and workgroup. You can generate purchase orders of the Drop-Ship type for all the listed purchase requests, or you can select particular purchase requests (by selecting the unlabeled check boxes in the rows) and generate these purchase orders.

Reviewing the Purchase Order Linked to a Sales Order Line

You can find the purchase order that is linked to a particular line of a sales order by clicking the sales order line on the Details tab of the Sales Orders (SO301000) form, and then clicking PO Link on the table toolbar. The Purchasing Details dialog box, which opens, lists all the purchase orders that are linked to the selected line of the sales order.

Printing Reports and Documents

To prepare a printable form of the purchase order that is being processed, you use the Purchase Order (PO641000) report. To do this while you are viewing the purchase order on the Purchase Orders (PO301000) form, you click Print Purchase Order on the More menu. The system opens the printable version of the purchase order on the Purchase Order report; aer you review the order, you can print it by clicking Print on the report toolbar.

Drop Shipments of Non-Stock Items: Mass Processing of Documents

This topic explains how to process multiple documents related to sales with drop shipment, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Drop-Ship Purchase Orders Drop-ship purchase orders can be mass-generated for purchase requests related to multiple sales orders at a time. To mass-process sales orders marked for drop shipment, you open the Create Purchase Orders (PO505000) form, on which you can create drop-ship purchase orders based on the drop-ship purchase requests that have been created for sales orders. On this form, you select the unlabeled check boxes in the rows of the purchase requests of the Drop-Ship plan type to be processed and click Process on the form toolbar to generate the purchase order or orders of this type. A sales order can have two or more linked drop-ship purchase orders, but each generated drop-ship purchase order can have only one linked sales order. The system creates a consolidated drop-ship purchase order for each group of Additional Materials | 61

purchase requests for which both the sales order and the vendor are the same. Instead of processing only selected purchase requests, you can click Process All to process all the listed purchase requests.

Mass-Creating Sales Invoices You can create multiple invoices on the Process Orders (SO501000) form by selecting the Prepare Invoice action, selecting the unlabeled check box for the sales orders to be processed, and clicking Process on the form toolbar to generate the sales invoice or invoices. As an alternative to processing only selected orders, you can click Process All to generate sales invoices for all the listed sales orders.