Lesson 8: Processing the Purchases of Services

Part 2: Basic Sales and Purchases

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. Purchases of Services Without Receipts: Process Activity

In the following activity, you will prepare and process a purchase order that includes non-stock items.

Story

Suppose that the SEO World agency has created the landing page for the SweetLife Fruits & Jams company and started promoting the page on the internet. The agency reports that the company needs to pay it for five working days. Acting as the purchasing manager of SweetLife, you need to process a purchase order and prepare an AP bill for the services provided by SEO World.

Process Overview

In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the purchased website creation and promotion service to it. Then on the Bills and Adjustments (AP301000) form, you will create an AP bill to pay the vendor.

System Preparation

Before you start processing a purchases of services without receipt, make sure that you have completed the following prerequisite activities:

Order Management Basic Configuration: Implementation Activity
Vendors: Implementation Activity
Units of Measure: Implementation Activity
Non-Stock Items: Implementation Activity

Step 1: Creating a Purchase Order To create a purchase order that includes the website creation and promotion 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: SEOWORLD
Description: Creation and promotion of the website

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

Inventory ID: WEBSITESEO
UOM: DAY
Order Qty.: 5
Unit Cost: 800 (inserted automatically)

On the form toolbar, click Remove Hold. Step 2: Processing the AP Bill To process the AP bill related to the purchase order, do the following:
While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter AP Bill on the More menu. The system generates an AP bill for the vendor and shows the created document on the Bills and Adjustments (AP301000) form.
On the form toolbar, click Remove Hold, and then click Release to release the bill.
In the only line on the Details tab, click the link in the PO Number column.
On the Purchase Orders form, which opens, review the settings 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, in the Reference Nbr. column, notice the link to the AP bill that you prepared for the purchase order. This bill includes the service item. The AP bill is listed on the tab because the service provided by the vendor has been billed in full. Thus, the purchasing process is completed.
```
    Figure: The purchase order processed to completion
```