Lesson 9: Processing Purchase Receipts Without Inventory

Part 2: Basic Sales and Purchases

The topics of this lesson describe how to process a purchase of non-stock items by using purchase receipts when the Inventory feature is disabled on the Enable/Disable Features (CS100000) form.

Purchase Receipts Without Inventory: General Information

In Acumatica ERP, you can process non-stock items by using purchase receipts and purchase returns when the
Inventory feature is disabled on the Enable/Disable Features (CS100000) form. This functionality is available when
the Purchase Receipts Without Inventory feature is enabled on the Enable/Disable Features form.
          The Inventory and Purchase Receipts Without Inventory features are mutually exclusive.

You can prepare a receipt for purchase orders that include only non-stock items for which the Process Item via Receipt check box is selected on the Non-Stock Items (IN202000) form.

Learning Objectives

In this lesson, you will do the following:

Enter a purchase order for a purchase of non-stock items
Prepare a purchase receipt for a purchase of non-stock items when the Inventory feature is disabled
Prepare an AP bill for a purchase order

Applicable Scenarios

You process the purchases of non-stock items with purchase receipts when the Inventory feature is disabled in the following cases:

You need purchase receipts to verify the quantities of received goods against the billed quantities.
You need to track the receipt of multiple goods and their quantities to verify that the goods have been received.

Purchase of Non-Stock Items 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. When you create a new purchase order, in the Summary area, you select the Normal type and the vendor. Then on the Details tab, you add lines with the non-stock items to be purchased from the vendor. Once the purchased items have been received, you create a purchase receipt on the Purchase Receipts (PO302000) form. Then you create an AP bill with the amount to be paid for the non-stock items. You can review the AP bill on the Bills and Adjustments (AP301000) form. If all the lines in the purchase order have been billed in full, the system assigns the purchase order the Closed status.

Processing of Purchase Returns for Non-Stock Items Processed Via a Receipt When the Purchase Receipts Without Inventory feature is enabled, you can process purchase returns on the Purchase Receipts (PO302000) form. These purchase returns include non-stock items with the Process Item via Receipt check box selected on the Non-Stock Items (IN202000) form. If a purchase return is processed for lines of a purchase receipt, the system copies the unit cost from the purchase receipt line to the purchase return line. If a non-stock item with the Process Item via Receipt check box selected on the Non-Stock Items form is added directly to the purchase return on the Purchase Receipts form, the value of the Unit Cost column in the purchase return line will be copied from the Last Vendor Price column on the Vendor Details tab of the Non-Stock Items form. If there is no value in the Last Vendor Price column, the system instead uses the value of the Current Cost box on the Price/Cost Information tab (the Standard Cost section). When the purchase return is released, the system does not post any GL transactions. The transactions are posted on release of the corresponding debit adjustment. Posting Rules for Non-Stock Items Processed via a Receipt As mentioned, when the Inventory feature is disabled and the Purchase Receipts Without Inventory feature is enabled, a purchase receipt has non-stock items with the Process Item via Receipt check box selected on the Non- Stock Items (IN202000) form. When the purchase receipt is released on the Purchase Receipts (PO302000) form, the system does not post any GL transactions. The transactions are posted on release of the corresponding AP bill on the Bills and Adjustments (AP301000) form. If the Purchases option is selected in the Post Cost to Expenses On box on the Price/Cost tab of the Non-Stock Items form, the system debits the expense account that is specified for the non-stock item on the GL Accounts tab of the same form. If the Sales option is selected in the Post Cost to Expenses On box on the Price/Cost tab of the Non-Stock Items form for a non-stock item, on release of the AP bill, the expense accrual account on the GL Accounts tab is debited in the related GL transactions.

Workflow of a Purchase of Non-Stock Items Processed via a Receipt When you process a purchase of non-stock items with a purchase receipt, the typical processing of a purchase order involves the steps and generated documents shown in the following diagram. Purchase Receipts Without Inventory: Implementation Activity

In the following implementation activity, you will configure the system so that users can purchase non-stock items with receipts while the Inventory feature is not enabled on the Enable/Disable Features (CS100000) form.

Story

Suppose that SweetLife Fruits & Jams does not have the warehouse to store goods, so it uses Acumatica ERP without the Inventory feature being enabled. However, some items should be recorded in purchase receipts. Acting as the implementation manager of the SweetLife Fruits & Jams company, you will configure the system to make it possible for users to process purchases of non-stock items with purchase receipts.

Process Overview

In this activity, you will do the following:

On the Enable/Disable Features (CS100000) form, enable the needed feature
On the Non-Stock Items (IN202000) form, create the PEN and PAPER non-stock items

System Preparation

As a prerequisite activity, in the company to which you are signed in, be sure that you have enabled the Inventory and Order Management feature, as described in Order Management Basic Configuration: Implementation Activity.

Step 1: Enabling the Needed Feature To give users the ability to process purchases with purchase receipts while the Inventory feature is not enabled in the system, do the following:

Open the Enable/Disable Features (CS100000) form.
On the form toolbar, click Modify.
Select the Purchase Receipts Without Inventory check box.
On the form toolbar, click Enable.

Step 2: Creating the PEN Item You need to create the PEN non-stock item to represent boxes with pen. Do the following:

On the Non-Stock Items (IN202000) form, add a new record.
In the Summary area, specify the following settings:

Inventory ID: PEN
Description: Pens for internal use, box 20 PC

On the General tab, specify the following settings:

Type: Non-Stock Item
Tax Category: EXEMPT
Process Item via Receipt: Selected
Close PO Line: By Quantity

In the Unit of Measure section of the General tab, specify the following settings:

Base Unit: PIECE
Sales Unit: PIECE
Purchase Unit: PIECE

On the GL Accounts tab, in the Expense Account box, select 60000 - Purchase Expense.
On the form toolbar, click Save.
On the Price/Cost tab, specify the following settings:

Default Price (Price Management section): 36
Pending Cost (Standard Cost section): 30

On the More menu, click Update Cost. Notice that the system has copied the pending cost to the Current Cost box, cleared the Pending Cost box, and set the date in the Eﬀective Date box to the current date.

Step 3: Creating the PAPER Item You need to create the PAPER non-stock item to represent boxes of printing paper. Do the following:

On the Non-Stock Items (IN202000) form, add a new record.
In the Summary area, specify the following settings:

Inventory ID: PAPER
Description: A package of printing paper for internal use, box 500 sheets

On the General tab, specify the following settings:

Type: Non-Stock Item
Tax Category: EXEMPT
Process Item via Receipt: Selected
Close PO Line: By Quantity

In the Unit of Measure section of the General tab, specify the following settings:

Base Unit: PIECE
Sales Unit: PIECE
Purchase Unit: PIECE

On the GL Accounts tab, in the Expense Account box, select 60000 - Purchase Expense.
On the form toolbar, click Save.

Purchase Receipts Without Inventory: Process Activity

In the following activity, you will process the purchase of non-stock items with purchase receipts.

Story

Suppose that SweetLife Fruits & Jams started buying pens and oﬀice paper for its staﬀ's needs from the SEO World company. The receipt of items should be documented with purchase receipts. Acting as the purchasing manager, you need to enter and process a purchase order for the SEO World, from which SweetLife buys oﬀice supplies. You also need to process the corresponding purchase receipt and AP bill.

Process Overview

In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add items to it. When the items have been received, on the Purchase Receipts (PO302000) form, you will create a purchase receipt for them. 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 non-stock items with a purchase receipt, make sure that you have completed the following prerequisite activities:

Order Management Basic Configuration: Implementation Activity
Vendors: Implementation Activity
Purchase Receipts Without Inventory: Implementation Activity

Step 1: Creating a Purchase Order To create a purchase order for the oﬀice paper and pens, 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: Purchase of pens and paper

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

Inventory ID: PEN
Order Qty.: 50
Unit Cost: 16.6

Again click Add Row on the table toolbar.
Specify the following settings in the added row:

Inventory ID: PAPER
Order Qty.: 20
Unit Cost: 69.95

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

Step 2: Processing the Purchase Receipt To process the purchase receipt for the purchase order, 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. The system prepares the purchase receipt for the selected purchase order and opens it on the Purchase Receipts (PO302000) form.
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.)
On the form toolbar, click Remove Hold.
Click Release.

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

While you are still viewing the purchase receipt that you have processed on the Purchase Receipts (PO302000) form, click Enter AP Bill on the form toolbar. The system generates an AP bill for the vendor of the goods and shows the created document on the Bills and Adjustments (AP301000) form.
On the form toolbar, click Remove Hold.
Click Release.
In the first line on the Details tab, click the link in the PO Number column. The system opens the related purchase order on the Purchase Orders (PO301000) form.
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, 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 oﬀice supplies have been received and billed in full, so the purchasing process is completed.
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   Figure: The purchase receipt and AP bill for the closed purchase order
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