First create a new Purchase Order. As an example we will create this purchase order for 20 monitors costing 150.00 each for a total of 3,000.00. The program will automatically assign a new unique PO Number. In our example the PO Number is PO-10004.
Notice when after you enter 20 in the ordered field and complete the rest of that line the “On Order (PO)” field will reflect you have 20 items on order.
A few days later you receive a partial shipment from your vendor for 5 of those monitors.
Select the “Purchase Orders” and find your original Purchase Order again.
Click the Process button to convert this PO to a Purchase Receipt where you can receive those items. A message box will appear asking if you wish to convert this purchase order to a purchase receipt. Select “Yes” to convert the purchase order.
After the program converts the PO you will see another message box showing you the new Purchase Receipt Number. In this case that number is PO-10004-01. Notice this number is the same number as the original PO Number but with a -01 added to the end of it. This help associate the original purchase order number PO-10004 with the newly created purchase receipt. The -01 means this is the first purchase receipt you have created from the purchase order. Select the Yes button to close the purchase order and open the new purchase receipt you just created.
When you open the new purchase receipt you will notice the receive quantity defaults to the total number of items you ordered. You will also notice that all of the data from the purchase order was transferred to the new purchase receipt.
In the Purchase Receipt form change the Received quantity from 20 to the 5 we received in this example. Notice the Total is now 750.00 instead of 3,000.00.
To receive those 5 items into stock click the Receive button. Notice when you do this the purchase receipt is marked “Received” in red at the top of the form. You will also notice that the “In Stock” and “Available” quantities show 5 and the “On Order (PO)” shows 15 since you have received 5 of the 20 you originally ordered.
Also the “Order Status” field is marked as Complete.
About a week later you receive the rest of the 15 monitors you ordered. Select the “Purchase Orders” and find your original Purchase Order again. Notice the purchase orders shows 5 have been received and the “Order Status” field shows Partial.
Click the Process button to convert this PO to a Purchase Receipt where you can receive those items. A message box will appear asking if you wish to convert this purchase order to a purchase receipt. Select Yes to convert the purchase order.
After the program converts the PO you will see another message box showing you the new Purchase Receipt Number. In this case that number is PO-10004-02. Notice this number is the same number as the original PO Number but with a -02 added to the end of it. This help associate the original purchase order number PO-10004 with the newly created purchase receipt. The -02 means this is the second purchase receipt you have created from the purchase order. Select the Yes button to close the purchase order and open the new purchase receipt you just created.
When you open the new purchase receipt you will notice the receive quantity defaults to the total number of items you have left on order. In this case since you have already received 5 the total on order will be 15. You will also notice that all of the data from the purchase order was transferred to the new purchase receipt.
Since the received quantity is 15 the total is already figured at 2,250.00 based on the 150.00 cost.
Now, let’s say the cost changed since your original purchase order and is now 135.00 instead of 150.00. Change the Cost amount from 150.00 to 135.00. Notice the total will recalculate to 2,025.00. This is the cost you will be receiving your inventory into stock at.
To receive those 15 items into stock click the Receive button. Notice when you do this the purchase receipt is marked “Received” at the upper right corner of the form. You will also notice that the “In Stock” and “Available” quantities show 20 and the “On Order (PO)” shows 0 since you have received all of the 20 you originally ordered.
Also the Order Status field is marked as Complete.
Here is how the costing for your inventory breaks down.
On Feb 9, 2004 you received 5 monitors at 150.00 each.
On Feb 12, 2004 you received 15 monitors at 135.00 each.
If your costing is set to FIFO you would sell the 5 first at a cost of 150.00 each.
If your costing is set to LIFO you would sell the 15 first at a cost of 135.00 each.
If your costing is set to Average Cost you would sell all 20 at an average cost of 138.75.
The Last Cost is set at 135.00 since that was the last cost you paid.
The Standard Cost remains at 150.00 as that is a set cost you assign for your inventory.
Notice on the Stock tab the "In Stock” quantity is now 20 and the “On Order” is 0.
If you open the original purchase order now you will see the Order Status has been changed to Complete and the On Order (PO) is back to 0.
At this point the Process button will be disabled so you can no longer process the purchase order.
The last step is your vendor sends you a bill for the total of the items you purchased. For this example the vendors sends you a bill for a total of 2,890.00.
Here are the details of the vendor’s bill.
5 Monitors at a cost of 150.00 = 750.00
15 Monitors at a cost of 135.00 = 2025.00
Freight for the monitors = 115.00
Total Bill = 2,890.00
Next you can create the bill by selecting the New Bill option from the Purchases pull down menu. When you select the Vendor for this bill the Bills form will open along with the “Add Purchase Receipts” form. Using this form you can select the purchase receipts you wish to add to your bill.
Once you have selected the matching purchase receipts click the Add Purchase Receipts button to add them to your bill.
Your new bill should be created with 2 line items for the items you previously received. Notice the subtotal is for 2,775.00 which come from the purchase receipt totals of 750.00 and 2,025.00.
Next add the Freight charges your vendor charged which in our example was 115.00 to give you a matching final total of 2,890.00. When your bill matches the amount of the bill your vendor sent you click the Post button to update your GL and you Payables.
Using the Pay Bills form you can pay this bill.