Create Purchase Order From Job Requirements

System Location: Data Entry > Purchasing > Purchase Orders

This topic provides details on how to create a single purchase order (P.O.) by using existing job requirements as its source of information.

For more information see Use the Auto PO Utility to Create Multiple Purchase Orders.

For more information see Purchase Orders.

  1. Go to the blue Data Entry tab, open the Purchasing dropdown menu, and select Purchase Orders.
  2. Click New (located at the top of the page.)
General Section
  1. Verify / provide information for the following fields:
    • P.O. Number
    • P.O. Date
    • Default Line Item Due Date
      • Not used when Job Requirements are used as the source of information for the P.O. unless check box is selected to use Default PO Line Item Due Date on the Job Requirement - Line Item Selection page.
        • System uses Due Date of requirements instead
    • Ignore Minimum Charge On This P.O.
    • Vendor Code and Vendor Name will be populated once job requirements have been selected (see Line Items Section below.)
  2. Determine the type of requirement the P.O. will be created for based on the 'Outside Service' check box.
    • When selected, the system will display the list of open service requirements as the potential source of the P.O.
    • When left blank, the system will display the list of open material requirements as the potential source of the P.O.
Line Items Section
  1. Click 'Search.'
  2. Select 'Job Requirements' from the dropdown menu.
    • The Job Requirements - Line Item Selection Screen displays a list of possible options.
    • The type of requirements displayed depends on whether the 'Outside Service' option is checked or not (see General Section - Item 3 above.)
  3. Select one or more requirements from the grid to place on the P.O.
    • If multiple items are selected, make sure they are from the same vendor.
    • The search criteria provided can be used to narrow the list of items displayed.
      • Vendor Code is one of the available options for filtering.
  4. Determine how the system will deal with extra material (if any) and multiple due dates (if more than one.)
    • Spread Extra Material Proportionally Over All Jobs (Located in Line Item Selection Header)
      • For this setting, assume the following for purposes of clarification:
        • Part "STEEL BAR" is both stocked and purchased by the BAR and has existing material requirements equal to 5.5 BARs.
        • Since purchase orders cannot be created for partial quantities (in terms of Purchasing Units), the quantity included on the P.O. is rounded to 6 BARs, resulting in 0.5 "extra" BARs
        • "STEEL BAR" is being purchased for three jobs with the following requirements:
          • "Job 1" requires 2.75 BARs (or 50% of the required quantity)
          • "Jobs 2 and 3" each require 1.375 BARs (or 25% of the required quantity)
      • When this option is selected, the system will take any material purchased in excess of the quantity required and distribute it across all the jobs that require it in proportion to the amount each one originally needed it. In relation to the assumptions above, the result would be:
        • Job 1 would be assigned 3 BARs (the original 2.75 it required PLUS 50% of the extra, which in this case is 0.25)
        • Jobs 1 and 2 would both be assigned 1.5 BARs (the original 1.375 they required PLUS 25% of the extra, which in this case is 0.125)
      • When this option is left blank, the system will attempt to place any extra material into inventory. In relation to the assumptions above, the result would be:
        • Each Job would be assigned the quantity required (2.75, 1.375, and 1.375, respectively)
        • The additional 0.5 BARs would be listed with a 'Job Number' of 'STOCK.'
        • Since material cannot be stocked in decimal quantities, this extra amount of material would not be placed into inventory nor would it be costed to any of the listed jobs.
      • Material cannot be stocked in decimal quantities in terms of its Stocking Unit, so be mindful of how much extra material is being purchased and where it is going.
    • Combine Multiple Due Dates Into The Earliest Due Date (Located in Line Item Selection Header)
      • When this option is selected, the system behaves as follows:
        • It looks at each item being ordered.
        • It creates a single release for each part.
        • The Due Date used for the single release is the earliest one found for any requirement of that part.
        • The result is that each part on the P.O. will have only one release, but the due date for each part may be different.
    • Use Default PO Line Item Due Date (Located in Line Item Selection Header)
      • When this option is selected, the system uses the date set as the Default PO Line Item Due Date in the general section.

    If you leave both check boxes blank, the utility will assign multiple due dates / releases for each part as appropriate.

  5. Click 'OK.'
    • The system displays the details for the requirements selected. Information includes:
      • Part Number (Purchased Material or Manufactured Part based on requirement type)
        • Parts will be listed multiple times if required on more than one job.
      • Vendor
      • Job Number
        • Each job a requirement is associated with will be displayed.
      • Quantity Needed / Unit (Purchased)
        • The amount needed for each job is listed.
      • Date Required
        • This is the Due Date for each requirement, per job.
  6. Select requirements to include on P.O.
    • Only the items / requirements selected will be included on the P.O.
    • All requirements are selected by default, but this can be changed.
    • When items are removed from the P.O., the associated requirements are left in place and are not considered to be satisfied.
    • The requirements are not considered satisfied until the P.O. has been processed, so they remain available on the Job Requirements - Line Item Selection grid until you click process. Be sure you do not accidentally add the same requirements twice while the P.O. is still unprocessed.
  7. Click 'OK.'
  8. Edit the details of any parts included on the P.O. as needed.

To edit the details of a P.O. Line Item:

  1. Select the desired item.
  2. Click 'Details.'

The following information is available for review and / or editing for each Line Item.

General Section - Details

Reference Only - Cannot be Edited

  • P.O. Number
  • Part Number
  • Purchasing Factor
    • Only displays if Purchasing and Stocking units are different
  • Step Number

Available for Editing

Purchase Orders must be unprocessed in order to be edited.

  • GL Code - Indicates whether the line item will be treated as an expense or an asset purchase
    • Used to populated AP invoice(s) created from receiver(s) associated with the P.O.
  • Product Code
  • Miscellaneous Tooling Charge and Description - Appears on P.O. as a separate charge next to the selected part
  • Markup Percentage
  • Revision
  • FOB
  • Certification Required (Yes / No)
  • Taxable (Yes / No)
Comments - Details

Comments entered here do not print on the P.O.

Quantity / Job Number Splits Section - Details

The grid located here displays how the selected item is being distributed and when each quantity is expected to arrive.

Edit Expected Quantity - Existing Item

  1. Click on either 'Qty' field.
    • Displays two fields only if Purchasing and Stocking units are different; otherwise only one 'Qty' field is present.
    • If two are listed, note whether the Stocking or Purchasing Unit value is being edited.
    • If there is a difference in Purchasing and Stocking units, the stocking quantity field will not calculate the purchasing factor until you Process or OK out of the P.O.
  2. Enter the new value (in terms of the Unit selected.)
    • Quantities can be increased or decreased.
    • If the item is going to a job, the new quantity and related cost will be reflected in the job costs once it is received.
      • If the quantity is decreased on material going to a job as a result of job requirements, the unordered quantity will remain as an open requirement.
    • If the item is going to inventory, the on hand quantity and valuation will be updated once it is received.

Add New Split / Destination

  1. Click 'Add Row.'
  2. Enter the destination of the new split in 'Job Number' field.
    • Manually type the job number the extra material should be posted to when received.
      • Material purchased for a job outside of 'Job Requirements' will still satisfy any open requirements that exist for the selected part / job combination.
    • If the material is going to inventory, type 'STOCK' as the 'Job Number.'
      • Material purchased to inventory outside the use of the 'Reorder Level' option on the Auto PO Utility will still satisfy the need to replenish inventory levels for the selected part.
  3. Enter the amount of material being ordered in either 'Qty' field.
    • Displays two fields only if Purchasing and Stocking units are different; otherwise only one 'Qty' field is present.
    • If two are listed, note whether the Stocking or Purchasing Unit value is being edited.
  4. Edit the Due Date (Date Required) if needed.
    • The Due Date of any line item can be edited.

When adding new splits or editing existing ones, keep the following in mind:

  • When material is going to a job, quantity does not matter on a specific line item so long as the Total Quantity Ordered of the selected item is a whole value in terms of the Purchasing unit.
  • When material is going to inventory (i.e. assigned to 'STOCK'), the quantity must be a whole value in terms of the Stocking Unit.
Receiving Section - Details

Provided for reference purposes only to display details about when the selected line item was received.

Header Section
  1. Verify / edit values in this section as needed:
    • Purchased By: Indicates who authorized the purchase of the listed material / services
    • Contact: Represents the vendor's contact regarding the P.O.
    • *Currency Code: Defaults to currency associated with the selected vendor.
    • Exchange Rate: Populates from 'Currency Code' by default.
      • Will always be "1" unless dealing with a foreign currency.
    • Terms Code and Tax Code - Required on AP invoices
Available Addresses Section
  1. Verify / edit information regarding the expected delivery of the ordered items as needed:
    • Shipping Address Type (radio button): Select the option that indicates where the ordered items should be delivered.
      • Internal - Makes Locations associated with the JobBOSS2 Company being used available
      • Customer - Makes the list of Customer Codes available for drop-shipping purposes
      • Vendor - Makes the list of Vendor Codes available for drop-shipping purposes
    • Location / Customer Code / Vendor Code: Dropdown option varies based on the Shipping Address Type selected.
      • Selecting an option from the menu populates the remaining address details.
      • Address details can be edited / entered manually if needed.
Comments Section
  1. Verify / edit 'Notes To Vendor.'
    • As indicated in the Comments Section, information entered in this field will print on documents seen by the vendor.
Complete P.O. Creation
  1. Click 'Process' once all the values have been entered / verified on the P.O.
    • It is likely the utility will display prompts regarding differences between the quantities / costs on the P.O.s being created and the Inventory Items / Estimates defined in the system.
    • It is strongly suggested to answer 'No' to these prompts to avoid overwriting existing quantity breaks and related estimated costs on the part files referenced. If the user answers 'Yes', the utility will replace existing breaks with a single break and the cost located on the purchase order being created.
    1. Once processed, you can go back and create additional line items. This unprocesses the P.O., and it must be processed again before you can receive anything in. Outside of that, most of a P.O. cannot be edited. The ability to unprocess a P.O. depends on whether it has been received or not.

As indicated in the dropdown section on editing line items, material can be purchased for both requirement fulfillment and inventory replenishment on the same P.O. Additionally, a single P.O. can contain line items for both job requirements and items that will be placed into inventory.

For more information see Create Purchase Order For Stock Items.

 

Back to Purchase Orders