Purchase Orders

Purchase Orders (PO) should be used for all adding of inventory items (rather than adding stock) for proper inventory control.

Link Status Overview

Inventory items placed on a service or install order have a link status that will tell you the inventory allocation status of the item.

Has JIT Items - There is no stock available in the default warehouse for that item. May need to check other warehouses to see if any available or place a purchase order.
Allocated - There is stock available but you will need choose the location you want to reserve the stock from or choose the correct serial number if serialized.
Reserved - Stock has been reserved for the item
Has Ordered Items - The item is on a purchase order
Delivered - Stock has been depleted from your SME warehouses for that item. When you close an order, reserved item will move to depleted. Allocated items can move to Delivered as well if you have Auto Deliver on Allocated checked in Setup > Company > Order.

You can see the Link Status for your items on the Materials tab with Flat View checked (image above), in the Inventory Allocation window (actions > Inventory Allocation) and also in the Create PO for Selected Items window.

Review the Material Allocation section for more information about allocating stock.

Need to Order (Force JIT)

If you add material to an order and you don’t want SME to attempt to allocate existing stock to the order, you can check Need to Order (Force JIT) on the Item Details tab. With this checked, no stock will be allocated for this material and you will need to place a PO for the material.

You can set individual inventory items to always Force JIT so you don’t have to check it when adding the item to orders. Go to the inventory item and check Force JIT (image below)

Order Item Tab - Color Coding Material

On the Order Items tab the inventory items will have colors associated with their Link Status
- Yellow items mean the item has a Link Status of Has JIT or Allocated
- Gray items mean the item is on a PO or has a Link Status of Has Ordered Items
- White items mean the inventory item is Reserved

Create PO for Selected Items

In a service or install order, click Actions > Create PO for Selected Items and you will be able to view all the inventory items on the order, choose the vendor, choose the ship to location, and choose the items you want to place on PO.

The PO Item Selection window will show you all inventory items on the order that have a Link Status of Has JIT Items, Reserved, or Allocated

Make sure the items you need to place a PO for have a vendor selected and the Shipping location selected. Items that have the same vendor and the same shipping location will be placed on the same PO.

For the items you want to place on a PO, check in the Include column and click Save all changes at the bottom.

Once you place the PO, you can go to the Purchase Orders tab on the service or install order. You will find all the items on PO for that service / install order. Double click on the item to jump to the PO.

When stock is received on the PO, the items will move to the Link Status of Reserved.

Vendor Items

You can setup vendor items for your inventory items that track your various vendors costs.
- Go to an inventory item.
- Click the Vendors tab.
- Click New.
- In the Item Vendor window select the vendor.
- Enter the Vendor Part number (if needed).
- Enter the Item Cost - this will populate the cost of the item on the order.
- Enter the PO Cost - this will populate the cost of the item on the purchase order.
- Enter the Retail Price - This will populate the material price field on the service / install order.
- Click OK.
- Click New again to add another vendor item.

Choosing Vendor item on Service or Install Order

When adding material to a service order you can select a vendor item on the Item Details tab.
- On service or install order, click Order Items tab
- Click New Material and select the material
- In Add Items to Order window, select the Item Details tab
- Locate the Vendor Item field. Click the drop down field to select a vendor item. Once selected, notice the Cost and Price field reflect the vendor item cost and retail price (image below)

You can also choose the vendor item you want to use in the PO Item Selection window (Actions > Create PO for Selected Items)

Create PO for JIT Only Items

Another PO creation option from the service order is Actions > Create PO for JIT-Only Items. This will put all the items with a Link Status of Has JIt Items on a PO.

1. In the service or install order, click Actions > Create PO for JIT-only Items.
2. A purchase order is generated for all material with the Item Status of Has Jit Items. The vendor on the purchase order is the default vendor the the material. You can change the vendor on each item as needed.

How POs are broken out

The items being placed on the PO that have the same vendor selected will go to one PO unless the items for that vendor have a different default location set on the inventory item. One PO is generated for each location for each vendor.

Error Creating Purchase Order

If you receive an error after clicking Actions > Create PO for JIT-Only Items, then you don't have a vendor selected on the material you are placing the PO for.

Select the vendor for each material you are placing a PO for:
1. In the service or install order, select the Materials tab (or the Order Items tab)
2. Double click on the material you are placing a PO for.
3. Click the Item Details tab and locate the Vendor field.

4. Select the vendor and click OK. Now you can click Actions > Create PO for JIT-Only Items.

Jump to the Purchase Order

1. Click the Purchase Order tab.
2. Double click on the PO you want to open and SME will jump to the PO.

*NOTE*
-If more than one material you are placing a PO for is going to the same vendor, then the material will be on one purchase order for the vendor. However, if the items for that vendor have a different default location, then each location will get a separate PO for that vendor.

-Once the PO is created, you can change the vendor by going directly to the Purchase Order.
- When you receive the items on the PO, the stock will be automatically reserved for the service or install order the PO was created from.

Purchase Order tab on Service or Install Order

Click the Purchase Order tab to see all the items on the service order that are on purchase orders. You can see the PO number, the PO status, if the item is received and when it was received, what location is the item getting received into, the PO status and more.

Create PO in Inventory Module

1. Go to Purchase Orders in Inventory Module.
2. Click New and select the vendor. The vendor information will populate the Vendor tab on Details and Settings.
3. Fill out the rest of the fields on Details and Settings tab.

• PO # - This number will be auto-populated by SME.
• Reference # - this field will be populated with the PO#. You can edit this field as necessary.
• Date – Date you created the PO
• Due Date – Select the date the parts are due in. You can sort by this field in the search window to manage your purchase orders.
• Customer – Click Customer to add the customer name to the PO. You can sort by this field in the search window.
• Taken By – The SME user that created the PO.
• Requested By – You can select the SME user that requested the PO.
• Approved By – Select the SME user that approved the PO.
• PO Status – You can customize this field to reflect the milestones each PO goes through (e.g. ready for approval, approved, sent to vendor, received). You can sort by this field in the search window.

4. Click Actions and select Add Items from Service, Add Items from Install or Add Items from Invoice.
5. The Search window will open with all Service, Install or Invoices.
6. Double click on an order and the materials on the order will display.

7. Double click on the material you want to add to the purchase order.
8. Select the PO Items tab. Notice the material selected listed here.
9. Repeat steps 4-7 to add additional materials on order to the PO.
10. Click Shipping Notes to add shipping notes to the PO.
11. Click Save.

To print or email the PO

1. Click Print/ Email.
2. To print, select Standard Purchase Order.
3. To email, select Email Standard Purchase Order.

Create PO from the inventory item

Create a purchase order from the inventory item will generate a PO for the default vendor assigned to the inventory item. (Enter the default vendor in the vendor field on the Ordering Information tab of the inventory item.)

1. Go to the Inventory item you need to place a PO for.
2. Click Actions > New Purchase Order.
3. SME will jump to a new Purchase with the default vendor for the material in the Vendor tab.
4. Click the PO Items tab.
5. Click New.
6. In the Add Items to Order window, click next to the Item Name field. (circled in image below).

7. Select the material from the inventory list.
8. Click OK.
9. Enter any shipping instructions in Shipping Notes.

10. Save the Purchase Order.

Print or Email the PO

1. Click Print/ Email.
2. To print, select Standard Purchase Order.
3. To email, select Email Standard Purchase Order.

Create PO for parts below minimum level

On each inventory item, you can set a minimum on hand amount. You can then search your inventory items and compare available and minimum on hand amounts or you can create a PO for your vendor and let SME find items below minimum levels.

1. Go to Purchase Orders in Inventory Module.
2. Click New and select the vendor. The vendor information will populate the Vendor tab on Details and Settings. Fill out the rest of the fields on Details and Settings tab as needed.
3. Click Actions > Add from Minimum Level Inventory.
4. The inventory items below minimum levels will display. Double click on the items to add them to the PO.
5. Click Shipping Notes to add shipping notes to the PO.
6. Click Save.

You can also automatically create all PO's requiring min levels. Note that this method creates all PO for parts below minimum level inventory. It will make the order based on the default vendors for the inventory. Note also, that if you have other un-received PO's it will create a new PO since the parts are still below the min until open POs are received and go into stock.

1. Go to Utilities module and click Utilities.
2. Click Inventory.
3. Click Create Minimum Level Purchase Orders.
4. Click Run It.

The PO’s will be generated for you.

To print or email the PO:

1. Click Print/ Email.
2. To print, select Standard Purchase Order.
3. To email, select Email Standard Purchase Order.

Receiving parts on a PO

1. Go to the Purchase Order.
2. Select the PO Items tab.
3. Select the item on the tab and click Receive Item.
4. On the Receive PO Items window:

• If serialized, enter the serial number on the Receive Stock tab and click Add. Select the warehouse the parts are going to. Click OK.
• If non-serialized, enter the Receive Quantity on the Receive Stock tab. Select the warehouse the parts are going to. Click OK.

5. Continue receiving items. When the last item is received, you will be prompted to close the PO.

What to do if you receive the wrong parts on a PO

If you receive parts on a PO that you shouldn’t have received, you will have to delete the stock you added to SME and then add the part back to the PO.

Step 1 : Delete the stock lot you received

1. Go to the Inventory module > Inventory
2. Click Search > Search Active Items and select the material you need to edit.
3. Go to the Material Details tab.
4. Select the stock lot you need to get out of SME. You can sort by date to find the one you added most recently.
5. Click Delete on the Material Details tab.

Step 2 : Add the material back to the Purchase Order

1. Go to the Purchase Order.
2. If the PO is closed, you can click Actions > Re-open PO.
3. Click the PO Items tab
4. Click New and add the material to the PO again.

How do I delete a PO that has been fully received?

You cannot delete a PO that has received items. Use Returns to return the stock you received back to the vendor.

Shipping Address

For PO created directly in the PO module

If creating a PO directly in the Purchase Orders module, the address on the shipping tab comes from the address you entered in Setup > Company > Company Information.
- If you want to use a different address for your POs, enter the address in Setup > Company > Inventory.
- If you are creating the PO from a service or install order, and the default warehouse set for the item has an address, the the PO will put the warehouse address in the shipping tab.

If you prefer to ship the material to your customer or one of your warehouses, you can click ship to and choose a different location.

For PO created from a service or install order

If you are creating a PO from a service order, install order, or itemized invoice using Actions > Create PO for Selected Items, the Shipping tab address will come from the warehouse address for the shipping location.

Make sure your warehouses have an address by going to Setup module > company > Lists > Warehouses. Select the warehouse and click Edit at the bottom. Enter the address in the window that opens (image below).

Next PO Number

To set the next PO number SME uses, go to Setup module > Company > Orders section
Click Edit
Enter the next number you want to use in the Next PO # field. The next PO # does not come from QB and will have to be entered into SME.

How POs sync with QB

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Please follow this link to learn about your options for how SME Purchase Orders sync to QuickBooks.
http://high5software.com/mediawiki/index.php?title=Default_Export_to_QuickBooks_Settings#Export_Options_for_Purchase_Orders