As a purchase order is progressed it goes through a number of different processes with each process having an associated status. The logical structure to these processes is defined below:
What do you want to do?
Create and save the purchase order
The following step by step process should be followed:
The Purchase Order Header, used to store static purchase order information relevant to the individual purchase order lines below, should be completed first.
The relevant item lines are added within the Purchase Order Line Details Grid as required.
The purchase order is saved by selecting the
icon.
Select the 
. This option allows an Open status purchase order to be
finished; the purchase order must have a status of Finished in order that
the received physical supplier invoices may be matched/processed against the record. This
option is not enabled until the order is saved.
A Confirm Input form is displayed prompting Finish Purchase Order?. If the Yes command button is selected then the purchase order is deemed to be in a completed state and ready to be printed.
The purchase order now has a status of Finished. The individual item lines still have a status of Open.
For each line of the Purchase Order the system debits the appropriate Goods/Service Type Nominal Ledger code (set up in the Purchasing Goods/Service table within Miscellaneous Options. The system credits the NL GIS account (Goods in Suspense) set-up in the Purch/Misc.Inv. Tab within System Parameters. (These are Net values only; VAT is not dealt with at this stage). Where there is more than one purchase item line using the same Goods/Service Type code then the appropriate values are consolidated before posting.
A record line is created in the Vehicle History Tab of the CRM Vehicle.
Select the 
.
A Confirm Input form is displayed to enable confirmation that the Finished
order is to be printed. If the Yes command button is selected then a
purchase order is printed (the content and layout of the purchase order is dependent upon
the design of the format stationery/KPrint form).
Select the Un-Finish option from the Order Menu (no icon is available for this function). This option allows a Finished status purchase order to be reversed and subsequently re-edited.
A Confirm Input form is displayed prompting Un-Finish Purchase Order?. If the Yes command button is selected then the purchase order is deemed to be unsatisfactory in some and is reversed so that details may be edited.
The purchase order returns to a status of Open. The individual item lines continue to have a status of Open.
If a Purchase Order is Un-finished or XCancelled the system reverses out the postings to Goods In Suspense and credits the appropriate Goods/Service type Nominal Ledger code.
Match received invoices to the purchase order
This option is accessed by selecting the 
or by selecting Match from the Order Menu. This option
is inaccessible until a purchase order has been Finished.
This option allows any Finished orders to be matched against the appropriate incoming invoice or invoices. When the order is matched it has a status of M. A finished order can be Partially-matched and fully matched at a later date if necessary.
Following selection of this option the Match Invoice form is displayed enabling the input of invoice details at the top and allowing VAT analysis reconciliation at the bottom.
Match invoice lines to the purchase order
The Match Lines form contains a series of grids (the Purchase Line grid; the VAT Analysis grid; and Line Analysis grid) enabling each purchase order item line to be fully Matched (or Partially-matched). The following key fields require completion:
Matched: This is the key field within the form and is used for entering the actual net value of the purchase order line as stated on the received invoice.
VAT: This column is used for entering the actual VAT value of the purchase order line as stated on the received invoice. The system defaults-in a calculated VAT value derived from the value input into the Matched field; however, this may be overridden with what is held on the received invoice.
M: If the actual Matchedand VAT columns equal the expected (Value and VAT fields) values from the Purchase Order then the system automatically ticks this column as being Matched.
The Line Analysis area of the form (in the bottom right corner) displays the column totals for both the Matchedand VATcolumns in the Purchase Line area of the form i.e. the total net value and the total VAT value taken from the supplier's invoice.
The net values and the VAT values from the Line Analysis area should correspond exactly to the net values and VAT values from the VAT analysis area. The Match command button is used to confirm that the figures agree and the system displays a confirmation message: Purchase Invoice posted and the system returns to the main Purchasing form.
Nominal Ledger Postings Sequence
Within the Purchase Order module a typical sequence of events with its associated postings is as follows. These postings are covered in turn for each function above but are also displayed in a consolidated way below:
Finish Purchase Order
For each line of the Purchase Order the system debits the appropriate Goods/Service Type Nominal Ledger code (set up in the Purchasing Goods/Service table within Miscellaneous Options.
The system credits the NL GIS account (Goods in Suspense) set-up in the Purch/Misc.Inv. Tab within System Parameters.
These are Net values only; VAT is not dealt with at this stage.
Where there is more than one purchase item line using the same Goods/Service Type code then the appropriate values are consolidated before posting.
Finish Purchase Order
If a Purchase Order is Un-finished or XCancelled the system reverses out the postings to Goods In Suspense and credits the appropriate Goods/Service type Nominal Ledger code.
Match Invoice
For each line of the Purchase Order, the system debits the NL GIS account (Goods in Suspense) set-up in the Purch/Misc.Inv. Tab within System Parameters the Net value.
The system credits the appropriate Purchase Ledger account used within the order the full gross value.
The system debits the VAT Control account the full VAT value.
This may be further clarified by way of an example:
A Purchase Order line is generated for £100 (plus £17.50 VAT) against the Cleaning goods code.
When the order is Finished the Nominal Ledger account against the Cleaning goods code is debited £100 and the Goods In Suspense account is credited £100.
When the order is Matched against the invoice the Goods In Suspense account is debited £100 and the appropriate Purchase Ledger account is credited with £117.50. In addition, the system debits the VAT Control account £17.50.
A more complicated example is as follows:
A Purchase Order line is generated for £100 (plus £17.50 VAT) against the Cleaning goods code. However, the invoice received from the supplier is for £90 and only a partial-match.
As before, when the order is Finished the Nominal Ledger account against the Cleaning goods code is debited £100 and the Goods In Suspense account is credited £100.
However, now when the order is Matched against the invoice, the Goods In Suspense account is debited £90 and the appropriate Purchase Ledger account is credited with £105.75 (i.e. £90 plus £15.75 VAT). In addition, the system debits the VAT Control account £15.75. The system then reverses out the remaining Goods In Suspense (i.e. debits £10 from the Goods In Suspense account) and credits £10 to the Cleaning goods code.
Postings By Location
Tip: If the Postings By Location checkbox is ticked in the General 3 Tab within System Parameters this prefixes all expense codes with the appropriate locations code when posting to the Nominal Ledger.
