Purchase Order Line Fields

Overview

The following fields are displayed in the Line Items section of the Purchase Order Entry screen.

Navigation

Purchase Order Header > Purchase Order Header New button > Line Items section.

Purchase Order Line Addition:  Adding a Purchase Order Line includes, at a minimum, specifying the Item number, Quantity required, Price, and Due Date.
 

• Add Button: Clicking on this button will enable the user to add a new Purchase Order Line.

• Remove Button: Checking the ‘select’ field on a Purchase Order Line and clicking this button will enable the user to delete a Purchase Order Line that has not been partially or fully received.

• Clone Button: Checking the ‘select’ field on a Purchase Order Line and clicking this button will enable the user to clone a Purchase Order Line and create a new Purchase Order Line, making minimal changes as needed.

• Add New Item Button: Add a new Purchase Item record for an Indirect or Service Item, and add that Item to the Purchase Order.

• Line File Selection: This allows the user to select the source of the line item being entered.

• Item Type Select: This field is used to filter the Item Number field to only those items where the Item Type matches the selected value (Direct Material, Indirect Material, or Service). If the field is set as All Item Types, which is the default, then the Item Number field is not filtered, allowing the user to select from all Item Types. Valid values are:

  • All Item Types

  • Direct Material - including Subcontract Purchases where the buyer supplies some or all components required to build the Purchased Item.

  • Indirect Material

  • Service 

  NOTE  If the line item is a FIFO (costed) item (where the Engineering Item Master FIFO Indicator is checked), the PO Line Purchase Order Type must be 'P' (Purchased).

The inventory division for this Purchase Order Line and the Division where the item will be received and stocked. The drop-down field is not enabled for a single Division company only if it is a multiple-division.

Fields

Inventory Division:  The user can select one of the Inventory Divisions from the drop-down.

  NOTE  The Inventory Division field is required only when centralized buying is enabled (i.e., the Company’s Buying Division is specified).

• When enabled, the Inventory Division must be set to a Division within the same Company as the Buying Division.

• The Inventory Division is set to the Buying Division if it is not enabled.

• Once the Inventory Division is set (either by the user or programmatically), the item number is set by selecting from a drop-down of valid Purchase Item master records after entering the first few characters of the item.

• The Purchased Item Master record’s Division must equal the Inventory Division. If a Direct Material Item is bought centrally and received to a different Inventory Division, there must be a Purchase Item master record for that Inventory Division.

Once the Inventory Division is set, it cannot be changed. If there is a need to change the Inventory Division, the user must delete the Purchase Order Line according to the ‘deletion of a PO Line’ rules and add a new Purchase Order Line for the desired Division.

Item:  Must be a valid Item from the Purchase Item Master table for this Inventory Division. A filter on selecting the PO ITEMs in the drop-down assures that only those items on the Purchase Item Master for the selected Inventory Division will be displayed.
 

  NOTE  Additional selection criteria as to which Purchase Item Master records are available in the drop-down are driven by three fields on the Key Indicators tab of the Vendor Master record:

• If the Direct Material indicator on the Vendor Master is set, purchase items that are for Direct Material will be available in the drop-down.

• If the Service indicator on the Vendor Master is set, purchase items that are for Services will also be available in the drop-down.

• If the Indirect Material indicator on the Vendor Master is set, Indirect Material Items will also be available in the drop-down.

Description:  The Item Description is displayed on the Purchase Item Master record.  This description defaults from the Inventory Item Master.

Quantity Req:  The quantity required (or Purchase Order quantity) in the Purchasing Unit of Measure. This field is not enabled if the Item is Service and if the Service Type is designated as a General Amount (versus an amount specified in ‘Hours’ or ‘Days’ or ‘Months’). If the item is Service and the Service Type is ‘Dollar Amount’, the Quantity Required is 1, and both the Unit Price field and the Amount field will contain the value of the Line.

  NOTE  Other important quantities (all specified in the Purchasing Unit of Measure) that are updated during the life cycle of a Purchase Order Line for Direct Material Items include:

• Quantity Accepted – The quantity that is accepted into stock, also known as the quantity received.

• Quantity RTV – The quantity that has been returned to the vendor after having been accepted into stock. The quantity outstanding will be adjusted to indicate these items are still expected.

• Quantity Remaining – this is the Quantity Required minus the Quantity Accepted. Referred to as ‘Quantity Remaining, Inv’ within the Revisions pop-up window.

In addition to these quantities, Quantity Outstanding, which is the Quantity that MRP considers to be an ‘Outstanding Supply’, can be found by looking up the item in the Detailed Review by Item program.

If the Purchase Order Line is in a ‘Close Short’ or ‘Over Receipt’ condition, the Original Order Quantity can be found by clicking the ‘Revisions’ button to the far right of the order line. This is used only for audit trail purposes and has no bearing on MRP, Cost Accounting, or Inventory Control.

Unit Price:  The unit price in the Purchase Order’s Maintenance Currency, typically the Home Currency. Unit Price is based on this Purchase Order Line’s Unit of Measure.

  NOTE  If this is a foreign Vendor, the maintenance currency unit price would typically be in the Vendor’s Currency.  An exception occurs when there is an agreement between the Company and the Foreign Vendor to maintain the Purchase Order in the Company’s Home Currency.

This price is initialized by the price on the Item Vendor record, except in the case where there is a specific agreement that is not a ‘blanket agreement’.  If there is a blanket agreement, the price is initialized by the agreement line.  The user can change this price to a different value if required.

Purch UOM:  This field is initialized from the Item Vendor Record if defined there; otherwise, it is initialized from the Purchase Item Master’s Unit of Measure value. It can be changed by the user if the Purchase Order Line is in a different Unit of Measure than that which is on the Item Vendor or Purchase Item Master record.  

To enter an override UOM, a ‘Purchasing to Inventory’ UOM conversion record must contain the new and old UOM values. For Service items whose Service Type is ‘Amount’, this Unit of Measure will be set to ‘AMT’. Otherwise, a Service item’s Unit of Measure will be ‘HR’ (Hours) or ‘DAY’ (Day) or ‘MTH’ (Month).

In addition to the Unit of Measure, the Unit of Measure Conversion Factor is also displayed in the pop-up window that appears when the ‘Revisions’ button is clicked on the ‘Quantity’ tab. This is the factor that, when multiplied times the Purchasing UOM quantity, calculates the Inventory UOM quantity.

  NOTE  This factor is used to calculate Inventory Quantity (e.g., the Purchase Order Line quantity outstanding in the Inventory Unit of Measure) in Purchase Order creation and Purchase Order receiving. Therefore, this field should be set to the Purchase Item Master’s Unit of Measure conversion factor unless the user changes the Purchasing Unit of Measure.  In that case, it will be initialized to the system’s Purchasing to Inventory UOM conversion value.

Amount Required:  This is always computed as the Quantity Required multiplied by the Unit Price.

  IMPORTANT  'Amount' refers to a monetary value, while ‘Quantity’ refers to a Unit of Measure value.

Dock Date:  The date the Purchase Order Line item must be on your dock. This is also known as the Scheduled Receipt Date.

• On a Requisition to PO conversion, this is calculated based on the Requisition Due Date, less the 'Lead Time, Receiving Inspection' from Inventory Item Master > Lead Times tab.

• In PO Entry, this field is initialized by adding the Vendor Lead Time to the PO Place Date. If there are no lead times recorded, it will default to today’s date.

• If ‘Direct’ Material, this is the quantity received into inventory. 

• For Indirect Material, this is the quantity received by the department. 

• For Service Items whose service unit of measure is AMT (Amount), the Quantity Accepted is set to 1 when payment is authorized, which typically happens when an invoice is received. Items whose service type is Hours, Days, or Months will set the Quantity Accepted to the number of Hours, Days, or Months that are authorized for payment.

Amount fields:

• Amount Required:  The extended price for this line. It is equal to the Quantity Required * Unit Price.

  • This field is system-controlled. User entry is not permitted.

  • For Service Items where Service Type = ‘Amt’, this is the unit price on the Purchase Order Line.

• Amount Completed: The Amount Accepted times the unit price in the Home Currency

  • This is not a field maintained by the user. Instead, it is set by the system.

  • For Direct Material Items, this is calculated by multiplying the quantity accepted by the unit price.

  • For Service or Indirect Material Items, this is the sum of the “Authorized” transactions.  Even if the Authorization is rejected for Payment in the AP – PO Match, it is considered an ‘authorization’ to compute an Amount Completed.

SEE ALSO
 

Purchasing Overview
Purchase Order Header Information
Purchase Order Advanced Information
Currency Master
Division Master