Dynamics GP Insights To Distribution - Purchase Orders

Dynamics GP Insights to Distribution: Purchase Orders
Dynamics GP includes powerful distribution functionality that will help you more easily and effectively manage your distribution operations. This book covers some of the more important and effective aspects of the Dynamics GP distribution solution. This book contains explanations and directions for using specific functions within Dynamics GP. It also includes links to videos that support specific functionality.
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Table of Contents
Purchase Order Processing ................................ 3

Basic Purchase Orders ............................................................................................ 3 Changing Purchase Accounts on PO Receipts ................................................. 9 Add OTHER Distribution Entries to Change PO Receiving Transaction PURCH Account ........................................................................................................ 11 Why cant I return a PO shipment/receipt on the Returns Transaction Entry window? ......................................................................................................... 12 Purchase Orders from Sales Orders ................................................................. 14 Entering Landed Cost Invoices ........................................................................... 15
Purchase Order Processing

Basic Purchase Orders
The purchase order functionality in Dynamics GP allows you to create purchase orders, and receive and invoice purchased items. Navigate to open the Purchase Order Entry screen: Transactions >> Purchasing >> Purchase Order Entry. Accept the default type, and tab through the PO Number, to the Vendor ID. Enter or lookup the Vendor ID for the purchase order. Any purchase order can have as many detail lines as youd like. You can enter inventory items and/or non-inventory items. Dynamics GP will use defaults values from the item, vendor, and system to fill in much of the required data for a purchase order. You can drill-down from the purchase order line to see additional information in the Purchasing Item Detail Entry screen. Just click on the blue expansion arrow to the right of the Item field label:
If you want to change the general ledger account number to which the purchase will be charged, you can do it in the Purchasing Item Detail Entry screen. You can also change the date fields to enhance reporting and management of purchase orders.
When youve completed entry for the purchase order, you can click on Save to save it in Dynamics GP. You can go back to edit or review it in the future. To receive and invoice the purchase order, you have two options: 1.) You can receive and invoice the purchase in one transaction 2.) You can receive the purchase in one transaction, and then enter and apply the vendors invoice at a later time. To receive the purchase you can navigate to the Receivings Transaction Entry screen: Transactions >> Purchasing >> Receivings Transaction Entry. Or you can open the purchase order in the Purchase Order Entry screen, click on Actions and select Receive the PO Items.
If you start at the Receivings Transaction Entry screen, select the Type as Shipment or Shipment/Invoice and tab to the Vendor ID. Enter or Lookup the Vendor ID. Click on the Auto-Rcv button to easily lookup the open purchase order items.
Mark the items you want to receive. Ensure that the Qty Shipped quantity is the correct amount to receive, and click on the Receive button. This will populate the information you need for the Receivings transaction. You can then save the transaction into a batch, or post it.
This will receive the purchased items into inventory or debit the purchasing account for the amount of a non-inventory item. It will also create an un-invoiced receipt transaction that can be matched to the vendors invoice at a later time. Navigate to the Purchasing Invoice Entry screen to enter the vendors invoice and match it to the receipt: Transactions >> Purchasing >> Enter/Match Invoices.
Tab past the Receipt Number. Enter the vendors invoice number in the Vendor Doc. Number field. Enter or lookup the Vendor ID. Tab past the Currency ID. Click on the Auto-Invoice button to open the Select Purchase Order Items screen. Select the items to invoice, and verify the quantity in the Qty Invoiced field. Click on the Invoice button to complete the Purchasing Invoice Entry screen.
Save the transaction to a batch or post the transaction.
This will create an invoice transaction in accounts payable. Purchase Order Processing video: http://youtu.be/sI4EqEgpcuc
Changing Purchase Accounts on PO Receipts
If you want to change the purchases account on a PO receiving transaction but dont want to go back to each line item to change the account, you can add additional distribution lines with the Type = OTHER. You would enter a credit to the default PURCH account(s) and then enter a debit to the new/correct account(s). This feature can also be used if additional accounting entries related to the transaction are needed (to record use tax, for example). As long as you use the OTHER distribution type and have the total debits = total credits for the additional entries, there wont be any distribution error messages.
Add OTHER Distribution Entries to Change PO Receiving Transaction PURCH Account
If you want to change the purchases account on a PO receiving transaction but dont want to go back to each line item to change the account, you can add additional distribution lines with the Type = OTHER. You would enter a credit to the default PURCH account(s) and then enter a debit to the new/correct account(s). This feature can also be used if additional accounting entries related to the transaction are needed (to record use tax, for example). As long as you use the OTHER distribution type and have the total debits = total credits for the additional entries, there wont be any distribution error messages.
Why cant I return a PO shipment/receipt on the Returns Transaction Entry window?
You may have wanted to enter a return transaction to record a return of goods to a vendor or to reverse out a receipt that was posted incorrectly but were unable to do so because the receipt/shipment did not show up on the Returns Transaction Entry window. There are two main reasons this can happen:
1) the wrong return type (return vs. return with credit) has been selected and 2) the item quantity has already been removed by means of an inventory decrease adjustment. So, when you want to enter a PO return, you need to make sure you know all the details about the PO and its receipts. You can review the PO on the inquiry window (Inquiry>Purchasing>PO Documents). If the items to be on the return were shipment receipt that has NOT been matched to an invoice, the return type must be RETURN. If the items to be returns were on a shipment receipt that has been matched to an invoice, the return type must be RETURN w/CREDIT.
If you have confirmed that youre using the correct return type and the receipt is still not showing up, determine if the items have been issued out already. This can be determined by reviewing the Inventory Receipts Inquiry window (Inquiry>Inventory>Receipts). Locate the shipment/receipt and check the corresponding quantity sold. You cant return any that have been recorded as sold Dynamics GP thinks those items are gone so theres no way you could return them to the vendor. If this is the case, the return is most likely being attempted to clear out an unmatched PO receipt (rather recording a true return of goods to the vendor). The PO can be cleared out by changing the status of the PO to Closed on the Edit PO window. After clearing out the PO, be sure to double check the GL and make sure that all accounts involved, especially the PO Accruals account, are correct; an adjustment GL journal entry may be necessary.
Also, keep in mind that after a receipt is returned, the same quantity on the same line item cannot be received again. If replacement times are being shipped by the vendor, a line for those items needs to be added to the PO.
Purchase Orders from Sales Orders
Most GP users are familiar with the SOP-to-POP integration with which you can easily create a PO from a Sales Order. However I'm guessing that most users don't know that a similar function exists with which you can easily create PO's for a large number of sales documents at one time. This is how you do it: Navigate to the Sales Inquiry Restrictions screen: Inquiry >> Sales >> Restrict Sales Documents. Create a range to select all the sales documents you want to be considered when creating PO's. You can create a new one or use an existing inquiry.
Click on the "Inquiry" button. This screen will pop up that shows all the sales documents selected.
Next, click on the "Purchase" button, and the Purchase Order Preview screen will pop up; the same one you're used to with the SOP-to-POP function. This can be very useful in a high volume distribution business. I didn't know about it, until a client showed me. Neat stuff.
Entering Landed Cost Invoices
The Landed Cost functionality in Dynamics GP helps you accurately capture the actual cost of inventory receipts. Every time this issue comes up, I have to figure it out, again; how do you match a landed cost vendor's invoice to the receipt. The trick is to check the "LC" (Landed Cost) check box on the entry line.
Once you do that, you can look up the "Item" and you will see the landed cost items, not your inventory item master file. Select the landed cost item you want to invoice, and then click on the expansion arrow next to the "Matched to Shipment" field label. Here's an example: These are the landed costs applied to the receiving transaction:
These are unmatched landed costs for the "Insurance" item, from two different receipts. Find the receipt you're looking for and check the "Match" box.
Now the landed cost item from the receipt has been matched to the vendor's invoice, and it is ready to post.
Related video: http://www.youtube.com/watch?v=miuFwl5lytk

Published by Rose Business Solutions, Inc. Contributing Authors: Steve Chapman Francisco Hilyard Steven Johnston Liane McIlraith Doug Pitcher

Dynamics GP Insights To Distribution - Purchase Orders

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Dynamics GP Insights to Distribution: Purchase Orders

Purchase Order Processing ................................ 3

Purchase Order Processing

Save the transaction to a batch or post the transaction.

Changing Purchase Accounts on PO Receipts

Add OTHER Distribution Entries to Change PO Receiving Transaction PURCH Account

Why cant I return a PO shipment/receipt on the Returns Transaction Entry window?

Purchase Orders from Sales Orders

Entering Landed Cost Invoices

Related video: http://www.youtube.com/watch?v=miuFwl5lytk

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