Reserving to Sales Orders via Purchase Order Allocation

Sales order lines can be linked to purchase order lines for the purpose of ensuring purchased quantities are automatically reserved to sales orders upon purchase order receipt. The feature is useful in situations where items have not been purchased, but companies want to ensure once items are received they are allocated/reserved to the correct sales order lines. The feature is also useful in situations where items are only purchased if a sales order is entered for them. In this case, when companies purchase these items they may decide to link the Purchase Order to the Sales Order line to ensure first come first serve is honored and later orders for the same item do not utilize product that was ordered for another customer.

Configuration

All the setup steps required for entering purchase orders and sales orders must be completed prior to using this feature. See the Entering Purchase Orders and Entering Sales Orders pages for additional information.

In addition, the following setup is required.

  • The "Linked SO Allocation" field must be checked on the Sales tab of Facilities where allocations between purchase orders and sales orders will occur.
  • Beginning in version 16.04.078, the "Linked PO Allocatable" field on the Item Master may be checked. If this and the "Linked SO Allocation" field on the sales order Facility is checked, then then the "Linked PO Allocatable" (or_allocatable) field on the sales order line will be checked by default. This field was added to support the entry of sales orders via Excel import, EDI, and eCommerce, where this field needs to be set automatically since users will not be able to manually check the field.

Process

Creating sales orders

  1. Navigate to Sales > Order Entry.
  2. Select the appropriate Bill-to and Ship-to customer and correct Facility.
  3. Enter the appropriate line items for the order, being sure to check the “Linked PO Allocatable” flag on those lines you wish to have allocated when PO quantities are received. (Note: Beginning in version 16.04.078, this field may be checked by default. See the Configuration section on this page for additional information.)
  4. Complete the rest of the new sales order entry process as normal. See the Entering Sales Orders page for details on new sales order entry if necessary.
  5. Once complete, save the order.
  6. If necessary, additional sales orders may be created which will link to the same purchase order line.

Linking sales order lines to purchase order lines

  1. Navigate to Purchasing > Order Entry.
  2. Select the appropriate Vendor.
  3. Enter the same Facility as used on the sales order(s) above.
  4. Click the “Add” button to display the Edit Purchase Order Line form.
  5. Select a part number. This number should match the part number entered on the sales order(s).
  6. Enter the appropriate quantity.
  7. Click the Linked Sales Orders tab.
  8. Click the “Add” button to display the Edit Linked SO form.
  9. In the “Sales Order” field select one of the sales orders created previously. Only orders containing lines with an item that matches the item specified on the General tab of the Edit Purchase Order Line form will be displayed in the list.
  10. Click the search icon in the “Sales Orders Lines” field and select the first line you wish to link. Note: Only those sales order lines that are marked for “Linked PO Allocatable” are displayed in the list.
  11. Verify the quantity is correct.
  12. Save and exit the Edit Linked SO form. Note: Once a sales order line has been added to the Linked Sales Order tab the system will convert the quantity that is displayed in the grid from the sales unit of measure to the purchase unit of measure.
  13. If multiple sales order lines will be linked repeat steps 8-12. Multiple sales order lines may be linked to a single purchase order line if desired.
  14. Once complete, click the “Save” and “Exit” buttons to close the Edit Sales Order Line form.
  15. Complete the purchase order entry process as normal. See the Entering Purchase Orders page for details on purchase order entry if necessary.
  16. Once complete, save and exit the order.

Receiving the purchase order and verifying the correct allocations

  1. Navigate to Purchasing > Receive.
  2. In the “Purchase Order” field select the appropriate purchase order and click the “Continue” button.
  3. Receive the purchase order as normal. See the Receiving Purchase Order page for additional information on this process.
  4. Once the purchase order has been received, navigate to Sales > Order Reporting.
  5. In the “Sales Number” field select the appropriate sales order number.
  6. Click the “Modify” button on the pre-filter to display the “Sales Order Entry” form.
  7. Click on the “More” drop down button and select the “Reserve” button.
  8. The Issue/Reserve Inventory form will be displayed.
  9. Click the “View Issued” button and notice the correct quantity has now been issued to the sales order.

Note: When linking multiple sales order lines to a single purchase order, the system will place all inventory to reserved status and reserve to the appropriate sales orders after receiving purchase order.

FAQ & Diagnostic Tips

If I linked a Purchase Order to the wrong job, how do I move the money to the correct job?

The only way to move those dollars is to un-receive the Purchase Order and link it to the correct job. If the Purchase Order has been invoiced and paid, those actions must first be undone. This may lead to GL confusion so it is important to speak with the appropriate members of your Accounting department if the vendor invoice has been paid prior to the discovery of the wrong job shown on the PO.