Purchase Order Types
There are 13 order types that can be used on the Purchasing side of Deacom, each of which is explained below.
Canceled
The canceled order type is used to indicate orders which have previously been saved, but are no longer needed. Canceled orders cannot be received and are not taken into consideration when running MRP.
- Note: A new Purchase Order cannot be saved as a Canceled order. Only modifying an existing order allows users to select the Canceled order option.
Complaint
The complaint order type is used to enter information regarding issues with a vendor, specific parts or a combination of both. It's purpose is to help track vendor performance. Order entry is the same as a standard purchase order except for the Order type, which must be changed to "Complaint". Complaint orders may be viewed and sorted in the purchasing reporting area of the system for analysis.
Internet
Orders that originated online via Deacom's e-commerce application.
Payment on Account
Pre-payments may be entered via the Accounting > Manual Checks transaction by selecting "Pre-payments" in the report type box on the pre-filter, allowing the user to create a PO with a "Payment on Account" type and print a check for that Vendor. Note that when creating a backorder for a purchase order that has been pre-paid, the system will apply any pre-payment overpayment to the backorder at the creation of the backorder. Specifically, when partially receiving a PO that has been pre-paid and the payment is larger than the remaining total due, the balance of the payment is applied to the backorder. This allows all Purchase Orders to have appropriate balances and users can easily see what action is still required for each purchase order.
Note:
Pricing Order
Pricing orders are typically used to represent blanket purchase orders. Blanket purchase orders represent an agreement customers make with a supplier for a certain quantity of goods or certain number of services, generally for a specified period of time. In Deacom, Blanket purchase orders use the Pricing order type since the concepts and features used in these order types match those of the blanket purchasing agreements. Blanket purchase orders can also use the Quote, and Recurring order types. Blanket purchase orders represents a framework for a long-term agreement between a company and its vendors and are typically used in situations where a customer has committed to purchasing large quantities that are to be delivered in several smaller shipments over a certain period of time. Blanket orders provide a benefit to customers since they prevent them from having to hold greater than necessary amounts of stock and also avoids the administrative expense of processing frequent purchase orders. In Deacom, blanket purchase orders are setup using the "Pricing" order type since the concepts and features used in these order types match those of the blanket purchase agreements. The blanket purchase order process involves two steps which are detailed in the purchasing Best Practices sections via the Utilizing Blanket Purchase Orders page. Note that pricing orders are part of the Deacom pricing hierarchy. As a result, if a pricing order for a specific vendor exists, that order will be evaluated before considering the item's purchase price when entering new purchase orders. The system will also evaluate the "Pricing Based On" field from the Vendor record when considering pricing. As far as Purchasing Reporting, the "Blanket Purchases" report type can be used to provide information regarding all pricing orders with blanket quantities including the remaining amounts available to be purchased.
Purchase Order
Standard purchase orders are used for one time procurement of materials or services and are generally entered in advance of the material's arrival at the dock or the requested service start date. Standard purchase orders, like all order types require the selection of a vendor. Once the vendor has been selected and required PO header fields have been entered users may click the "Add" button to enter the appropriate materials or services required. Purchase orders are also available as Return to Vendor and Debit Memo, and GL Expense.
Negative purchase orders can be used to clear a bad PO receipt when unable to un-receive the PO. An example of a bad PO would be one received in full, but only 19,000 of 20,000 ordered item arrived. Another example is if the cost of the original lots was incorrect when received in actual cost mode or if the period that the PO was received is now closed. The process is covered in the purchasing Best Practices area via the Entering Purchase Orders to Clear Previous PO Receipt page.
Return to vendor orders are used in situations where material will be removed from your inventory, returned to the vendor, and a credit will be received. This situation is handled by creating a negative purchase order. The steps for this process are covered in the purchasing Best Practices area via the Entering Return to Vendor Purchase Orders page.
Debit memos are used in similar as return to vendor situations, but in this case the items in inventory will be kept, or otherwise disposed of, and the only adjustment needed in the system is the registering of credit owed by the vendor. The process is covered in the Purchasing Best Practices area via the Entering Debit Memo Purchase Orders page.
Purchase orders for direct general ledger expenses are usually entered when the invoice arrives from the vendor. This type of purchase order can be used to pay utilities bills, freight expenses, and other administrative expenses. There is no need to receive material on this type of purchase order, so the process allows that step to be skipped. This process is very similar to the entry of a purchase order for material, so that process should be familiar before beginning this process. The process is covered in the Best Practices area via the Processing Expense Purchase Orders page.
Quote
The quote order type is used to enter orders that are not final, with quantities, pricing, or part numbers still to be determined. Quote requests cannot be received. Once the order has been finalized, the user can change the type to purchase order.
Recurring
The recurring purchase order process can be used whenever the same, or nearly the same, purchase order is issued over and over again. These are commonly used for direct GL expenses, especially when allocations to multiple GL codes are used, but can also be used for material purchase orders, when the same materials are repeatedly purchased from the same vendor. Changes made to the Recurring PO through Purchasing > Order Reporting will apply to all future orders placed for that order.
There are two steps involved in using the recurring purchase order process. First, the creation of the recurring purchase order. Second, the use of the order to create a new purchase order that will be received and invoiced normally. This second step is handled by a separate transaction. The recurring purchase order process is detailed in the purchasing Best Practices sections via the Using Recurring Purchase Orders page.
Requisition
Users without access to enter purchase orders can enter the purchase order information and save the order as a requisition by choosing the requisition order type. The review and approval of requisitions may be handled by using work flow sequences. Additional information can be obtained via Tools > Edit Work Flows.
Service Purchase Orders
Purchases for services can be handled in two different ways. The correct solution depends on the frequency of the purchase:
- If the services are going to be consistently purchased, it's best to setup a non-stock part to track the purchases. Examples of services that occur multiple times are freight and outside maintenance services.
- If the services are a one-off situation, it's best to include the service as a description line on the purchase order line. Examples of this would be a wireless survey of a facility.
Special Order
The special order purchasing process allows for the sale and purchase of one-time items that are not normally stocked and not expected to be sold again. The Parts used on Special Order POs are not unique Item Master records, rather one general template is created for Special Orders and customized/details added on the order itself. This order type can have any number of linked orders; It does not have to be a 1:1 ratio. For example, if a Sales Order exists that has five lines, all five Parts may be ordered on one Purchase Order or five separate Purchase Orders. Once the Parts are received on the Purchase Order, the material is automatically reserved on the linked Sales Order. Refer to Using Special Order Purchase Orders for more information.
Template
The template order type provides an alternative to recurring PO's and is designed for situations in which certain items, services, quantities or special instructions will be used over and over again when ordering from vendors. Order entry is the same as a standard purchase order except for the order type, which must be changed to "Template". Unlike recurring PO's which are handled by a separate transaction, templates are designed so that user may select line items from the template to copy into regular purchase orders via the "Copy PO" button on the purchase order header.
Transfer and Hold
The transfer and hold purchase order process is designed for situations in which vendors keep inventory on hand for companies that operate a just in time inventory system. A typical scenario might be a company telling their vendor they will buy 100,000 pounds of a raw material, but want it delivered in 10,000 pound increments as needed over the next 3 months. Refer to the Processing Transfer Hold Purchase Orders page for additional information.
Order Type Prefixes
Canceled - tp_ordtype = d
Complaint - tp_ordtype = c
Internet - tp_ordtype = n
Pricing - tp_ordtype = i
Purchase Order - tp_ordtype = p
Quote - tp_ordtype = q
Recurring - tp_ordtype = u
Requisition - tp_ordtype = r
Template - tp_ordtype = t
Transfer and Hold - tp_ordtype = h