Integrating Other Modules with Purchase Order

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The Purchase Order module is used in conjunction with the Accounts Payable module and can be integrated with other modules, to take full advantage of the information stored in the system. When integrated, each accounting module shares common information with related modules. Sharing eliminates any double entry of information already stored within the system.

The following modules can be integrated with the Purchase Order module:

Expand/Collapse item  General Ledger

The General Ledger module is the key to integrating all financial information from the Purchase Order module and from the other accounting modules. The General Ledger module provides complete, timely financial reports, which consistently reflect current information.

When the General Ledger module is integrated, all purchase order entries are posted directly to the general ledger after the Daily Receipt Registers and Daily Transaction Register are updated.

Financial statements and other General Ledger reports that can be printed after the completion of the Daily Transaction Register reflect postings printed on the register.

If the General Ledger module is not integrated, purchase order journal entries are not posted to the general ledger.

 

Expand/Collapse item  Accounts Payable

The Accounts Payable module works with Purchase Order enabling you to effectively manage cash flow while saving time and increasing accuracy. The Accounts Payable module must be installed and set up before setting up the Purchase Order module.

In Purchase Order Entry, access to the Accounts Payable Vendor file permits automatic retrieval of address and terms information and allows you to maintain multiple purchase addresses for each vendor.

Invoices can be posted directly to Accounts Payable from Receipt of Goods Entry and Receipt of Invoice Entry. The Receipt/Invoice Variance Register tracks variances between the cost of goods received and the cost reflected on the vendor invoices. Debit memos can be posted in Return of Goods Entry.

 

Expand/Collapse item  Inventory Management

The Inventory Management module tracks the quantities on order for each item. Integrating the Inventory Management module with Purchase Order enhances your purchasing efficiency by posting receipts directly into inventory and providing an automatic reorder option for items with a low on-hand quantity.

The following features are activated when the Inventory Management module is integrated with Purchase Order:

  • As goods received are processed, the quantity on hand and the unit cost for each item is adjusted in the Inventory file. The Receipt/Invoice Variance Register lists variances between cost of goods received and the cost on the corresponding invoice; this variance can be posted to the inventory adjustment account.

  • The Purchase History Report provides a detailed period-to-date, year-to-date, and prior-year history of purchase activity for each item.

  • Item cost and quantity information is retrieved from the Inventory file as purchase orders are entered, and quantity information is updated directly to inventory as receipts are processed. Automatic reorders can be generated by the Purchase Order system based on the reorder quantity established for each item.

  • Item costs, tax class, and units of measure established in Inventory Management are accessed in Purchase Order Entry to provide automatic cost calculations for inventory line items. Shipping addresses and charges for non-inventory items, such as services, fees, and miscellaneous charges, are retrieved from the Purchase Order files.

 

Expand/Collapse item  Sales Order

When the Sales Order module is integrated, you can enter and process drop-ship orders using the Purchase Order module. If the Job cost module is integrated, the job number, cost code, and cost type information in Purchase Order Entry is automatically defaulted for drop-ship purchase orders that are based on sales orders.

 

Expand/Collapse item  Job Cost

The Job Cost module is designed for contractors and project managers to track and control costs associated with jobs in process. Material cost information for goods received and invoiced are posted directly to a job. If the Job Cost module is integrated with Purchase Order, you can distribute purchase orders to jobs.

In addition, a job number, cost code, and cost type can be entered for each line item of a purchase order and can be printed on the purchase order form, and appropriate reports and registers. As the purchase order is received, the cost and quantity information is posted to the Job Cost system.

Before integrating the Job Cost module with Purchase Order, verify that costs are not also being posted to the Job Cost module from Sales Order. If the Job Cost module is integrated with Purchase Order and the Post Invoice Costs to Job Cost check box is selected in Sales Order Options, costs can potentially be double-posted to the Job Cost module. If the Job Cost module is not integrated with Purchase Order and the Post Invoice Costs to Job Cost check box is cleared, costs are not posted to the Job Cost module from either the Sales Order or Purchase Order module.

When a drop-shipped purchase order is entered, the Inventory cost of goods sold account defaults automatically as the general ledger account in the G/L Account field in Purchase Order Entry. When the order is entered in Receipt of Invoice Entry, the general ledger account from the Job Cost module is used as the general ledger account. To use a different account, modify the general ledger account in Receipt of Invoice Entry and not in Purchase Order Entry, so that the Job file is updated with the correct general ledger account.

In Receipt of Invoice Entry, if you did not enter a general ledger account in Job Cost for the job type (if posting work-in-process) or the cost code/cost type (if not posting work-in-process), the G/L Account field remains blank and an account must be entered manually.

Note  If you are entering a material requisition, you cannot cost an item to a subcontract cost type.

   

Expand/Collapse item  Bank Reconciliation

When the Bank Reconciliation module is integrated with Purchase Order, cash on delivery (COD) payments entered for receipts with an invoice number in Receipt of Goods Entry and for invoices entered in Receipt of Invoice Entry, are updated to Bank Reconciliation. The information is updated to the bank code entered on the Totals tab in these data entry windows.