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    Creating Purchase Order

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    Ron Andi Ramos
    The document describes an exercise in performing the procurement process in a purchasing system. It involves creating a purchase order, receiving partial goods deliveries against the order by creating goods receipt purchase orders, checking inventory levels, receiving the remaining goods, and paying the vendor's invoice by creating an accounts payable invoice. The effects of each step - purchase order, goods receipts, and invoice - on inventory quantities and accounting journal entries are demonstrated.

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    Attribution Non-Commercial (BY-NC)
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    Creating Purchase Order

    Uploaded by

    Ron Andi Ramos
    323 views5 pages
    The document describes an exercise in performing the procurement process in a purchasing system. It involves creating a purchase order, receiving partial goods deliveries against the order by creating goods receipt purchase orders, checking inventory levels, receiving the remaining goods, and paying the vendor's invoice by creating an accounts payable invoice. The effects of each step - purchase order, goods receipts, and invoice - on inventory quantities and accounting journal entries are demonstrated.

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    The document describes an exercise in performing the procurement process in a purchasing system. It involves creating a purchase order, receiving partial goods deliveries against the order by creating goods receipt purchase orders, checking inventory levels, receiving the remaining goods, and paying the vendor's invoice by creating an accounts payable invoice. The effects of each step - purchase order, goods receipts, and invoice - on inventory quantities and accounting journal entries are demonstrated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    323 views5 pages

    Creating Purchase Order

    Uploaded by

    Ron Andi Ramos
    The document describes an exercise in performing the procurement process in a purchasing system. It involves creating a purchase order, receiving partial goods deliveries against the order by creating goods receipt purchase orders, checking inventory levels, receiving the remaining goods, and paying the vendor's invoice by creating an accounts payable invoice. The effects of each step - purchase order, goods receipts, and invoice - on inventory quantities and accounting journal entries are demonstrated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 5

    Purchasing Exercises

    Unit: Purchasing-A/P

    Topic: Procurement Process


    At the conclusion of this exercise, you will be able to: Perform the steps in purchasing process Create good receipt POs for partial quantities View inventory status for items purchased Discuss the effects of the purchasing documents on inventory and accounting

    In this exercise, you create a purchase order for required items. One of the items has never been ordered before, so you create an item master record. When the vendor delivers partial quantities, you create a goods receipt PO. You use the inventory status report to view stock quantities. Later you create a second goods receipt for an additional delivery. When the vendors invoice arrives, you enter an A/P invoice and process the vendor payment. You perform the purchasing process a second time to better understand the effect on inventory and accounting during each step of the process.

    1.1 You want to place an order for VP.NALCOPHILIP1. To do so, you call up the purchase order document and enter the vendor number. You order the various items as follows: 1-1-1 Enter the following values in the purchase order. Field Name or Data Type PO Number Posting Date Vendor Item No. Quantity Unit Price Item No. Quantity Values PO0116611 July 11, 2012 VP.NALCOPHILIP1 14040421001 230 P154.85 14040412003 26

    Unit Price

    P403.85

    Do not save the purchase order yet! 1-1-2 Since the goods are often delivered on different dates, enter the delivery date column in your item table. The same applies for the warehouse. Field Name or Data Type Delivery Warehouse Values July 18, 2012 14040421001

    Do not save the purchase order yet! 1-1-3 Supply the Cost Center to which the PO is charged and enter the DPR No. 1-1-4 Add the purchase order. Purchase Order Number: _____________ Choose OK. 1.2 The delivery for your purchase order has arrived, however it is not exactly what you had ordered. The vendor's delivery document refers to your purchase order number. Enter a Goods Receipt PO with reference to the purchase order document. Enter the vendor number and display all the open purchase order documents. Field Name or Data Type Vendor Values V10000

    1-2-1 The vendor did not deliver all the items and quantities. The vendor delivered the full quantity for C00009 and TA200, but delivered only a quantity of 1 for the C00010. C00011 was not delivered by the vendor. For this reason, copy 3 of the 4 items to your Goods Receipt PO in the Draw Document Wizard and change the quantity of C00010 to 1. Save your goods receipt document. Goods Receipt Number: _____________ 1-2-2 Check the current stock situation of items C00010 - C00011 using the Inventory Status Report within the Inventory Reports. Record the quantities below.

    C00010 In Stock

    C00011

    Committed Ordered Available

    1-2-3 You receive an additional delivery for the same purchase order. The vendor delivers all the remaining items. Create a goods receipt PO for these items. Field Name or Data Type Vendor Add the goods receipt document. 1-2-4 V10000 sends you an invoice for the above deliveries with the invoice number of 00125/40. Enter an A/P invoice in the system to represent the vendors request for payment. Field Name or Data Type Vendor Vendor Ref. No. Values V10000 00125/04 Values V10000

    1-2-5 Record all the items, referring to the two deliveries when you enter the invoice. Post the invoice to the system. A/P Invoice Number: _____________ 1-2-6 Pay the vendors invoice. Field Name or Data Type Code Post the payment. Values V10000

    2-1 You want to view the effect of each document in the purchasing process on accounting and inventory. You will follow the steps of the purchasing process again from purchase order through A/P invoice.

    2.1.1

    Create a purchase order for the vendor V20000. You order 5 units of items A00001. Values V20000 A00001 5

    Field Name or Data Type Vendor Item No. Quantity

    Save the purchase order. Purchase Order Number: _____________ 2-1-2 You want to first determine which warehouse is the assigned for this item, so that you can then determine the stock level for that warehouse. 2-1-3 Check the stock level currently found in that warehouse. 2-1-4 Leave the purchase order open. 2-2 The items on your purchase order have arrived. You will create a goods receipt PO from the purchase order. When you save the goods receipt PO, you will check the stock level and journal entry to see how this document affects inventory and accounting. From the open purchase order, create a goods receipt PO. 2-2-1 Check the rows and quantities in the Goods Receipt PO to make sure they match the quantities delivered by the vendor. Field Name or Data Type Item No. Quantity Values A00001 5

    Then save the Goods Receipt PO. Goods Receipt Number: _____________ 2-2-2 Open the Goods Receipt PO you just created and check the effects of the Goods Receipt PO. 2-2-2-1 View the item master record. Choose the correct tab for to check inventory quantity. Which column shows the increase caused by the Goods Receipt PO? __________________________________________________ Return to the Goods Receipt PO.

    2-2-2-2

    View the journal entry to see the effect of the Goods Receipt PO on accounting. What were the two posting that were created automatically because the system is using perpetual inventory? ___________________________________________________ ___________________________________________________ Return to the Goods receipt PO.

    2-3

    A vendor invoice for the delivered items arrives. You will create an A/P invoice to pay the vendor. When you save the A/P invoice, you will check the journal entry to see how this document affects accounting. From the open Goods Receipt PO, create an A/P invoice. Enter the invoice number (55723-09) and invoice date (yesterdays date) from the vendors invoice into the appropriate fields. Field Name or Data Type Vendor Ref. No. Document Date Save the A/P Invoice. A/P Invoice Number: _____________ 2-3-1 Open the A/P invoice you just created to view the journal entry. Fill in the table below based on information in the document: Values How much is the vendor invoice? Values 55723-09 Yesterdays date

    2-3-1-1

    View the journal entry to see the effect of the A/P invoice on accounting. Which field in the journal entry contains the vendor reference number? _______________________________________________ Which account was credited when the Goods Receipt PO was created and is now debited when the A/P Invoice is saved? _________________________________________________

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