23 Nov Purchase of Items
Purchase of Items
There is an item tab for recording the purchase of inventory items on several forms:
Purchase order:: this form is non-posting. Purchase orders are available for tracking what has been purchased but not yet received. The inventory quantity is not increased until linked with a posting transaction such as a bill or item receipt. Purchase orders are strictly quantity driven (changing the price to zero to show a partial shipment rather than changing the quantity will result in a “closed” purchase order).
Item Receipt:: If an item has been received, but the bill has not arrived, create an item receipt. An item receipt will not age in Accounts Payable until you confirm that the bill has been received (i.e. it does not show on the pay bills window). The item receipt will increase the Inventory and Accounts Payable balances. This information can be linked to a purchase order either when the vendor name is entered, or from the Select PO button at the bottom of the items tab. If no Purchase Order exists, simply enter the information manually on the item tab of the form.
TRICK: When the bill is received, click on the box in the upper right hand corner and the terms and due date fields will reappear. This will activate proper aging and permit bill payment procedures. This step is important, if a new bill is entered; the Inventory and Accounts Payable balances will be inflated.
Receive Items and Enter Bill: If you have created a purchase order and the items and bill arrive at the same time, you can pull the purchase order information directly into a bill without going through the item receipt step. If you have not created a purchase order, you can simply enter the information directly on to the item tab on the bill and the inventory quantities will be updated when the bill is recorded.
Build Assemblies: This process is new with Premier Version 2003 based on the new inventory assembly type item. Entering information on this form will remove inventory from the individual components and transfer the cost to the new inventory assembly item. The process is to create or choose an assembly item, then designate how many will be built and the software will automatically fill in the quantity that is needed.
Check: Items that are bought and paid for at the time of purchase can be recorded on a check. This eliminates the additional steps of an item receipt, a bill, and/or the pay bill procedures. Just like the other forms discussed above, it is possible to enter the information manually on the item tab, or link the check to a Purchase Order, if appropriate. Note that although processing a check will be faster, the expenditure will not appear on the Accounts Payable reports.