Auto Purchase Orders - How To Process

First, a description of how Auto PO works and then we'll get to the "how-to" part of the article...

How Auto PO determines if an Inventory Purchase is necessary

If you've set up a Product for inclusion in Auto PO using the steps found here, then AcctVantage will evaluate each Product's current inventory situation.

  • AV compares the Minimum Stock Level to the Quantity Available plus the Quantity on outstanding Purchase Orders for the indicated Warehouse minus those Purchase Orders already associated with Backorders. If the Minimum Stock Level is greater than the sum of this calculation, then the Product is included in Auto PO.

That description of the calculation can get confusing, so let's look at a couple examples assuming the Minimum Stock Level = 5:

  • Qty Available = 3 and there is no other activity for the Product. The Product DOES qualify for Auto PO because the Qty Available is less than the Minimum Stock Level (3 < 5).
  • Qty Available = 7 and there is no other activity for the Product. The Product DOES NOT qualify for Auto PO because the Qty Available is greater than the Minimum Stock Level (7 > 5).
  • Qty Available = 3 and there are 10 units on open Purchase Orders. The Product DOES NOT qualify for Auto PO because the Qty Available + Qty On PO is greater than the Minimum Stock Level [(3 + 10) > 5].
  • Qty Available = 3 and there are 10 units on open Purchase Orders, all 10 of which are linked to Back Orders. The Product DOES qualify for Auto PO because the Qty Available + Qty On PO - PO for Backorders is less than the Minimum Stock Level [(3 + 10 - 10) < 5].

1. Open the Auto PO window

Navigate to Purchasing ➤ Auto-Purchase Orders.

Open the Auto PO window

2. Run the Auto Purchase Order Process

  1. You should first Select a Warehouse. Auto PO is run on a per Product per Warehouse basis. You can not run Auto PO for multiple Warehouses in one instance.
  2. Next, you will select the Data Source(s) from which AV will consider items to be included in Auto PO. (See the definitions below.)
  3. Click OK to proceed.

Data Source(s):

  • Backorders: AV will search for Backordered items to be included in Auto-PO. Open Backorders will be included on the Auto-PO process unless they already have a Purchase Order associated with the Backorder record via an earlier Auto-PO or a Sales Order-Purchase Order link.
  • Sales Document Line Items: AV will search for items from Non-Posted Sales Orders where the Order Qty is greater than the Shipped Qty and the Backorder Qty is 0. These items will be included in the Auto PO process. This applies to Non-Posted Orders in the Committed, Picked or Packed status. In other words, Auto PO considers partially filled Orders that have not been marked for Backorder.
  • Product Reorder Qty: AV will search for items that qualify for Auto PO based on your System Configuration and Product record settings.

- OR -

  • MRP Action Items: AV will consider items to include in Auto PO based on Order-type MRP Action Items. The Action Item must be in the Pending status to be picked up for Auto-PO. To change the status of an MRP Action Item, double-click it. For discussion of the MRP functions, review this lesson.
Run the Auto Purchase Order Process

3. The Auto Purchase Order Window

Instructions:

  1. Place an X (by clicking in to the field) in either the New PO or Add to PO column for each line item that you want to create a new PO for.
  2. Place an X in the Print PO column if you want to Print the Purchasing Document for each of the selected items.
  3. You can change the Order Quantity or Vendor Name if you want to purchase a different quantity or issue the PO to a different Vendor.
  4. Select whether to Create 1 PO per Product OR 1 PO per Vendor.
  5. Click the Process button to proceed.

Auto Purchase Order Window Column Definitions:

  • New PO: An X in this column denotes that a new Purchase Order will be created.
  • Add to PO: An X in this column denotes that these items will be added to an existing Purchase Order. In order for this to work you must have an Open Purchase Order for the listed Vendor. By default, this field will be checked if there is a relevant PO to add the new items to.
  • Add PO ID: The PO ID of the Open Purchase Order for the listed Vendor will populate this column when an X is in the Add to PO column.
  • Print PO: An X in this column denotes that a Purchase Order form will be printed when Auto PO is Processed.
  • Source: This is the reason that caused Auto PO to include the item for consideration. It is based on the Data Source from the previous step.
  • Request Quantity: The quantity that Auto PO is requesting to create a PO for. This is based on how you have setup Auto PO to work.
  • Order Quantity: The actual quantity that the PO will be created for. This is a user modifiable field.
  • Vendor Name: The Vendor that the PO will be issued to. This is a user modifiable field.

4. Confirm the PO's to process

After you click the Process button you will be presented with this confirmation dialog. Click Yes if you want to process the PO's that you've selected.

Confirm the PO's to process

5. Auto PO Actions

You will see this list of Auto PO Actions after you click Yes to process the PO's...it will contain a record of each PO created. In this example I decided to only process one PO so there is only one line item.

  • Action: Add means that these items were added to an existing PO.
  • Source: BO means that this PO was created from existing Backordered items.

Note: After running Auto PO, AV will create Open PO's. You can still modify these PO's in the Purchase Order list view if necessary.