Auto Purchase Order Setup

A. The first step in setting up the Auto PO is to enable some System Configuration settings that will determine how you want to calculate reorder quantities. There are three methods to do this:

  1. Reorder Quantity: You can indicate a fixed quantity, per Product, that will be reordered when the Product qualifies for Auto PO.
  2. Max Qty less Qty On Hand: AV will calculate the quantity to order based on the Maximum Stock quantity indicated when the Product qualifies for Auto PO.
  3. Use a script: If you have a unique way of calculating your reorder quantities, you can have AcctVantage Professional Services write a script to integrate your logic.

B. The second step is to enable the Products that you want to be available for this feature.

C. The last section of this lesson details how the Auto PO feature determines if an Inventory Purchase is necessary.

 

A. Setup the Auto PO Order Quantity in System Configuration

  • Navigate to Administration ➤ System Configuration.
  • Select Product from the drop-down list and look for the Auto PO Order Qty setting.
  • Double-click the Value column to choose your option. (See next screenshot.)

Select a preference setting.

  • Highlight the setting you want to use for Auto PO Order Qty.
  • Click the Choose button then click OK to save the setting.
Select a preference setting.

B. Setup your Products for Auto PO

For Auto PO to be processed for a given Product, you must:

  1. Check the Include in Auto PO box on the Inventory tab of the Product record.
  2. Specify a Minimum Stock Level on the Inventory tab of the Product record (for each Product/Warehouse combination). When the quantity of the Product in a particular Warehouse falls below the Minimum Stock Level, the Product is included in Auto PO. Also specify a Reorder Quantity or Maximum Stock Level, (this depends which setting you enabled in System Configuration above).
  3. Indicate a Primary Vendor on the Product Info tab of the Product record.

Notes:

C. How Auto PO determines if an Inventory Purchase is necessary

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

  • 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].