Create Purchase Order(s) from Sales Order
Have a Sales Order/Invoice that needs Inventory ordered? Want to drop ship an Order to your Client? Learn all about it here!
When can a Purchase Order be generated from a Sales Order?
If you need to generate a Purchase Order to fill a specific Sales Order, you can use an Action Menu item to create the PO.
There are 3 conditions that must be met to have the PO generate successfully:
- Order Status: The Sales Order must be in Committed status.
- BO Qty:
- For Inventory items, one or more line items on the Sales Order must have a Backorder Qty of at least one unit.
- For Non-Inventory items, you do not need to indicate a Backorder Qty.
- Vendor Name: The Product(s) on the Backordered line(s) must have a Vendor entered.
- If there is a Primary Vendor listed on the Product record, it will be added to the line item automatically. Otherwise, you can key in the desired Vendor on the fly.
- Default PO Cost (OPTIONAL): The cost indicated on the line item will be passed as the Unit Price for the Purchase Order. If there is a Default PO Cost indicated on the Product record, then it is filled in here by default. The cost can be overwritten as needed.
- Required Ship Date (OPTIONAL): The date entered here will be passed as the Required Ship Date on the PO.
- Vendor Part Number (OPTIONAL): This will be pulled from the Product record if possible and can be overwritten here as needed.
Most of the columns described above are hidden by default. Each column can be activated/deactivated via the System Configuration screen. See the lesson on Purchase Order Defaults & Line Item Columns to learn how to set this up.
1. Create Purchase Orders
- Highlight the Sales Order (that meets the above conditions).
- Open the Action Menu and select Create Purchase Order(s).
You will be presented with a dialog about PO type and Drop Ship preference (see next screenshot).
1.1. Create Purchase Orders
- Inventory: These are any Products that you are ordering that could be part of your physical inventory system. It doesn't matter if you normally stock the items or not, the term Inventory in this case refers to the check box on the Product record that determines if it's an Inventory (i.e. stock) vs. a Non-Inventory (i.e. supply or service) item.
- Non-Inventory: These Non-inventory Products, as indicated on the Product record, can be added to a PO by choosing the Non-Inventory option. In this case, AcctVantage will issue a PO for the Order Quantity rather than a Backorder quantity (since you cannot Backorder Non-Inventory items).
- Check the Create Drop Ship POs option to generate a Purchase Order where the Ship To Address is pulled from the Sales Order. (If there is more than one Vendor indicated for a particular Sales Order, you will get one PO per Vendor with each PO having the Drop Ship address pulled from the Sales Order.)
- If the Create Drop Ship POs option is not checked, you will get 1 PO per Vendor per each Warehouse indicated on the Sales Order. (Note that if you have more than one Sales Order highlighted, you will still get one PO per vendor with one line item per Product being ordered. In other words, you will be placing a bulk order with your Vendors that will need to be split up to fill your Sales Orders.)
2. Purchase Order Creation Log
After selecting Create POs, AV will validate each highlighted Sales Order and generate the POs to match.
The Purchase Order Creation Log will be presented to confirm that the process completed. If there are errors, the message will tell you why the process failed.
3. The Purchase Order
- The Sales Order ID (i.e. Alternate ID) is not Order Number or Invoice Number; it is the the internal ID of the Sales Order record.
- Cross-References between the Sales Order, Sales Analysis, Purchase Order and Purchase Analysis windows are supported when a Purchase Order is linked to a Sales Order.
4. PO Confirmation on the Sales Order
If you open up the Sales Order you will see that AV has copied the PO # for future reference.
What if I already have an existing Purchase Order? Do I still need to create one?
If you find that you already have manually entered a Purchase Order then you won't need to create a new PO from the Action Menu. You can link the existing Purchase Order to the existing Sales Order.
All you need to do is manually enter the existing PO Number into the PO # field on the Sales Order. The system will verify that the PO Number you've entered actually contains the Product before allowing you to save.