This chapter contains the following topics:
We assume at this point that you have installed the Passport Business Solutions Purchase Order according to the instructions in the PBS Administration documentation. If you have not done so, please refer to that User documentation and install Purchase Order.
We also assume that you are familiar with the main features of Purchase Order from reading the Understanding Purchase Order chapter.
We advise that you consult with your accountant before using the PBS modules. Your accountant is a professional in the accounting area, and should understand your computer accounting software if he/she is to continue to serve you well. Moreover, because of his/her expertise, your accountant may have some good advice for you regarding converting from your old system to and configuring PBS.
PBS Purchase Order and Accounts Payable
You must have the Accounts Payable module installed and operating before you can use Purchase Order. Each vendor for whom you enter a purchase order must already be in A/P Vendors, so this data in Accounts Payable must be fully set up before P/O can refer to it.
PBS Purchase Order and Inventory Control
The use of the Inventory Control module (I/C) is optional with P/O.
If you are going to use these two modules together, the Inventory Control module must be fully set up before you can begin using Purchase Order. You must have entered all the information in your Items, including the current inventory status of each item, particularly quantity-on-hand, reorder level, and maximum inventory quantity.
If you have multiple warehouses, you must have the current inventory status for every item at every location.
PBS Purchase Order and Job Cost
If you are going to use the Job Cost module with P/O, the Job Cost module must be set up before you start using P/O. This is not mandatory, but in order to enter an order for a particular job, that job must be on file in the Job Cost module.
In order to use the Passport Business Solutions P/O module, you first must enter information about what you purchase and from whom. There are four different files/tables into which you must enter information before you can use the module on a regular basis. Here is a brief explanation of these files:
Company information
This is used to record information about your company, such as your company name, address, etc.
P/O Control information
This contains control information, which you must enter. This information defines the way you do your purchasing and, as a result, controls some of the features of the PBS modules.
This setup also handles the proper sequencing of your purchase order numbers and receiver numbers.
Deliver-to Locations
This contains the full address of each of your deliver-to locations. Every purchase order requires you to enter a deliver-to location code, which corresponds to a deliver-to location.
You can specify a one-time deliver-to location on any particular purchase order, but any regular deliver-to location should also be entered into this here. Such deliver-to locations can be stores, warehouses, job sites, or any other place.
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Note |
If you are using Inventory Control with P/O and you have multiple warehouses, every warehouse that you have already established in I/C will already exist in P/O. This is because the Warehouses in Inventory Control are in the same file/table as the Deliver-to Locations in P/O. |
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Note |
If you are not using I/C, you must define your deliver-to locations through P/O. The data file is automatically created in the top-level PBS folder. |
Vendor Items
Every item that you might order from one of your regular vendors must be in vendor items. If I/C is interfaced, you cannot order an item unless that specific vendor-item combination is entered as a record in Vendor Items.
Even if you are not using the PBS Inventory Control module, all of the items that you regularly order should be entered in Vendor Items. During purchase order line entry, the Vendor Item information will automatically appear in several fields, making for faster and more accurate purchase order entry. Your P/O reports will also be more useful because the items that you order will be identified in a consistent manner.
Setting up vendor items is the largest single step you must take before P/O becomes operational. The next section in this chapter, Set Up Vendor Items, provides guidelines for doing it as rapidly as possible. In the Set Up Vendor Items chapter, there are more guidelines on managing Vendor Items after it is set up.
A separate function sets up Vendor Items relatively quickly. This process is explained in detail in the Set Up Vendor Items chapter. Here is a summary:
If the PBS Inventory Control is Interfaced
For your most common vendors, create Vendor Item records in blocks by selecting a range of inventory items from I/C Items, then transferring these into Vendor Items in a group. You can also select groups of inventory items on the basis of product category. If you transfer some unneeded records mixed in with the needed ones, you can use the Delete vendor items function to delete ranges of records just transferred.
If the PBS Inventory Control is Not Interfaced
For the vendors whom you use most often, enter each vendor item record individually, then copy groups of items from these vendors to any additional vendors from whom you buy these same items.
Perform these steps to start using the Passport Business Solutions Purchase Order:
| 1. | Study the first 4 chapters in the System User documentation. |
| 2. | Start P/O according to the instructions in the Using Purchase Order chapter. |
| 3. | Company information is set up for you as part of the installation procedure. Use Company information to modify the Company data as appropriate for your company. This may have already been done as a result of your installing Accounts Payable. If not, see the Company Information chapter in your PBS Administration documentation. |
| 4. | Enter P/O controls using Control information. The information in here determines how your company uses P/O. For instance, you specify whether or not you want your company name printed on your purchase orders, whether your company uses preprinted purchase order forms, etc. See the Control Information chapter. |
| 5. | Enter the addresses for your deliver-to locations (your stores, warehouses, job sites, etc.), using Deliver-to locations. A deliver- to location is required on each purchase order. See the Deliver-to Locations chapter. |
If you are using Inventory Control with P/O and you have multiple warehouses, every warehouse that you have already established in I/C will already exist in P/O as a deliver-to location. This is because the Warehouses in I/C is the same data as the Deliver-to Locations in P/O.
| 6. | Enter your vendors’ purchasing addresses, using Purchasing addresses. A purchasing address is the address to which the purchase order is sent, when this address is different from the vendor’s bill payment address. Refer to the Purchasing Addresses chapter. |
| 7. | Build Vendor Items, using the information in Set up vendor items. A Vendor Item record should be entered for every inventory item that you might order from one of your regular vendors. You will use the items in Vendor Items to identify the items being ordered on each purchase order. See the Set Up Vendor Items chapter. |
Setting up this data is the last and largest single step that you must take before P/O becomes operational. The functions included in Set up vendor items will assist you in setting up your vendor items as rapidly as possible.
If Inventory Control is interfaced, use Set up vendor items to copy selected items from I/C Items to designated vendors in Vendor Items:
| • | If primary vendors were entered for items in I/C Items, you can use Set up vendor items (Load items) to automatically create vendor items from the Item records, based on each item’s primary vendor. Refer to the Set Up Vendor Items chapter. |
| • | If primary vendor information was not entered for your items in I/C Items, you can use Set up vendor items (Load vendor) to load vendor items for one vendor at a time from a range of selected items from I/C Items. (See the Set Up Vendor Items chapter.) |
If you are not using Inventory Control: for the vendors you use most often, enter each Vendor Item record individually, using Vendor items. Then use Set up vendor items (Copy) to copy groups of items from these vendors to any additional vendors from whom you buy these same items. Refer to the Vendor Items chapter and the Set Up Vendor Items chapter.
When you have finished building your data as above, you will be ready to use P/O on a regular basis. The remaining chapters in this documentation show you how to:
| • | Prepare for purchasing |
| • | Issue purchase order numbers |
| • | Process purchase orders |
| • | Process changes to purchase orders |
| • | Print purchase orders |
| • | Process receivings |
| • | Process adjustments to receivings |
| • | Process blanket order releases |
| • | Close and purge purchase orders |
The Initializing Data chapter in the PBS Administration documentation explains how to initialize (create from scratch) your P/O data. You may rarely, if ever, need this function, but it is included just in case.
Sample Reports are included in the appendices.
You're ready to continue now. Build the data as described above, then begin using the Passport Business Solutions Purchase Order to process your work. Also review the Guide to Daily Operations for lists of functions that are done on a daily, monthly or other periodic ranges.
If you have problems with this software module, contact your PBS provider.
For the name and location of a PBS provider near you, contact Passport Software, Inc. at 1-800-969-7900 (or 847-729-7900).
If you wish to receive support directly from Passport, please call our End User Support Department at 1-800-969-7900 ext 124.
You can contact your own PBS provider for training; however, if your PBS provider does not offer training, contact Passport at 1-800-969-7900.