Purchase Orders

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A Purchase Order system allows you to manage requests for purchasing items and services, the approval of those requests, the issuing of those requests to a vendor, the verification of the shipment, and the payment of the Purchase Order.

Access the PO grid by going to “Transactions” in the menu bar and choose “Purchase Orders.” You can also click the PO button on the toolbar.

  1. Entering a New PO
    1. To add a new PO, click the Add button on the PO grid.
    2. A PO Number is automatically assigned for you and cannot be changed. The first two digits represent the year in which the PO was entered into Finance. The status defaults to requested, which is the first stage in the PO process. 
    3. Enter the Date Requested and Date Required.
    4. Fill in the person/group who requested the items/services in the Requested By field. This may be an individual or a group of people (e.g., “Ministry Board”). Then fill in the date required. 
    5. Enter each item or service to be ordered. You can enter an Item #, a Description, or both.
    6. Enter the purchase price (the price you will pay for this item or service). If you are not sure of the price and are going to get bids from vendors, then leave the Purchase price blank. If you are paying a discounted price, enter the list price. The List price is never required, and is only used in calculating the discount on the Totals folder. 
    7. Enter the number of items ordered. The Total price is automatically calculated for you.
    8. When adding the PO, you will leave the remaining columns blank. Enter the remaining items from the PO in the same manner.
    9. If you know the vendor, go to the “Vendor Tab” and select the Vendor from the list of Vendors and select the Ship To (default is [church address]).
    10. When finished, click OK to save the Purchase Order.
  2. Initial Approval
    1. In this stage you submit the PO to a formal approval process, prior to requesting bids from vendors. If you do not need to submit a Request for Price / Proposal, then skip this step and go to Step 4, Final Approval. 
    2. First, you’ll want to select the PO in the Purchase Orders grid and click the Print button. 
    3. Select PO approval for sign-off and click OK. This sign-off report has a place for two signatures and two dates. 
    4. Once the initial go-ahead is received, edit the PO and fill in that person/group’s name in the Initial Approval field on the Approval folder. Note: The person/group name is a user-defined list. If the name does not appear, just type it in and press TAB, which will add it to the list. (If you are familiar with the Membership module, this works just like adding items to the list on a Household or Person record).
    5. Fill in the Approval Date and press TAB. This automatically changes the PO Status (on the PO folder) to Initial Approval.
  3. Request for Price / Proposal
    1. Edit the PO and change the status to Price /Proposal and click OK to save the change.
    2. Highlight the PO in the Purchase Orders grid and click the Print button. Select Request for Price/Proposal and print this report.
    3. Mail or FAX this PO to the vendors in question, or you can call the vendor to get the price. (Next to each item order is a blank for handwriting in the price).
    4. Once the prices have been analyzed, and the best value is determined, then edit the Purchase Order and fill in the selected Vendor from the Vendor folder.
  4. Final Approval
    1. Once a Vendor has been finalized, then you may want to get a second, final approval. If you didn’t need a Request for Price/Approval, then this may be the only approval step you need.
    2. Highlight the PO in the Purchase Orders grid and click the Print button.
    3. Select PO approval for sign-off and print this report. This sign-off report has a place for two signatures, and two dates.
    4. Once the final go-ahead is received, edit the Purchase Order and fill in that person/group’s name in the Final Approval field on the Approval folder. 
    5. Enter the Approval Date and press TAB. This automatically changes the PO Status to Final Approval.
  5. Issue the PO
    1. Now that the vendor has been selected and the PO has gone through its approval process, it is time to send the PO to the vendor (i.e., it’s time to place the order). Just a reminder that the vendor selection and approval processes are both optional; your church may not need one, the other, or either of these steps.
    2. Edit the Purchase Order and fill in the Date Issued (on the PO folder) and press TAB. This automatically changes the PO Status to Issued. Click OK to save the changes.
    3. Highlight the PO in the Purchase Orders grid and click the Print button. Select PO to send to Vendor and print this report.
    4. Mail or Fax the PO to the appropriate vendor. Or, if you are calling in the order, use the report as a reference during your phone call.
  6. Receive the PO
    1. This step simply tells you that the items have arrived from the vendor, and are waiting to be verified by someone (probably the person who Requested the PO to begin with).
    2. Edit the Purchase Order and fill in the Date Received and press TAB, which automatically changes the PO status to Received.
  7. Check/Match the PO
    1. Once the vendor ships the products, or supplies the services, you need to compare the vendor’s invoice to the Purchase Order, and both to the products/services received, noting any overages, shortages, or other issues. As you record the quantity received for each line of the PO, you “Match” that line. 
    2. Edit the Purchase Order. For each item you received, enter the quantity Received, the Date that you verified this, and then check the Matched box. Use the Comments column to mention any anomalies. Note: The Match button will automatically “Match” each line item, allowing you to go back and adjust the line items if necessary.
  8. Close the PO
    1. A Closed PO is one that has been paid.
    2. Edit the Purchase Order. If the PO was paid by a check, you can select that check from the Vendor folder providing the check itself is marked as Paid or Cleared, and is dated on or after the PO Date Requested. Selecting the check automatically marks the PO as Closed, and fills in the Date Closed with the current date.
    3. If the PO was not paid by a check, or if you don’t wish to assign the check to the PO (it is an optional field), then simply fill in the Date Closed on the PO folder and press TAB. This automatically changes the PO status to Closed. Note: Closed POs do not initially appear in the PO grid (it defaults to showing “ALL but Closed.” When they do appear, they are color-coded, with a light blue background.

 

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