See Purchasing 101 for more information regarding the full purchasing process.
Add Purchase Invoice
- Vendor ID – Double-click in this field and select from the list of Vendors. The current and Prepay balances display to the right.
- Invoice # – Enter the unique Invoice number for this Vendor.
- Invoice Date/Due Date – Enter these dates.
- Notes – Comments may optionally be entered on this Invoice for later reference.
- Terms – If discounts are offered on the Invoice, once the Products are entered, select Terms. Use a predefined discount option or enter the discount information directly. Enter either a flat or graduated discount offering (up to five levels) and key in a percentage or flat dollar amount of the discount. If the Vendor has a standard discount structure, it can be set up at Hub / Setup / Payment Terms. It may also be set on the Vendor’s file to default. This Terms Code default is found at Accounting / File / Open / Vendor on the Profile tab. Any discounts used are prorated across all items on the purchase based on percent of total dollars.
- Price By – Choose which column is the known dollar figure and which will be calculated. The chosen column is editable and the other will calculate. When using $/Unit, double-clicking in that column displays the various Pricing Levels for that line item.
- Freight – If the freight charge is part of the bill from the Product Vendor, select either Actual Total$ or Actual $/Unit. If the freight charge will be billed through a third party, select Estimated Total$ or Estimated $/Unit. In either case, when the freight is applied, it is prorated over all line items on the Invoice based on the total cost. If the Products have mixed Inventory Units, prorate the cost manually by scrolling in the grid to the right and overriding the freight amounts. Applying freight to a Purchase Invoice causes additional posting to occur.
- Show Lot # – This option causes the Product grid to display an additional column for Lot #. A Lot Number may be entered for any line item on the Invoice.
Direct Product Grid
Use this tab if the Product on the Invoice was not entered on a Purchase Receipt.
Check the Sales Tax Paid option to indicate sales tax has been paid. Selecting this option populates the Sales Tax Paid column in the Motor Fuel module at Reports / Preview Purchases.
Note: By right-clicking on any line item in the grid, a pop-up window displays the Department ID and Item ID. For multiple Location companies, this is helpful to verify the correct department was selected. It also displays the discount and/or freight prorated to each item.
- P.O. # – If a PO was entered in the Agvance system for this Product, select the items being processed by double-clicking on the <P.O. #> heading. All POs for this Vendor display. Select the Products on this Invoice. This is particularly important if the PO was prepaid.
- Ticket# – Optionally, the bill of lading ticket number may be entered manually.
- Product Name – If Purchase Orders are not being used, double-click the <Product Name> heading and select the Products to be invoiced. Either enter the quantities at the Select Products screen or back on the Direct tab.
- Lot # – If the Show Lot# option in the lower portion of the screen is selected, the Lot # column will be visible. If the Product has a Lot Number, it can be entered in this column.
- Quantity – Indicate the quantity invoiced in the Product’s Inventory Units.
- $/Unit – The unit price calculates when the $Total amount is entered if the Price By option is set to $Total. If the Price By option is set to $/Unit, the unit price is entered in this area and the $Total amount calculates.
- U – The billing unit of measure displays in this area.
- $Total – Enter the total dollars charged for this line item. The $/Unit (based on the products billing unit) calculates and displays in the shaded area. Verify this amount with the Vendor Invoice.
- Container ID – If a refillable container is used for this Product which requires tracking, double-click in this column and select an existing Container or add a new Container.
- P – A checkmark here indicates that Prepay is being used. If a prepaid Purchase Order was entered when the Product was ordered and that PO was referenced here, this column will have a checkmark. Otherwise, outstanding Prepay may be used by selecting this column. If this column is checked for all items on the Purchase Invoice and the net amount of this Purchase Invoice is zero, no A/P Bill is created when the Invoice is saved.
- Discount – The discount is calculated by the information under Terms.
- Deptid – The Department ID for the selected Product is displayed.
- Prodid – The Product ID for the selected Product displays here.
- Add On – If Add-On charges apply to the line item, they either automatically default here or can be manually added. These charges are calculated into the cost of the Product.
- PO Line Item – If a Purchase Order is referenced on this line item, the corresponding line item from the Purchase Order is listed in this area.
- Contract – If the line item is part of a Vendor contract, the contract number from the Purchase Order displays in this area.
From Receipt Product Grid
Use this tab if the Product on the Invoice was entered into the system on a Purchase Receipt. This marks the Purchase Receipt as processed, creates an unpaid Bill, updates costs, and affects the General Ledger.
Check the Sales Tax Paid option to indicate sales tax has been paid. Selecting this option populates the Sales Tax Paid column in the Motor Fuel module at Reports / Preview Purchases.
- Ticket# – Double-click on this heading to display all unprocessed Purchase Receipts in the system for this Vendor. Any or all items from the receipt may then be selected.
- P.O. # – The PO number automatically displays if the PO was referenced on the original Purchase Receipt.
- Product Name – The Product Name displays automatically from the selected receipts. Items not on the Purchase Receipt cannot be added to this From Receipt tab. If additional items that were not on the receipt are being invoiced, select the Direct tab and enter the items there.
- Qty Recvd. – The total quantity received on the original receipt is displayed.
- Invoiced – Enter the quantity to process on this Invoice based on the Product’s Inventory Units.
- $/Unit – This calculates automatically as the $Total (based on the Product’s Billing Units) is entered. The $/Unit can be verified on the Invoice.
- U – The billing unit of measure displays in this area.
- $Total – Enter the total dollars charged for this line item. The $/Unit calculates and displays in the shaded area.
- P – A checkmark here indicates that Prepay is being used. If a prepaid PO was entered when the Product was ordered and that PO was referenced here, this column will have a checkmark. Otherwise, an outstanding Prepay balance may be used by checking this box. If this column is checked for all items on the Purchase Invoice and the net amount of this Purchase Invoice is zero, no A/P Bill will be created when the Invoice is saved.
- Discount – The discount is calculated by the information under Terms.
- Deptid – The Department ID for the selected Product is displayed.
- Prodid – This displays the Product ID for the selected Product.
- Lot # – If the Product has a Lot Number, it may be entered in this column.
- Lineitem – The line item from the Purchase Receipt for this Product is displayed.
- Add On – If Add-On charges apply to the line item, they either automatically default here or may be manually added. These charges are calculated into the cost of the Product.
- PO Line Item – If a Purchase Order is referenced on this line item, the corresponding line item from the Purchase Order is listed in this area.
- Contract – If the line item is part of a Vendor contract, the contract number from the Purchase Order displays in this area.
- Container ID – Double-click and select the refillable Container if applicable to this Product, or add a new refillable Container.
Infrequent Scenarios
When the invoice for the Product is received, enter the cost of the new Product along with due dates and any discounts at Inventory / Purchase Invoicing. This function updates the Average and Last Costs of the Product based on the pricing on this invoice. It also enters an unpaid Bill in the Accounts Payable area.
Bills for Product purchased for resale are automatically entered into the Accounts Payable portion of the program as Purchase Invoices are processed. Other non-inventory invoices may be handled in one of two ways:
- Enter them as unpaid Bills and therefore manage and pay them through the Accounts Payable area along with purchased Product invoices. This method best utilizes the capabilities of the program and is the type of bill handling.
- Manage the Vendor invoices manually and record the expense as the payment is made rather than when the bill is received.
When entering a Purchase Invoice, either refer to an existing Purchase Receipt on the From Receipt tab, or enter the receipt of product for the first time at the Direct tab, optionally referencing a Purchase Order. Both tabs may be used on the same Purchase Invoice. This is useful when the Vendor’s invoice includes an item not previously entered on a receipt in addition to the product that was previously received.
The Price By option allows either $/Unit or Total $ to be entered on each line item. The entire Purchase Invoice must have only one Price By style. It cannot contain a mixture of styles.
Once an Invoice is received for a Purchase Receipt, it is processed in this area using the From Receipt tab.
Some may choose to skip the Purchase Receipt step and enter Product received only when it is invoiced using the Direct tab. This practice will sacrifice accurate inventory quantities day by day but is acceptable if not desiring tight, real-time inventory management. A combination of some Products may be entered on each tab.
Inventory Protection
Vendors sometimes offer to buy back product at the end of the season. Often the product never leaves the premises, but a credit is issued for the product. The Vendor then re-bills the Product next season.
- Enter a negative quantity Direct Purchase Invoice with the cost being credited from the Vendor. This enters a credit unpaid bill in A/P Bills and takes the Product out of inventory. If the Product is being returned, this is the end of the process.
- Generally, one of the following situations occurs with the inventory:
- The product is returned and a check is received for it. In this case, when the check is received, select the Credit Invoice at A/P / Pay Bills, and, with the Memo Check option selected and Checking Account set to the Cash on Hand (Undeposited Cash) account, choose OK.
- The product is kept in the warehouse. Enter a positive quantity Purchase Receipt which brings the Product back into the inventory on hand, but not company-owned. Later, when the invoice for the product is received, process the receipt at the Purchase Invoice screen.
