Summary

Standard purchase order line items are line items that are not set up as contract amounts. If there is a unit quantity attached to a standard purchase order line item, the line item will change to a close status once the total quantity has been invoiced. This will only close the PO line item, not the entire purchase order. If there isn’t a quantity attached to the PO line item, it will be closed as soon as it is invoiced even if the amount is changed when the invoice is created (when you create an invoice you can change the amount). The modified invoice amount will not update back to the PO line item and the PO line time will still display the original amount.

The information in this document also applies to standard purchase order line items created using the Change Orders process (PO> Change Orders). The Change Orders process is used to modify purchase orders that have already been committed in the Purchase Orders process.

If the Accounts Payable module is set up so that purchase orders must be received before they can be invoiced (AP> Utilities> Setup> Invoices tab> Force Receiving toggle), you must receive POs in the Purchase Order module Receiving process before they can be invoiced.

Step by Step

1     Create a Purchase Orders batch and create a PO.

2     Create a standard purchase order line item.

• Click ADD in the Line Items data grid on the New/Edit Purchase Order window. This will open the Line Item section to the right.
• Not all of the fields in the PO Line Item section are required. Only the GL Account (to record the encumbrance) and the Unit Price fields (to calculate the base amount of the invoice) are required on standard PO line items. If an Inventory Item is attached to the PO line item, you will also be required to specify an Inventory Location.
• The Tab Order button   at the top of the window is used to adjust the tab order of the Purchase Order Line Item window.
• The Line Type drop-down menu is used to select the type of line item you would like to create. Select Standard to create a standard line item.
  • If the All purchase order line items default to contract toggle is checked on the Setup window (PO> Utilities> Setup), the Line Type drop-down menu will default to Contract.
• The Date field is used to enter the date on the purchase order line item. This field will populate with the current date.
  • The purchase order line item date is not the same as the date on the purchase order.
• Click the Inventory Item field search button to attach an IC item to the PO line item.
  • If you attach an inventory item to the PO line item, you will be required to select an Inventory Location as well.
  • Inventory items are created and maintained on the Item Maintenance window (IC> Maintenance> Item).
  • In order to process the purchased inventory items in the IC module, the PO batch must be committed, the committed PO must be processed through a PO Receiving batch, and the resulting IC transactions must be included in an open IC Inventory Transactions batch.
• The Commodity Code field can be used to associate the line item with a commodity code.
  • Commodity codes are created and maintained on the Commodity Code Maintenance window (AP> Maintenance> Commodity Code).
• The Product Code field can be used to enter the product code of the product on the invoice line item. This is an optional field.
  • When an IC inventory item is added to the PO line item in the Inventory Item field above, the Product Code will automatically display the contents of the IC Product Code field on the selected IC item.
• The Account Alias field is used to add a GL account to the PO line item using a GL account alias. For example, if you have a GL account set up with the alias "EXP1", enter EXP1 in the Account Alias field and the GL account number will populate in the Account field.
  • Account aliases are attached GL accounts using the Chart of Accounts Maintenance window (GL> Maintenance> Chart of Accounts> General tab> Alias field).
• The Account field is used to enter the GL account that will be debited when the PO is invoiced in the AP> Invoice process. Click the Account field search button   to select a GL account from a list. The GL accounts that display in the list are filtered by the fiscal year selected on the Settings step of the Purchase Orders palette.
  • The Account field will populate if there is a GL account attached to the AP vendor on the purchase order (AP> Maintenance> Vendor> Details tab> GL Account Number field).
  • The Remaining Budget field will populate with the budget amount remaining on the GL account selected in the Account field.
  • The Account Description field will populate with the description attached to the selected account.
  • If a PM Task and Type are selected below, the Account field will be overwritten with the GL account associated with the Task and Type codes.
• The Status drop-down menu is used to select the status of the purchase order line item.
  • The status of the purchase order line item will change to Closed when the purchase order line item has been invoiced.
• The Description field is used to enter a description of the purchase order line item. The description of the line item will display on the Purchase Order Proof List Report (PO> Purchase Orders> Proof List).
  • This field will automatically populate if the vendor attached to the purchase order has a description specified on the Vendor Maintenance window (AP> Maintenance> Vendor> Details tab).
  • This field will automatically populate with the IC Item Description if an IC item is specified in the Inventory Item field above.
• The Expected Date field is used to enter the required delivery date of the line items on the purchase order. The date entered in this field will display in the Required Delivery Date field on the printed version of the purchase order.
• The Unit Quantity field is used to enter the number of units on the purchase order. The base amount on the purchase order will be calculated by multiplying the unit quantity by the unit price.
  • If purchase orders are received using the Receiving process (PO> Receiving), this is the unit quantity that will be received.
• The Unit Type field is used to select the type of units that are represented by the Unit Quantity field.
  • The unit types are created and maintained on the Unit Type Maintenance window (IC> Maintenance> Unit Type).
• The Unit Price field is used to enter the unit price of the units on the purchase order. The base amount of the purchase order will be calculated by multiplying the unit quantity by the unit price.
  • If an Inventory Item was specified above, this field will populate with the default cost attached to the inventory item record (IC> Maintenance> Item> General tab> Default Cost field).
• The Base Amount field will populate with the unit quantity x unit price.
• The Tax field is used to enter the tax on the purchase order. This field is only enabled when the Taxable toggle is checked. If there is a tax rate attached to the PO (Tax Rate field at the top of the screen), the Tax field will populate with the tax amount (tax rate X base amount).
  • Tax is not calculated on shipping and handling charges.
• The Shipping/Handling field is used to enter the shipping and handling on the purchase order.
  • The shipping and handling on the purchase order will reduce the remaining budget on the GL account attached to the PO line item.
• The Task and Type fields are used to attach PM module information to the purchase order. If you attach a task to the PO, you must also attach a type code.
• The Task field is used to attach a PM module task code to the purchase order line item. When the purchase order is attached to an AP module invoice (AP> Invoices> Invoices), and that invoice is committed (AP> Invoices> Commit), a PM module transaction will be created on the task.
  • PM module task codes are created and maintained using the Task Maintenance window (PM> Maintenance> Task).
  • If a GL account is associated with the selected PM Task code, that account will overwrite the account previously selected in the Account field above.
• The Type field is used to attach a PM module type code to the PM module line item. If you attach a task to the PO, you must also attach a type code.
  • PM module type codes are created and maintained using the Type Maintenance window (PM> Maintenance> Type).
• The Reference Number field is used to enter a work order reference number.
  • This field will only be enabled if the Require unique reference number toggle is checked on the WO Setup window (WO> Utilities> Setup).
    • Unique reference numbers can help Cirrus users easily attach work orders to Purchase Order line items without having to remember specific work order numbers or use the work order selection window.
  • If this toggle is not checked the Reference Number field will not be enabled. If a reference number is attached to the work order selected below, that reference number will automatically populate.
• The WO Number field is used to attach a work order to the PO line item.
  • By attaching a work order to the line item, and then processing the purchase order through PO Receiving, IC Inventory Transactions, and AP Invoices batches, you can bill the specified work order for the items ordered in the purchase order.
  • Work orders are created and maintained on the Work Order Maintenance window (WO> Work Orders> Work Orders).
• The Activity Type field is used to attach an activity type to the PO line item.
  • Activity types are used to limit the activities that can be attached to a work order or estimate. Only the activity types associated with the selected work order will be available when you click the field label.
  • Activity Types are created and maintained on the Activity Type Maintenance window (WO> Maintenance> Activity Type).
• The Requisition Number field will populate with the requisition associated with the PO line item.
• The Quantity Received, Quantity to be Received, Quantity to be Invoiced, and Amount to be Invoiced fields will automatically update with the details entered above.
• The Remaining Budget column displays the budget amount less the total amount on the invoice line item plus the total amount of committed and uncommitted POs. The budget amount is the current budget of the GL account selected in the Account field. This is the budget of the same fiscal year selected in the Settings step of the Purchase Orders process.
  • You can view the current budget amount of a GL account using the Chart of Accounts maintenance window (GL> Maintenance> Chart of Accounts> Balance tab> Budget field).
• The Taxable toggle is used to enable the Tax field so that you can enter a tax amount on the PO line item.
• The Fixed Asset toggle is used to create a Fixed Asset module fixed asset from the purchase order line item.
• The Allow Over Receiving toggle is used to allow the system to receive a value greater than that specified on the purchase order.
  • This toggle will be automatically checked if the Purchase Orders module is set up to automatically over receive (PO> Utilities> Setup> Purchase Orders tab> All line items default to allow over receiving toggle).
• The Encumbered toggle is used to encumber individual PO line items.
  • Encumbered amounts will display on the Balance tab of the Chart of Accounts Maintenance window.
  • Negative line item amounts will also be encumbered if the Purchase Orders module is set up to encumber negative amounts (PO> Utilities> Setup> Purchase Orders tab> Negative line items affect encumbrance toggle).
• Click CREATE ITEM to complete the current line item and clear the line item fields in order to quickly begin entering new line item details.
• Click the Save button when all the line items have been added to the purchase order. This will close the New/Edit Purchase Orders screen and return you to the Purchase Orders step.