Receiving updates for purchase orders

After you have received all purchase orders and posted them in Purchase Receipt of Inventory Entry, click Final Update to update General Ledger and inventory control. Close the journal and run the Sales Entry Processing Back Order Fill Report. The updates that occur include automatic back order fill, purchase order, return merchandise, inventory control, products received for tied purchase orders, and warehouse transfer. Use this information if you are resolving receipt exceptions.

Automatic back order fill

Back orders are created when the net available quantity cannot cover the quantity ordered and back orders are accepted by your customer or another warehouse. Run the Sales Entry Processing Back Order Fill Report from the Update function to fill outstanding back orders. It uses the previously established parameters in SA Administrator Options-Documents-Sales Orders-Back Orders to function optimally for your warehouse. The system also generates a Receipts Report for items that are not immediately allocated to orders. The primary and secondary bin locations direct you to the correct storage location to put the items away.

Purchase order

This table shows the updates that occur for a purchase order:


Situation	Result
You enter the purchase order number on the banner in Purchase Receipt of Inventory Entry.	The stage is increased to Stage 5 (Received).
You override the unit, price, or stocking quantity in Purchase Receipt of Inventory Entry.	The override is considered an exception. Run the Purchase Exceptions Report to perform an analysis.
You must determine who received a purchase order.	Print the Purchase Master List Report. The receiving operator’s initials are stored internally.

Return merchandise

No matter what cost you enter on a Return Merchandise (RM) purchase order, inventory is relieved with the cost specified in SA Administrator Options-Products-Costs. The difference between the specified cost and the Sales Mgr/GL cost is deferred until the purchase order is costed.

This table shows the updates that occur for a Return Merchandise (RM) purchase order:


Situation	Result
You receive an RM purchase order.	The stocking quantity received is subtracted from the unavailable quantity in Product Warehouse Product Setup and added to the Returns Out YTD. A return out transaction is created in the IC Entry Transactions file.
You return more than the unavailable quantity in Product Warehouse Product Setup.	An unavailable transaction is written to the IC Entry Transactions file. It moves the remaining quantity to be returned from the on hand quantity to the unavailable quantity. The General Ledger is updated by the amount of the transaction. The return out transaction that is written to IC Entry Transactions is for the full quantity being returned to the vendor.
You return more than the unavailable quantity and the on hand quantity is zero.	The remaining quantity to be returned is taken from on hand. The system initially writes a stock adjustment transaction to IC Entry Transactions for the quantity remaining to be returned. This increases the on hand quantity by the appropriate amount.
The on hand quantity is negative, which should not occur under normal circumstances.	There is a problem with your counting routine, and this product prints on the physical count sheets the next time they are printed. The Last Stock Out date on the Product Warehouse Product Setup record is set to today’s date, and the Stock Available date is cleared. An unavailable transaction is written to the IC Entry Transactions file. This moves the remaining quantity to be returned from the on hand quantity to the unavailable quantity. The return out transaction that is written to IC Entry Transactions is for the full quantity being returned to the vendor.
The product is serialized, and you assign serial numbers during receiving.	Purchase Receipt of Inventory Entry updates Product Extended Serial Number Setup when it is returned.
You are returning a lot product.	The unavailable quantity on the Product Extended Lot Number Setup record is updated with the quantity being returned.

Inventory control

This table shows the cost updates that are made for purchase orders and Blanket Releases (BR) where the products are regularly stocked:


Situation	Result
You receive a product.	A receipt transaction is written to Inventory Control for the stocking quantity received. The stocking quantity, less any unavailable quantities, increases the Product Warehouse Product Setup received quantity or on hand if Sales Entry Processing Back Order Fill Report is not run.
You substitute a product.	The quantity on order is subtracted from the original product on order.
Part of the stocking quantity is unavailable for immediate resale.	The Product Warehouse Product Setup unavailable quantity is updated with the quantity unavailable for sale.
A special purchase is made of a product that is normally stocked, and a purchase order is issued to purchase the product,.	The received cost updates the tied sales order so the customer is properly invoiced.
You capitalize addons.	Product Warehouse Product Setup addons are recalculated.
A tariff is involved.	It is treated as a capitalized addon or capitalized whole order discount and becomes part of the product’s cost.
The product is a labor product.	Quantities are not changed. Cost, dates, and other non-quantity fields are updated.
You print the journal on which a not-for-resale product was received.	You see the line item with a zero cost received. General Ledger entries for not for resale items are handled during costing.
A product that is set up as a special costing product is entered on a purchase order as a nonstock product.	The price and cost for the product is what was specified for the nonstock, not the special price/cost in Product Setup, unless you select Do Not Update Tied Order Cost for Specials in PO/WT in SA Administrator Options-Products-Costs.

Product received for tied purchase orders

This table shows the events that occur when products for tied purchase orders are received:


Situation	Result
The cost of a nonstock is altered in Purchase Receipt of Inventory Entry.	If the order is in Stage 3-Shipped or less, the new cost is changed on the sales order so the invoice reflects the correct cost.
A purchase order is tied to a Direct Order, nonstock, or special.	The received costs are taken back to Sales unless you select Do Not Update Tied Order Cost for Specials in PO/WT in SA Administrator Options-Products-Costs.
A vendor gives you a special cost for items on a special order.	The cost flows through to Sales unless you select Do Not Update Tied Order Cost for Specials in PO/WT in SA Administrator Options-Products-Costs.
The nonstock is costed before the line is invoiced.	A cost difference goes to the IC Nonstock account and is passed to the order.
The nonstock is invoiced before the line is costed.	A cost difference is posted to the IC Cost Adjustment account.
A nonstock is entered in Sales Order Entry, and a purchase order is created from the sales order.	The cost of the nonstock is carried to purchase order since a tie exists.
The nonstock quantity received is greater than the quantity ordered. PO Receipts is selected as the Over Fill Tied Order Quantity With Receipt Quantity setting in SA Administration Options-Products-Defaults.	The order quantity on the sales order is automatically updated with the shipped (received) quantity.
A Direct Order or Accumulative purchase order involves a tariff.	It is included on the cost that goes back to the sales order, along with capitalized addons and capitalized whole order discounts. The tariff is removed from this cost. This cost goes back on ties of special and nonstock lines.
A Direct Order or line DO is in use at the time the tied purchase order is updated during receiving.	This message is displayed on the Sales Entry Processing Back Order Fill Exception Report: `Orders/Transfers Not Filled - Not Found, Inactive, Open, Already Filled`. You must manually fill and ship the Direct Order or line DO.
A purchase order is not completely shipped by the vendor and the product cost fluctuates.	The remaining quantity is received at the current cost. The total cost is allocated over the entire quantity on the purchase order and taken back to Sales.
A line is tied to a sales order line that is a warranty exchange return.	The cost is not loaded in Sales to prevent a negative margin.
An Accumulative purchase order is entered. The customer cancels the order after the purchase order was placed with your vendor, but the vendor does not accept the products on a return.	The products must be placed into stock. Because Accumulative purchase orders do not update stock levels, you must update Product Warehouse Product Setup. Use IC Entry Transactions to record the receipt. Because the Direct Order Inventory account is updated instead of the Inventory Control account, you must make manual entries to reflect the transaction. The products must be placed in stock.
The order is a Direct Order or Accumulative purchase order and the cost changed.	It is included on the cost that goes back to the sales order, along with capitalized addons and capitalized whole order discounts.
The products must be placed in stock. You received a product with an incorrect cost that is tied to an sales order.	The margin on the order is not correct. Because the order has already been processed, you must correct the error manually.

Warehouse transfer

If a PO is tied to a WT for a nonstock, then the cost from Purchase Receipt of Inventory Entry is applied to the WT if it is in Stage 2 (Picked) or less.