Setting Up Purchasing Parameters

  1. Open the Purchasing Parameters form.
  2. Specify this information on the General tab:
    PO Prefix
    Specify the default prefix to be used for purchase order numbers.
    Drop Ship Prefix
    Specify the default prefix to be used for drop ship numbers.
    Update Current Cost
    This field indicates how the purchase order receiving function uses the Current Unit Cost field on the Items form for purchased items. Select one of these values:
    • Average: The system maintains the average purchase cost for purchased items in the Current Unit Cost field. When an item is received into stock by way of the purchase order receiving function, the system calculates a new average cost for the item and posts the result back to the Current Unit Cost field. The calculation is:

      (old quantity on hand * old average unit cost) + (quantity received * receipt cost) = new average unit cost

    • Last: The system maintains the last price paid for purchased items in the Current Unit Cost field. When an item is received into stock through purchasing, the purchase order unit cost is posted to the Current Unit Cost field.
    • None: Stops the system from updating the Current Unit Cost field when items are received.
    Use Purchase Order Change Order
    Select the frequency with which you want to use PO change orders:
    • Never: The system never creates PO change orders.
    • Sometimes: When a PO with a status of Ordered is updated, the system presents an alert message that asks if you want to create a change order. To let the system create the change order, click OK. If you do not want the change order created, click Cancel.
    • Always: When a PO with a status of Ordered is updated, the system automatically creates a change order without prompting or asking.
    Voucher Authorization
    Select this check box to automatically attach a status to a voucher as it is created:
    • Matched: Vouchers that were originally created in purchasing where the quantity and unit price at receipt for each purchase order line matched is either identical to that on the voucher or within the user-specified tolerance factor. If the voucher is within the tolerance factor, the operator can then update the unit price information so that amounts are fully distributed and the voucher is matched.
    • Authorized: Vouchers that were originally failed or matched, that have been subsequently cleared for payment and their status amended by the authorization routine.
    • Failed: Vouchers that were originally created in purchasing where the quantity and unit price of at least one purchase order line at receipt is different from that on the voucher or outside the user-specified tolerance.
    Vendor Required on PO
    Select this check box to prevent a purchase order status from changing to ordered without a vendor.
    Blind Receiving
    Select this check box to set the receive quantity to 0.00. This allows the receiving clerk to count the quantity received instead of taking the default quantity.
    Amend Ordered PO
    Select this check box to allow updates to POs with a status of ordered. Clear this check box to permit the status of ordered POs to be updated only on the Purchase Orders form and to prevent any maintenance of lines or releases associated with Ordered POs.
    PO Text
    Specify any desired text to be displayed on printed purchase orders. When a purchase order prints, the system gives the option to print this text on the order form.
    PO Req Prefix
    Specify the default prefix to use for PO requisition numbers.
    Create PO Reqs from Transfer Order
    Select this check box to set purchase order requisitions as the default for the transfer order reference type for purchased items.
    Automatic PO Allocations
    Select this check box to automatically allocate purchase orders.
    Create PO Reqs from PLN
    Select this check box to create a purchase order requisition automatically when you firm a planned order (PLN) for a purchased item.
    Vendor Return PO Prefix
    Specify the prefix to use for the vendor return purchase order.
    Impact Inventory on Credit
    Select this check box to impact inventory by default for a vendor return for credit.
    Impact Inventory on Exchange
    Select this check box to impact inventory by default for a vendor return for exchange.
  3. On the Accounts tab, the accounts payable fields are for temporary liability accounts credited when goods are received and debited when the vendor invoice is vouchered and posted in accounts payable. You must select the Post To Journal check box must be selected on the General Parameters form before some fields are enabled. Specify this information on the Accounts tab:
    Compress PO Dist Journal on Post
    Select this check box to compress the purchase order journal when posting.
    PO Dist Compression Level
    This field works in combination with the Compress PO Dist Journal on Post parameter. If the check box is selected, then the PO Dist Compression Level must either be set to Account or Reporting Unit. If the check box is cleared, then the PO Dist Compression Level parameter is set to None.
    Vouchers Payable
    Select an account number to use to perform any purchasing functions.
    Freight Payable
    Select the account number to use when freight fees are incurred.
    Duty Payable
    Select the account number to use when duty fees are incurred.
    Brokerage Payable
    Select the account number to use when brokerage fees are incurred.
    Analytical Non-Inventory
    Select the account number to serve as the default account for non-stocked items. This field is only enabled when you are using a separate analytical ledger.
    Vendor Return
    Select an account to use as a clearing account to represent inventory sent to vendors for exchange or credit that has not yet been cleared through Voucher Posting (return for credit) or PO Receiving (exchange).
  4. Save the record.