Defining Values for the Purchase Type

Purchase Type Values Setup enables you to define the values used in the Purchase Type.

  1. From the Action menu within Purchase Types, select Purchase Value.
  2. Specify this information:
    Purchase Transaction Type and Short Heading
    These fields display the current Purchase Type, and cannot be amended.
    Value Label
    The Value Label to be applied, as defined in Value Labels (VLB).
    Value Label Value Type

    Depending on the Value Label selected, this field may automatically be completed, or you may have to select the type of the value label. Options are:

    • Without Units

      A number without a Unit of Measure attached to it. For example, a percentage.

    • With Units

      A number with a Unit of Measure attached to it. For example, a quantity.

    • Corresponds to Base Currency

      A number that is the base currency.

    • Corresponds to Reporting or 2nd Base Currency

      A number that is the reporting or 2nd Base currency.

    Formula Code
    The formula to be used for the value, for example VAT, which has been set up using the Formula Designer user tool. If you do not enter a formula the value must be entered at run-time instead of being calculated. For example, a quantity does not normally use a formula.
    Note: When setting up formulae, the number of decimal places used can be specified and this number is used when entering values into the value label. Care must be taken when selecting the correct number of decimal places to be used. Problems may occur if a formula returns more decimal places than the currency is expecting. If in doubt, use the Default Currency option when setting up the decimal places in the formula.
    Calculation Sequence

    If a Formula Code is specified, this field indicates the sequence in which the formula is calculated. For example, 1, 2, 3 and so on. If you close and re-enter the form, entries are reordered by this sequence. You can use parallel sequence numbers. That is, more than one value can have the same sequence number. The calculation sequence '0' is intended for values that are entered by the user and do not have a formula attached to them. '0' cannot be used if a formula is attached to the value.

    A value must be calculated before it can be used in a formula. If a value is referenced in a formula before it is calculated, an error results when a transaction is entered for this Purchase Type. Therefore, its sequence number must be lower than the sequence number of the value with the formula that it uses. For example, you may have three values: Quantity, Unit Price and Net. Quantity is entered by the user; Unit Price has a formula to use a Price Book; and Net has the formula Quantity '*' multiply Net. In this example, the sequence would be as follows:

    Value Label Calculation Sequence
    Quantity 0
    Unit Price 1
    Net 2
    Control Values Required
    Indicates whether the value has a control total created for it, and if so, the stage when it is applied.
    Commitment Budget Value

    Indicates whether or not the value label holds the budget amount. Only one value can be nominated, or none if no budget checking is applied.

    Note: This only applies to Base Currency values.
    Expenditure Value

    Indicates whether or not the value label holds the expenditure amount. Only one value can be nominated, or none if no expenditure checking is applied.

    Note: This only applies to Base Currency values.
    Purchase Quantity
    Indicates whether or not the value label holds the purchase quantity. Only one value can be designated as the purchase quantity. A purchase quantity must be specified in order to process Items with Goods as the Item Type.
    2nd Receipt Note Qty
    This field can be used to set up the ability to record the receipt of goods in two quantities. Only a value label of the type With Units can have this flag set. This cannot be the same value label as that defined as the purchase quantity. This quantity cannot be used to update inventory and so on., only the purchase quantity can do this and remains the driving quantity.
    Purchase Credit Balance
    Indicates whether or not the value label holds the purchase credit balance amount. Only one value can be designated as the purchase credit balance, or none if no budget checking is applied.
    Base Date for Currency Rate

    The date when this stage is reached, is used for the currency conversion rate. The Currency Codes specifies whether a date or period is used. You can only select from the stages defined for the transaction type.

    Note: The Recalculation field in Purchase Types >> Action >> Purchase Stage must be checked in order for this recalculation to be carried out.

    Options are:

    • Order Entry

      Date when the purchase order line was entered on the system is used.

    • Order Confirmation

      Date when the purchase order line was confirmed is used. If the line has not been confirmed, the Order Entry Date is used.

    • Receipt Entry/Matching

      Date when the receipt note was entered is used. If the values are being recalculated at this stage, the date of the current receipt note line is used. If the line has not been completely received, the Order Entry Date is used.

    • Receipt Transfer

      When the items were transferred from a receiving location to an inventory location is used. If the values are being recalculated at this stage, the date of the current receipt note line is used. If the line has not been completely received, the Dispatch Date is used.

    • Invoice Entry

      Date when the invoice line was entered on the system is used.

    • Invoice Matching

      Date when the invoice was matched is used.

    • Invoice Confirmation

      Date when the invoice was confirmed is used.

    • Not Used

      Order Entry Date is used.

    Rate Required

    Indicates whether the currency conversion rate should be entered which overrides the rate looked up on the currency tables. Options are:

    • No - never entered
    • Yes - must be entered
    • Optional - may be entered. The rate defined in the currency tables is displayed but can be overridden.
    Note: If different rates are defined for different account ranges, the rate defined for the supplier's account is used.
    Split Analysis

    Indicates whether or not the user can split a transaction line by this value as well as by the quantity or not.

    This option can only be selected for one value, which is normally the Net or Gross value. If this option is not set, then the lines can only be split by Quantity.

    Match Value

    Indicates whether or not this value is used in the Purchase Invoice matching process. Only one value can be designated as the match value for use in this process.

    Note: In Purchase Invoice Entry, the Generate New Invoice and Generate Invoice Line actions cannot be used if one value label does not have this field set to Yes.
    Holds Unit Price
    Indicates whether or not the value label holds the unit price. Only one value can hold the unit price.
    Note: One of the uses of this field is with Purchase Blanket Contract functionality, in which case it indicates which value label contains the unit price and so which value label to insert the contract price into.
    Note: If unit conversions are carried out, the value in this field is converted. For example, if a case costs GBP 10, and can be bought in barrels where there are 15 cases in a barrel, then a transaction for one barrel has a unit price of GBP 150.
    Holds Purchase Value
    Indicates whether or not the value label holds the purchase value. Only one value can hold the purchase value.
    One of the uses of this field is with Purchase Approval functionality. This field is checked by the system when a line or document is amended in order to determine if this value, and hence this line or document, has changed. If no value label is marked as holding the purchase value, then any amendments to lines or documents are not handled correctly. If another value label is marked as holding the purchase value, then this is acceptable as long as a change to the line or document results in a change to this value. If it does not and, for example, the quantity is changed, the approvals process will not pick up the amendment to the line or document and hence the line or document will not be reset for re-approval if required.
    This is also used on purchase orders. It uses the base currency, as opposed to the reporting or any transaction currency. When exiting a purchase order (not a purchase invoice or purchase return note) the order lines are totaled using this field. If the total is below the minimum order value a warning message is displayed and you must hold the lines. The lines cannot be released until the value of the order is above the minimum order value.
    Running Total Required
    Indicates whether the value has a running total created for it, and if so, the stage when it is applied. This allows display during entry of, for example, the value of the purchase order entered so far. These totals can be incorporated into formulae to calculate further values based on purchase order totals.
    Original Transaction Value
    This is used to ensure that the value specified on the originating transaction remains unchanged when values are recalculated at subsequent stages. For example, a Price Book has been created to price the quantity of Item A between 1 and 10 as 5 GBP; and the quantity of Item A between 11 and 20 as 4 GBP. If a purchase order is raised for a quantity of 15, and the goods are received in batches of 5, receipt notes would normally recalculate the price as 5 GBP, but if this field is set to Yes, the price from the original purchase order of 4 GBP is used.
  3. Save your changes.