Accumulative purchase order

Accumulative (AC) purchase orders are special agreements between you and a vendor. For example, a customer orders a product that is not stocked or out-of-stock in your warehouse. You know a local vendor has the product readily available. You can enter that line item on an accumulative purchase order. That AC purchase order can remain open for a designated period. Other customer service representatives can add to this purchase order when their customers order the same product. A tie is created between their order the AC purchase order.

This purchase order accumulates over a designated time period. When the designated period, or a line product limit, is reached, you can print the purchase order and have the products shipped or delivered to your customer(s). AC purchase orders enable you to a) consolidate your purchase orders for this product, and b) to reduce the scope and depth of on-shelf inventory in some product lines.

The AC purchase order is well-suited for distributors who often may have established agreements with local vendors for a pick-up-on-the-way special purchase order type. Your company truck can stop by the vendor’s warehouse, pick up the items, and make deliveries to the customers.

You can create an AC purchase order in from within Sales Order Entry or Purchase Order Entry. If you are creating the AC PO from Purchase Order Entry, you must tie the purchase order to a specific sales order line item.

The items on the AC purchase order never enter your inventory, so Product Maintain Balance Entry is not affected. The transaction is recorded in the General Ledger Direct Order Inventory account. This account is set up in SA Operator Setup-General Ledger-Inventory-IC Direct Order.

AC purchase orders are another tool to help you meet your customer's needs. Use this tool for only for special situations because AC purchase orders bypass your Purchase Entry Recommended Replenishment Action Report ordering controls.