Bill direct PO addons

You can automatically pass on purchase order (PO) addon charges for freight and handling to sales orders, when a Direct Order Purchase Order (DO PO) that is tied to a sales order, is received in one of two ways:

  • in Purchase Receipt of Inventory Entry, or
  • automatically with Vendor Invoice Center Entry or Vendor Entry Group Update/Reconcile Invoices Report.

When Backorder Fill is run as part of the receiving process, addons are passed back to the sales order(s) if the option Bill Direct PO Addons has been selected on the sales order. This option is selected based upon the system-wide setting, Bill Direct PO Addons To Sales Orders, in SA Administrator Options-Documents-Sales Orders-Back Orders, and is controlled even further on the customer or shipto record.

PO addons are set up in SA Table Code Value Setup-Purchase Order Addons. To use Bill Direct PO Addons to designate freight charges, you must select the Freight option. You must also associate each PO addon with a sales order addon by selecting the appropriate DO PO-related addon in Order Entry Addon. Ensure you have previously set up a DO PO-related addon in SA Order Entry Addon Setup; for example, DO PO Addon.

For each related customer and shipto record, you must specify whether direct PO addons are applied to their Direct Orders and what type of addons are billed. In Customer Setup-Ordering, your options for the Bill Direct Purchase Order Addons field include: None, All, Freight Only, or Other (Non-Freight). Your selection is the default value recorded on the sales order if a direct line item is tied to a PO or if a Direct Order sales order is created. The value can be overridden.

In Customer Setup-Ordering, you can select the Require Freight Out option. Selecting this option requires that Addons 1 and 2 are entered on sales orders if they are set up for the customer. Addons 1 and 2 are normally set up as freight inbound and freight outbound charges. The sales order cannot be invoiced until freight charges are applied.

In Vendor Setup-Ordering, separate addons for DO POs can be defined. These special freight and handling addons default in the addon fields on DO POs only.

When the vendor’s invoice is costed in Vendor Invoice Center Entry or Vendor Entry Group Update/Reconcile Invoices Report, and the DO PO is received, the Backorder Fill process applies the DO PO addons from the vendor’s invoice to tied sales orders. This is based on the Bill Direct Purchase Order Addons setting on the order, as long as the PO addon ties to the sales order addon.

If the sales order contains estimated addon amounts, they are replaced by this process with the actual addon amount. If the sales order contains an actual addon amount previously carried over from a DO PO, the carry-over increases the addon by the new amount. This ensures that addons applied to a purchase order multiple times are tied to the same sales order. If the addon does not already exist on the order, a new addon record is applied with this hierarchy:

  • If the PO addon is flagged as a Freight-type addon, and the sales order’s Addon #2 record is not already populated, the addon is created as Addon #2. This specification enables the order to be invoiced if the Require Freight Out option is selected in Customer Setup-Ordering. Note that a Stock Order with direct lines may have both direct freight applied from tied POs, and outbound freight on lines shipped from the warehouse. In this case, the addons are kept separate as the lines are on different order suffixes.
  • If the addon is not freight, or Addon #2 is already used, the addon is created as the first available addon record after Addon #2.
  • The addon records are created as amount-value addons, and the internal Addon Override flag is set on the order.

You can activate an Event Manager event, ap-apetcu-dirpoaddon, to notify you when DO PO addons are billed back to the tied sales order. One of these actions occurs:

  • More than one purchase order is costed for the invoice, or
  • One or more DO PO addons is missing on the sales order, or
  • The sales order addon amount does not reconcile back to the tied direct PO addon; that is, the amount does not match.
    Note: Any minimum or maximum and zero-level addon settings defined in SA Order Entry Addon Setup are honored when addons are updated on the sales order. In addition, when applying freight-related addons to sales order, freight markups are applied by the system, as defined in Customer Setup-General-Billing. The Charge Freight and On Back Orders settings are verified by the system to determine whether freight should be charged. These settings take precedence over the Bill Direct Purchase Order Addons setting on the sales order. This is based on the Ship Via specified on the purchase order.

To automatically receive DO POs in Vendor Invoice Center Entry or Vendor Entry Group Update/Reconcile Invoices Report, you must set your tolerance levels in SA Administrator Options-Vendors-Receiving to handle any differences between ordered and received amounts. Because an auto-received DO PO is received based on the invoice amounts and quantities, any invoice tolerances you have set up for batch reconciliation are never exceeded.

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