Using Purchase Order Processing involves the following:

Step 1: Complete the Purchase Order Entry Window

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1. Access the Purchase Order Entry window from one of the following paths:
   • From the Service Call History window: 
     • Select Cards > Service Management > Service Manager. Select a customer and select the History indicator.

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1. • • In the Service Call Lookup by Customer window, double-click a call and

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1. • • select the Purchase

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1. • • Order button.
   • From the Service Call Status window:
     • Select Cards > Service Management > Service Manager. Select a customer and select the History indicator. In the Service Call Lookup by Customer window, double-click a call. From the Service Call window, select Go To, and

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1. • • select Service Call Status.

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1. • • Select the Purchase Order button.
     • From the main Inquiry navigation, select Service Management, and

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1. • • select Service Call Status. If you have the service call ID, you can enter that in the Service Call ID field and tab off to automatically populate the Customer ID and Location Address ID fields and the service call information. Select the Purchase Order button.
2. Complete the Purchase Order Entry window. See the Microsoft Dynamics GP Purchase Order Processing Manual for information.

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1. Service appears by default in the Product Indicator field in the scrolling window. Unbilled is for General Ledger transactions.

2. In the Job No/Service Call field, enter a service call ID to assign the purchase order to a call.  

   Note

   If you marked the setup option to have the service call ID or cost code from the last line item entered as the default entry in the line you're entering, that information will already be entered. See Choosing Service Options.

3. Enter a cost code in the Type field. Use cost codes 1, 2, 4, or 5.
4. Select the expansion button in the Item field to open the Purchasing Item Detail Entry window. Use the lookup in the Text ID field to add standard text to the purchase order. You can also use the expansion button to enter text to the line item. While they function similarly, the Text ID field holds more than the Microsoft Dynamics GP Comment ID field. The description prints on the blank paper purchase order format.
5. Select Commit or File > Print. You are prompted to save the purchase order. For the purchase order to appear on the service invoice, you must commit or print it from the Purchase Order Entry window. The amount of the purchase order appears in the Committed Cost column in the Service Invoice window. Taxes are included with the item's cost in the Committed Cost column. Landed costs are not included in the committed cost amount.

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If items are canceled in the Edit Purchase Order Status window (Transactions > Purchasing > Edit Purchase Orders), the Service Invoice window will be updated. The committed cost is decreased by the amount of the canceled item. If the service call has already been invoiced and you have Allow Posting Invoices with Actual and Committed Costs and Create COGS Distribution for Invoices marked in Invoice Options, a transaction is created to reverse the costs and billable amount for the canceled quantity, changing the quantity ordered and reducing the accrued costs account. You can open a closed service call to credit the customer.

Step 3: Receive Against the Purchase Order

1. Select the PO Receive button in the Service Invoice or Service Call Status window. (You can also open the Receivings Transaction Entry window by choosing Transactions > Purchasing > Receivings Trx Entry.)
2. Complete the Receivings Transaction Entry window as usual, selecting the purchase order created in step 1.

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During the enter/match invoices process, you can enter a landed cost purchasing invoice amount that is different from the landed cost receipt amount. The service invoice and the item cost will be updated with the difference if you mark the Revalue IV option in the Match Shipments to Invoice window. The receivings invoice will appear as a $0.00 transaction in the Costs window. If the Revalue IV option is not marked, the service invoice will be updated with the cost difference and the item cost will not be changed.

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After receiving items for a purchase order that is committed to a service call, any receivings transactions, as well as landed cost, PPV, and trailing cost amounts, are stored on individual receipt lines with their posting dates. This allows you to keep an accurate record of when actual costs hit the General Ledger and keep your accounts in balance when items on a single purchase order are received in different months.

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In April, 3 of the 5 items are received. A transaction with an April posting date is created as the cost of those 3 items becomes the actual cost.

The cost of the 2 remaining items remains the committed cost.

• Committed cost: $336.00
• Actual cost: $504.00

In May, the remaining 2 items are received. A transaction with a May posting date is created as the cost of those 2 items becomes the actual cost.

• Committed cost: $0.00
• Actual cost: $840.00

The original purchase order , as well as and the two receivings transactions , are saved to the service call. Zooming on the appropriate cost category allows lets you to view the purchase order and the receipt lines that were created for these transactions.

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• There are landed costs on a receivings transaction. You will see a landed cost line separate from the receipt line. Zooming on either line allows you to view the receivings transaction. The billable amount on the original purchase order line is updated to include the landed cost amount.  

  Note

  Landed cost on a purchase order line is only billed on a service invoice if the purchase order is received before the service invoice is posted.

• There is a purchase price variance (PPV). For example, if the cost of an item changes from $168.00 to $178.00 after the PO is received, you will see another receipt line with $10 in PPV cost. The billable amount on the original purchase order line is also updated to include the PPV amount.

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If you have the Create COGS Distribution for Invoices option marked in Invoice Options, trailing costs that remain from a purchase order after a service call is closed are tracked in an "Accrued Costs" invoice account for each cost code and Other sub-cost code. Using separate accounts for trailing costs allows you to keep your WIP and COGS accounts balanced.

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• COGS is debited for $100
• WIP is credited for $70
• Accrued Costs is are credited for $30

When the $30 trailing cost is received, Accrued Costs is debited. For a shipment, Accrued Purchases is credited. For a shipment/invoice, Accounts Payable is credited.