- 3 Minutes to read
Introduction to Purchase Orders Processing
- 3 Minutes to read
Introduction to Purchase Orders
Purchase Orders - are probably the most critical control area of JobBag. If you integrate JobBag properly into your overall business process, and control access to purchase orders to just those people who you designate authority to raise them, then you are in control of one of the most at-risk areas of job expense over-runs.
A purchase order is an employee's authority to spend money - this may be your money, your employer's money or your client's money. If purchase orders are not used in accordance with the authority granted, and within the proper budgets allowed on the job, you can easily find a job losing hundreds, thousands even tens of thousands of dollars. Therefore, JobBag provides an important link between Purchase Orders, Requests for Quotes (RFQs), and Quotes/Estimates.
Purchase orders communicate your instructions to your suppliers. Purchase orders make sure you know exactly where you stand on a job, showing you the costs that will come in when goods and/or services are delivered.
Linking Purchase Orders, Quotes and RFQs
- If you have issued a RFQ and received responses from the suppliers, raising a purchase order for the successful supplier is simply a couple of clicks and a few instructions
- You can raise a quote and directly access a a matching RFQ causing all its details to be copied to the quote avoiding the need for any re-typing
When the supplier's invoice is received, it is reconciled against the purchase order where one exists. If there is a variance, JobBag forces you to account for it, so nothing can slip through the cracks.
If the purchase order is only partially fulfilled and invoiced, you can record those details against the order and see immediately, everywhere in JobBag, what the outstanding commitment is. This extends from outstanding purchase order reports, through to the General Ledger. so that your Profit & Loss statement reflects the reality of the profits you have earned.
Central to this, is matching the revenue you have billed to your clients, to the costs that are still to come in from suppliers. the Purchase Orders in JobBag allow you to do just that.
Types of Purchase Orders
Normal Purchase Order (Dollar Amount) - issued to your every day supplier.
Normal Purchase Orders (Percentage) - issued to your everyday supplier. These POs do not have a dollar amount.
Performing Artist Talent PO - usually issued to a talent agent
Media Purchase orders - used for media suppliers
PO Processing Privileges
This is where you decide who can and cannot process and approve the three types of POs. Additional privileges include creating and approval limits etc.
Refer to PO Processing Privileges
Purchase Order Menus Options
Navigate to: Costing > Purchase Orders
There are 14 processing functions that may be accessed once the Purchase Orders menu option is selected.
Refer to PO Listing Window Glossary for more detailed info on each of the icons.
The Purchase order processes are:
1 Find PO - using PO numbers, job numbers, date range etc
3 Edit: - edit an existing purchase order
4 Clone a similar purchase order
5 Cancel an existing PO (only possible if it does not have suppliers against it)
6 Request Approval: available if a user can only create a PO but not approve the PO
7 Approve: available if a user has the privilege to approve POs created by others
8 Complete: complete a PO ( if supplier invoice amount is equal to PO amount - JobBag marks the PO as complete. This option is useful when the supplier invoice amount is less than the PO)
9 Create Invoice: click to create supplier invoice - saves time because you do not have to key in all the data
11 History: log of transactions eg when was PO created and by whom
12 Settings default rules for processing POs
13 Limits Set dollar limits for creating POs and approval limits
It is worth knowing how best to use PO lists.
In the PO View screen, the suppler invoices are listed against the purchase order
You can find a purchase order several different ways,