Entering a blanket purchase order

By Tracey BrinkmanMicrosoft Dynamics GP, Purchasing, , , , , With 0 comments

Use the Purchase Order Entry window to enter blanket purchase orders. A blanket purchase order lists a single item and its quantities that will be delivered in a series of shipments, usually on specific dates. The line items you enter for a blanket purchase order must be the same item number. The item will be shipped to your business to be received into your inventory.

Blanket purchase orders allow you to make long-term agreements with vendors to purchase the same item—usually to receive a volume discount or to be sure of obtaining items that are hard to get. The agreement you make with the vendor can be based on the total cost of the item or on the total quantity of the item. You’ll use the Purchasing Blanket Detail Entry window to enter line items for the blanket purchase order.

The first line item entered for a blanket purchase order is called the control blanket line item and has the line number 0. This is the line item that the blanket line items are based on. For example, you might enter a quantity of 5,000 for the control blanket line item and then enter five blanket line items with a quantity of 1,000 each. The control blanket line item isn’t included in tax amounts, in the purchase order’s subtotal, or printed on purchase orders. If you delete the control blanket line item, all blanket line items are deleted. A control blanket line item can’t be deleted if a blanket line item has been received against. Unlike blanket line items, the control blanket line item can’t be received or invoiced against.

Purchase Order Entry

If you are using Project Accounting, the Project Number field and the Cost Cat. ID field will be displayed in the Purchase Order Entry window, but you can’t enter project information.

From the Actions button, you can select Create and Copy New PO to create a new purchase order record from an existing purchase order. See Copying a purchase order for more information.

You also can select options from the Actions button to open additional windows where you can receive items, receive and invoice items, or invoice the items from the purchase order. See Receiving items from a purchase order or Invoicing items from a purchase order for more information.

Use the View >> Currency menu option or the currency list button to view amounts in the Purchase Order Entry window in the originating or functional currency.

To enter a blanket purchase order:

  1. In the navigation pane, choose the Purchasing button, and then choose the Purchase Order Transactions list.
  1. In the New group or its overflow menu, choose Blanket Purchase Order to open the Purchase Order Entry      window.
  1. Enter a purchase order number or accept the default entry.
  1. Enter or select a buyer ID.
  1. Accept the default date or enter a date that will be used to update your purchasing records.

In multicurrency transactions, the exchange rate used is based on the document date, the currency ID, and associated rate type that’s entered for the transaction.

  1. Choose the Date expansion button to open the Purchasing Date Entry window, where you can enter a contract expiration date for the blanket purchase order.  Choose OK to return to the Purchase Order Entry window.

Enter or select the vendor that you’re purchasing items from.

                To enter a temporary   vendor—a vendor with whom you have a short-term relationship and want to keep   minimal information—place the pointer in the Vendor ID field and choose   Options >> Temporary Vendor. The Vendor Maintenance window will open,   where you can enter a vendor name and any other information.

 

  1. Choose the Vendor E-mail Detail Entry expansion button to open the Purchasing E-mail      Detail Entry window to update a vendor’s e-mail information for a purchase  order. See Updating a vendor’s e-mail information for a purchase order for more information.

The document type to send in e-mail must be available for the vendor before you can open the Purchasing E-mail Detail Entry window.

  1. Enter or select a currency ID, or change the default currency ID.

If the currency ID is not the company’s functional currency, a rate type and associated exchange rate table is assigned to the transaction.

  1. Mark the Allow Sales Document Commitments option to allow blanket purchase order line items to be committed to matching sales order line items.

The Link Purchase Order icon will be displayed in the Quantity Ordered field for blanket line items with sales commitments. Select the blanket line item and choose the button next to the Quantity Ordered heading to view, add, or delete commitments in the Sales Commitments for Purchase Order window. You can’t add commitments to the control blanket line item. For more information, see Committing purchase orders to sales documents.

  1. Enter or select the number of the vendor item or item you’re purchasing that will be the control blanket line item. If a vendor item or an item hasn’t been set up in your inventory, see Adding a vendor item from Purchase Order Processing, Adding an item to inventory from Purchase Order Processing, or Using non-inventoried items in Purchase Order Processing for more information.
  • The item number will be displayed if Options >> Display Vendor Item is unmarked. If Display Vendor Item is marked, the vendor item will be displayed.
  • To indicate that an item must be a specific manufacturer’s item, choose the Manufacturer’s Item Number expansion button to open the Purchasing Manufacturer’s Item Number Entry window. See Specifying the manufacturer’s item numbers to print on a purchase order for more information.
  • To add an attachment to the item, select the item and choose the Attachment Management icon to open the Document Attachment Management window.
  1. Enter the maximum quantity of the item to order.
  1. If you’ve entered a non-inventoried item, enter the unit cost. If you’ve entered an inventoried item, you can edit the default unit cost.
  1. Enter a site ID, or accept the default.
                Sites are required for line items. You must enter a site ID before continuing to the next line.

 

  1. If the agreement you made with the vendor is based on the total cost of the item, modify the extended cost to match the agreed cost.
  2. Choose Blanket to open the Purchasing Blanket Detail Entry window to enter line items for the blanket purchase order and to select which line items will be released to the vendor when the blanket purchase order is printed.
    1. If the agreement you made with the vendor is based on the total quantity, mark Quantity to control the blanket by. If the agreement you made with the vendor is based on the total cost of the item, mark Value to control the blanket by. If you are managing the blanket by value, you still must enter      quantities for the blanket purchase order’s delivery schedule.

 

    1. Enter line items using different required dates and quantities, as necessary. You also can mark each line item to be released to the vendor when the purchase order is printed.

Purchasing Blanket Detail Entry

 

When you’ve finished entering line items, choose OK to return to the Purchase Order Entry window.

  1. Enter a prepayment amount, if applicable. This field is available if you have marked Allow Purchase Order Prepayments in the Purchase Order Processing Setup window. To enter a manual payment, the Create manual prepayment from Purchase Order Processing must be marked as well. You can enter a      prepayment for a New purchase order, a Released or Change Order purchase order that hasn’t been received or invoiced against. You can only enter one prepayment for each purchase order.

POE Blanket

You can choose the Prepayment expansion button to open the Purchasing Prepayment Entry window to enter or view computer check or manual check information. If the prepayment is a computer check and you have set up a default prepayment account, you don’t have to open the Purchasing Prepayment Entry window unless you want to change the default prepayment account.

If the prepayment is a manual payment, use the Purchasing Prepayment Entry window to enter information such as the prepayment account, payment type, and payment method. See Entering a prepayment for a purchase order for more information.

  1. Enter a tax schedule ID or accept the default entry. This tax schedule ID will be used to calculate tax on the amount of the document. See Default tax schedules for purchase orders for more information about default tax schedule IDs for purchase orders.
  1. Enter the  trade discount, freight, miscellaneous, and tax amounts. The trade discount is automatically calculated if you’ve assigned a trade discount percentage to the vendor that you’re purchasing the items from.

Taxes will be calculated automatically as you enter items. The control blanket line item isn’t included when calculating taxes. For more information about tax calculations, see Taxes for purchase orders. To change the tax amounts for the document, see Calculating and distributing summary taxes for purchase orders. To change the tax amounts for a line item, see Calculating and distributing detail taxes for purchase order items.

  1. Enter a comment ID (optional). For more information about comments, see Adding comments to purchasing documents in Purchase Order Processing.
  1. Choose the Attachment Management icon to attach documents to the purchase order, if applicable.
  1. Choose File >> Print to open the Purchase Order Print Options window, where you can print the purchase order or a blanket purchase order delivery schedule. You also can send the purchase order in e-mail (optional).

You also can print the purchase order by choosing the printer button or send the purchase order in e-mail by choosing the Send in e-mail button in the upper right of the Purchase Order Entry window.

                If you are using purchase order approval workflow, you can print the purchase order delivery   schedule, but the purchase order must be approved before you can print it or send it in e-mail. You also can print a purchase order or send a purchase order in e-mail that doesn’t need approval. If you are using vendor approval workflow, the vendors assigned to the purchase orders must be approved or   have the workflow status of No Approval Needed.

 

You can select to send purchase orders in e-mail or print purchase orders in the functional or originating currency using the currency list button in the Purchase Order Entry window. To send a purchase order in e-mail or print a purchase order in your reporting currency, you must use the Purchase Order Inquiry Zoom window. For more information about reporting currency, see the Multicurrency Management documentation.

You also can select to print blanket purchase order delivery schedules in the functional or originating currency using the currency list button. To print blanket purchase order delivery schedule in your reporting currency, you must use the Purchase Order Inquiry Zoom window.

  1. Save the purchase order or submit the purchase order for approval, if you are using Workflow.

If you have entered a prepayment for the purchase order, saving the purchase order saves the computer check prepayment or posts the manual prepayment to Payables Management to create a posted manual payables payment. To post the computer check prepayment, complete a computer check run for the prepayment in Payables Management.

Below are screen shots of Receiving the 1st receipt date. Notice I have only selected the 1st Line.

Select Purchase Order Items

Receivings Transaction Entry

After reviewing Post the Receipt.

POP Receiving Posting Journal

POP Receiving Distribution Detail