SmartFusion Modules -> Accounting -> Purchasing -> Process

Recent Changes: 
6.209 - If the vendor does not exist when importing from Procurify, the system will now create the vendor automatically. This can happen due to punch-out vendors.

6.196 - New feature to import purchase orders from Procurify. 

6.188 -Enabled and made read-only Vendor Email Address on Enter/Edit Purchase Requisition, Inquire Purchase Requisitions, and Review/Approve Purchase Requisitions screens.

6.185 -Added Vendor Email Address on the Purchase Requisition Detail tab.

6.143 - For clients that have Milner Image Director license, the Image Director tab will now show after successfully saving a new record

6.101 - Added Milner ImageDirector tab  

6.88 - changed the approval information box to not allow wrapping on the name and to limit the length of the approval name to 30 characters.

6.71 - Fixed the reset function in Search/Reset to work properly

6.68 - Updates to back end to use memory stream instead of saving a PDF to the hard drive when sending PO Emails

6.67 - Fixed a bug that would throw an error when a user tried to enter notes for a purchase requisition without first saving the requisition.

6.63 - Added the PO approval chain display no matter if one is using enhanced routing or not. Previously this was only available if enhanced routing was disabled. 

6.34 - Route will now only show routing streams available to the user if 'Limit multiple routing streams for users' is checked in the Purchase Order System Setting

To enter a new purchase requisition, select Process -> Enter/Edit Purchase Requisitions from the Purchasing menu bar. Click the New toolbar icon.

Three tabs are used to enter requisitions. The Purchase Requisition tab is shown below. When entering a Purchase Requisition, you must enter at least one item on the Items Detail tab and on the Account Distribution Detail tab.

Purchase Requisition Tab

  1. If the next requisition number has been set in the Purchase Order System File, the system automatically assigns the Purchase Requisition number. The Total amount automatically populates when items are added on the Items Detail tab.
  2. The Date defaults to the current date. The date can be changed (either back-dated or future-dated) if necessary and if the user has security rights to do so. The security rights can be set in the Enter/Edit User Security menu and on the PO rights tab. 3)Entered By displays the user’s initials set up in the Enter/Edit User Security.
  3. The drop-down arrow beside the Vendor number/name can be used to display a list of valid/active vendors. If you use the arrow beside the number field, the vendors will be displayed in vendor number sequence but if you use the arrow beside the name field, the vendors will display in alphabetical sequence by name.
  4. An Add new vendor button beside the vendor name can be used to add a new vendor to the vendor master from this screen. The user must have AP Full Rights in order to see this button.
  5. If your organization uses the email purchase orders feature, the To be emailed flag is automatically set when adding a new purchase requisition but can be edited if needed. This is used so purchase requisitions can be emailed in a batch. See section on emailing purchase orders for more details.
  6. The Blanket PO button can be activated based on user security. When this option is turned on, the user has the option of keying a PO that will probably remain open for a period of time. Normally, blanket PO’s are large PO’s for such things as building projects, or projects that are generally an estimated purchase. Enter the Purchase Requisition as normal except for the account distribution tab. Charge the purchase requisition to one generic account number. The screen allows only one account number to be used on blanket PO’s. When the voucher is keyed and the blanket PO is referenced on the voucher, the amount and account distribution may be changed to distribute to the appropriate account number(s). When the vouchers/checks are posted to fund ledger, the encumbrance will be relieved on the generic account number and will show on the year-to-date activity of the appropriate account number.
  7. The PO Template button appears only if your organization uses the purchasing template feature. When you click on the PO Template button, it displays a screen to select a template to be read in. Once the template is read in, you can edit the purchase order information.
  8. The Cancel PO Req button can be activated based on user security. If this button is activated, you may click on it once the requisition you are viewing has been entered and saved.
  9. Enter the Vendor Order number if the vendor has given you a reference number that will help the vendor identify a previous quote or order confirmation.
  10. If Sales Tax is applicable to the order, choose the sales tax state and enter the tax rate. You can also preset this in the Purchase Order System File if you want to charge a specific default rate.
  11. Enter the Trade Discount percentage, if applicable. If a default discount rate has been entered into the vendor master file, it automatically displays. The default rate can be edited as necessary. The discount rate entered here will be applied to all items on the purchase order unless you indicate otherwise on the next page of the requisition entry screen. Each item can have a different discount rate if necessary.
  12. Use the Preferred Freight field to enter the usual or desired shipping method for items received from this vendor. The default method can be entered in the vendor master file and automatically displayed here. This field is not an amount field.
  13. Enter the Expected Ship Date if applicable.
  14. Enter a valid Ship To location or use the arrow key beside the ship to field to display a list of valid locations. The Bill To location associated with the ship to location will be automatically entered. To add or edit location information in the location file, click on the Parameters menu and choose the Location option.
  15. If all purchases from a vendor are normally charged to the same account, it might be helpful to identify the Default Account in the vendor master file. If this has been done, the account number automatically displays on the requisition entry screen. Even if you do not assign a default account number to the vendor, you will want to enter an account number here if all, or most or all, items on the order will be charged to the same account. The number entered here carries forward to each item on the second screen and keeps you from having to enter the account number for each item. However, if your Requisition is charged to several accounts, you may leave this field blank.
  16. If competitive bids have been obtained, the three lines for Bid Info can be used to enter information about the bids. The information entered here will be available to the person responsible for approving the purchase requisition.
  17. The Note field can hold unlimited information about the requisition. This information will be printed on the purchase order. This field may also be prepopulated if Page 2 of the vendor master has data in its PO Note field.
  18. The Print PO, Fax PO, Email PO is used in conjunction with AIG. This feature must be purchased from AIG before it can be used, and the Doc-e-serv option must be activated in Smart Fusion prior to use. Once you have 3rd Party Purchase Order indicated in the Purchase Order System File and have the PO Directory/Filename indicated in the Enter/Edit Custom Reports, the Print PO, Fax PO and Email PO flags will become active in the Enter/Edit Vendor Master. The flags must be set accordingly on the vendors but they can be edited when the Purchase Requisition is entered. Then when you access the Print Purchase Orders menu option, a file will be created for AIG and AIG software will distribute the PO to the vendor according to how the flags were set during the time the Purchase Requisition was entered.

Items Detail Tab

Once items are entered on the “Items Detail” screen, you will be required to indicate which accounts to encumber on the “Account Distribution Detail” screen. The item total may be distributed to various accounts manually, by a user-defined percent, or by using the code field. The code can be used if you are keying purchase requisitions using method four.

  1. Inv. Item (Inventory Item) number - Enter the warehouse inventory item number that has been assigned within the Warehouse Inventory module. If you key in a Warehouse Inventory item number, it will default the Vendor Item number, Qty, U/M, and Description automatically based on the information from the Enter/Edit Inventory Master. When the purchase requisition is saved, the vendor name/number and order date is written back to the Enter/Edit Inventory Master. When the purchase requisition is reviewed & approved, the quantity on order and last PO number is written to the Enter/Edit Inventory Master. If your organization does not use the Warehouse Inventory module, or if the user does not have rights to enter inventory items based on the flag that is set on PO security rights tab in Enter/Edit User Security, you will not see this data entry area on your data entry screen.
  2. Vendor Item number - Enter the catalog number or item number that will be recognized by the vendor.
  3. Qty - Enter the quantity to be ordered.
  4. U/M – Enter the unit of measure to indicate such as each, dozen, box, carton, etc.
  5. Description – Enter a brief description of the item being ordered. This field holds 34 characters.
  6. Note – The note field can be used to enter additional descriptions or specifications for the item being ordered. To expand this data entry area to accept unlimited text, place the cursor in the note data entry area and click the right mouse button or press Ctrl + O to display the following menu. This note field does print on the Purchase Order. The Introduction section of the User’s Manual explains zoom edit boxes in more detail.
  7. Item Price – Make sure that the price that is entered is consistent with the unit of measure that has been entered. For example, the item price should be the price per unit of measure. The item price field does allow three decimal places for such items as mileage rates.
  8. Tax – If the item is subject to tax, it defaults to a check mark based of the tax percentage that was keyed on the “Purchase Requisition” tab. If no percentage was keyed in the ‘Sales Tax’ field, the tax box will not be checked automatically. To remove the tax, press the space bar while your cursor is sitting on the ‘Tax’ field and the extended price will not include the tax amount. Note: The cursor is not visible when it is in the tax data entry area. You may have a combination of taxable and non-taxable items on one purchase requisition. You can also click the $ button to remove tax on all items on the purchase order.
  9. Disc. – If a discount percentage was entered on the preceding data entry page, it displays here where it can be accepted or changed as necessary. 10) Rec –Used if your organization is using the “Enter Receipts” menu option. The field title “Rec” is an abbreviation of “Received”. Once items have been received through the Enter Receipts option, a check mark displays for each line item that was received.
  10. The code can be used if you wish to encumber certain items to specific accounts on the Account Distribution screen. For example, if you want to encumber the first item to its own account and the last two items to one account, you would enter a ‘1’ as the code on the 1st item and a ‘2’ as the code on the second and third items. These codes will then be transferred to the account page and the encumbrance totals will be automatically calculated for each account.
  11. Ext. Price – Once you press Enter out of the code field, the system calculates the extended price, taking into account the item price, the discount rate, and the tax rate. It will save the line item automatically.

If you wish to enter another line item, simply press Enter again on the plus button and key the information for that line item.

Note: If you need to record freight or shipping charges, simply enter it as a line item as the last line item to be keyed. Freight/shipping charges may or may not be subject to tax or discount percentages. This should be determined by your organization and the vendor.

Account Distribution Detail Tab

Note: Blanket PO’s (PO’s that are flagged as such on the Purchase Requisition tab) are allowed to be expensed to only one generic account number.

The account distribution may be handled several ways:

  1. Distribute the full amount to a default account
  2. Manually distribute to multiple accounts
  3. Use a percentage to split to multiple accounts
  4. Use the Code from the Items Detail tab to distribute to the accounts.

Method One - Distribute the Full Amount

If a default account was entered on the “Purchase Requisition” tab and the full amount of the purchase requisition is to be encumbered to one account, you may simply press enter across the line on the Account Distribution tab to save the encumbrance. When the account number is “read in”, you may still type over if you need to change it for any reason.

Method Two - Manually Distribute

If you wish to manually split the encumbrance, simply enter the accounts and amounts. This screen is unlimited ( as to how many accounts to which you can split the encumbrances. This method is probably the most used method.

Method Three - Use a Percentage

You may enter a percentage split and the system will calculate the amounts automatically.

Method Four - Use the Code

The code can be used if you wish to encumber certain items to specific accounts on the Account Distribution screen.

For example, if you want to encumber the 1st item to one account and the second and third items to another account, you would enter a ‘1’ as the code on the 1st item and a ‘2’ as the code on the second and third items. These codes will then be transferred to the account page and the encumbrance totals will be automatically calculated for each account.

ImageDirector Tab

Milner ImageDirector Dynamic Page Setup

Procurify Feature

If the Procurify Interface is enabled in the license file, there will be a feature to import Purchase Orders from the Procurify system. There is a button that will appear under the Search/Reset buttons at the top right.

There is a system setting on the Purchase Order System File page that will determine the date to use as a filter.

Purchase orders from Procurify will be brought in as Requisitions and move through the normal review/approval process to be moved along into Purchase Orders.

For Punch-Out Vendors, the Smartfusion system will not have the vendor since they are created in Procurify. In this case, Smartfusion will automatically create the vendor during this process.