Purchase Orders

This topic describes how to manually create a purchase order.

Purchase orders specify:

Payment terms
Delivery dates
Delivery location
Prices and quantities
Shipping terms
Billing information
Invoice tolerances
Approval status, history, contact info, and more

Additionally POs track what shipping receives, invoices, returns, and any quantity that remains unfulfilled.

Purchase orders can be created manually as is described here, but when purchase orders are released from a purchase agreement, Kenandy tracks and synchronizes prices and quantities keeping the PO and the purchase agreement in sync. To learn more about generating purchase orders from purchase agreements see Purchase Agreement Release .

**Purchase Order Actions**

When editing a purchase order you can perform the following actions:
Action	Description
Save	Save and Return: Saves the purchase order and returns to the detail view. Save and New: Saves the purchase order and creates a new one.
Cancel	Switches from edit mode to detail view.
Actions	Approve: Changes the approval status to Approved (from Pending Authorization). Cancel: Cancels the purchase order. Orders with lines cannot be canceled. Close: Closes the purchase order and sets the status to Closed. Clone: Creates a duplicate purchase order. Delete: Deletes the purchase order. Orders with lines cannot be deleted.

Create a Purchase Order and Add Lines

Go to the Purchase Orders page, and click New or New Purchase Order.
Enter values for Company, Purchase From Supplier, Buyer, and Currency. Initially company default values populate some of these fields.
Select the purchase order type. The PO type can be one of the following:
- Standard: The default value for a one-time purchase of items.
- Production: To establish a contract with a co-manufacturer to produce material.
- Shipment: To ship goods that are ready to be picked.
- Drop Ship: To ship goods directly from the manufacturer.
Optionally you can change payment terms if you want to specify something different from your parent company default payment term setting. To learn more, see Payment Terms.
From the Purchase Order Lines (POL) section of the page, click (Add New).
1. Each line requires a valid item, which can be an inventory item, non-inventory item, or a miscellaneous item. When you enter an item, the delivery facility and location are populated for you based on the item master information.
2. Enter the order quantity, unit price, UOM, and need date (defaults to today's date).
Tip: When you need additional lines it is often quicker to clone an existing line and make changes to that cloned line.
Save your PO. There are four ways you can save your PO.

Save to quickly see what fields still require data input. Successful save of the PO refreshes the page.
Save and Get Tax retrieves tax data for your PO when your system is configured to use a tax service.
Save & New saves the PO and starts creation of a new PO.
Save & Return saves the PO and returns to the purchase order detail view.

After saving the PO, the delivery facility is set with the Default Facility value specified by the User Preferences settings for your login. You can set user preferences from:
Getting Around > Manage Defaults > Edit > Default Facility.

If a default facility is not specified, then the company setting for delivery facility setting is used.

Kenandy also saves the purchase order with:

Status: Open

Approval Status: Pending Authorization

At this stage, the PO can be changed to add, change, or delete POL(s) and you can change or add supporting information. Changes to the PO can be made after the PO is approved, but after changes are saved the Approval Status will be changed back to Pending Authorization. The PO can't be used to receive items until the Approval Status is changed to Approved.

Approve the Purchase Order

PO approval depends upon your specific approval process. If your user profile has the power to approve the PO this section outlines how you can review, approve, or cancel the PO with the interface prior to any customization.

When the purchase order is created, the approval status is set to Pending Authorization and Kenandy might automatically route the purchase order for approval. If not, you must manually change the approval status from Pending Approval to Approved before you can process the document further.

From the Purchase Order > Actions menu, you can click Approve. Your approval status changes to Approved.

If you have a custom approval process, click the Submit for Approvalbutton to start that process, or if you click Approve you are prompted to click Submit for Approval instead.

If you make any changes to the purchase order (on the header or line), Kenandy reverts the approval status to: Pending Approval. Refer to the following table for a list of actions that you can perform on a purchase order line.

Purchase Order Line Actions
Action	Result
Add New	Creates a new purchase order line. When the PO is closed new lines
Cancel	Cancels the selected line. The action cannot be reversed. When a line is cancelled, Kenandy changes the PO approval status to Pending Authorization. You cannot cancel a line that has been received or invoiced.
Close	Closes the selected line. The action cannot be reversed.
Clone	Creates a duplicate of the selected line. The cloned line inherits all the attributes from the original line. To clone custom fields, the custom field must be included in the All Fields field set.
Show/Hide Columns	Displays the list of available fields. Clear the check mark to hide a field from view. The fields displayed are based on the selected view (All Fields, Default, Additional Info).
Views	Select from a list of predefined views, which are based on field sets. For example, the All Fields view includes all available fields. The other options contain a subset of fields.
Delete	Deletes the selected line. You cannot delete a line if it has been approved. When a PO is approved the lines cannot be deleted. However, if after approving the purchase order you then add a new line, you can delete the new line if the purchase order is in the Pending Approval status.

Return to Vendor

Use the Return to Vendor feature when you want to return goods to a vendor for credit or a replacement. If you attempt to return goods against a closed purchase order, Kenandy creates a new purchase order.

From the Purchase Order list view page, in the View field, select All, and click Go!
Select a purchase order, and then click Return to Vendor.
If Create RTV Credit Memo is checked for the selected supplier, Kenandy automatically creates a credit memo. To manage the setting, go to the Supplier page.
Complete the return to vendor information: Enter the Quantity to Return to Supplier For Credit or the Quantity to Return to Supplier for Replacement.
If you are returning goods for a replacement, enter the Need Date. Kenandy checks to see if the purchase order line is open. If so, Kenandy updates the Quantity Still Due and the Quantity Returned to Supplier. If the line is not open, Kenandy creates a new purchase order for the items being returned and an on-hold supplier credit memo for the amount.
If the goods are serial number tracked, enter the serial numbers.
If the original purchase order is closed, Kenandy creates a new purchase order for the Remit To Supplier as specified on the original purchase order.
Click Save.

Kenandy creates a receiving document to track the goods being returned. To update your inventory, open the receiving document, and then select the inventory that you want to return.

From the Purchase Order detail page, locate the Receipt Lines, and then click the Receiving Document link.
Click Select Inventory to Return.
Kenandy displays the inventory that is available for each facility, location, and lot. Enter the Quantity To Return.
Click Save & Return.

Run the Inventory Master report to see the current on-hand, allocated, and available quantities for any item and lot combination at any facility and location. From the Getting Around page, click Inventory Master.

Void a Return to Vendor

If you void the return to vendor transaction, Kenandy creates a Void RTV transaction, which restores the on-hand quantity in inventory.

Cancel a Purchase Order

You can cancel a purchase order as long as there are no downstream activities, such as a receipt or an invoice. When you cancel the header, all lines are cancelled. To reopen a line go to the Add/Manage Lines page and click Reopen; the purchase order status changes to Open.

From the Purchase Order Detail page, click Cancel Order.
Kenandy asks you to confirm the action. Click Cancel.
Or, click Go Back to return to the purchase order detail.

When you cancel a source document, Kenandy runs a validation check to determine if the action can be performed.

Cancel Validation
Action	Result
Cancel	You can cancel a purchase order or purchase order lines prior to receiving against the purchase order. After the full or partial receipt of goods is recorded on the receiving document, the purchase order cannot be cancelled.
Void	You cannot void a purchase order.

Purchase Order Field Descriptions

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Purchase Order Page
Field	Description
Acknowledge Via	The preferred method of acknowledging the PO and communicating changes.
Amount Tolerance	The acceptable difference, expressed as an amount, between the purchase order line and the supplier invoice line. If you choose not to enter a tolerance amount, Kenandy assumes zero tolerance.
Approval Status	This document must be approved by a user with the appropriate authorization, otherwise it cannot be processed. Options include: Pending Authorization Approved Rejected
Address Information Deliver To Street Deliver To City Deliver To State Deliver To Zip Code Deliver To Country	For drop ship orders, these values are inherited from the Ship To Customer on the Sales Order line.
Bill-to Street Bill-to City Bill-to State Bill-to Zip Code Bill-to Country	The Bill-to address.
Buyer	The list of available users.
Cancelled Purchase Order Lines	A summary of all cancelled PO lines.
Company	After the purchase order has been created, you cannot change the company it belongs to. The company on a purchase order line must match the company on the purchase order.
Currency	The currency for the purchase order. If the purchase order is generated from an agreement, the currency is inherited from that agreement. For a manual purchase order with no purchase agreement, this field is automatically populated with the value in the Default Currency field for the purchase-from supplier associated with the purchase order. If this value is unavailable, then the value in the Default Transaction Currency field for the company associated with the purchase order is used. You can change this value. If the purchase order applies to a drop shipment or a back to back sales order, the currency is inherited from the sales order.
Date Closed	The date (mm/dd/yyyy) on which the PO/Line was closed or cancelled.
Deliver-to Address	The address of the Deliver-to Customer. If the purchase order was generated from a drop-ship requisition, the Deliver-to information is inherited from the requisition.
Deliver-to Customer	The name of the Deliver-to Customer. If the purchase order was generated from a drop-ship requisition, the Deliver-to information is inherited from the requisition.
Delivery Facility	The default delivery facility is defined on the Company page. You can change the default value on the PO header. At the line level, if you update the facility, the delivery location is changed to match the Default Purchasing Delivery Location for the specified facility.
Delivery Location	The default delivery location is defined on the Facility page. You can change the default value on the PO header as long as you choose a location within the specified facility. At the line level, the delivery location is determined by the location specified in the PO header.
Edited By	The name of the user who last edited the PO.
Edited Time	Time stamp indicates when the PO was last edited.
Extended Amount Tolerance Overage	The amount of allowed overage. This value is inherited from the purchase agreement.
Finalized	A check mark indicates that the document is final. Kenandy will automatically generate an accounting entry for it in the next scheduled batch process.
Finalized Date	The date on which the PO was closed and ready for accounting.
FOB Term	The FOB term (origin or destination) is determined during the purchase negotiations, and then specified on the purchase agreement or purchase order. If set to origin, when you receive an ASN from the supplier, go to the Receiving Document page to create an ASN, and record the declared quantity.
Memo	A note that you can enter for reference.
MRP Plan	This number, generated by MRP, references the demand that this PO/line is fulfilling.
Need Date	Needed by date (mm/dd/yyyy). If the selected purchase order is created from a purchase agreement, the Need Date is the date specified on the agreement. After creating the purchase order, you can change the Need Date. Kenandy does not validate this date against the agreement.
Open Purchase Order Lines	Total number of open lines.
Order Date	The date (mm/dd/yyyy) on which the PO was placed with the supplier.
Payment Term	The list of available payment terms.
Production Purchase Order	The list of available purchase orders.
Purchase Agreement	The purchase agreement associated with the selected PO.
Purchase From Supplier	Use the lookup to select from the list of valid suppliers. The Purchase From Supplier is referenced on downstream documents such as the Receiving Document.
Purchase Order Number	The purchase order number. At the line lever, this is the number of the parent PO.
Purchase Order Value	Total value of all PO lines.
Quantity Released	When you update the quantity released, Kenandy updates the agreement line.
Quantity Tolerance Over %	The quantity tolerance (over and under) between the purchase order line and the invoice line helps you to control your order. The value is expressed as a percentage of the quantity. If you choose not to enter a tolerance value, Kenandy assumes zero tolerance.
Ready	A check mark indicates that the purchase order is ready to be processed.
Remit To Street Remit To City Remit To State Remit To Zip Code Remit To Country	The Remit To address.
Remit To Supplier	The name of the Remit To Supplier.
Rush Order	A check mark indicates a rush order.
Sales Order	The list of available sales orders.
Sales Tax Amount	The sales tax amount for the purchase order. This value is aggregated from the purchase order lines.
Ship Via	The shipment method.
Status	Options include: Open, Closed, Cancelled.
Total Number of Lines	Total number of lines on the PO.
Total Order Weight	Total weight of goods specified on the PO.
Transaction Date	The date on which the purchase order was placed.
Trans Mode	The transportation mode. Options include AIR, RAIL, SHIP, TRCK.
Type	Purchase order types include: Standard: goods or services you require Production: contract with a co-manufacturer to produce goods Shipment: goods that are ready to be picked up Subcontract: for subcontracted orders Drop Ship: for orders fulfilled by an external supplier
Unit Price Tolerance Over %	The price tolerance (upper and lower) helps you to control pricing. The value is expressed as a percentage of the unit price. If you choose not to enter a tolerance value, Kenandy assumes zero tolerance.
VAT Amount	The VAT amount for the purchase order, aggregated from the purchase order lines.
Void	A check mark indicates that the PO has been voided.
Void Date	If voided, date and time stamp indicates when the void transaction occurred.
Weight UOM	The unit of measure used to express the weight of the item.

Purchase Order Line Field Description

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Purchase Order Line Page
Field	Description
Accounting Segment	Miscellaneous lines require a segment. If a segment is required, Kenandy prompts you to enter one when you save the purchase order.
Amount Credited	For credits and returns, this is the amount credited.
Amount Matched	The amount matched is updated when the invoice is approved. For the supplier invoice line: `Amount Matched = Invoice Quantity * Invoice Price` If the supplier invoice is unfinalized, voided, or cancelled, the amount matched is automatically updated to reflect the change.
Approved	A check mark indicates that the PO has been approved.
Company	This information is based on the company associated with your login credentials. To manage the Company Default, go to the Getting Around page and click Change Company.
Consigned	A check mark indicates consigned material.
Contracted	A check mark indicates a contracted purchase. Otherwise, this is an off-contract purchase.
Contract Line	The list of available purchase agreements.
Currency	The currency specified on the purchase order.
Date Added	The date on which the line was added to the purchase order.
Date Closed	The date on which the line item was closed or cancelled.
Date Last Changed	The date on which the line item was last changed.
Days from Promised	The calculation for the Days from Promised is: `Date Closed − Promise Date`
Delivery Facility	The Delivery Facility is inherited from user preferences or if not set then those values are derived from the Purchasing Deliver To Facility on the Company page. You can also select from the list of valid facilities.
Delivery Location	The Delivery Location is inherited from user preferences or if not set then those values are derived from the Purchasing Delivery Location on the Facility page, if specified. Otherwise, you can select from the list of valid locations.
Description	Text box for line item description.
Exception Details	Provides a detailed description of any line item exceptions.
Finalized	An indication of whether the document is final. An accounting entry is automatically generated for the source document in the next scheduled batch process.
Historical	A check mark indicates this is an archived transaction imported into Kenandy when Kenandy was implemented. Kenandy does not use it in any calculations.
Indirect	A check mark indicates an order for indirect goods, services, or expenses. For example, professional services or facilities management.
Invoice Matching	You can perform two-way or three-way matching. To manage invoice matching, go to the Supplier page. If the purchase order was created from an agreement, the invoice matching is inherited from the agreement, otherwise it is inherited from the supplier. You can edit the value as long as there are no transactions, such as a receipt or invoice, against the line. If you change the value, Kenandy reverts the approval status to Pending Approval.
Invoice Status	The invoice status (open or closed) indicates whether the selected line has been invoiced or not. When you create a supplier invoice, Kenandy only displays lines that have not been invoiced.
Item	An item (inventory, non-inventory, miscellaneous) is required. After the purchase order is approved, you cannot change the item or the associated purchase UOM.
Item Cross Reference	The list of available item cross references.
Item Name	The user defined name.
Item Specification	The list of available item specifications.
Latest Promise Date	The date that the supplier promised delivery of the items. If the promised date has been changed, the original promised date is displayed in the Promised Date field.
Line	The auto-generated line number for the shipment.
Line Type	Defined by the system administrator for your organization. The line type can be used to trigger alternate accounting for receiving and invoicing.
Line Value	Kenandy calculates the line value as follows: Order Quantity (on the selected line) x Quoted Price.
Manufacturer's Part	The manufacturer's part number is a combination of the Item Cross Reference and the Cross Reference Value.
Memo	A note that you can enter for reference.
MRP Plan	Reference to the MRP plan.
Need Date	Used for MRP scheduled items. If the selected purchase order is created from a purchase agreement, the need date is the date specified on the agreement. After creating the purchase order, you can change the need date. Kenandy does not validate this date against the agreement. For manual lines on a purchase order, the need date defaults to today's date, but you can change it.
Order Quantity	The quantity of items ordered on the selected line.
Overage Percentage	Indicates the allowed overage on receipt of goods. The default can be specified on the Supplier record (Default Receiving Tolerance). If left blank, Kenandy assumes zero tolerance.
Overage Quantity	Based on the overage percentage and the order quantity, this value indicates the allowed overage quantity for the selected order. Calculation: Overage Percentage x Order Quantity.
Primary Key	The external ID.
Promise Date	The date that the supplier promised delivery of the items. If the promised date has been changed, the original promised date is displayed here.
Purchase From Supplier	Inherited from the purchase order.
Purchase Order	Identifies the purchase order.
Purchase Order Number	The number of the parent purchase order.
Purchase UOM	For purchase orders created from an agreement, the Purchase UOM is inherited from the agreement, but you can change it to match the UOM used by your supplier. For manual purchase orders, the Purchase UOM is inherited from the item, if specified, but it is editable and you can change it up until the order is approved. After the purchase order is approved, you cannot change the item or the purchase UOM.
Putaway Location	Used by receiving. Indicates the location that goods are moved to after receiving.
Quantity Credited	For credits and returns, this is the quantity credited.
Quantity Matched	When the supplier invoice is approved, the Quantity Matched is updated to reflect the invoiced quantity. If you unfinalize, void, or cancel the supplier invoice, the quantity matched is automatically updated to reflect the change.
Quantity Received	The total quantity received.
Quantity Returned for Credit	The quantity returned to supplier for credit.
Quantity Returned for Replacement	The quantity returned to supplier for replacement.
Quantity Shipped	The quantity shipped (cumulative) for the selected line. Kenandy updates this field when the ASN is released (if FOB point is set to Origin).
Quantity Still Due	The quantity still due.
Quantity to Stock	The quantity moved to stock. Kenandy uses the UOM conversion between the item's purchasing UOM and Stocking UOM to calculate this value. For subcontracted purchase orders, when the work order is created the quantity is expressed using the Stocking UOM (ordered quantity on the purchase order line is converted to Stocking UOM.
Remit to Supplier	The list of available suppliers.
Requisition Number	The requisition number for items not planned by MRP.
Rush Line	A check mark indicates that the item is needed urgently.
Sales Order	A reference to the sales order that initiated the purchase. Use the reference to verify that the purchase cost is applied to the correct sales order.
Sales Order Line	A reference to the sales order line that initiated the purchase.
Sales Tax Amount	The sum of all estimated sales tax amounts that apply to the purchase order line. The value in this field comes from the tax service.
Sales Tax Rate	The estimated sales tax rate that applies to the purchase order line. The value in this field comes from the tax service.
Short Close	A check mark indicates that the PO line has been closed short. Short close a purchase order if you received some of the goods ordered, but do not expect to receive all of them.
Special Notes	User defined text.
Status	The purchase order line's status. Options include Open, Closed, Cancelled.
Subtransaction Type	Subtransaction types can be used in conjunction with a transaction type to determine when to generate an accounting entry. For example, create an accounting rule so that: If transaction type is Purchase Receipt, generate accounting entry If transaction type is Purchase Receipt and subtransaction type is Expense, skip accounting.
Supplier's Part Description	A description of the supplier's part.
Supplier Part	The supplier's part number.
Total Weight	The total weight is equal to the order quantity multiplied by the weight.
Transaction
Type	This picklist displays the purchase order line's type. Options include Goods, Service, Expense, Asset.
Unit Price	If the purchase order was created from an agreement, this is the quoted unit price as specified on the agreement. If you override the price, Kenandy updates the Last Cost for purchased, expense and miscellaneous items. For manual lines, you are required to enter the unit price.
VAT Amount	The sum of all estimated VAT amounts that apply to the purchase order line. The value in this field comes from the tax service.
VAT Rate	The estimated VAT rate that applies to the purchase order line. The value in this field comes from the tax service.
Weight	The weight of the item on the selected line.
Weight UOM	The unit of measure used to express the weight of the item.
Work Order	References the work order that is driving the purchase.

_________________________________

To search the KnowledgeBase and documentation, ask a question, or log a case, please visit the Kenandy Community. To access our online training, visit the Kenandy Learning Center.

Version: Spring 2017