PO Item Distribution Overview
The PO Item Distribution feature allows you to distribute PO items into multiple lines.
This gives you the ability to redirect the costs on a PO item to a different job, phase, or cost type when it is received in the PO module or invoiced in the AP module - for example if you made a mistake when entering the PO or you want to control costs differently. It can also be used when you purchase a material for multiple allocations (for example, a material that will be used on a JC job and an SM work order).
- Create a PO item - When a new PO item is created in the PO module, the system automatically creates a distribution line that is identical to the PO item. For details, see About Creating a PO Item.
- Distributions to an SM Work Order - Distribution lines associated with an SM work order will automatically generate work completed purchase lines (type 5-Purchase) for the specified work order (in SM Work Orders, Work Completed tab). For details, see Distributions to an SM Work Order.
- Receive a PO item line - You can receive purchase orders in the PO module, or you can skip the receiving process and invoice them in the AP module.
- Receive in the PO module - Once the PO item lines have been created using the PO Item Distribution form, you can enter receipts using PO Initialize Receipts or PO Receipts Entry. For details, see About Receiving in the PO Module.
- Invoice in the AP module - You can also skip receiving purchase orders in the PO module. Once a PO has been entered, you can invoice it using the AP Transaction Entry or AP Unapproved Invoice Entry forms in the AP module. From these forms you can launch the PO Item Distribution form, create new distribution lines, and then invoice them. Once all of the units on the PO have been invoiced you can close it using the PO Close form . If all of the units have not been invoiced, you can also use PO Close to create a change order for those units and then close the PO.
Change Orders and PO item lines - PO change orders are created and edited using the PO Change Order Entry form. PO change orders (POCOs) will always impact PO item line 1. For example:
When creating or editing a PO change order, changes to the units and total cost on the PO item will impact line 1 of the PO item distribution.
If you delete a PO change order, line 1 of the PO item distribution will be updated.
If you create a new PO item using a change order, the system will automatically create a PO item line 1 that is identical to the PO item. You can then view this line or create new lines using the PO Item Distribution form.
- Close a PO with item lines and backordered amounts - When closing a PO that has item lines and backordered amounts in PO Close, the system will automatically generate a change order to zero out the remaining backordered units/amounts. This change order will only impact PO item line #1. For example, if you are closing a PO with 5 backordered units, the system will automatically generate a change order that will zero out those remaining 5 backorders units on PO item line #1.
- Standing/blanket purchase orders - Standing or blanket POs are open PO items that you can post receipts to indefinitely - for example if you have negotiated a contract for materials at a specific unit cost but do not have a set limit (such as asphalt or concrete). Click here for general information on standing/blanket POs. Since standing POs do not have any cost or units associated with them, you cannot open them using the PO Item Distribution form - you can only distribute PO items into lines if there are units or cost associated with them.If you want to distribute PO items into lines on a standing/blanket PO, you have to add units or amounts to it. You can do this using PO Change Order Entry or PO Purchase Order Entry .