Field Definitions: PO Add Item Form

Type

Select the type of PO item that you would like to create. The data required for the purchase order item will differ slightly depending on the type selected.

Line Type

When to Use

Specific Fields

1-Job

Use this type to order materials for jobs. Multiple jobs may be on the same PO and do not have to match the job specified in the header. Job items interface with the JC module to update committed costs and units to specific job/phase/cost type combinations.

More Info

PO items for job purchases interface directly with the JC module to update committed costs and units on specific job/phase/cost type combinations. Actual costs are updated through the processing of an invoice against the Purchase Order.

There are three committed cost fields updated to the JCCP (Costs by Period) and JCCD (Cost Detail) file in JC for units and cost: Total Committed, Remaining Committed, and Received Not Invoiced.

Both Total and Remaining Committed costs are updated by:

  • the addition of a purchase order or changes to the original amounts of a purchase order in PO Purchase Order Entry,

  • change orders processed in PO Change Order Entry, and

  • changes to the backorder quantities in PO Change Order Entry or PO Receipts Entry.

    These updates include tax and freight charges. The Remaining Committed quantities and cost are changed at the time the AP invoice is entered against the PO in AP Transaction Entry.

    Note: When you add an item to a PO, the system sends the tax rate amount to the committed cost fields. If the tax rate amount changes, the system will not update the committed cost amounts. When relieving committed costs through AP, the system will relieve the original tax rate amount from the committed cost, but will use the current tax rate on the AP invoice.

    The Received Not Invoiced fields are updated if the PO is set up to track receipts, and the receipt has been posted in PO Receipts Entry. These are then reversed when the invoice is entered against the purchase order in AP Transaction Entry and the Remaining Committed is updated. The Received not Invoiced fields are not used if the PO has not been set up to track receipts.

    The actual calculations are as follows:

    Total Committed Costs = [Received Units + Backordered Units] ´ Current Unit Cost/ECM

    Remaining Committed Cost = [Received Units + Backordered Units – Invoiced Units] ´ Current Unit Cost/ECM

    The Received Not Invoiced fields in JC is updated when goods are received using the PO Receipts Entry form, but are not yet invoiced in AP Transaction Entry. This field will not be updated if you are not using PO Receipts Entry to post shipments received. If used, the calculation for Received Not Invoiced Cost is:

    Received Not Invoiced Cost = [Received Units – Invoiced Units] ´ Current Unit Cost/ECM

    Updating Units

    Total Committed, Remaining Committed, and Received Not Invoiced units are also accumulated in JC if the unit of measure is compatible. This means that if the purchase and job units of measure are the same, or a conversion can be made based on the standard unit of measure and the purchase unit of measure in the material file, the units in the file will be updated. (This does not apply to lump sum units, which are not updated.)

    Actual Costs/Units

    Actual costs and units amounts are updated through AP each time a batch is posted.

JC Co, Job, Phase, CT

2-Inventory

If you have the Inventory module, use this type to purchase items that you stock in your inventory. This type of PO interfaces with the IN module to automatically track items on order and those that have been received but not yet posted as payable in AP.

The system will also display On Hand and On Order fields below the Vendor Matl field. These display-only fields show the on-hand and on-order amounts for the specified location/material.

More Info

The Inventory system tracks quantities on order as well as in stock. Specifically, the INLT (IN Locations Total) file in Inventory tracks three quantities updated by purchases in the PO system: On Order, Received not Invoiced, and Invoiced Stock.

On Order

The On Order quantity is updated by

  • the addition of the purchase order in PO Purchase Order Entry,

  • revisions made to either the Original or Remaining quantities in PO Purchase Order Entry, and

  • by changing the Backorder quantity in PO Receipts Entry.

    If the PO is set up to track receipts, then the receipt reduces the On Order quantity. If it is not set up for receipt tracking, then the invoice posting in AP Transaction Entry reduces it.

Received not Invoiced

The Received not Invoiced quantity is updated if the PO was set up to track receipts, and the receipt is entered in PO Receipts Entry. The quantity is reversed when the invoice is entered in AP Transaction Entry. This field is not updated if you are not tracking receipts for the purchase order.

Invoiced Stock

Invoiced Stock is updated when the invoice is entered in AP Transaction Entry. This quantity, plus the Received not Invoiced quantity, updates the On Hand quantity in Inventory.

IN Co, Loc

3-Expense

Use this type of PO for ordering goods to be expensed for your company - for example office supplies and office machines. If you are using the EM module, you should use this type for actual equipment purchases. This type of purchase order only interfaces with AP and GL, and does not generate any committed costs.

4-Equipment

Use this type to purchase items for use with equipment (such as oil, fuel, etc.). Items that fall in this category are typically operating costs such as parts and repair costs. Assigning cost types and cost codes (EM) allows you to track these costs for each piece of equipment. Entries for this type of PO do not directly update EM. This occurs when the invoice is posted in AP.

If you checked the Display last used date for parts in AP/PO/EM box in EM Company Parameters, the screen displays the last used date of the part specified for the PO item (in the informational display above the Item tabs).

EM Co, Equip, Comp Type, Component, Cost Code, CT

5-EM Work Order

This type of PO is used to order items needed to complete work orders set up in the EM module. Entries for this type of PO do not directly update EM. This occurs when the invoice is posted in AP.

If you checked the Display last used date for parts in AP/PO/EM box in EM Company Parameters, the screen displays the last used date of the part specified for the PO item (in the informational display above the Item tabs).

EM Co, WO, WO Item, Cost Code, CT

6-SM Work Order

Use this type of PO to purchase the material needed to complete service work orders (i.e., work orders set up in Service Management). Entries of this type will generate a work completed purchase line (in SM Work Orders, Work Completed tab), and update the Purchase Orders grid (in SM Work Orders).

You can also enter purchase orders for SM work orders in SM Purchase Order Entry. For more information, see SM Purchase Order Entry.

More Info

You cannot edit purchase order information from a work completed purchase line; edits must be made directly to the purchase order item via PO Purchase Order Entry or SM Purchase Order Entry, or to the PO item line in PO Item Distribution. Changes will be updated to the related work completed purchase line.

Note: If the work order is for a job, the system will display additional fields of Phase and JC Cost Type . The Phase field is display only, but entry is required in the JC Cost Type field. The system uses the phase and cost type to post costs to the job when the purchase order is invoiced in AP Transaction Entry.

SM Co, SM Work Order, SM Scope

Job work orders also include Phase (display only) and JC Cost Type

Company Number (CO#)

Depending on the type of purchase order, this field will prompt for JC company (Job PO), IN company (Inv PO), or EM company (Equip & Work Order PO’s).

Specify the company for posting this purchase order item.

PO Add Item

PO Change Order Entry

Job

This field initially defaults the job code specified in the purchase order header (PO Purchase Order Entry). Accept the default, or enter the purchasing job for the specified material.

PO Add Item

PO Change Order Entry

Phase

Enter the applicable job phase for this purchase order item. This field initially defaults the material phase assigned to this line's specified material (in HQ Materials, Matl Phase field). If you did not specify a material phase for the material, this field defaults blank.

Note: If you checked the ‘Phases on this job are locked’ box in JC Jobs, this phase must be set up for the specified job in JC Job Phases. If you did not check the box, you must enter a valid phase from JC Phases.

PO Add Item

PO Change Order Entry

Cost Type(CT)

Enter the JC cost type that applies to this purchase order. This field initially defaults the material cost type assigned to this line's specified material (in HQ Materials, Matl CT field). If you did not specify a material cost type, this field defaults as blank.

Note: If you checked the Phases on this job are locked box in the JC Jobs form, this cost type must be set up for the specified job in JC Job Phases. If you did not check the box, you must enter a valid phase cost type from JC Phases.

PO Add Item

PO Change Order Entry

Location

Enter the purchasing inventory location for the specified material or press F4 to select it from a list.

The location must be set up in IN Locations, and the material must be assigned to this location in IN Location Materials.

PO Add Item

PO Change Order Entry

Equipment

Enter the equipment you are purchasing the specified material for. Press F4 for a list of valid pieces of equipment.

PO Add Item

PO Change Order Entry

Comp Type

Enter the component type (from EM Component Types) for the equipment, if applicable. Press F4 for a list of component types.

PO Add Item

PO Change Order Entry

Component

Enter a component for the equipment. Press F4 for a list of components. If you entered a component type in the Comp Type field, this field defaults the first component of this type for the indicated equipment (as defined in EM Equipment).

PO Add Item

PO Change Order Entry

WO

Enter the purchasing work order (as set up in EM Work Orders) for the specified material. Press F4 for a list of work orders.

PO Add Item

PO Change Order Entry

WO Item

Enter the applicable work order item (as set up in EM Work Orders) for this purchase order item.

PO Add Item

PO Change Order Entry

Cost Code

Enter the applicable cost code (as defined in EM Cost Codes) for this Equipment order item.

If this is an Equipment line, and you entered a component for this equipment (Component field), this field defaults the cost code assigned to the component’s type in EM Component Types.

PO Add Item

PO Change Order Entry

Cost Type (CT)

Enter the applicable equipment cost type (as defined in EM Cost Types) for this Equipment or Work Order item.

PO Add Item

PO Change Order Entry

SM Co

This field displays only when line type is 6-SM Work Order.

Enter the SM company to which this purchase order item applies. This will be the SM company in which the SM work order was set up. Press F4 for a list of valid SM companies.

PO Add Item

PO Change Order Entry

SM Work Order

This field displays only when line type is 6-SM Work Order.

Enter the SM work order to which this purchase order item applies (i.e., the work order for which the material was, or is being, purchased). Press F4 for a list of valid work orders for the specified SM company.

Note: If you specify a job-related work order and the job associated with the work order has been soft or hard-closed, the system will allow the entry if you allow posting to closed jobs (i.e. the Allow Posting to Hard-Closed Jobs and/or Allow Posting to Soft-Closed Jobs boxes are checked in JC Company Parameters).

If you do not allow posting to closed jobs, a message displays indicating the job is closed and you will be unable to proceed.

PO Add Item

PO Change Order Entry

SM Scope

This field displays only when line type is 6-SM Work Order.

Enter the work order scope to which this purchase order item applies (i.e. the scope for which the material was, or is being, purchased). Press F4 for a list of valid scopes for the specified work order.

PO Add Item

PO Change Order Entry

Phase

This field only displays if the line type is 6-SM Work Order and you specified a job-related SM work order.

The system only enables this field when you specify a work order scope (in the SM Scope field) that is not assigned a phase (in SM Work Orders).

Required.

Enter the phase (from JC Job Phases) to which this purchase order item applies.

Note: If the job specified for the work order is locked (i.e. the Phases on this job are locked box is checked in JC Jobs), the phase entered here must be set up for the job in JC Job Phases. If the phase is not set up for the job, you can press F5 from this field to access JC Job Phases. Once you add the phase and exit JC Job Phases, you can specify the phase here.

If the job is not locked (that is, the Phases on this job are locked box is not checked in JC Jobs), you can enter any phase from JC Job Phases or JC Phases, or any phase that matches the valid part of phase defined in JC Company Parameters.

For example, say the Number of valid characters in Phase code field is set to 8 (in JC Company Parameters). The JC Phases contains phases 03110-120 and 03110-140-. If you enter phase 03110-120-100, the system will allow it since the first 8 characters (bolded) match the first 8 characters of phase 03110-120-. However, if you enter phase 03110-130-, it will not be allowed, since the first 8 characters do not match any phase in JC Phases.

PO Add Item

PO Change Order Entry

JC Cost Type

This field only displays if the line type is 6-SM Work Order and you specified a job-related SM work order.

Enter the JC cost type (from JC Cost Types) for this purchase order item. Initially defaults as follows:

  • If you specified an SM Cost Type for the purchase order item, this field defaults the JC Cost Type assigned to the SM Cost Type (in SM Cost Types).

  • If a JC Cost Type is not specified for the SM Cost Type or you did not enter an SM Cost Type, this field defaults the Matl CT from HQ Materials for the material specified on the purchase order.

  • If no Matl CT is specified for the material, this field defaults as blank.

    Note: The system will assign this cost type to the work completed purchase line generated (during the batch process) for this PO item. Edits to this cost type can only be made at the PO item level; they cannot be made at the work completed purchase line level.Locked Phases vs. Non-Locked Phases.

    If the job specified for the work order is locked (that is, the Phases on this job are locked check box is selected in the JC Jobs form), the cost type specified here must be set up for the job/phase in JC Job Phases. If the cost type is not set up for the job phase, you can add it by pressing F5 from this field to access JC Job Phases. Once you exit JC Job Phases, you can enter the cost type here.

    If the job is not locked (i.e. the Phases on this job are locked box is not checked in JC Jobs), you can use any cost type defined for the phase in JC Job Phases or JC Phases.

PO Add Item

PO Change Order Entry

Material

Enter the material for this purchase order item. You can enter any material, valid or invalid, unless entering an Inventory line, in which case the material must be a valid material set up for the location in IN Location Materials.

If you enter a invalid material, the material description defaults as 'Not in material file' and unit of measure defaults as lump sum (LS). If you enter a valid material (set up in HQ Materials), the description, unit of measure, and unit cost default from HQ Materials.

If the material exists in PO Vendor Materials for the specified vendor/material group/material, the description, unit of measure, and unit cost defaults from PO Vendor Materials.

Equipment Lines

If the material number exists in EM Equipment Parts, the description and unit of measure default from EMEP. Unit cost defaults from HQMT.

If the material number also exists in PO Vendor Materials, the description and unit of measure default from EM Equipment Parts, but the unit cost defaults from PO Vendor Materials.

Work Order Lines

If the material number exists in EM Work Order Parts or EM Equipment Parts, the description and unit of measure default from EM Work Order Parts or EM Equipment Parts, respectively. Unit cost defaults from HQ Materials.

If the material number also exists in PO Vendor Materials, the description and unit of measure will default from EM Work Order Parts or EM Equipment Parts, but the unit cost defaults from PO Vendor Materials.

Note: If notes exist for this material in HQ Materials, you can add them to the notes for the purchase order item by clicking the Copy Notes button (to the right of the tax fields). The system appends material notes to any existing PO item notes. If no notes exist for the material, the system disables the Copy Notes button.

About the PO Add Item Form

About the PO Change Order Entry Form

Vendor Matl

Enter the vendor’s identification number for this material, if applicable. Press F4 for a list of vendor material numbers.

Note: When using the F4 lookup, sort by the HQMT Material column. This groups the standard and substitute vendor materials together for selection.

If a material exists in PO Vendor Materials for the specified vendor/material group/material, and the vendor material UM is equal to the HQ materials purchase UM, the field defaults the Vendor’s Material ID number. If the vendor material UM does not equal the HQ purchase UM, the field defaults the Vendor’s Material ID from the lowest UM (in PO Vendor Materials) for the vendor/material group/material.

Equipment Lines

If you specify a material number that exists in PO Vendor Materials, but that material number also exists in EM Equipment Parts, the system uses the description and UM from EM Equipment Parts, and the vendor material number will not default.

EM Work Order Lines

If you specify a material number that exists in PO Vendor Materials, but that material number also exists in EM Work Order Parts (EMWP) or EM Equipment Parts (EMEP), it will pull the description and UM from EMWP or EMEP, respectively, and the vendor material number will not default.

Note: Because the system uses the vendor’s material ID# as a cross-reference to the HQ material, you can enter this number if you do not know the HQ material number, and the HQ material number will be provided. This feature is only applicable to materials set up in PO Vendor Materials.

You can also enter the vendor material ID# for any substitute materials that may have been set up for the HQ material in PO Vendor Materials, and have the HQ material number provided.

The system does not validate vendor material numbers.

PO Add Item

PO Change Order Entry

Receiving

Check this box if you will be receiving this item in PO Initialize Receipts or PO Receipts Entry. Using either of these forms to receive purchased items updates the Backordered, Received, and Invoiced fields.

Do not check this box if you will be using AP Transaction Entry to receive this item.

PO Add Item

PO Change Order Entry

Description

Enter a description for this material, up to 60 characters.

If you enter a material in the Material field, this field defaults from the Description in HQ Materials. Otherwise, this field defaults blank. However, this field can default differently depending on the line type and materials that you choose. The rest of this topic discusses default settings for each line type.

Job, Inventory, and Expense Lines

The default settings for job, inventory, and expense lines follow this hierarchy.

  • If you entered a valid vendor material in the Vendor Matl field, this field defaults from the Description field in PO Vendor Materials.

  • If you entered a valid vendor material in the Vendor Matl field, and the UM field (PO Vendor Materials) does not equal the Purchase UM field (HQ Materials), the system searches each UM record associated with the vendor/material group/material in PO Vendor Materials looking for a match. If the system does not find a match, this field defaults from the Description field for the last UM record that the system searched in PO Vendor Materials.

Equipment Lines

The default settings for equipment lines follow this hierarchy.

  • If you entered a valid vendor material in the Vendor Matl field, this field defaults from the Description field in PO Vendor Materials.

  • If you entered a valid vendor material in the Vendor Matl field, and the UM field (PO Vendor Materials) does not equal the Purchase UM field (HQ Materials), the system searches each UM record associated with the vendor/material group/material in PO Vendor Materials looking for a match. If the system does not find a match, this field defaults from the Description field for the last UM record that the system searched in PO Vendor Materials.

  • If the specified material (Material field) exists in EM Equipment Parts (EMEP) for the equipment, this field defaults from the Description field in EMEP.

WO Lines

The default settings for work order lines follow this hierarchy.

  • If you entered a valid vendor material in the Vendor Matl field, this field defaults from the Description field in PO Vendor Materials.

  • If you entered a valid vendor material in the Vendor Matl field, and the UM field (PO Vendor Materials) does not equal the Purchase UM field (HQ Materials), the system searches each UM record associated with the vendor/material group/material in PO Vendor Materials looking for a match. If the system does not find a match, this field defaults from the Description field for the last UM record that the system searched in PO Vendor Materials.

  • If the specified material exists in EM Work Order Parts (EMWP) or EM Equipment Parts (EMEP), defaults the description from EMWP or EMEP, respectively.

PO Add Item

PO Change Order Entry

GL Co

For Equipment line types, enter the GL Company for this purchase order item. This company must be valid, and the batch must be open.

For Job line types, this field defaults the GL company assigned to the JC company in JC Company Parameters. In this instance, the system disables this field and you cannot change the setting.

For Inventory line types, this field defaults the GL company assigned to the IN Company in IN Company Parameters. In this instance, the system disables this field and you cannot change the setting.

For Equipment or Work Order line types, this field defaults the GL company assigned to the EM company in EM Company Parameters. In this instance, the system disables this field and you cannot change the setting.

PO Add Item

PO Change Order Entry

GL Account

Enter the GL account to charge for this purchase order item. The system uses this account as the default account in AP Transaction Entry; GL updates do not occur from the PO module.

The defaults for this field depend on the line type:

  • Job – For this type, the field defaults from the JC Department file, based on phase or cost type. You can override this default if you checked the Allow GL Account Override when Posting Costs box in JC Company Parameters; otherwise, the system disables the field. If the default is blank, the system allows entry, but disables the field when you save the record.

  • Inventory – For this type, the field defaults from the Inventory Location file. You can override this default if you checked the Allow GL Account Overrides box in IN Company Parameters; otherwise, the system disables the field. If the default is blank, the system allows entry, but disables the field when you save the record.

  • Expense – For this type, the field defaults from the AP Vendors. You can override the default as necessary.

  • Equipment & Work Order – For these types, the field defaults from the EM Department file, based on cost type, and cost code (if applicable). You can override this default if you checked the Allow GL Account Override box in EM Company Parameters; otherwise, the system disables the field. If the default is blank, the system allows entry, but disables the field when you save the record.

PO Add Item

PO Change Order Entry

Required Date

Enter the date this item is required.

PO Add Item

PO Change Order Entry

Pay Category

This field only displays if you checked the Using Payable Category box in AP Company Parameters and if you checked the Specify Pay Type during PO Entry box in PO Company Parameters.

Enter a valid pay category for this purchase order item. The pay category specified here, along with this item's type, determines the default pay type. Initially defaults a pay category as follows:

  • If you have set up a standard or user override in F3 Properties (not recommended), this field defaults the F3 pay category.

  • If an F3 override does not exist, this field defaults the pay category specified for the current user in VA User Profile.

  • If you did not enter an override pay category for the current user, this field defaults the pay category defined in AP Company Parameters (Payable Category Default field).

  • If you did not define a default pay category in AP Company Parameters, this field defaults as blank. (In this case, the pay type will default from AP Company Parameters based on the line's type.)

You can leave this field blank or override the default value.

Note: The pay category specified here will override any defaults set by F3, VA User Profile, or AP Company Parameters when you invoice the purchase order in AP Transaction Entry.

PO Add Item

PO Change Order Entry

Pay Type

This field displays only if you checked the Specify Pay Type during PO Entry box in PO Company Parameters.

Enter the pay type for this purchase order item.

If you are using pay categories (you checked the Using Payable Category in AP Company Parameters), this field defaults the pay type from this line's pay category based on the line type. May be overridden; however, pay type must be either 'assigned' to the specified pay category or an 'unassigned' pay type. In this case, 'assigned' pay types refer to pay types that have designated the pay category in the 'Restrict Pay Type to Pay Category' field in AP Payable Types. Unassigned pay types are those with the 'Restrict Pay Type to Pay Category' left blank.

If you are not using pay categories, default will be the standard pay type from AP Company based on the line type. May be overridden.

Note: The pay type specified here will override any defaults set by F3, VA User Profile, or AP Company Parameters when the purchase order is invoiced in AP Transaction Entry.

PO Add Item

PO Change Order Entry

UM

Enter a valid unit of measure for this material.

This field initially defaults as follows:

If a non-valid material was specified (Job, Exp, Equip, and WO lines only), defaults as LS. If a valid HQ material is specified, defaults the purchase unit of measure.

Job/Inv/Exp Lines

If overrides exist for the specified material/vendor in PO Vendor Materials (POVM), defaults the vendor material UM if it matches the HQMT Purchase UM; otherwise, defaults the lowest UM (in POVM) for the vendor/material group/material.

Equipment Lines

If the specified material exists in EMEP (Equipment Parts) for the equipment, UM will default from EMEP if it matches the HQMT Purchase UM; otherwise, default will be the HQMT Purchase UM.

If you specified a vendor material that does not also exist in EMEP, defaults the vendor material UM if it matches the HQMT Purchase UM; otherwise, defaults the lowest UM (in POVM) for the vendor/material group/material.

If material does not exist in EMEP or POVM, defaults the HQMT Purchase UM.

WO Lines

If the specified material exists in EMWP (Work Order Parts) for the work order, UM will default from EMWP, regardless of whether it matches the HQMT Purchase UM.

If the specified material exists in EMEP (Equipment Parts) and does not also exist in EMWP for the work order, UM will default from EMEP if matches the HQMT Purchase UM; otherwise, default will be the HQMT Purchase UM.

If you specified a vendor material that does not also exist in EMWP and/or EMEP for the work order, defaults the vendor material UM if it matches the HQMT Purchase UM; otherwise, defaults the lowest UM (in POVM) for the vendor/material group/material.

If material does not exist in EMWP, EMEP, or POVM, defaults the HQMT Purchase UM.

PO Add Item

PO Change Order Entry

Unit Cost

Enter the unit cost for this material. This field initially defaults a unit cost as follows:

Job, Exp, Equip, WO Lines – Defaults the unit cost defined for the material in HQ Materials, unless pricing overrides exist in PO Category Discounts or PO Vendor Materials. In which case, unit cost defaults as described below in the “Category/Vendor Pricing Overrides” section.

Inventory Lines – Defaults the Last Unit Cost for the material from IN Location Materials, unless pricing overrides exist in PO Category Discounts or PO Vendor Materials. In which case, unit cost defaults as described below in the “Category/Vendor Pricing Overrides” section.

Category/Vendor Pricing Overrides

If you have set up vendor pricing overrides in either PO Category Discounts or PO Vendor Materials, the unit cost will default from these overrides for all line types. If a discount exists for the vendor and material category in PO Category Discounts, it will apply the discount to the standard unit price in HQMT to determine the default unit cost. If an override exists for the material and vendor in PO Vendor Materials, it will default a unit cost based on the cost option (std unit cost, vendor unit cost, std book price less discount, or vendor book price less discount) or the job override (if one exists).

Note: If the unit of measure is other than LS, and you enter a zero unit cost, the total cost must be zero. In addition, you will need to invoice the items to ensure that JCCD (Cost Detail) and POIT (PO Items) are in balance before you close the PO.

About the PO Add Item Form

About the PO Change Order Entry Form

ECM

Select which quantity the unit cost represents, or accept the default.

  • E – Per each

  • C – Per Hundred

  • M – Per Thousand

PO Add Item

PO Change Order Entry

Tax Type

Specify the tax type for this purchase order item.

  • 1-Sales – Tax amounts are payable to the vendor and are added to the purchase order total. This tax amount is directly charged to Job Cost, Equipment, and GL.

  • 2-Use - Tax amounts are accrued, and will be paid at a later date to the appropriate State or Local taxing authority. Calculated tax amounts do not affect the gross or net balance due to the vendor. Instead, the transaction’s gross amount and tax amount is charged to Job Cost, Equipment, and GL account with an offsetting liability account as defined in HQ Tax Codes. Use the AP Tax Report to obtain an itemization of use tax amounts.

  • 3-VAT – (Value Added Tax) This tax is paid on goods and services at each stage of production or distribution, and is based on the value added at each stage. This tax is tracked in the GL and reduces the payment to a taxing authority through an Input Tax Credit (ITC). This tax is not directly expensed. This option is the default for Canadian and Australian companies (Default Country field, HQ Company Setup). Use the AP Value Added Tax Report to obtain an itemization of VAT amounts.

Note: Once you specify a code in this field and a tax type in the Tax Type field, the system displays the tax amount in the Tax Rate display field. The tax amount will also display on the Purchase Order when printed, and will also show when invoicing in AP.

PO Add Item

PO Change Order Entry

Tax Code

If posting taxes to this item, specify a valid tax code (HQ Tax Codes), or accept the default. The default is based on the following:

  • Job Lines — the default for this field is determined by the setting of the Base Tax On drop-down field in JC Jobs. If the field is set to J-Job, the tax code defaults from JC Jobs (Tax Code field). If the field is set to V-Vendor, the tax code defaults from AP Vendors ( Tax Code field). If the field is set to O-Vendor Override, the tax code defaults from AP Vendors. If a tax code is not specified there, the tax code will default from JC Jobs. You can override the default as necessary.

  • Inventory Lines — Defaults tax code from IN Locations.

  • Expense, Equipment, EM Work Order Lines – Defaults tax code from AP Vendors.

  • SM Work Order line – Defaults tax code as null.

Note: If you enter a non-taxable material for the line, the tax code will default as null. If you enter a non-valid material (not applicable for Inventory lines), the tax code will default as null for SM Work Order lines only; all other line types will default the tax code as indicated above.

Once you specify a code in this field and a tax type in the Tax Type field, the system displays the tax amount in the Tax Rate display field. The tax amount will also display on the Purchase Order when printed, and will also show when invoicing in AP.

Committed Costs

If you post a job cost line (JC, PO, or SL type) with tax, the system relieves committed costs from the phase/cost type in JC Cost Detail table for the tax amount as follows:

  • if phase or cost type overrides do not exist for the tax code, the system uses the phase and cost type specified for the PO item.

  • if phase and cost type overrides exist for the tax code, the system uses the tax code phase and cost type.

  • if a phase override exists for the tax code, but a cost type override does not exist, the system uses the tax code phase and the cost type from the PO line.

  • if a cost type override exists for the tax code, but a phase override does not exist, the system uses the phase from the PO line and the tax code cost type.

Note: In all cases, the system updates JC with the tax rate amount. When you create an AP transaction for this PO item, the system relives the original tax rate amount from JC, but uses the current tax rate when creating an invoice.

Intercompany Transactions

If the tax type is Sales or VAT (Value Added Tax), the tax code defaults based on the Tax Group assigned to the AP Company.

If the tax type is Use, the tax code defaults based on the Tax Group assigned to the 'posted to' company.

Redirect Phase/Cost Type

If this PO item is for a job (line type 1-Job) or a job-related SM work order (line type 6-SM Work Order) and the tax code is assigned a redirect phase and/or cost type (i.e., JC Tax Phase and/or JC Cost Type in HQ Tax Codes), the system will validate the phase and/or cost type based on the Phases on this job are locked checkbox in JC Jobs. Validation will be as follows:

  • Phases Locked - If the Phases on this job are locked box is checked and the tax code specifies a redirect phase only, the phase must exist in JC Job Phases for the PO Item job (if a 1-Job line) or the work order job (if a 6-SM Work Order line). If the tax code specifies both a redirect phase and cost type, the phase/cost type combination must exist for the specified job in JC Job Phases. If the tax code specifies a redirect cost type only, the cost type must exist in JC Job Phases for the PO item phase (job line) or the work order scope phase (SM WO line). (Note: If you have not assigned a phase to the work order scope, the cost type must exist for the PO item phase.)

  • Phases Not Locked - If the Phases on this job are locked box is not checked and the tax code specifies a redirect phase only, the phase must exist in JC Job Phases or JC Phases for the PO Item job or the SM work order job. If the tax code specifies both a redirect phase and cost type, the phase/cost type combination must exist for the specified job in JC Job Phases or JC Phases. If the tax code specifies a redirect cost type only, the cost type must exist in JC Job Phases or JC Phases for the PO item phase (job line) or the work order scope phase (SM WO line). If you have not assigned a phase to the work order scope, the cost type must exist for the PO item phase.

    Note: If validation determines that the conditions indicated above do not exist, you will need to either use a different tax code or add the phase and/or cost type combination to JC Job Phases or JC Phases (depending on the "locked phases" flag) before you can post the batch.

PO Add Item

PO Change Order Entry

Supplier

Enter the supplier number for this purchase order. Press F4 for a list of vendors from AP Vendors.

Use this field for purchase order items where a second party, other than the vendor, is involved.

PO Add Item

PO Change Order Entry