You can process a standard purchase order.
Sterling Selling and
Fulfillment Foundation processes
a standard Purchase Order as follows:
PO creation and update
- Sterling Selling and
Fulfillment Foundation includes
the price on a PO line from the Vendor Price Lists maintained in Sterling Selling and
Fulfillment Foundation.
If vendor prices are not maintained in Sterling Selling and
Fulfillment Foundation,
the price may be retrieved from an external vendor pricing application.
- Sterling Selling and
Fulfillment Foundation provides
the ability to lock a vendor unit price on a PO line.
If
the price list of a vendor was used for unit price calculations, Sterling Selling and
Fulfillment Foundation recalculates
the unit price whenever there is any quantity change made to the purchase
order line. This is done so that the appropriate quantity break-up
can be used for unit price. If the PO unit price was overridden on
the purchase order, Sterling Selling and
Fulfillment Foundation skips
the calculation and recalculates only the extended cost of the line.
- Sterling Selling and
Fulfillment Foundation raises
a standard event on the successful creation and update of a purchase
order. This can be used to update the financial application with expected
purchase order cost related information.
Receipt of PO
- Sterling Selling and
Fulfillment Foundation increases
inventory value upon receipt of product against a PO. This calculation
is used to determine the Inventory Value.
- Sterling Selling and
Fulfillment Foundation revalues
the average cost of an item at a node when product is received against
a PO. This calculation is used to determine the Average Cost.
- Sterling Selling and
Fulfillment Foundation publishes
the data for each receipt line. This is used to generate general ledger
level postings in a financial application.
- As each PO line can have more than one receipt recorded against
it in Sterling Selling and
Fulfillment Foundation,
it is possible for a PO line to be included in multiple general ledger
interface records – one for each receipt line. Therefore, one event
is published for each purchase order line as a receipt is recorded
against it. If a line is received in multiple receipts, multiple events
are raised
- When a receipt is made against an existing on-hand balance that
is less than zero, Sterling Selling and
Fulfillment Foundation uses
the special handling described in Handling negative inventory balances.
- Sterling Selling and
Fulfillment Foundation differentiates
between the processing of standard Purchase Orders and chained Purchase
Orders.
For example, the A/P interfacing of a chained
PO MAY need to be suppressed when the notification of fulfillment
is signaled by the supplier submitting their invoice.
Invoice
creation
- The Invoice matching function is performed in the financial application
as follows:
- Discrepancies found during invoice matching function are posted
in variance accounts other than the Inventory value account.
- If the Accounts Payable application generates a variance between
the expected PO cost and the actual cost on the Payable Invoice, the
variance must be passed back to Sterling Selling and
Fulfillment Foundation to
be reflected in average cost. Sterling Selling and
Fulfillment Foundation provides
an API (updateInventoryCost) that accepts the variance amount (plus
PO reference and quantity invoiced) and attempts to adjust the inventory
value by this amount. If the total on-hand is less than what was invoiced
(due to subsequent shipments or issues), the total variance is prorated
and applied to the remaining on-hand inventory. The amount not applied
is passed back to the financial application so that it can be stored
in an appropriate variance account.