Purchase Order Module
Create, Track and Manage
Receipts and Inventory
The Purchase Order module is a fast and easy way to generate and keep track of open and closed purchase orders. It is fully integrated with CenterPoint Fund Accounting. And, in conjunction with an Inventory module, you can automatically update inventory records with every purchase receipt.
The Purchase Order module is designed specifically for municipals. It allows you to create encumbrance accounts to prevent overspending budgets or legally authorized appropriations.
Its interface is clean and simple. It is quick to learn and easy to become proficient. Like Diversified Billing, it is available with a traditional license for your LAN or as a Cloud subscription.
See How The Purchase Order Module Can Streamline Your Operation
Prevent Overspending With Encumbrances
Update Inventory With Each Purchase Receipt
Set Up Optional Approval Hierarchy
Print or Email Purchase Orders
Manage Receipt of Ordered Items
Creating a Purchase Order
The Purchase Order module is used to provide a printed purchase order for vendors and manage the orders you’ve placed. While not required, an available Inventory module greatly increases the utility of the Purchase Order module.
|PO Number||Use the system-generated PO Number or key your own number.|
|Prevent Duplicate Numbers||The system will alert you if a duplicate PO number is keyed.|
|Date Required||Use this field to notify the vendor to the date by which product must be delivered.|
|Approvals||If supervisor approval is required, PO can be directed to automatically to supervisor. If approval is required, print and email buttons are grayed out until supervisor approves.|
|Status||POs not yet completed can be put on “hold” until completed.|
|Deliver To||Ship to address defaults to company’s address. But for drop-ship orders, you can specify a client to receive the shipment. Or you can key any address.|
|Items||When you select inventory items to be ordered, the inventory status for that item is displayed. See quantity on hand, quantity on order and more.|
|Line Sequence||If you wish ordered items to appear in a particular sequent, you can re-sequence items with the line order number.|
|Sending||You can choose to print a hard copy of the purchase order or email it directly to your vendor.|
Encumbrances are a tool to assist government officials so they do not overspend legally authorized appropriations (budgeted expenditures or budget capitalized expenditures). An encumbrance is created through a purchase order transaction in CenterPoint and can be entered prior to the budgeted period, for example a fiscal year. When a purchase order is approved, the encumbrance process begins and an entry is made on the Equity section of the Balance Sheet to debit a Fund Balance account and credit the Reserve for Encumbrances account (the approval date is when the encumbrance entry is made, as opposed to the purchase order date). Purchase Order receipts reduce encumbrance amounts. When goods and services are received on a purchase order, an Accounts Payable invoice is created and the encumbrance is reversed. Encumbrance amounts may be different than actual amounts on a purchase order, in which case the encumbrance can be adjusted.
|Encumbrances Preference||Select a default Reserve for Encumbrances account to book the reserve for encumbrances on the Balance Sheet.|
|Create Encumbrance||Select the Create Encumbrances check box to indicate that encumbrance general journal entries should be created when the purchase order is approved and received. The general journal entries created will be to the required Reserve for Encumbrances and Fund Balance accounts entered from the Accounts button on the purchase order.|
Approving a Purchase Order
The Approve Purchase Order screen is used for organizations that require a stricter system for entering and approving purchase orders; for example, the employee that has a purchase request and enters into CenterPoint may not have the authorization to approve it. The system sets the “Date Approved” and “Approved By” on purchase orders.
|Require Approval||Requiring that all purchase orders be approved by a third party is a one-time setting. The approval setting can be turned off whenever you wish.|
|Approved By||Supervisors can select an “Approved By” name and an “Approved Date.”|
|Purchase Type||Approvers can view a list of all POs pending approval or filter the list by Encumbered Only or Unencumber Only or multiple other critera.|
Print or Email
CenterPoint allows you to e-mail your purchase orders at the time you save the transaction entry. The purchase order will be attached to an e-mail as a PDF file using the selected form design.
|Email Setup||Choose a default email address from which all email will be sent and to which replies will be directed. Also setup a default subject for your email and a default email message if you wish. Your purchase order will be attached as a PDF file.|
|Vendor Setup||Setup each vendor to receive purchase orders by print or by email. If email is selected, you can also specify the send from email address as well as cc: and bcc: recipients.|
|Sending Purchase Orders||You can send POs immediately after completion by using the print and email buttons on the Purchase Order screen. The button indicating the vendor preference in setup will be highlighted. Multiple POs can be sent after approved by selecting them and clicking either the print or email buttons.|
Receiving Ordered Goods
When the items ordered on a purchase order are received, they must also be received in CenterPoint. This process has you match receipts of items (or services/non-inventory items) against purchase order quantities. You can receive all of the items or some of them (a partial purchase order) and can adjust cost during the receipt process. You can also receive negative purchase orders for non-inventory accounts and items. An Vendor A/P invoice is generated for the amount received. This transaction has a status of “On Hold” until the printed invoice is received from the vendor. Invoices that are held, will not be available to pay in the Pay Invoices Due screen.
|Quantity Received||For each line item on the PO, indicate the actual quantity received. Once all items that were received. The posting process will create a vendor a/p invoice that is on hold.d have been documented, click Post.|
|Vendor Invoice||Once the invoice is received from the vendor, it should be verified against the transaction created by the Receive Purchase Order process. This will allow you to review the purchase order number the invoice was created from (From PO# field). This will also allow you to add any freight and sales tax amounts that were not known at the time of the receipt. The invoice amount can be different than the encumbrance amount.|
Add memo lines or create an encumbrance.
Add unlimited items. Account for any pre-payments.