This chapter lists and defines key words used in this guide.

The OpenPro Software Systems' Purchase Order module is designed to manage a company's entire purchasing process. It is an accrual system with a complete vendor master file, vendor items and interface with inventory control. Purchase Order can assist in the management of inventory by scheduling receipts dates and by keeping track of vendor performance and payment terms.

Vendor Accounts: Each vendor is assigned a 15 digit alphanumeric code and is entered into the system only one time. An unlimited number of vendor accounts can be maintained.

Purchase orders new, creates new purchase orders. OpenPro handles many different types of purchase orders, blanket, regular, drop ship. OpenPro purchase order module interfaces to Inventory Control, General Ledger, Manufacturing, Job Cost and Sales Order Processing.

The Payables system does Payments and Check Printing: The vouchers can be paid by either system generated or manually written checks. A voucher can be paid in part or full. Purchase Order will keep the balance open until the voucher is paid or a debit memo is issued to relieve the balance. System and manual checks and the information required to produce bank reconciliation's are recorded. The Purchase Order module prints checks in standard check format and the forms for the checks are available from a national supplier.

Reports: A variety of reports are available in Purchase Order including a listing of all vendors and their current balances, selected vouchers subtotaled by vendor, vouchers selected for payment, aging and cash requirements, and a listing of checks—both system generated and manual checks.

Accounting
<Accounting> is the function that provides quantitative information about your company through the collection, categorization, and presentation of financial records.

Purchase Order <Purchase Order> is the accounting area dealing with the purchases and disbursements of your company and with the money you owe. As used here, <account> means, “a record of financial activity.” <Payable> means, “that should be paid,” or “due to another.” Purchase Order is often abbreviated P/O or AP.

Voucher
<Voucher> is the number assigned to invoices received. It is an internal number assigned to invoices received from vendors and is used to control and verify payment accounting area dealing with the purchases and disbursements of your company and with the money you owe.

Vendor
A <Vendor> is a person or company from whom you purchase the goods and services used in your business. For example, the telephone company is one of your vendors. You purchase a service from them.

Accrual
<Accrual> is a term that describes one of the two methods of accounting for revenues and expenses that are commonly used and approved by the Internal Revenue Service (in the United States). The other method is called the <cash> method.

Under the accrual method:

• You count a sale as revenue when you deliver on the sale, not when you actually get paid for it (which can be weeks or months later).
• You count a purchase as an expense when you receive goods or purchases, not when you actually pay for it (which can be weeks or months later).

Under the cash method:

• You count a sale as revenue only when you get paid for it.
• You count a purchase as an expense only when you pay for it.

Transactions
As used in accounting, <Transaction> means a business event involving money and goods or services. For example, a transaction occurs each time you gas up your car: you pay money in exchange for gasoline (goods).

Because computer software deals primarily with business events that have already taken place, in OpenPro software, <transaction> means the record of a completed business event involving money and goods or services.

The records of sales made and payments received are examples of transactions from the accounting area called <accounts receivable>. The records of your purchases and the payments you make for such purchases are transactions from the accounting area called <Purchase Order>. The records of quantities of goods received or sold are transactions from the accounting area called <inventory control>.

Payables
In OpenPro.com Purchase Order, a <Payable> is an P/O transaction. When a vendor sends you an invoice, you enter this invoice into your computer system as a <payable> using the Payables function.

Open Item
In Purchase Order, an <Open Item> is an unpaid invoice. After a payable has been entered and verified as correct, it is posted and becomes an <open item> until it is fully paid. (Also, any unused credit or debit memo from a vendor is an open item.)

Prepaid
In Purchase Order, <prepaid> means a bill that has been paid before the good or service has been received. In this case it is not necessary for the computer to print a check paying this bill. In OpenPro.com P/O, a prepaid entry is called a <non-P/O> entry because it does not affect the P/O account (although it still affects other accounts).

Manual Payment
A <Manual Payment> is a payment made using a handwritten check instead of a computer-printed check. A manual payment differs from a non-P/O (prepaid) transaction in that the nonP/O transaction was paid prior to entering into the computer system. A manual payment can be made for an unpaid open item already entered into the system.

Immediate Payment
A special case is a method of entering an unpaid bill and having the system immediately and automatically, print a check for that bill. The bill is then considered paid. An example of this is paying for a COD shipment.

Aging
To <Age> means to determine how old a payables document is. You may select to age either by <due date> or by <invoice date>.

The software enables you to use the above aging periods, or to define your own. When aging is done by invoice date, a document becomes 1 day old on the first day after the vendor’s invoice is posted. An invoice entered with a date of January 1 would be 30 days old on January 31, regardless of the due date.

When aging is done by due date, a document becomes 1 day old on the first day after the due date. A vendor’s invoice due for payment on January 1 would be 30 days old on January 31, regardless of the invoice date.

General Ledger
When your company receives payables and makes payments, this activity affects not only Purchase Order, but also the accounting area called <General Ledger>. General Ledger is the area of accounting where all accounting records are brought together to be classified and summarized. Financial statements are printed based on this data. As used here general means pertaining to many areas. Ledger means a book where accounting records are kept. This term evolved from pre-computer times when accounting records were kept exclusively by hand in large books called ledgers. General Ledger is often abbreviated G/L or GL.

General Ledger Account
A <General Ledger Account> is a specific category under which all financial activity of a certain kind is classified. For example, you might have a general ledger account called telephone expenses under which you categorized your telephone bills. Typically, an independent business has a hundred or more G/L accounts. In OpenPro.com accounting packages, each time any financial activity occurs in any area of accounting, the dollar amount is recorded under the appropriate G/L account numbers.

Account Number
An <Account Number> can be fairly extensive. You can create an account number with up to four segments or many combinations of the four. If all four segments are used the first two segments are reserved for cost centers, the third segment is always the main account number and the fourth segment is always the sub-account number. An account number must consist of at least one segment.

Refer to the Company Information chapter in the Installation and System Guide for complete information on General Ledger Account Numbers.

Distribution
As used in OpenPro.com Purchase Order, <Distribution> means either:

• The act of allocating amounts, such as purchase or disbursement amounts, to G/L accounts; or
• An amount allocated to a G/L account.

For example, when you purchase office supplies on credit, you enter information into the computer about how much you owe, who you owe it to and when it is due.

In addition, you distribute (allocate) the amount of the purchase to your G/L Purchase Order account and to your G/L office supply expenses account.

The OpenPro.com P/O package collects all distributions to G/L accounts and prints a report summarizing these distributions. These distributions can be automatically transferred into OpenPro.com General Ledger, if you use it.

Debit and Credits
In addition to handling a particular area of accounting, as described above (such as accounts receivable or Purchase Order), each OpenPro.com package also keeps track of the effect of those transactions on G/L. For example, when you make sales to, or receive payment from your customers, this activity affects not only A/R, but also G/L.

These transactions must be recorded both in the proper A/R customer accounts and in G/L under the proper G/L account numbers.

The terms <Debit> and <Credit> refer to the types of transactions that must be recorded in G/L accounts to accurately reflect the activity occurring in all accounting areas.

In P/O, a debit memo issued by a vendor to you increases what you owe that vendor, and a credit memo decreases what you owe.

Unfortunately, debit does not always mean <an increase in an account> and credit does not always mean <a decrease in an account>. In some accounting areas, such as most asset and expense accounts, a debit increases a G/L account and a credit decreases a G/L account. In other areas, such as most liability and sales accounts a debit decreases, and a credit increases, a G/L account.

A minus entry changes the effect of most transactions. Where it is allowed, a minus credit becomes a debit.

This occurs because of the system called <double entry accounting> (also called <double entry bookkeeping>) which is the standard method of accounting used today.

Double Entry Accounting
The concept behind <Double Entry Accounting> is that every entry (transaction) results in balancing debit and credit entries into the General Ledger. Let’s look at the debits and credits involved when a typical independent business pays for goods or services bought earlier on credit:

• The debit: The disbursement (payment you make) results in a debit transaction that decreases your <money owed others> account (usually called the <Purchase Order> account). This is a <debit to Purchase Order>.
• The credit: The payment also causes a credit transaction that decreases one of your <cash on hand> accounts. This is a <credit to cash>.

So two entries are made into G/L that balance each other. These balancing entries form the basis of double entry accounting. If you or your accountant ever find your G/L accounts <out of balance>, it means that the proper balancing entries were not made.

No attempt is made in this guide to teach you accounting, especially about what types of transactions cause debits or credits to what accounts. Unless you are an accountant or fully responsible for maintaining your company’s general ledger, you need not remember whether a debit increases or decreases a particular type of G/L account.

When using OpenPro.com accounting software, you are occasionally asked to enter the G/L account to be debited or credited. Just refer to the appropriate chapter in this User Guide, where you will find exact instructions about what to enter.

Within OpenPro.com General Ledger, Accounts Receivable, Purchase Order, Payroll, Order Entry/Billing, Job Cost, Inventory Control, Purchase Order, and Check Reconciliation, the software automatically takes care of all double entry accounting as you enter the required information on the screen.

Function
As used here, <Function> means one or more programs that accomplish a specific task. Each selection on the main menu for a OpenPro.com package is a function. When you select a function from the menu, one or more programs automatically execute, thereby allowing you to accomplish the task you selected.

Integrated
When a set of accounting packages is <Integrated>, any information generated in one area and which is needed in another area is automatically supplied to that other area. You do not have to enter the information twice.

OpenPro.com accounting software is fully integrated. When OpenPro.com Purchase Order is used with OpenPro.com General Ledger, any information recorded in P/O that should be known to G/L can automatically be transferred into G/L.

G/L account distributions are created each time payables or checks are posted. The Payables Distributions to G/L Report can be printed on request. This is normally done at the end of each accounting period.

Similarly, when OpenPro.com Accounts Receivable is used with OpenPro.com Check Reconciliation, information on checks written or voided can be actually transferred to C/R. If you use OpenPro.com Job Cost and/or Purchase Order, Purchase Order automatically interfaces to one or both packages.

Data Organization
Most of the information you enter into your computer is stored on your disk. In order for computer programs to locate specific pieces of data (within large masses of data) and to process data logically, data must be organized in some predictable way. OpenPro.com accounting software organizes your data for you automatically as it stores it on your disk. Similarly, when OpenPro.com Purchase Order is used with OpenPro.com Check Reconciliation, information on checks written or voided can be automatically transferred to Check Reconciliation.

There are five terms you should understand about the way the data is organized:

• Character: A <Character> is any letter, number, or other symbol you can type on your computer keyboard.
• Field: A <Field> is one or more characters representing a single piece of data. For example, a name, a date, and a dollar amount are all fields.
• Record: A <Record> is a group of one or more related fields. For example, the fields representing a customer’s name, address, and account balance might be grouped together into a record called the <customer record>.
• Entry: A record in a data file is often referred to as an <entry>.
• Data File: A <Data File> is a group of one or more related records. A data file is often referred to simply as a <file> (without the word <data>). Each file is kept separate from other files on the disk. (There are other types of files in addition to data files. For example, programs are stored on the disk as <program files>. However, references to <file> in this User Guide mean <data file> unless specifically stated otherwise.)

Enter
To <Enter> means to record in the computer. For example, in P/O vendor names and addresses must be entered into the P/O Vendor File and purchases must be entered into a transaction file.

Post
To <Post> means to take payables transactions from a temporary file and move them to a permanent file (where other transactions probably already exist). For example, in P/O, purchases from vendors are initially entered into a temporary transaction file. After payables transactions have been entered and verified as correct, they are posted to the permanent P/O Open Item File.

Often, during transaction posting, information in other data files is also updated. For example, in P/O, when payables are posted, the account balance and historical figures in the Vendor File are also updated.

Register
A <Register> is a formal report of transactions approved for posting. Registers should be retained like journals would be in a manual accounting system.

Alphanumeric
When the manual refers to <Alphanumeric>, it means letters of the alphabet, numerals (numbers), special symbols (*, &, $, etc.) or any combination of all three kinds. In contrast, <numeric> (or <digits>), means only numbers.

Multi-Company
<Multi-Company> refers to the capability to do accounting functions for multiple companies with the same set of software. A user wanting to do accounting functions for more than one company on OpenPro.com packages can select Define Multiple Companies (refer to this chapter in the Installation and System Guide).

Help
<Help> refers to descriptions of functions that appear on your screen by pressing a designated Help. The <Help> text gives you a quick reference to the highlights of functions while you are running them.

Spool
SPOOL is a computer term meaning <Save Printer Output Off-Line>. Spooling is a technique that allows a report to print at a later time. Instead of reports going directly to a printer, they are saved as a disk file (which is usually a lot faster). When a printer is available, all or some saved reports can be printed in one long run (for example, overnight).

Check Reconciliation
<Reconciliation> means, “bringing into agreement.” When reconciliation is applied to checkbooks, it means, “bringing into agreement the balance of your checkbook and the balance shown on your bank statement.”

Auxiliary Files
An easily maintainable control file allows you to define various parameters that control many of the characteristics of the package.

Vendor File
P/O contains programs to maintain the Vendor File, including entering, changing, and deleting information. In addition to the usual name and address information, the vendor record contains information about the normal terms offered by the vendor and year-to-date and last year purchases and discounts. The Vendors by Vendor # Report and Vendors by Vendor Name Report can be printed on request.

Payables (P/O transactions)
With the Payables function, you can enter, edit, and post payables (P/O transactions). A <voucher number> is automatically assigned to each new payable entered. This number is used as an internal reference for each invoice and requires no extra work by the user.

As each payable is entered, P/O automatically calculates the due date, discount amount, and discount date, based on the terms stored in the vendor record, and presents them as default values that can be used while entering information. Payables can be entered for <temporary> vendors, so that one-time vendors can be used without having to maintain Vendor File records for them.

Payable distributions can be made to an unlimited number of G/L accounts. Credit vouchers, adjustments, and prepaid can also be entered through this function.

The Payables Edit List is available on request as an aid in the editing process. On request, new payables are posted to the P/O Open Item File and a Payables Register is printed.

Recurring Payables
You can also enter and edit recurring payables. A recurring payable is one that you know occurs at some regular time interval. You only have to enter the recurring payable once. Then you simply select the recurring payables that are currently due. Regular P/O transactions are created for them automatically.

Aged Open Items Report
The Aged Open Items Report can be printed on request for all or selected vendors. Two formats are available. The detailed format shows all open items, by invoice, with aged totals for each vendor. The summary format shows only the aged totals for each vendor. Four user-defined aging periods are provided, and aging can be done by either the invoice date or the due date.

View Open items
You can view all open items for a selected vendor.

Cash Requirements Report
You can print the <Cash Requirements Report> on request for all or selected vendors. This report is useful in determining which vendors’ items to pay. It shows past and current items due with any valid discounts. It also shows items not yet due, but on which the discount would be lost if they were not paid before the next anticipated payment date.

Manual Payments and Modifications
P/O handles manual payment of open items already entered as regular vouchers. A manual payment is a payment made using a handwritten check instead of a computer-printed check. You can also edit due dates, discount dates, and discount amounts for existing open items.

Payment Preparation
A very flexible payment preparation procedure is provided. In the <group> selection mode, all current and/or past due items can be selected for payment at once. You can also choose to pay items whose discount would be lost if not paid prior to the next payment date. You can select for payment individual invoices, or all invoices for a specified vendor, or you can defer them from payment. Partial payments can be made on any open item. A Pre-Check Writing Report can be printed, showing all selected vouchers and what the payment amounts plus discounts are, so that any needed adjustments can be made prior to actually printing checks.

Check Printing
At any time after payment preparation has been done, P/O checks can be printed. For COD and other special cases, P/O may write the check immediately on entry.

Multiple check formats are provided, allowing increased flexibility in the format of the check stub. A reference field may be printed on the stub for each voucher paid. One line per voucher may be printed using compressed format. Checks can purchased through the www.openpro.com website.

Provisions are included for restarting check printing from any specified point if necessary to recover from a printer jam.

After printing checks, the P/O Check Register is automatically printed, showing all computer-written checks, as well as all manual checks and prepaids entered since the last Check Register was printed. The vouchers paid by each check are also shown.

Automatic Check Voiding
A simple check voiding procedure is provided. Distributions for checks are reversed and vouchers are reinstated to the Open Item File automatically. (This requires that Vendor History be used.)

Vendor History
A complete history of all transactions and payments for all vendors is kept on file for as long as desired. At any time, you can print various reports showing this vendor history information. These reports include the Open Payables by Date Report and the full Check Register, showing all checks printed for any date range. The history of any particular invoice can be inquired into on request.

Purchases/Discounts
The Purchases/Discounts Report shows the total purchases and discounts (yearto-date and last year) for each vendor shown.

Password Protection
You have the option to specify that passwords are required. A password is a unique code you assign to each individual using your OpenPro.com software. When passwords are required, each potential user must first enter a valid password before being allowed to use a protected function.

File Recovery Procedure
This function provides the capacity to recover corrupted data files. You can also use it to convert important files to a format that can easily be interfaced to common database and word processing programs. For more information, refer to the Installation and System Guide.

Printers
You can easily configure your OpenPro.com software to work with any of the most popular printers. Additionally, instructions are given to allow you to configure the software to use virtually any other printer.

Here is a summary of major P/O features:

• Provides maintenance and lists of the vendors.
• Provides maintenance of request for purchase order.
• Provides maintenance for purchase orders.
• Provides receivers for purchasing.
• Allows entering, editing, and posting of new payables, prepaid, adjustments, and cancellations with edit list and journal.
• Allows you to enter, edit and select recurring payables to turn into vendor invoices.
• Recurring payables can be selected by cut-off date and group, allowing automatic selection.
• Prints an P/O open item report.
• Allows on-line vendor account inquiry.
• Prints a cash requirements report.
• Prints a cash disbursements projection report.
• Allows flexible payment selection, including partial payments, with a check selection edit list.
• Prints P/O checks and a check register.
• Many check formats are provided—may print COD checks immediately on entry.
• Automatic check voiding is provided.
• Prints a report showing P/O distributions to the general ledger.
• Keeps a full vendor history showing the details of all entry and payment activity for as long as you want to keep it.
• Prints a vendor analysis report.
• An unlimited number of P/O accounts and cash accounts may be used.
• Allows vendor terms based on days or on day of month.
• Allows aging of accounts based on days or on day of month.
• May be interfaced to OpenPro.com General Ledger, Job Cost and/or Purchase Order, or used stand-alone.
• May be interfaced to OpenPro.com Check Reconciliation to reconcile the checkbook from which payments to vendors are made.
• Vendor <purchasing> addresses are maintained for use with OpenPro.com Purchase Order.
• Allows storing of reports on disk for printing at a later more convenient time.
• Allows use of multiple printers.

Includes password protection, extensive data file integrity checks and backup/restore facilities.

Provides on-line <Help>, which is available to the user at the touch of a key.

Can be used with either <traditional> multi-level menus or a <menu bar> from which you can quickly access other functions or packages.

Before getting started, ensure that the Purchase Order software is installed on your computer. Refer to the OpenPro.com Installation and System Guide (ISG) to install the P/O package before proceeding.

Also, you may want to familiarize yourself with the main features of this package by reading the <Understanding Purchase Order> chapter in this guide.

Your Accountant
You should consult with your accountant before using OpenPro.com software. Your accountant should be familiar with your accounting software, and can advise you on converting from your existing Purchase Order system.

The Purchase Order data files
In order to use this package, you first must enter certain information describing your P/O system and how you want your transactions handled. There are seven different data files that you must <build> (enter) before the package will be ready to use. Listed below is a brief explanation of those seven files:

General Ledger Chart Accounts File
This file contains all of your general ledger accounts used in P/O. Any time you use a G/L account number; P/O will verify that it is in this file. If you are running other OpenPro.com packages, this file may already exist.

General Ledger GL Cash Accounts File
This file contains all of your cash accounts, including those used by OpenPro.com Accounts Receivable, Purchase Order, Check Reconciliation, and Payroll. If you are using these other packages, this file may already exist. These accounts must also exist in the G/L Accounts file.

Rules Setup Company File
This file is used to record information about your company, such as your company name, address, etc. If you are running any other OpenPro.com package, this file may already exist.

Rules Setup Business Rules setup File
This file contains basic information, which defines the way you do your Purchase Order, and as a result, controls some of the features of the OpenPro.com package.

For example, part of this control information determines how you age your vendor accounts. Since this information may affect other OpenPro.com packages, it is important that you enter it correctly.

Payables Vendor File
This file contains a record for each of your vendors. Each record contains such information as the vendor’s name, address, usual terms, and year-to-date and last-year statistics.

P/O Open Item File
In OpenPro.com P/O, an open item is any bill that has not been fully paid or any unused credit or debit memo on file for any vendor. The P/O Open Item file is simply the collection of all open items (called <payables>) for all vendors.

I/C Item File
In OpenPro.com I/C, items need to be setup and Item Classes. This is where the account numbers are being used during the purchasing receiving process.

Setting up P/O
Perform these steps to use OpenPro.com Purchase Order:

• Become familiar with the Installation and System Guide business rules, especially the chapters in the section Getting Around in OpenPro.com.
• Start P/O according to the instructions in the Using Purchase Order chapter.
• The Business Rules, Company file is set up for you as part of the installation procedure. Use Company Information to edit the Company File as appropriate for your company (refer to the Company Information BUSINESS RULES).

• The G/L Accounts file is used by P/O to ensure that every G/L account entered into the system is a valid account.

• If you are already using another OpenPro.com package (other than General Ledger), this file already exists. Inventory control must be setup. With product and inventory classes.

• If you are already using General Ledger but no other OpenPro.com package, the G/L Accounts file is available.
• Enter your cash accounts using General Ledger Cash accounts. OpenPro.com allows you to use an unlimited number of cash accounts in P/O. If you are running any other OpenPro.com package, this file may already exist. You may cut checks in P/O against any of these accounts. The accounts entered here must have been entered previously in the G/L Accounts file, using Business Rules setup. The information in the P/O Business rules file controls how P/O is used by your company (refer to the Control Information chapter) also has your next Voucher number etc.

• Enter in Vendor Classes. This has you default AP expense account.

• Enter in TERMS in the Rules setup, Maintenance, Terms.
• Enter your vendors, using Vendors (refer to the Vendors chapter).

Using P/O on a regular basis, you must ensure that all outstanding payables are entered into P/O and that the total of these payables corresponds to the balance of your P/O account in your General Ledger.

How you do this depends on whether or not you are interfaced to OpenPro.com General Ledger. Each use is discussed in a separate section below.

Begin using the OpenPro.com P/O package on a regular basis, making all entries through this package (unless you are using OpenPro.com Purchase Order).

Refer to the Guide to Daily Operations chapter.

If you are not using OpenPro.com General Ledger
Gather together the documents that correspond to the outstanding account balance in your General Ledger as of the day you plan to start using OpenPro.com P/O on a regular basis.

Enter and post regular payable transactions for all of these outstanding payables.

You may enter each individual payable for each vendor, or one summary payable for each vendor. Your choice here depends upon your business situation and should be done with the advice of your accountant.

Note that if you enter one summary payable for each vendor, you will not be able to track early payment discounts for the individual vouchers summarized, nor will you be able to age these individual vouchers using the Aged open items report.

At this point, the open items in P/O correspond to your P/O account balance in General Ledger and you are now ready to start using P/O on a regular basis.

Payables that are posted from this point forward will create G/L distributions.

These distributions can then be printed and purged. The Payables Distribution to G/L Report is then used to transfer the debits and credits from P/O to your manual General Ledger.

If you are using OpenPro.com General Ledger
Gather together the documents that correspond to the outstanding account balance in your General Ledger as of the day you plan to start using OpenPro.com P/O on a regular basis.

Enter and post regular payable transactions for all of these outstanding payables.

You may enter each individual payable for each vendor, or one summary payable for each vendor. Your choice here depends on your business situation and should be done with the advice of your accountant.

Note that if you enter one summary payable for each vendor, you will not be able to track early payment discounts for the individual vouchers summarized, nor are you able to age these individual vouchers using Aged open items report.

The outstanding balance for your P/O account, as shown on the Aged Open Items Report (when run by invoice date), should tie out to the P/O account in your General Ledger.

At this point, the open items in P/O correspond to your P/O account balance in General Ledger and you are now ready to start using G/L on a regular basis.

Payables that are posted from this point forward create G/L distributions. These distributions are transferred to General Ledger using the selection Get Distributions in G/L. Refer to the G/L Get Distributions chapter for more information on this selection.

When you finish building your data files, you are ready to use P/O. The remaining chapters in this guide show you how to:

• Enter Purchase Orders
• Print purchase orders and listing Report
• View a vendor’s invoices
• Edit P/O items
• Print the Cash Requirements Report
• Prepare payments and print checks
• Void checks
• Print the various vendor history reports
• Print the Purchases/Discounts Report

You’re ready to continue now. Build the data files per the above instructions, and then you can begin using OpenPro.com P/O to process your work.

If you have problems with this software package, contact your dealer or authorized consultant.

For the name and location of a OpenPro.com dealer or an authorized consultant near you, contact the OpenPro.com receptionist at 1-714-378-4600.

If you want to receive support directly from OpenPro.com, please call our End User Support Department at 1-714-378-4600. email supportop@openpro.com

Or when you are in OpenPro, you can select support on the top right side and have live support chat sessions.

When you call this number, you are billed for support on a per-incident basis.

Before the billing starts, you are informed of the current rates, and you are given the opportunity to disconnect before you incur any charges.

You may go to your own distributor for training; however, if your dealer does not offer training, Authorized Training Centers are available. Call OpenPro.com at 1-714-378-4600 for the name of the Authorized Training Center in your area.

This chapter provides the information you need in order to use OpenPro.com Purchase Order.

The next chapter is a guide to daily operations. It explains how you use OpenPro.com Purchase Order to perform various daily, weekly, and periodic tasks.

After the guide, the next few chapters give instructions on entering basic information to set up your package according to your needs and to prepare you for daily operation.

Next are chapters that you use most frequently. They describe how to use OpenPro.com Purchase Order on a daily basis.

The last few chapters describe selections that are used periodically.

Additional information such as defining multiple companies, passwords, advanced features, and file recovery utilities, can be obtained from the Installation and System Guide (ISG).

Each chapter of this guide provides instructions on how to use a particular selection of your software.

The instructions include many examples. In fact, you can go through the guide and enter the examples shown in each chapter. This will demonstrate the capabilities of your new software. Each chapter has sample printouts of the information entered. Do not attempt to do the examples on a production system.

If you use the multi-company feature, you can reserve a test company for experimentation. If not, either do all your experimentation before beginning routine business use of the system, or else back up all your data before your training sessions and restore it afterwards.

You can press the <HELP> on the upper right side of the screen key at any time for on-line help about a task or selection you are currently using.

A <Menu> is a list of applications from which you can select. Selecting items from a menu on a computer is the way you tell your computer what you want to do.

If you have been using previous versions of OpenPro.com software, you are familiar with the way those menus worked. Selecting an application from one of the menus either allows you to perform an action or brings you another menu from which to make another selection. Menus can be customized to your preference.

Your computer has an operating system (which is the basic software of the computer) such as Windows, Linux, Mac, or UNIX®. If you are uncertain which operating system your computer has, contact your supplier. For any operating system, you can alternately start your software by typing in the URL in your Browser. If you do this, you can select Purchase Order from the master menu, which appears.

You are always asked to enter a user login.

You may be asked to enter your password. If so, enter your password. The characters you type are encrypted on your computer screen. Remember to press <tab> after typing your password.

If you have set up your software to process information for more than one company (refer to the Define Multiple Companies chapter in the Installation and System Guide), you are asked to enter an identifying code for the company you want to use. Below is a screen shot of the login page.

Once logged in, the most commonly used applications (such as purchase order) will appear on the left side of the browser.

To log out, click on <logout> from the top right side of the P/O menu. Depending on your computer setup, either the OpenPro.com master menu appears, listing packages, or your operating system prompt appears. Ways of creating purchase orders.

There are fiur different ways of creating purchase orders. They are:

1. Creating purchase orders through purchase order entry,
2. Creating purchase orders through manufacturing,
3. Creating purchase orders from sales order entry,
4. Creating purchase order from stock status requirements (suggested purchase order report).

This chapter will only explain the purchase order entry process.

Step one is to go to the Purchase Order menu on the right hand side of the browser then to Purchase New. Once there, search for a vendor if they already xist, if they do not then you may add a new vendor. Once this has been done click on the image labeled NEW ORDER under the actions. An example of the page is shown below.

After you have chosen to create a new order the following screen will load.

At the bottom of the screen you can enter in the part numbers. This is assuming the vendor part number relationship has been created. If there is no relationship part numbers can be added right away by going into Search for Items. Other options available are IMPORT CSV to import the line items. When competed with the purchase order, and you have the capability to approve the purchase order, click update.

Then the Approver can be selected and approved.

Once approved, the purchase order can be printed. If you can not approve the purchase order, it will be a Request for purchase order and wait for approval.

When the purchase order is approved, it can be printed, emailed or faxed to the supplier form the purchase order entry screen.

Once an item comes in, to search for the purchase order, go to the purchase order menu and click on search purchase order.

Once found, under actions click on the image labeled RECEIVER to receive the items into inventory.

Once you have chosen the receiver the following screen will pop open.

From this screen you can specify the amount of items received, create labels and once you have done this click on record items.

By doing this, it will record the items in inventory and is now able to send the items to the customers for sales order, inventory for stock or a mfg order. You may also create the voucher to pay a vendor if this rule is turned on in the business rules.

Purchase order receipts go to specific location based up on the purchase order.

Purchase order can have Ship to one location turned on (all line items ship to the same location, so you only have to update the first line items ship to location during entry), or Drop Ship All turned on (Drop Shipment means that you are purchasing this item and that vendor is shipping it directly to your customer, so you don’t have to include this item in your inventory).

Purchase orders will CLOSE automatically if the quantity on the purchase order receipt is = or greater than the actual purchase order amount. You can also configure it to close on a certain percentage amount close to the total amount. (see next page)

Receiving record in the POPRINT options will give you the chance to enter in a percentage. 05 means that if the purchase order is 95% completed, it will close that purchase order.

There are several purchase order reports, like this Open Purchase order line report showing you all the open purchase orders by product.

The following checklists are provided as examples of how you might use Purchase Order to perform various daily and periodic tasks.

The tasks are presented in a logical order. You should adjust the checklist as necessary to meet your own needs. Consult with your accountant for advice on organizing your own checklists to ensure the efficiency and security of your business operations.

EACH DAY
- Enter new vendors using AP Vendors - Enter purchase orders, edit existing po’s - Post receiving of the purchase orders - Select vouchers for payment using Select to pay. - Print the open purchase order report. - Print receiving log

EACH DAY, AS NEEDED
- Inquire into current payables activity, using View open items. - Inquire into partially or fully paid open items using View vendor invoices. This selection is only available if you are using vendor history. - edit purchase order - close out purchase order. - Post Edit transactions.

EACH PERIOD
- Print the Open purchase order reports.

EACH PERIOD, AS NEEDED

EACH YEAR
- Print a vendor list using Vendors by name or Vendors by vendor number. (This report contains the final year-to-date. figures for each vendor.) - purge closed purchase orders.

EACH YEAR, AS NEEDED

EACH YEAR

- Print the brief and/or full 1099 report. - Print 1099 forms (or use Magnetic 1099 forms if you are required to submit 1099 information on magnetic media). - Run Close a year for 1099’s.

EACH YEAR, AS NEEDED

The Business Rules is located in Rules Setup/Business Rules. This has P/O Control Information selection contains basic information about the accounting setup of your Purchase Order package. The information contained in the Business Rules various functions in the Purchase Order package and supplies default values for other functions. This has information like the Default Purchase Order number, Next request number, and Next receiver number for the distribution to General Ledger.

To set up all of the defaults, from the main menu you need to click on rules set up. From the drop down menu you click on Rules Setup, then Business Rules. Select the company you would like to configure and you will able to enter all of you default information.

To fill out all of the default information for payables you need to go to maintenance. In order to get here, from the main menu you click on Payables, and then on Maintenance.

Another drop down menu will appear with the options of Class, Rates, and Templates.

From here you are able to default the options by clicking on whatever option you would like to default and enter in the desired default information.

A Purchase Order account is a current liability in your General Ledger summarizing the amount of money owed to your vendors for goods or services you have received.

All accounts are included in the G/L Account file, but some accounts are also included in separate files of their own.

OpenPro.com P/O provides for an unlimited number of Purchase Order accounts. You may define as many as your business needs. The product purchase accounts come from inventory control Item Classes.

You can set up multiple P/O accounts and then assign each vendor to one of those accounts. All posting (payables and checks) for a vendor debit or credit the P/O account associated with that vendor.

Entering Vendor Class with P/O Accounts
The G/L accounts must already exist in the G/L chart of accounts before creating the vendor class.

Description
The vendor class is a list of default chart of accounts in the system. The class is associated to the Vendor and during the entry and posting of transaction in payables, these accounts are used.

Comments
Class Code - any code you want to use for some vendors.
Enter any comments about the P/O account.
AP Acct is the BALANCE SHEET AP ACCOUNT FOR THIS CLASS.

Discount account is for order discounts
Expense Distribution 1 and 2 are the Payables expense accounts from your P&L.

Printing a List of P/O Accounts
To print an P/O class list click on Payables, and then on Maintenance.
From there you click on Class and print a list by clicking on the printer icon located on the status bar line.
Click on the PRINTER icon to print the list of AP Classes.

Enter a new Vendor.

From the main menu, go to the Payables section, and from the drop down list click on AP Vendors. This will take you to the following screen:

From this screen click on the blue Make a new Vendor Here button on the top left hand side of the screen. That will take you to the following screen:

To enter a new vendor you will need to input the vendor information in ALL of the required fields in blue. Once you have done this you can input any additional information that you have for that vendor and click the blue Add button when you are finished. The default AP Account is the GL Balance sheet account in business rules.

Once you have added a new vendor you will be able to view all information pertaining to the vendor, edit the vendor’s information, and print a list of all documented vendors.

To view a list of vendors or any particular vendor, from the main menu go to Payables, and then click on AP Vendors. From here you can input search information for that vendor or you can do a quick search and click on the Search button. Leaving the parameter fields empty will give a list of all the existing vendors.

This will take you to the following screen:

To view details and information for a specific vendor locate the desired vendor and click on the blue Info button located to the right of the vendor that you have chosen.

A window similar to the one showing above will appear with all the information that has been entered for that vendor.

In order to edit a vendor you need to go back to the general AP Vendors list, and locate the vendor that you would like to make changes to. Once you have found the vendor click the green Edit button located to the right of the vendor. A window similar to the following will appear:

From this window make all necessary changes to the vendor information. Once you are through click on the Save button, and all of the information you have changed for that vendor will be saved.

Sometimes a vendor may supply you with goods from one or more locations that are different from that vendor’s remittance address. This would be the case when you purchase from a vendor’s branch locations but make payments to his home office or corporate headquarters. Use this selection to enter addresses for those vendors who have one or more purchasing addresses distinct from their vendor address.

To enter purchasing address you need to go into AP Vendors. If you are entering a new vendor, do everything you would normally do to enter a new vendor, and when you are finished scroll down the page. The remit To field will be located at the bottom of the vendor information page.

When you reach this screen you are able to input all of the information necessary to the purchasing address in the Remit To section.

In order to edit purchasing orders you go to the AP Vendors list and find the vendor that needs changes made to the address. When you find the vendor you click on the green “Edit” button located to the right of the vendor. This will take you to the screen where you originally entered all of the vendors’ original information. When the window appears you are able to make any changes necessary to the Purchasing Address. When you are through click on the Save button and all of your changes will be saved in the system.

Payables are entries requiring payment. There are one-time-only payables and payables that recur periodically (like a monthly payment). For each payable to be paid, a voucher is created. There is a voucher number that identifies each single payment.

Although the dictionary says that a voucher is as much a physical document as a receipt or a check, OpenPro.com does not use the word in this sense. A voucher in this package is exclusively an internal record in the computer, and there is no physical document corresponding to it. Also, OpenPro.com uses the terms voucher and payable interchangeably.

The Payables selection lets you enter or change various kinds of vouchers. If a voucher has already been entered (but not yet posted) for the information you specify, that voucher appears and is available for changes or deletion. Once the vouchers have been verified as correct (with the edit list), you can post them to the various P/O files.

The types of vouchers that can be entered in this function are: regular credit and finance charge vouchers.

The following is a description of these different types:

Regular Voucher
<Regular Vouchers> are entered for invoices, and vendor credit and debit memos. Entering a positive invoice amount credits (increases) Purchase Order. When entering a voucher for a vendor’s invoice or entering a vendor’s debit memo, enter a positive invoice amount. The total of the distributions entered for the voucher must equal the invoice amount.

Credit Voucher Memo
You must enter a negative invoice amount in order to record a vendor’s credit memo. Entering a negative invoice amount debits (decreases) Purchase Order.

When entering the credit memo, set the due days and discount days to zero.

For the G/L distributions, distribute the amount to the same account that was used earlier when the original payable, for which this entry is a credit memo, was entered, or distribute the amount to a returned purchases account. Consult with your accountant as to the exact account to use, which may vary depending on the nature of the credit memo.

Enter the distribution amount as a negative number. If multiple G/L distributions were used for the original payable, then you have to determine the amounts distributed to each account.

Partially Paid Vouchers
Vouchers that have been partially paid cannot be cancelled using a <cancellation> voucher. In order to cancel the balance of a partially paid voucher, do the following:

• Mark the voucher as manually paid using Edit open items. This transaction requires entry of a cash account. Enter any valid cash account. Post this transaction. See the <Open Items> chapter.
• Enter a negative <non-P/O check> (to the same vendor) for the same amount as was entered in (1). Use the same cash account that was entered in (1). Distribute the amount to the same accounts that were used in the original payable. Post this transaction.

Marking the voucher as manually paid credits the cash account and debits the vendor’s Purchase Order account. This reduces the Purchase Order account correctly. A negative <non-P/O check> debits cash and credits the expense distribution accounts. Thus, the debit and credit to the cash account wash and the net result is to reduce the account’s payable account and to reduce the expense accounts.

There are other methods that can be used to cancel a partially paid voucher. For example, you may enter a negative regular> voucher for the balance to cancel and then select both the original voucher and the negative voucher for payment and then cut a check for $0.00. However, this technique requires the use of a computer check.

To begin you will need to go to the AP Vouchers list and search either a specific vendor or click on fast search for the entire list of vendors.

In order to add a new voucher you need to choose the vendor that you want to enter the voucher for. Once you have found the vendor click on the blue and bolded voucher button located to the right of the vendor. This will take you to the following screen:

Once you are at this screen you can select either the default information or make a payable with new information.

To select default information for a voucher, choose a template in the purple area at the top of the voucher. Once you have selected a template click on the paintbrush icon directly next to the Template category, and this will automatically input default information for the specific template that you have chosen. When you have chosen a default voucher template click on the green Post button located at the bottom of the screen.

If you are entering new information on a voucher input all desired information into the correct categories and you can either click Post to post the voucher, or hold the voucher by marking the designated area on hold.

Once you have posted a voucher you are able to enter in date and time stamped notes attached to the voucher that you have just posted. During entry of notes you can also attached scanned version of the invoice for future reference. If you need an immediate check, you can select a cash account and PRINT CHECK, then POST after printing. You may also post close the screen, or post and add another voucher.

Distribution with Job Costing
When Job Costing is used, you can distribute the invoice amount to specific job accounts and/or to expense (non-job) accounts.

Begin by opening the AP Vendors list in the Payables menu. Choose a vendor for whom you would like to start a voucher. The voucher creation screen is shown below.

In order to assign a job to the voucher, there are two methods. You can choose a job number in Job for bottom acct to assign a job to the bottom account in the list. Alternatively, you can manually add a job number to the Job ID field by typing in one of the jobs that is defined in the Job Costing module (Job Costing > Job Master). For a quick reference of the job numbers, you can use the Job for bottom acct pull down menu.

When you have finished creating the voucher, click the Post button. This will take you to the following screen.

At this point, you can click on AJ to select a job detail to cost for the Job ID specified in the voucher. Note: Job Details can be edited or created by selecting Details in the Jobs Listing menu (Job Costing > Job Master). You can also choose a job group distribution by selecting an item in the Job Dist drop down menus. Note: Job groups are defined in Job Groups in the Job Costing menu. When you have chosen a job group, click on DJ to edit the job number distribution for that job group. Click Save when you are done.

See Payables details in the Accounts Payable guides.

The Aged Open Items selection enables you to view details of an open item as well as print a report showing all items in the AP Open Item File. The Aged Open Items Report shows the age of open items as of a particular date that you specify (called the aging date).

You can define aging periods either by days (0-30 days, 31-60 days, etc.) or by specific dates (3/16/1998 to 4/10/1998, 2/28/1998 to 3/15/1998, etc.). This is the date that is used to calculate the age of items. Items later than this date are not?

Now that we have gone through on how to setup vendors, we will go through the different ways of creating purchase order. First thing that must be done before creating a purchase order is to link the items in inventory control to the vendors located in AP Payables. There are two ways of doing this. First we will go through linking items manually one by one. Then we will go through mass updating.

To start, go to PURCHASE ORDER, PURCHASE SEARCH. Search for a vendor then click on the link named PART MAINT.

Once you have done this, the following screen will pop up. Once the screen pops up click on enter a new part.

This is assuming you have created an item in inventory control system. And the Item class is setup to go to the correct account numbers.

Once you have selected to enter a new part, you must search for the item by the options given. If you do not know any of the information you may search by category then it will give you a list of items in a drop down box you may select. Once you have selected the correct item, click on auto fill then add. This will link the item to the specified vendor you have chosen. Do this for every vendor you may create a purchase order for the item. The following screens will show you the steps.

1. Select the item from the drop down box that appears.

2. Click on auto fill, then click on add.

Now that we have gone through the step to link the items to vendors one by one, we will now go through by linking them by using the mass update application.

To do this go to the left menu screen and locate the LOAD VENDOR ITEMS menu under the maintenance section of PURCHASE ORDER.

Then you must select the vendor from the drop down list, select an item part number. You may also load by categories with assigning lead times.

Now that we have linked the items to vendors, we will go through the different ways of creating purchase order. There are three different ways of creating purchase orders. They are:

1. Creating purchase orders through purchase order entry,
2. Creating purchase orders through manufacturing,
3. Creating purchase orders from sales order entry,
4. Creating purchase order from stock status requirements (suggested purchase order report).

First step will show you how to create a purchase order through the sales order page.

Step one is to go to the Sales Order menu on the right hand side of the browser then to add order. Once there, search for a customer if they already exist, if they do not then you may add a new customer. Once this has been done click on the green image labeled NEW ORDER under the actions. An example of the page is shown below.

After you have chosen to create a new order the following screen will load.

To do a purchase order through the sales order page the item selected must be linked to a vendor(s). We will use item FG100 as an example. To bring the item to the sales order you may search by putting in the part number, by categories, or the options given on the page. Once you have found the item the sales order page will update itself like the following:

To create the purchase order, click on the purple SHOW image for more details.

Should the item be linked to a vendor you will notice a linked called ADD PO on the right side of the screen. On this screen you may also check the availability of the item, set in the required date for the specific item, set the ship to, create notes which will appear on the invoice and make it a drop it.

Once you have click on ADD PO, the following page will pop up and ask what vendor you wish to make the PO for if there is more then one vendor available.

From here you can either create a request for the purchase order or approve it. (Depending on rules setup you will only be able to create a request if this option is turned off)

Once you have approved the purchase order, another window will pop up giving you the purchase order number and requisition number.

Once this step has completed, on the sales order page click on the update button then place order. This will save the sales order in the shipping queue waiting for the item to be received by the vendor to ship out to customer.

Once an item comes in, to search for the purchase order, go to the purchase order menu and click on search purchase order.

Once found, under actions click on the image labeled RECEIVER to receive the items into inventory.

Once you have chosen the receiver the following screen will pop open.

From this screen you can specify the amount of items received, create labels and once you have done this click on record items.

By doing this, it will record the items in inventory and is now able to send the items to the customer.

You may also create the voucher to pay a vendor if this rule is turned on in the business rules.

MRP Process will see available inventory and generate a purchase order to fulfill the requirements.

Calculate requirements based upon many different options and will create a PO.

Work Order Material requirements can create a Purchase order as well.

Work order labor requirements for outside processing will generate purchase request as well.

Purchase order inventory shortage report can generate purchase orders as well.

These are Bids sent out to get quotes for and then turn into purchase orders.

Creating a purchase order through the purchase order menu
A second way of creating a purchase order is through the PURCHASE ORDER menu. First go to the purchase order screen then search for a vendor under the PURCHASE NEW option on the menu screen.

Once you have found a vendor, select NEW PO.

From this screen you can either add an item by entering in the part number or use the search option.

After choosing all the items, click on update order then place order. This will create a requisition number.

Next step is to approve the PO. To do this go under Purchase Order menu options and choose the purchase search. Search by requisition number and once found edit the PO.

This will bring the Purchase Order screen again. From here you must assign a person to approve the PO the click on APPROVAL. Depending on the rules setup in Business Rules, the system may require for you to enter in a password if this rule is turned on. If not then click on APPROVAL and it will approve automatically.

Once approved click on place order. Once you have placed the order, you may go back into the purchase order by clicking on edit and print the purchase order.

The print button is located on the top right side of the page.

Based upon the business rules, this approval process can require the password for verification of the approval, also a purchase amount must be setup in the Employee rep table under business rules.

When you click on the PRINT Purchase order, top right side of the screen, a purchase order will be generated. This can then be printed, emailed or faxed to the vendor for processing.

There are a few options on the print out, as to how many lines you want to have printed. These options are located in the rules setup, table, purchase print options.

Ways of creating purchase orders. And customize purchase order printing.

TO change print option, you must have a table type under system rules called po print options.

filled out just like above.

Ways of creating purchase orders. And customize purchase order printing.

Then under Business rules table.

Add the following 3 options.

• POPRINT - will print vendor item name, description1, description2 and notes from the vendor item table.
• POITEM - will print item description, and name fields from the IC_items table.
• DROPSHIP - will default the Y/N flag on creation of a purchase order.

Ways of creating purchase orders. And customize purchase order printing.

POPRINT - will print vendor item name, description1, description2 and notes from the vendor item table.

POITEM - will print item description, and name fields from the IC_items table.

DROPSHIP - all flag of Y, will change the ship to address to print one time instead of for all purchase orders line items.

Once you have received the item, you need to receive it in the system also. To do this, search for the PO again. Once you have found the purchase order click on receiver.

Once the receiver screen shows, specify the amount of items received and click on record items.

From here you may also create the voucher for payables. This is the same step as sales order processing.

For further questions and clarification, contact OpenPro at infoop@openpro.com.
Or call an OpenPro representative at (714) 378-4600

[last Review Date /]

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