This processing provides the ability to link a P.O. to a
Contract for selected re-rental equipment, and any supporting sales
parts and sub-contract services.
The order can be generated on a new or existing Purchase Order at the time the product or service
is put on a Contract.
Alternatively a contract can also be linked to a product order
detail when the order is entered in Purchase
Orders.
Typical items and services ordered to fulfil contracts include
re-rent items, fuel, transport for owned or re-rentals, and
erection or dismantling of equipment such as scaffolding and
temporary fencing.
Note: This processing is for Contracts
and does not apply to the Counter Worksheet.
It does apply when creating a contract as well as when a worksheet,
quote, or reservation is converted to a contract.
This Purchase Order Information window is suppressed in document entry and a P.O. is not created if the product has been flagged to Stop P.O. in the Make/Model and Re-Order Information (Rental Assets) or the Inventory Re-Order Information (Sales Products) window.
To use this processing the 'Inventory Received in
Warehouse' feature must be activated in the Company Inventory Parameters and the operator must
have Document Field Access permission to the Contract -
Create Linked Purchase Order feature in Security Role Permissions.
The Contract and the Purchase Order must be for the same division
and the same location.
The Contract - Change Linked P.O. Sale Cost flag in the
Document Field Access controls whether the operator is able
to make changes to the P.O. Cost for a sales part being ordered in
the Purchase Order Information window.
GENERATING THE P.O./CONTRACT LINK:
P.O.-to-Contract Link
When the link to the Contract is
established from the Purchase Order on the
expanded product P.O. detail record, the quantity of the product
must be the same on both documents.
The products from the contract are selected in the Selection Required window.
Note: A P.O. can only ever be linked to one contract, but a contract can be linked to multiple Purchase Orders for various vendors.
PRODUCT SETUP:
Following are the requirements for a product or service to be
eligible for this processing in Purchase
Orders and in Contracts:
Re-Rental Equipment:
When an order is generated for a re-rent product on a Contract, the rates to be paid to the supplier
can be calculated based on a discount percent of the rates charged
to the customer.
This is useful if the agreement with the re-rent vendor is that he
gets a percentage of the rental revenue collected.
A P.O. is also generated on Exchanges By
Contract or on Exchanges By Customer
when the replacement "New Product Number" is a Re-Rent product as
defined in the Rental Product Class and
the Purchase Order Information screen is
triggered to capture the required PO information if the operator
has "Document Field Access" permission to the "Contract -
Change Linked P.O." in the Security Role
Permissions.
No P.O. is created for the re-rent product if the operator does not
have role permission.
When the A/P Invoice by P.O. is entered
for a re-rent item, the default cost to pay the supplier uses a
percent of the rates charged to the customer as defined when the
P.O. was created from the Contract in Contract
to Purchase Order Information, based on the period from when
the product went out on the contract or was last billed, to the
date of the A/P invoice.
This defaulted estimated cost can be over-typed if required to
match the invoice from the supplier.
The rental period prints on the Purchase
Order details and is also displayed for reference with the
vendor re-rent rates, when the invoice from the supplier is entered
in A/P Invoices by P.O.
The Suppress Rates on PO Print flag in the Company Customer Forms setup controls whether
the product rates should or should not be printed on the Purchase
Order detail line for rental products ordered from a Contract.
When the A/P Invoice is posted in Post A/P Invoices the average cost of the re-rental is not updated and no A/P Transfer Adjustment is applied.
Services:
When the A/P Invoice is posted in Post A/P Invoices the average cost of the associated sales part is not updated and the description for the cost on the posting journal for this item is Outside Service.
In Contract inquiries, a window is provided on the product or service detail line in the Qty field to view any associated 'Purchase Order Details'.
As these invoices are posted, a re-rental cost transaction is written to the Re-Rental Transactions that can be viewed in Re-Rental Inquiry/Report.
Note: When a re-rent transaction is entered using a P.O./Contract link, the A/P invoice from the re-rent supplier must be entered in A/P Invoices by P.O. (not A/P Invoices) in order to complete the P.O. link and write the re-rental transactions.
Product costs, on hand quantities, and Asset Tags are not updated in the product file for re-rental and services ordered using the P.O./Contract link.
Note: Even if the flag to Update Average Cost In Warehouse is activated in the Company Inventory Parameters, costs are NOT updated for re-rent and services ordered using the P.O./Contract link process, as these items must post through A/P Invoices by P.O. to calculate appropriate costs.
Note: The corresponding Accrual entries will be over-written the next time the P.O./Contract Accrual Report is re-run and new transactions are created, regardless of whether the posting in Post Standard Journals has been completed.
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