End-User Guide

Order Management
2022 R2
 Contents | 2

Contents
Copyright............................................................................................................................................. 11
Reviewing the Interaction of Inventory and Order Management with Financials........................................ 12
Configuring Carriers, Packaging, and Freight ......................................................................................... 14
Integration with Carriers................................................................................................................................. 14
Automatic Packaging for Integrated Carriers........................................................................................16
Carrier Labels and Tracking Numbers...................................................................................................17
To Set Up Integration with FedEx.......................................................................................................... 20
To Set Up Integration with UPS............................................................................................................. 24
To Set Up Integration with ShipEngine................................................................................................. 27
To Set Up Integration with USPS via Stamps.com................................................................................29
To Validate Addresses.............................................................................................................................31
To Define a Box....................................................................................................................................... 32
To Create Ship via Codes for the Integrated Carrier.............................................................................33
To Configure a Stock Item for Automatic Packaging............................................................................ 34
Automatic Packaging for Local Carriers......................................................................................................... 35
To Configure Automatic Packaging....................................................................................................... 36
To Create a Ship via Code ..................................................................................................................... 37
Manual Packaging of Items............................................................................................................................. 38
To Manually Select the Package Box for an Order ...............................................................................39
Freight Calculation.......................................................................................................................................... 39
Configuring Order Approval...................................................................................................................44
Sales Order Approval.......................................................................................................................................44
Purchase Order Approval................................................................................................................................ 47
To Set Up Approval of Sales Orders................................................................................................................49
To Create a Map for Sales Order Approval..................................................................................................... 51
To Approve a Sales Order................................................................................................................................52
To Set Up Approval of Purchase Orders......................................................................................................... 52
Managing Sales Documents................................................................................................................... 54
Quick Processing of Sales Orders................................................................................................................... 54
To Configure Quick Processing for an Order Type................................................................................55
To Quickly Process an Order..................................................................................................................56
Predefined Sales Order Types.........................................................................................................................57
CM Order Type (Credit Memo)............................................................................................................... 58
CR Order Type (Cash Return)................................................................................................................. 59
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CS Order Type (Cash Sale)..................................................................................................................... 60

IN Order Type (Invoice).......................................................................................................................... 62
QT Order Type (Quote)........................................................................................................................... 63
RC Order Type (Return for Credit)......................................................................................................... 65
RM Order Type (Merchandise Authorization Return)............................................................................66
RR Order Type (Return with Replacement)...........................................................................................67
SA Order Type (Sales Order with Allocation)........................................................................................ 68
SO Order Type (Sales Order)..................................................................................................................70
TR Order Type (Transfer)........................................................................................................................72
Custom Sales Order Types.............................................................................................................................. 73
To Configure a Custom Order Type....................................................................................................... 75
Changing the Processing of Sales Documents...............................................................................................76
Managing Lines in Sales Documents.............................................................................................................. 78
Changing the Customer in a Sales Order....................................................................................................... 79
Checking the Credit Limit in Sales Documents..............................................................................................80
Printing Sales Documents............................................................................................................................... 81
To Print an Order or Quote.................................................................................................................... 82
To Print a Pick List for a Shipment........................................................................................................ 83
To Print Pick Lists for Multiple Shipments............................................................................................ 83
To Print a Shipment Confirmation........................................................................................................ 84
To Print Shipment Confirmations for Multiple Shipments...................................................................84
To Print a Sales Orders Invoice or Memo.............................................................................................. 85
Configuration of Automatic Write-Offs in Invoices........................................................................................ 85
Tax Application in Sales Documents.............................................................................................................. 87
Weight and Volume in Sales Orders............................................................................................................... 90
Posting Settings in Sales Order Types............................................................................................................90
Managing Purchase Documents............................................................................................................. 92
Support of COD Transactions..........................................................................................................................92
Purchase Order Configuration........................................................................................................................ 93
Purchase Order Statuses................................................................................................................................. 94
Purchase Order Fulfillment............................................................................................................................. 97
Blanket and Standard Purchase Orders......................................................................................................... 99
Drop-Ship Purchase Orders.............................................................................................................................99
Stock Item Lines in Purchase Orders............................................................................................................101
Non-Stock Lines in Purchase Orders............................................................................................................ 102
Service Lines in Purchase Orders................................................................................................................. 104
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Managing Lines in Purchase Documents..................................................................................................... 107

Changing the Vendor in a Purchase Order...................................................................................................108
Changing the Processing of Purchase Documents...................................................................................... 110
Calculating Use and Sales Taxes in Purchase Documents.......................................................................... 112
Inclusive VAT Support in Purchase Orders................................................................................................... 113
Vendor Catalogs.............................................................................................................................................114
Vendor Relations in Purchase Documents................................................................................................... 117
Processing Pre-Sale Quotes................................................................................................................. 119
To Create a Quote (QT).................................................................................................................................. 120
Processing Sales of Stock Items........................................................................................................... 122
Sales of Stock Items: General Information...................................................................................................122
Sales of Stock Items: Implementation Checklist......................................................................................... 124
Sales of Stock Items: Process Activity.......................................................................................................... 125
Sales of Stock Items: Generated Transactions.............................................................................................128
Sales of Stock Items: Mass-Processing of Documents.................................................................................129
Sales of Stock Items: Related Report and Inquiry Forms............................................................................130
To Reserve an Inventory Item for an Order..................................................................................................131
To Create a Sales Order with Automatic Allocation (SA)............................................................................. 132
To Add Sales Orders to an Invoice................................................................................................................133
To Create Invoices for Multiple Shipments.................................................................................................. 134
To Create Invoices for Multiple Orders......................................................................................................... 134
To Prepare an Invoice for a Sales Order.......................................................................................................134
To Specify Lot or Serial Numbers for Ordered Items...................................................................................135
To Create Shipments for Multiple Orders.....................................................................................................136
Correcting SO Invoices........................................................................................................................ 137
SO Invoice Correction: General Information................................................................................................ 137
SO Invoice Correction: Cancellation of an SO Invoice.................................................................................140
SO Invoice Correction: Implementation Checklist.......................................................................................142
SO Invoice Correction: To Correct an SO Invoice.........................................................................................142
SO Invoice Correction: To Cancel an SO Invoice..........................................................................................145
SO Invoice Correction: Generated Transactions.......................................................................................... 148
SO Invoice Correction: Related Report and Inquiry Forms......................................................................... 148
SO Invoice Correction: Mass-Processing Documents.................................................................................. 149
Processing Partial Shipments.............................................................................................................. 151
Shipping Rule Settings.................................................................................................................................. 151
Shipment Creation Rules.............................................................................................................................. 152
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Shipment Processing Steps...........................................................................................................................153

Shipment Process Variations........................................................................................................................ 155
Shipping Rule Combinations........................................................................................................................ 157
Partial Shipping of Orders.............................................................................................................................162
Back Ordering and Replanning Back Orders............................................................................................... 163
To Replan Back Orders.................................................................................................................................. 164
To Add Sales Orders to a Shipment..............................................................................................................165
Processing Sales from Multiple Warehouses..........................................................................................167
Sales from Multiple Warehouses: General Information...............................................................................167
Sales from Multiple Warehouses: Implementation Checklist..................................................................... 169
Sales from Multiple Warehouses: Implementation Activity........................................................................ 170
Sales from Multiple Warehouses: Process Activity...................................................................................... 171
Sales from Multiple Warehouses: Generated Transactions......................................................................... 175
Sales from Multiple Warehouses: Mass Processing of Documents............................................................. 176
Sales from Multiple Warehouses: Related Report and Inquiry Forms........................................................ 177
To Create Transfer Orders for Multiple Sales Orders................................................................................... 177
Processing Sales of Stock Items Without Shipment................................................................................179
To Enter an Invoice Order (IN)...................................................................................................................... 180
To Process an Invoice Order..........................................................................................................................181
Processing Cash Sales of Stock Items................................................................................................... 182
To Enter a Cash Sale Order (CS)....................................................................................................................183
To Process a Cash Sale Order (CS)................................................................................................................184
Processing Sales with Payments and Prepayments................................................................................185
Sales with Payments and Prepayments: General Information................................................................... 185
Sales Orders with Payments and Prepayments: Implementation Checklist.............................................. 186
Sales with Payments and Prepayments: Generated Transactions..............................................................187
Sales Orders with Payments: Related Report and Forms............................................................................188
Processing Customer Returns for Credit with Receipt............................................................................ 190
Returns for Credit with a Receipt: General Information.............................................................................. 190
Returns for Credit with Receipt: Implementation Checklist........................................................................191
Returns for Credit with Receipt: Implementation Activity.......................................................................... 192
Returns for Credit with a Receipt: Process Activity......................................................................................193
Returns for Credit with Receipt: Mass-Processing of Documents............................................................... 197
Processing Customer Returns for Replacement..................................................................................... 198
Returns for Replacement: General Information...........................................................................................198
Returns for Replacement: Implementation Checklist................................................................................. 200
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Returns for Replacement: Implementation Activity.................................................................................... 200

Returns for Replacement: Process Activity.................................................................................................. 201
Returns for Replacement: Mass-Processing of Documents.........................................................................206
Processing Returns for Credit Without Receipt...................................................................................... 207
To Create a Credit Memo Order (CM)............................................................................................................209
To Process a Credit Memo Order (CM)..........................................................................................................210
Processing Returns for Cash................................................................................................................ 211
To Create a Cash Return Order (CR)............................................................................................................. 212
To Process a Cash Return Order (CR)........................................................................................................... 214
Processing Returns with Replacement at Another Price......................................................................... 215
To Create a Merchandise Authorization Return Order (RM)........................................................................ 217
To Process a Merchandise Authorization Return Order (RM)...................................................................... 219
Processing Sales of Non-Stock Items with Shipping............................................................................... 221
Sales of Non-Stock Items with Shipping: General Information.................................................................. 221
Sales of Non-Stock Items with Shipping: Implementation Checklist......................................................... 223
Sales of Non-Stock Items with Shipping: Process Activity.......................................................................... 224
Sales of Non-Stock Items with Shipping: Generated Transactions.............................................................226
Sales of Non-Stock Items with Shipping: Related Reports and Forms....................................................... 227
Sales of Non-Stock Items with Shipping: Mass-Processing of Documents ................................................227
Processing Sales of Services................................................................................................................ 229
Sales of Services: General Information........................................................................................................ 229
Sales of Services: Implementation Checklist............................................................................................... 230
Sales of Services: Process Activity................................................................................................................ 231
Sales of Services: Generated Transactions...................................................................................................233
Sales of Services: Related Report................................................................................................................. 234
Sales of Services: Mass-Processing of Documents...................................................................................... 234
Processing Sales with Drop Shipping....................................................................................................236
Sales with Drop Shipping: General Information.......................................................................................... 236
Sales with Drop Shipping: Implementation Checklist.................................................................................237
Sales with Drop Shipping: Process Activity..................................................................................................238
Sales with Drop Shipping: Mass Processing of Documents.........................................................................241
Sales with Drop Shipping: Related Report and Inquiry Forms................................................................... 242
To Create Drop-Ship Purchase Orders for Multiple Sales Orders................................................................243
To Create a Consolidated Purchase Receipt for Drop-Ship Orders.............................................................243
Processing Drop-Ship Vendor Returns.................................................................................................. 245
Drop-Ship Vendor Returns: General Information.........................................................................................245
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Drop-Ship Vendor Returns: Process Activity................................................................................................ 246

Drop-Ship Vendor Returns: Mass-Processing Forms................................................................................... 249
Drop-Ship Vendor Returns: Generated Transactions...................................................................................250
Processing Drop Shipments of Non-Stock Items.................................................................................... 251
Drop Shipments of Non-Stock Items: General Information........................................................................ 251
Drop Shipments of Non-Stock Items: Implementation Checklist............................................................... 252
Drop Shipments of Non-Stock Items: Process Activity................................................................................ 253
Drop Shipments of Non-Stock Items: Generated Transactions...................................................................257
Drop Shipments of Non-Stock Items: Related Reports and Forms.............................................................258
Drop Shipments of Non-Stock Items: Mass-Processing of Documents...................................................... 258
Reserving Payments for Sales Orders................................................................................................... 260
To Enter a New Payment for an Order..........................................................................................................261
To Enter a New Prepayment for an Order.................................................................................................... 262
To Link an Existing Payment to an Order..................................................................................................... 262
To Link an Existing Prepayment to an Order............................................................................................... 262
Processing Purchases for Sale..............................................................................................................264
Purchases for Sale: General Information..................................................................................................... 264
Purchases for Sale: Linking Sales and Purchase Documents......................................................................267
Purchases for Sale: Implementation Checklist............................................................................................ 267
Purchases for Sale: Process Activity............................................................................................................. 269
Purchases for Sale: Mass-Processing of Documents................................................................................... 273
Purchases for Sale: Related Reports, Inquiry Forms and Dialog Boxes...................................................... 274
To Link a Sales Order to an Existing Purchase Order.................................................................................. 275
To Create a Purchase Order for Multiple Sales Orders................................................................................ 275
Processing Purchases of Stock Items.................................................................................................... 276
Purchases of Stock Items: General Information.......................................................................................... 276
Purchases of Stock Items: Implementation Checklist................................................................................. 278
Purchases of Stock Items: Process Activity.................................................................................................. 279
Purchases of Stock Items: Generated Transactions.....................................................................................282
Purchases of Stock Items: Linking Documents............................................................................................283
Purchases of Stock Items: Mass-Processing of Documents........................................................................ 284
Purchases of Stock Items: Related Report and Inquiry Forms....................................................................284
To Add Purchase Orders to an Existing Purchase Receipt...........................................................................285
To Add Purchase Order Lines to an Existing Purchase Receipt...................................................................286
To Link a Bill Line to a Purchase Receipt Line............................................................................................. 286
To Link a Bill Line to a Purchase Order Line................................................................................................ 287
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To Manually Create an Accounts Payable Bill for a Purchase Receipt........................................................ 288

To Manually Create an Accounts Payable Bill for a Purchase Order........................................................... 289
Processing Purchases with Billing Before Receipt.................................................................................. 291
Purchases with Billing Before Receipt: General Information...................................................................... 291
Purchases with Billing Before Receipt: Implementation Checklist.............................................................293
Purchases with Billing Before Receipt: Process Activity..............................................................................295
Purchases with Billing Before Receipt: Mass Processing of Documents.....................................................298
Purchases with Billing Before Receipt: Related Report and Inquiry Forms................................................299
Processing Purchases of Non-Stock Items with Receipts........................................................................ 300
Purchases of Non-Stock Items and Services with Receipts: General Information..................................... 300
Purchases of Non-Stock Items and Services with Receipts: Implementation Checklist............................ 302
Purchases of Non-Stock Items and Services with Receipts: To Process a Purchase of Non-Stock Items... 304
Purchases of Non-Stock Items and Services with Receipts: To Process a Purchase of Services................306
Purchases of Non-Stock Items and Services with Receipts: Generated Transactions................................309
Purchases of Non-Stock Items and Services with Receipts: Related Reports and Forms.......................... 309
Purchases of Non-Stock Items and Services with Receipts: Mass-Processing of Documents....................310
Processing Purchases of Services Without Receipts............................................................................... 312
Purchases of Services Without Receipts: General Information................................................................... 312
Purchases of Services Without Receipts: Implementation Checklist..........................................................313
Purchases of Services Without Receipts: Process Activity...........................................................................314
Purchases of Services Without Receipts: Generated Transactions............................................................. 318
Purchases of Services Without Receipts: Related Reports and Forms....................................................... 318
Purchases of Services Without Receipts: Mass-Processing of Documents................................................. 319
Processing Direct Sales........................................................................................................................320
Direct Sales: General Information.................................................................................................................320
Direct Sales: Direct Sale with a Link to the Related Sales Order.................................................................321
Direct Sales: Implementation Checklist....................................................................................................... 322
Direct Sales: Process Activity........................................................................................................................ 323
Direct Sales: Generated Transactions...........................................................................................................326
Processing Direct Returns....................................................................................................................328
Direct Returns: General Information............................................................................................................ 328
Direct Returns: Direct Return with Replacement.........................................................................................329
Direct Returns: Implementation Checklist................................................................................................... 330
Direct Returns: Process Activity.................................................................................................................... 331
Direct Returns: Generated Transactions.......................................................................................................334
Processing Prepayments for Purchase Orders....................................................................................... 336
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Prepayments for Purchase Orders: General Information............................................................................ 336

Prepayments for Purchase Orders: Implementation Checklist...................................................................339
Prepayments for Purchase Orders: Calculation of the Prepayment Amount.............................................340
Prepayments for Purchase Orders: Implementation Activity......................................................................341
Prepayments for Purchase Orders: Generated Transactions...................................................................... 342
Prepayments for Purchase Orders: To Process a Prepayment....................................................................343
Prepayments for Purchase Orders: To Process Multiple Prepayments for a Purchase Order....................348
Prepayments for Purchase Orders: Canceling Prepayments...................................................................... 352
Prepayments for Purchase Orders: Linking Documents..............................................................................353
Prepayments for Purchase Orders: Related Reports and Inquiries............................................................ 354
Purchases with Direct Purchase Receipts.............................................................................................. 355
Processing Purchase Returns at the Original Cost..................................................................................357
Purchase Returns at the Original Cost: General Information......................................................................357
Purchase Returns at the Original Cost: Implementation Checklist............................................................ 359
Purchase Returns at the Original CostPurchase ReturnsPurchase Returns at the Original CostPurchase
Returns at the Original Cost: Process ActivityProcess ActivityProcess ActivityTo Process a Return at the
Original Cost...................................................................................................................................................360
Purchase Returns at the Original Cost: Generated Transactions................................................................ 364
Processing Purchase Returns at the Calculated Cost.............................................................................. 367
Purchase Returns at the Calculated Cost: General Information................................................................. 367
Purchase Returns at the Calculated Cost: Implementation Checklist........................................................369
Purchase Returns at the Calculated CostPurchase ReturnsPurchase Returns at the Calculated Cost: Process
ActivityTo Process a Return at the Calculated CostProcess Activity........................................................... 370
Purchase Returns at the Calculated Cost: Generated Transactions........................................................... 373
Allocating Landed Costs...................................................................................................................... 376
Configuration of Landed Cost Codes............................................................................................................376
Processing Landed Cost Documents............................................................................................................ 377
Adjusting the Landed Cost Variance.............................................................................................................380
Adding Landed Costs to Items' Costs........................................................................................................... 380
To Create a Landed Cost Document............................................................................................................. 383
To Add Landed Costs to a Bill....................................................................................................................... 384
To Link a Bill Line to Landed Cost Document.............................................................................................. 384
Allocating the Purchase Price Variance................................................................................................. 386
Purchase Price Variance Allocation: Example 1........................................................................................... 388
Purchase Price Variance Allocation: Example 2........................................................................................... 390
Replenishing Inventory Through Transfers............................................................................................394
Replenishment Through Transfers: General Information............................................................................394
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Replenishment Through Transfers: Implementation Checklist.................................................................. 397

Replenishment Through Transfers: Process Activity................................................................................... 397
Replenishing Inventory Through Purchases.......................................................................................... 403
Replenishment Through Purchases: General Information..........................................................................403
Replenishment Through Purchases: Implementation Checklist.................................................................405
Replenishment Through Purchases: Process Activity................................................................................. 406
Replenishing Inventory Through a Distribution Center.......................................................................... 411
Replenishment Through a Distribution Center: General Information........................................................ 411
Replenishment Through a Distribution Center: Implementation Checklist...............................................415
Replenishment Through a Distribution Center: Process Activity................................................................415
Processing Intercompany Purchases and Returns..................................................................................421
Intercompany Purchases and Returns: General Information......................................................................421
Intercompany Purchases and Returns: Intercompany Returns.................................................................. 422
Intercompany Purchases and Returns: Implementation Checklist............................................................ 424
Intercompany Purchases and Returns: Implementation Activity............................................................... 426
Intercompany Purchases and Returns: To Process an Intercompany Purchase........................................ 429
Intercompany Purchases and Returns: To Process an Intercompany Return............................................ 434
Intercompany Purchases and Returns: Generated Transactions................................................................ 438
Intercompany Purchases and Returns: Mass-Processing of Documents....................................................441
Intercompany Purchases and Returns: Related Report and Inquiry Forms............................................... 441
Processing Purchase Requests and Requisitions....................................................................................443
Purchase Requests and Requisitions: General Information........................................................................443
Purchase Requests and Requisitions: Implementation Checklist...............................................................450
Purchase Requests and Requisitions: To Process External Requests......................................................... 451
Purchase Requests and Requisitions: To Process Internal Requests..........................................................460
Purchase Requests and Requisitions: To Process a Requisition Without Requests................................... 465
Appendix............................................................................................................................................ 471
Reports........................................................................................................................................................... 471
Report Form.......................................................................................................................................... 471
Report....................................................................................................................................................476
Form Toolbar..................................................................................................................................................477
Table Toolbar................................................................................................................................................. 484
 Copyright | 11

Copyright

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Soware Version: 2022 R2

Last Updated: 01/30/2023
 Reviewing the Interaction of Inventory and Order Management with Financials | 12

Reviewing the Interaction of Inventory and Order

Management with Financials
To support financial accounting processes, maintain data consistency during the sales and purchase operations,
and track items' costs, the inventory and order management is tightly integrated with financials. The system also
provides instant access to accurate inventory allocation information and notifies the user if the item quantity
specified in an order is not available.
The following diagram illustrates the general workflow of sales and purchase processes performed in Acumatica
ERP, the documents that are produced, and the interaction between inventory, order management, and financials
during the order fulfillment processes.

The purchase process (shown in the diagram above) consists of the following steps:
1. A user creates a purchase order. A purchase order itself does not produce general ledger transactions.
2. A user creates a purchase receipt for a purchase order to record the receipt of items to inventory. On release
of a purchase receipt, an inventory receipt is created to increase the item quantity in the inventory.
 Reviewing the Interaction of Inventory and Order Management with Financials | 13

3. On release of the purchase receipt, an AP bill is created to adjust the vendor's balance in the system.
4. On release of the inventory receipt and AP bill, the batches of transactions are generated and posted to the
general ledger to update the account balances.

The sales process (shown in the diagram above) consists of the following steps:
1. A user creates a sales order. A sales order itself does not produce general ledger transactions.
2. A user creates a shipment document to record the shipping of the items to customer.
3. A user creates an SO invoice to adjust the customer's balance in the system. On release of the SO invoice, an
inventory issue is created to decrease the item quantity in the inventory.
4. On release of the inventory issue and SO invoice, the batches of transactions are generated and posted to
the general ledger to update the account balances.
 Configuring Carriers, Packaging, and Freight | 14

Configuring Carriers, Packaging, and Freight

With Acumatica ERP, your company can configure integration with nationwide carriers for up-to-date rates,
automatic freight calculation, and customer notifications about shipments. With the integration configured, you
can print carrier labels to put on packages, so that customers can track their packages.
Acumatica ERP provides options that give your company the ability to configure and use the automatic packaging
functionality for the sales orders and shipments to be shipped, either via carriers with which integration is
established or via other carriers whose delivery services your company uses. You can set up Acumatica ERP to
calculate a set of boxes for each sales order and shipment and calculate the freight.

Integration with Carriers

Large carriers operating over a broad geographical area—such as FedEx, USPS, and UPS—provide shipping
solutions to clients with whom they have service agreements. A user can access the carrier's system, enter package
details, get actual rates, print authorized labels for shipments, and track the delivery of shipments. If you configure
integration with the carrier, your users do not need to enter the same information into both Acumatica ERP and the
carrier's system.
The functionality of integrating with carriers is available only if the Shipping Carrier Integration feature is enabled
on the Enable/Disable Features (CS100000) form.

Carrier-Specific Plug-ins and Their Parameters

Before you configure integration with a carrier, your company should have an account with the carrier and a signed
service agreement. For each of the plug-ins, you specify parameters that are specific to the carrier, including the
account number and password for authorization with the carrier's system. Such services as FedEx SmartPost and
UPS SurePost require additional service contracts to be signed with the respective carriers. These services employ
the USPS for final delivery of low-weight packages to customers in the residential areas.
To configure integration with a carrier, you use the Carriers (CS207700) form. On this form, you specify a name to
be used for this carrier in your system, select the appropriate plug-in, and enter the values for the parameters,
which are specific to the plug-in you have selected. Some parameters are used for authentication with the carrier's
system, while others are used to print carrier labels. All plug-ins include a parameter that can be used if recipient's
signature is required to confirm shipments.
Acumatica ERP provides the following plug-ins for integration with nationwide and worldwide carriers through the
carriers' APIs:
• PX.ShipEngineCarrier.ShipEngineCarrier: For use with the ShipEngine service
• PX.UpsCarrier.UpsCarrier: For use with UPS

This plug-in does not support international shipments.

• PX.FedExCarrier.FedExCarrier: For use with FedEx

This plug-in does not support international shipments.

• PX.StampsCarrier.StampsCarrier: For use with USPS

Plug-ins for other carriers can be developed on request.

 Configuring Carriers, Packaging, and Freight | 15

For more information, see To Set Up Integration with FedEx, To Set Up Integration with UPS, To Set Up Integration with
USPS via Stamps.com, and To Set Up Integration with ShipEngine.

Ship via Codes Based on Carrier Service Methods

Generally, carriers provide multiple service methods. Each service method has its own rates and time frame for
delivery. In Acumatica ERP, for each service method of the integrated carrier to be used by your company, you can
define a ship via code by using the Ship via Codes (CS207500) form. Then, when a user creates a sales order, the
user can easily select the appropriate carrier and its service method by specifying the appropriate ship via code.
You also can specify for each ship via code whether shipment confirmation for each box is required and whether
at least one package (box) is required to confirm a shipment. For details, see To Create Ship via Codes for the
Integrated Carrier.

Use of Customer Accounts with Carriers

You can set up billing of the customers, rather than your company, for shipping if the customers provide
information about their accounts with the carrier. On the Customer Accounts tab of the Carriers (CS207700) form,
create a list of customers with their locations and their accounts with the integrated carrier. Only customers with
the Active check box selected on the Customers (AR303000) form can be billed by the carrier. For each customer,
you can view the list of customer accounts with carriers on the Delivery Settings tab of the Customers form.

Automatic Packaging
For effective integration with carriers, you can configure the system to automatically suggest packaging options for
sales orders and then for shipments based on item quantities, weights, or volumes. To use this functionality, you
need to enable the Automatic Packaging feature on the Enable/Disable Features (CS100000) form.
For more information, see Automatic Packaging for Integrated Carriers.

Freight Calculation
Once integration with carriers is configured, the system will be able to automatically evaluate freight cost on
shipping the sales orders via integrated carriers. On the Shipping tab of the Sales Orders (SO301000) form, for each
sales order, you can click the Shop for Rates button to view the estimated freight costs for the specified packages if
they are sent by different methods of the selected carrier available for this particular shipment. You can then select
the most appropriate ship via code for this shipment.
The freight that a system calculates for a sales order is approximate. The full freight amount you charge your
customers may include not only the freight cost, but also insurance, handling, packaging, and premium freight
amounts defined by your shipping terms, which is received from the carrier when a shipment for the sales order is
being processed. Thus, the final freight charges calculated for the shipment may differ from those calculated for
the sales order.
For details on defining and calculating freight, see Freight Calculation.
Related Links
• Ship via Codes
• Boxes
• Carriers
• FOB Points
• Shipments
• Carrier Labels
 Configuring Carriers, Packaging, and Freight | 16

Automatic Packaging for Integrated Carriers

To automate the processing of sales orders, you can configure the system to automatically determine the optimal
set of boxes for sales orders and for shipments to be sent via the integrated carriers. For detailed instructions on
configuring integration with the carriers, refer to Configuring Carriers, Packaging, and Freight .

To be able to use the automatic packaging functionality, make sure the Automatic Packaging feature
is enabled on Enable/Disable Features (CS100000) form. If this feature is disabled, you will need to
select the boxes and specify the weights and volumes of the resulting packages for each order and
shipment manually.
The configuration of automatic packaging is described in detail in To Configure Automatic Packaging.

Package Calculation for a Sales Order

Once the automatic packaging functionality has been configured, you can use it when you prepare a sales order for
shipping or create a consolidated shipment.
Because the calculation of packages is resource-intensive, the system calculates packages only when the user
requests this calculation. As you are preparing a sales order on the Sales Orders (SO301000) form and adding items,
the system calculates the weight and volume of the sales order. Once you specify the shipping information on the
Shipping tab—including the ship via code of the integrated carrier, the shipping terms, and the shipping zone—and
save the order, the system determines the set of boxes and the weight and volume of each package.
The system uses an heuristic algorithm (one that is not guarantee to find the best set of boxes, but quickly finds a
satisfactory set for these purposes) and the following information to make suggestions about the boxes required
for the order:
• The lists of boxes assigned to each ship via code, with the maximum weight and volume each box can hold
and the weight of the box (which must include the weight of any packaging material)
• For each stock item in the order, the quantity in base units, the weight and volume of the base unit of the
item, and the option instructing the system how to pack this item
To view carrier charges, you can click the Shop for Rates button on the Shipping tab. When you click Shop for
Rates, the system performs the following actions:
1. Sends the information about the calculated packages (box ID, weight, volume, linear dimensions, declared
value, and COD) to the carrier system
2. Requests rates from the carriers and calculates carrier charges for the order for each ship via code
associated with the carrier

Based on the system's suggestions, you can select the ship via code with lowest cost for the order.
In some cases, you may need to edit the packages manually. If you select the Manual Packaging check box, you
can adjust information about the boxes and their contents to match the quantities and weights of actual packages.
For more information, see Manual Packaging of Items. If you have specified the declared values or changed the
COD settings for any packages of the order, selecting the Manual Packaging option will prevent the system from
automatically recalculating these packages and thus resetting the specified values.

Package Calculation for Consolidated Shipments

When you initiate a shipment creation for the order, the system recalculates the packages and the carrier charges
based on the selected ship via code because there may be insufficient quantities of items listed in the order.
Information about particular boxes used for the shipment becomes available for reviewing on the Packages tab.
Packages will not be recalculated if the Manual Packaging option has been selected for the order.
 Configuring Carriers, Packaging, and Freight | 17

You can create shipments for multiple orders by using the Process Orders (SO501000) form. If multiple orders are
consolidated in one shipment, you can recalculate the packages initially determined for sales orders by clicking the
Refresh Packages button on the table toolbar on the Packages tab of the Shipments (SO302000) form. Once the set
of boxes is determined for the consolidated shipment, you can review and edit this list if needed on the Packages
tab. You can manually specify the declared values and COD amounts for packages if needed.
Related Links
• Freight Calculation
• Sales Orders
• Shipments

Carrier Labels and Tracking Numbers

With integration between Acumatica ERP and carriers, you can initiate printing carrier labels for particular
packages (boxes) by using the Shipments (SO302000) form. If RMA orders are used in your system, you can also print
carrier labels for RMA orders. Labels are generated by the carrier services and are received (through the integration
between the carrier and Acumatica ERP) as images ready for printing. In Acumatica ERP, labels are printed by using
the Carrier Labels (SO645000) report.

Any information you type in the Custom Ref. Number 1 and Custom Ref. Number 2 columns on the
Packages tab of the Shipments form will be printed on the labels.

Process of Generating Tracking Numbers and Labels

The general process of generating tracking numbers and labels is the following:
1. A user confirms a shipment in Acumatica ERP.
2. The carrier's service generates a tracking number and a label for each package of a shipment and sends this
information to Acumatica ERP.
Users can view the generated tracking numbers in the Tracking Number column on the Packages tab of the
Shipments form. Labels can be found in the Files column of each shipment line.
3. A user initiates printing labels in Acumatica ERP by using the Shipments form, as described in To Print a
Label.

Configuration of Label Printing

To configure the printing of carrier labels, you do the following:
1. Register file extensions for labels as described in To Register the Label File Extension.
2. Configure printing in one of the following ways:
• If you use DeviceHub, configure printing as described in Configuring Hardware Devices in DeviceHub.
In addition, if a carrier you work with uses labels of specific size, you can configure the system so that
it uses a particular printer for printing the labels of this carrier. These settings are specified on the User
Profile (SM203010) form. For more information, see To Specify Default Printers for Selection.
• If you do not use DeviceHub, you configure printing as described in To Set Up the Printing of Carrier Labels
on a Thermal Printer.
 Configuring Carriers, Packaging, and Freight | 18

To Register the Label File Extension

To be able to print carrier labels, you need to register each file extension on the File Upload Preferences (SM202550)
form.

To Register the File Extension

1. Open the File Upload Preferences (SM202550) form.
2. Add a new row.
3. In the File Extension column, type the file extension (for example, .dpl).
4. Make sure the Forbidden check box is cleared.
5. In the Image column, select the check box.
6. In the Default Application column, type a string such as image/dpl to match the specified format.
7. Save the changes.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• The list of allowed file extensions includes .tiff, .png, .zplii, .dpl, and .epl2 by default. You may
need to register one of these file extensions only if it had been deleted.
• Before registering the file extensions, make sure that the format supported by your printer is selected for the
appropriate carrier plug-in on the Parameters tab of the Carriers (CS207700) form.

Related Links
• To Print a Label
• To Set Up the Printing of Carrier Labels on a Thermal Printer

To Set Up the Printing of Carrier Labels on a Thermal Printer

For thermal printers, the carriers usually provide labels in EPL or ZPL formats.
You can create a batch file for the operating system so that the system sends the label file to the thermal printer
once you double-click the label file. To create the batch file, follow the steps in the following sections.

To Share a Printer
Connect the printer to a local network computer by using a USB cable, and turn the printer on. To share the printer
on the network, do the following:
• For Windows XP:
a. Open the Start > Printers and Faxes window, right-click the thermal printer, and select Sharing.
b. Select the Share this printer option, write down the shared printer name (or copy it to the clipboard),
and click OK to close the dialog box.
• For Windows 7:
 Configuring Carriers, Packaging, and Freight | 19

a. Open the Start > Devices and Printers window, right-click the thermal printer, and select the Printer
Properties option.
b. On the Sharing tab on the Printer Properties dialog box, select the Share this printer option, write
down the shared printer name (or copy it to the clipboard), and click OK to close the dialog box.

To Prepare a Batch File for Label Printing

On the computer to which the printer is connected, create the batch file PrintLabels.bat that will handle the
printing. (You can change the suggested batch name if needed.)
If you will use a USB printer, create the file as follows:
1. Open Notepad, and type the following text:

Net use LPT2: \\%ComputerName%\SharedPrinterName

Copy %1 LPT2
Net use LPT2: /Delete

2. Replace SharedPrinterName with the shared printer's actual name that you wrote down or copied
earlier. Do not change %ComputerName%; the system will replace it automatically with your computer
name.
3. Save the file as PrintLabels.bat to the appropriate location. Make sure that you select All Files for the
Save as Type action.

If you will use a network printer, take these steps:

1. In Notepad, type the following text:

print /d:\\ServerName\PrinterName %1

2. Replace ServerName with the name of your network server.

3. Replace PrinterName with the name of your network thermal printer.
4. Save the file as PrintLabels.bat to the appropriate location. Make sure that you select All Files for the
Save as Type action.

To Associate the File Extension with the Created Batch File

You can register the file extension with the Windows operating system as follows:
• For Windows XP:
a. Open Start > Control Panel > Folder Options and select the File Types tab.
b. Click New to register the extension of the carrier's file.
c. Select the extension from the list of extensions and click the Change button under the details section.
d. Select the PrintLabels.bat batch that you’ve created earlier.
• For Windows 7:
a. Click Start and type Index in the search text box. On the list of search results, that appears as you type,
select Indexing Options.
b. On the Indexing Options dialog box, click the Advanced button.
c. Open the File Types tab and add the carrier file's extension to the list.
d. Click OK to save the settings and close the dialog box.
 Configuring Carriers, Packaging, and Freight | 20

e. Open Start > Default Programs > Associate a file type or protocol with a specific program, select the
added extension. In the Current Default columns, select the PrintLabels.bat batch that you’ve
created earlier.
Connect the printer and load the label stock. Now the system will be able to attach carrier labels to the appropriate
lines in the shipment documents.
Related Links
• To Print a Label
• To Register the Label File Extension

To Print a Label

If you need to print labels for the stock items in a particular shipment, you can do this from the Shipments
(SO302000) form, as described in the instructions below.

To Print a Label
1. Open the Shipments (SO302000) form.
2. In the Shipment Nbr. box, select the reference number of the needed shipment.
3. Confirm the shipment if it has not been confirmed.
4. On the More menu (under Labels), click Print Labels.
5. On the Carrier Labels (SO645000) report, which opens, review the generated label.
6. On the form toolbar, click Print to print the label.

Related Links
• To Set Up the Printing of Carrier Labels on a Thermal Printer
• To Register the Label File Extension

To Set Up Integration with FedEx

Before you configure integration with FedEx, your organization should have an account with the carrier and a
signed service agreement. The SmartPost service requires an additional service contract signed with FedEx. The
settings for the plug-in are specified in accordance with the information available in the agreement.
To configure integration between Acumatica ERP and FedEx—a carrier that provides shipping services nationwide
—you use the Carriers (CS207700) form. On this form, specify a name to be used for this carrier in your system,
select the appropriate plug-in developed for this integration, and enter the values for the plug-in parameters. Some
parameters are used for authentication with the carrier's system, while others are used for printing carrier labels or
enabling recipient notifications.

To Set Up Integration with FedEx

1. Open the Carriers (CS207700) form.
2. In the Carrier ID box, type a name for FedEx.
3. Provide a description for this carrier.
4. In the Plug-in (Type) box, select PX.FedExCarrier.FedExCarrier.
 Configuring Carriers, Packaging, and Freight | 21

5. In the Carrier Units box, select the measuring system used by the carrier: SI Units (Kilogram/Centimeter)
or US Units (Pound/Inch). Based on the selected option, one of the following pairs of boxes is shown on the
form: Kilogram and Centimeter, or Pound and Inch.
6. In the Kilogram and Centimeter boxes (or in the Pound and Inch boxes, depending on the measuring
system selected for the carrier), select the units of measure defined in the system that correspond to the
weight and linear units of measure used by the carrier.

If you select a UOM other than the default weight or linear UOM, which is specified in the
Weight UOM box or Linear UOM box on the Companies (CS101500) form, use the Units of
Measure (CS203100) form to specify the conversion from the default weight or linear UOM of
the company to the unit you have selected as the equivalent to the UOM used by the carrier.

7. Optional: In the Warehouse box, specify a particular warehouse for which the carrier's rates are applicable,
or leave the box empty if the carrier’s rates are applicable for all warehouses.
8. On the Plug-in Parameters tab, do the following:
• For the ACCOUNTID parameter, enter the ID or number of the account your organization has with the
carrier.
• For the DROPOFF parameter, select the appropriate method to be used by FedEx to pick up the
packages:
• BUSINESS_SERVICE_CENTER
• DROP_BOX
• REGULAR_PICKUP
• REQUEST COURIER
• STATION
• For the ENDPOINT parameter, type or copy and paste the URL of the FedEx service according to your
service agreement.
• For the LBL FORMAT parameter, select the format to be used for printing labels on the printer you have
(DOC, DPL, EPL2, PDF, PNG, RTF, TEXT, or ZPLII).
• For the LBL STOCK TYPE parameter, select the stock type of the labels to be used.
• For the LBL PRINT ORT parameter, select one of the available options:
• BOTTOM_EDGE_OF_TEXT_FIRST
• TOP_EDGE_OF_TEXT_FIRST
• For the LOGIN parameter, enter the login to be used to sign in to your organization's FedEx account.
• For the METERID parameter, enter no value.
• For the NOTIFY parameter, select the check box if you want a notification to be sent to the recipient.
Then on release of each shipment, the carrier's online service will generate a notification email to the
email address of the contact specified for the shipment on the Shipping tab of the Shipments (SO302000)
form.
• For the PASSWORD parameter, enter the password to be used with the login to sign in to the account.
• For the POST ENDORS parameter, select the appropriate endorsement type for FedEx SmartPost
shipments from the following options:
• ADDRESS_CORRECTION
• CARRIER_LEAVE_IF_NO_RESPONSE
• CHANGE_SERVICE
• FORWARDING_SERVICE
• RETURN_SERVICE
• For the POST HUBID parameter, type the four-digit number that is an identifier of the USPS or FedEx hub
to be used for delivery by FedEx SmartPost.
 Configuring Carriers, Packaging, and Freight | 22

• For the POST INDICIA parameter, select the appropriate indicia type to be used by SmartPost:
• PARCEL_SELECT
• MEDIA_MAIL
• PRESORTED_BOUNDED_PRINTED_MATTER
• PRESORTED_STANDARD
• For the SA ENDPOINT parameter, type or copy and paste the URL of the FedEx availability service
according to your service agreement.
• For the SHIP ENDPOINT parameter, type or copy and paste the URL of the FedEx ship service according
to your service agreement.
• For the SHIPPER FROM parameter, leave the default Company Branch value if you want the system to
get the shipper information from the company branch, or select Warehouse to make the system get the
shipper information from the warehouse.
• For the SIGN RELZ NO parameter, enter the signature release number according to your service
agreement.
• For the SIGNATURE parameter, select the appropriate signature requesting option according to your
service agreement:
• ADULT
• DIRECT
• INDIRECT
• NO_SIGNATURE_REQUIRED
• SERVICE DEFAULT
• For the ALCOHOL parameter, select the check box if your company is a FedEx-approved shipper of
alcohol.
• For the ALCOHOL RECIPIENT TYPE parameter, select the license type of the recipient of the alcohol
shipments, which is one of the following options:
• CONSUMER
• LICENSEE
• For the ALCOHOL CONTENT ON LABEL parameter, indicate on which label the information about alcohol
shipment must be printed by selecting one of the following options:
• CONTENT_ON_SHIPPING_LABEL_ONLY
• CONTENT_ON_SHIPPING_LABEL_PREFERRED
• CONTENT_ON_SUPPLEMENTAL_LABEL_ONLY
9. On the Customer Accounts tab, add all customers that have accounts with the carrier and should be billed
for the shipments they receive via this carrier. For each customer you add, do the following:
• In the Customer ID column, select the customer by its ID.
• Make sure the Active check box is selected.
• In the Location column, select the customer location to receive shipments via the carrier.
• In the Carrier Account column, enter the customer's account number with the carrier.
• In the Postal Code column, type the postal code for locations.
10.Click Save on the form toolbar.

For an example of filling in the plug-in parameters, see the table below.

Table: Parameters of the PX.FedExCarrier.FedExCarrier Plug-In

Do not use the values used in this example for production. The sensitive data is partially or completely
masked by asterisks.
 Configuring Carriers, Packaging, and Freight | 23

ID Description  

ACCOUNTID Account Number 51*******4

DROPOFF Identifies the method by which the BUSINESS_SERVICE_CENTER

package is to be tendered to FedEx

ENDPOINT FedEx Rate Service Url https://wsbeta.fedex.com:443/web-ser-

vices/rate

LBL FORMAT Provides the type of data stream or  

bitmap to be returned

LBL PRINT ORT Label Printing Orientation BOTTOM_EDGE_OF_TEXT_FIRST

LBL STOCK TYPE Label Stock Type PAPER_4X6

LOGIN   mIVMda*********J

METERID Meter Number 118******4

NOTIFY Send Notification to Recipient  

PASSWORD   ******************

POST ENDORS Smart Post endorsement type ADDRESS_CORRECTION

POST HUBID The Smart post HubID (use the four-  

digit numeric value)

POST INDICIA Smart Post indicia type MEDIA_MAIL

SA ENDPOINT FedEx Availability Service Url https://wsbeta.fedex.com:443/web-services

SHIP ENDPOINT FedEx Ship Service Url https://wsbeta.fedex.com:443/web-ser-

vices/ship

SHIPPER FROM Shipper Contact information source Company Branch

SIGN RELZ NO Signature Release Number  

SIGNATURE Signature option SERVICE_DEFAULT

ALCOHOL Special service type – Alcohol Selected

ALCOHOL RECIPIENT Alcohol Recipient Type LICENSEE

TYPE

ALCOHOL CONTENT Alcohol content on the shipping la- CONTENT_ON_SHIPPING_LABEL_ONLY

ON LABEL bel

Related Links
• To Define a Box
• To Create Ship via Codes for the Integrated Carrier
• To Register the Label File Extension
 Configuring Carriers, Packaging, and Freight | 24

• To Set Up the Printing of Carrier Labels on a Thermal Printer

To Set Up Integration with UPS

Before you configure integration with UPS, your organization should have an account with the carrier and a signed
service agreement. The SurePost service requires an additional service contract signed with USPS. The settings for
the plug-in are specified in accordance with the information available in the agreement.
To configure integration between Acumatica ERP and UPS—a carrier that provides shipping services nationwide
—you use the Carriers (CS207700) form. On this form, specify a name to be used for this carrier in your system,
select the appropriate plug-in developed for this integration, and enter the values for the plug-in parameters. Some
parameters are used for authentication with the carrier's system, while others are used for printing carrier labels or
enabling recipient notifications.

To Specify Plug-in Settings for UPS

1. Open the Carriers (CS207700) form.
2. In the Carrier ID box, type an easy-to-remember name for the carrier to be integrated.
3. Provide a description for this carrier.
4. In the Plug-in (Type) box, select PX.UpsCarrier.UpsCarrier.
5. In the Carrier Units box, select the measuring system used by the carrier: SI Units (Kilogram/Centimeter)
or US Units (Pound/Inch). Based on the selected option, one of the following pairs of boxes is shown on the
form: Kilogram and Centimeter, or Pound and Inch.
6. In the Kilogram and Centimeter boxes (or in the Pound and Inch boxes, depending on the measuring
system selected for the carrier), select the units of measure defined in the system that correspond to the
weight and linear units of measure used by the carrier.

If you select a UOM other than the default weight or linear UOM, which is specified in the
Weight UOM box or Linear UOM box on the Companies (CS101500) form, use the Units of
Measure (CS203100) form to specify the conversion from the default weight or linear UOM of
the company to the unit you have selected as the equivalent to the UOM used by the carrier.

7. Optional: In the Warehouse box, specify a particular warehouse for which the carrier's rates are applicable,
or leave the box empty if the carrier’s rates are applicable for all warehouses.
8. On the Plug-in Parameters tab, do the following:
• If you need to get certification from UPS to use its API in production, prepare the certification files. To
generate the files for certification with this carrier, click Prepare Certification Files on the table toolbar
of the Plug-in Parameters tab.
• For the ACCESSNUM parameter, enter the value according to your service agreement.
• For the ACCOUNTID parameter, enter the identifier of the account your company has with the carrier.
• For the ENDPOINT parameter, type or copy and paste the URL of the UPS service from your agreement.
• For the LABEL FORMAT parameter, select the format (EPL, SPL, ZPL, GIF, or STARPL) to be used for
printing labels on your printer.
• For the LOGIN parameter, enter the login to be used to sign in to this account.
• For the LOGTRACE parameter, select the check box to indicate to the carrier service that the request and
results of the web calls will be saved in the trace.
• For the NEGOTIATED parameter, select the check box if your organization has special rates that should
be used for calculating freight costs.
• For the NOTIFY parameter, select the check box if you want notifications to be sent to the recipients.
Then on release of each shipment, the carrier's online service will generate a notification email to the
 Configuring Carriers, Packaging, and Freight | 25

email address of the contact specified for the shipment on the Shipping tab of the Shipments (SO302000)
form.
• For the PASSWORD parameter, enter the password to be used with the login to sign in to the account.
• For the PICKUP TYPE parameter, select the appropriate option according to the agreement:
• Daily Pickup
• Customer Counter
• One-Time Pickup
• On-Call Air
• Suggested Retail Rates
• Letter Center
• Air Service Center
• For the SIGN RELZ NO parameter, enter the signature release (DCIS) number according to your service
agreement.
• For the SHIP ENDPOINT parameter, type or copy and paste the URL of the UPS ship service according to
your service agreement.
• For the SHIPPER FROM parameter, leave the default Company Branch value if you want the system to
get the shipper information from the company branch, or select Warehouse to make the system get the
shipper information from the warehouse.
• For the SIGNATURE parameter, select the appropriate signature request option according to the
agreement:
• System Default
• Delivery Confirmation
• Delivery Confirmation Signature Required
• Delivery Confirmation Adult Signature Required
• For the SUREPOST END parameter, select one of the following USPS endorsement options for SurePost
shipments delivered by the USPS:
• Return Service Requested
• Forwarding Service Requested
• Address Service Requested
• Change Service Requested
• For the SUREPOST SUB parameter, select the appropriate type of packages (less than 1 lb) for shipments
by SurePost:
• Irregular
• Machinable
• For the TEST MODE parameter, select the check box to test the integration.
• For the TNT ENDPOINT parameter, type or copy and paste the URL of the UPS time-in-transit service
according to your service agreement.
• For the VOID ENDPOINT parameter, type or copy and paste the URL of the UPS void service according to
your service agreement.
9. On the Customer Accounts tab, add all customers that have accounts with the carrier and should be billed
for the shipments they receive via this carrier. For each customer you add, do the following:
• In the Customer ID column, select the customer by its ID.
• Make sure the Active check box is selected.
• In the Location column, select the customer location to receive shipments via the carrier.
• In the Carrier Account column, enter the customer's account number with the carrier.
• In the Postal Code column, type the postal code for locations.
 Configuring Carriers, Packaging, and Freight | 26

10.Click Save on the form toolbar.

For an example of filling in the plug-in parameters, see the table below.

Table: Parameters of plug-in PX.UpsCarrier.UpsCarrier

Do not use the values used in this example for production. The sensitive data is partially or completely
masked by asterisks.

ID Description  

ACCESSNUM   *****************

ACCOUNTID Account Number R88A72

ENDPOINT UPS Service URL https://wwwcie.ups.com/webser-

vices/Rate

LABEL FORMAT Provides the type of data stream or bitmap to be re- GIF
turned

LOGIN   *****************

LOGTRACE If checked, the requests and results of the web calls will Cleared
be saved in trace.

NEGOTIATED Use Negotiated Rates. Cleared

NOTIFY Send Notification to Recipient. Cleared

PASSWORD   ***************

PICKUP TYPE Pickup Type Code Daily Pickup

SHIP END- UPS Ship Service URL https://wwwcie.ups.com/webser-

POINT vices/Ship

SHIPPER FROM Shipper Contact information source Company Branch

SIGN RELZ NO DCIS number.  

SIGNATURE Delivery Confirmation  

SUREPOST END USPS endorsement is a special handling for SurePost  

shipments delivered by the USPS

SUREPOST SUB For UPS SurePost less than 1 lb, it should have either IR  
= Irregular or MA = Machineable

TEST MODE Test Mode. UPS Test mode uses preset Test Tracking Selected
Numbers in Void Shipment Service.

TNT ENDPOINT UPS Time in Transit Service URL https://wwwcie.ups.com/webser-

vices/TimeInTrans it
 Configuring Carriers, Packaging, and Freight | 27

ID Description  

VOID END- UPS Void Shipment Service URL https://wwwcie.ups.com/webser-

POINT vices/Void

Related Links
• To Define a Box
• To Create Ship via Codes for the Integrated Carrier
• To Register the Label File Extension
• To Set Up the Printing of Carrier Labels on a Thermal Printer

To Set Up Integration with ShipEngine

Before you configure integration with ShipEngine, your organization should have an account with the carrier and a
signed service agreement. The settings for the plug-in are specified in accordance with the information available in
this agreement.
To configure integration between Acumatica ERP and the ShipEngine service, which provides integration with
multiple carriers, you use the Carriers (CS207700) form. On this form, you specify a name to be used for this carrier
in your system, select the plug-in, and specify one of the carriers connected to your ShipEngine account. Also, you
can specify shipping and delivery settings.

This topic describes the configuration of third-party soware. Please note the following:
• The procedure below is designed for the most common usage scenarios. If you are
implementing a more complicated scenario and you encounter difficulties, contact Acumatica
ERP technical support.
• The vendor of the third-party soware may change the user interface and settings. Therefore,
the screen elements and setting names you see may differ from the ones described in the
procedure.
• The procedure will be updated each time information is made available about new common
scenarios and changes in the user interface and settings.

To Configure a ShipEngine Account

1. Open the https://app.shipengine.com/#/public/createaccount/?ref=acumatica link, and create a ShipEngine
account.
2. Sign in to the created ShipEngine account.
3. On the Connections page, click Add a Carrier to connect a carrier to the ShipEngine account. (The list
of available carriers depends on the shipping origin country that you have specified when you created a
ShipEngine account.)
4. On the Partners tab of the Account Settings page, click Add a Partner, and in the Connect a Partner
dialog box, which opens, select Acumatica. The system displays the connection parameters that you will use
for configuring the ShipEngine carrier in Acumatica ERP.

To Set Up Integration with ShipEngine

1. Open the Carriers (CS207700) form.
2. In the Carrier ID box, type a name for the ShipEngine carrier.
 Configuring Carriers, Packaging, and Freight | 28

3. Provide a description for this carrier.

4. In the Plug-in (Type) box, select PX.ShipEngineCarrier.ShipEngineCarrier.
5. In the Carrier Units box, select the measuring system used by the carrier: SI Units (Kilogram/Centimeter)
or US Units (Pound/Inch). Based on the selected option, one of the following pairs of boxes is shown on the
form: Kilogram and Centimeter, or Pound and Inch.
6. In the Kilogram and Centimeter boxes (or in the Pound and Inch boxes, depending on the measuring
system selected for the carrier), select the units of measure defined in the system that correspond to the
weight and linear units of measure used by the carrier.

If you select a UOM other than the default weight or linear UOM, which is specified in the
Weight UOM box or Linear UOM box on the Companies (CS101500) form, use the Units of
Measure (CS203100) form to specify the conversion from the default weight or linear UOM of
the company to the unit you have selected as the equivalent to the UOM used by the carrier.

7. Optional: In the Warehouse box, specify a particular warehouse for which the carrier's rates are applicable,
or leave the box empty if the carrier’s rates are applicable for all warehouses.
8. On the Plug-in Parameters tab, specify the values of the parameters as follows:
• SHIP ENGINE ACCOUNT: Enter the ShipEngine Account ID that you have received in ShipEngine.
• SHIP ENGINE CARRIER: Select one of the carriers that you have connected to your ShipEngine account.
• TEST MODE: Select the check box if you want to use the carrier in test mode for the generation of sample
labels. (This setting applies to the Stamps.com carrier only.)
• LOG TRACE: Select the check box if you want the system to record the requests and results of the web
calls in the trace log.
• SHIPPER FROM: Select the source of the contact information of the shipper.
• CONFIRMATION: Select the delivery confirmation type according to your agreement with the carrier.
• INSURANCE: Select the appropriate insurance type (which can be purchased from the carrier or from the
Shipsurance.com service).
• LABEL FORMAT: Select the format (ZPL, PNG, or PDF) to be used for printing labels on your printer.
• INTERNATIONAL NON DELIVERY: Select how the carrier should process non-delivered international
shipments.
• DUTY BILL TO PARTY: Select the payer of customs charges for international shipments.

Table: Parameters of the PX.ShipEngineCarrier.ShipEngineCarrier Plug-in

The information in this example cannot be used for production. The sensitive data is partially or
completely masked by asterisks.

ID Description

SHIP ENGINE AC- 21*****3

COUNT

SHIP ENGINE CAR- USPS

RIER

TEST MODE Cleared

LOG TRACE Selected

SHIPPER FROM Company Branch

 Configuring Carriers, Packaging, and Freight | 29

ID Description

CONFIRMATION Delivery

INSURANCE Carrier

LABEL FORMAT PDF

INTERNATIONAL Returntosender
NON DELIVERY

DUTY BILL TO PAR- Recipient

TY

MULTI PACKAGE Selected

SUPPORT

LABEL MESSAGE Selected

SUPPORT

To Set Up Integration with USPS via Stamps.com

Before you configure integration with USPS by using the Stamps.com plug-in, your organization should have an
account and a signed service agreement with Stamps.com. The settings for the plug-in are specified in accordance
with the information available in the agreement. To configure integration between Acumatica ERP and USPS, you
use the Carriers (CS207700) form.

To Set Up Integration with USPS via Stamps.com

1. Open the Carriers (CS207700) form.
2. In the Carrier ID box, type the unique identifier for the carrier to be integrated.
3. In the Description box, type the brief information about the carrier.
4. In the Plug-in (Type) box, select PX.StampsCarrier.StampsCarrier.
5. In the Carrier Units box, select the measuring system used by the carrier: SI Units (Kilogram/Centimeter)
or US Units (Pound/Inch). Based on the selected option, one of the following pairs of boxes is shown on the
form: Kilogram and Centimeter, or Pound and Inch.
6. In the Kilogram and Centimeter boxes (or in the Pound and Inch boxes, depending on the measuring
system selected for the carrier), select the units of measure defined in the system that correspond to the
weight and linear units of measure used by the carrier.

If you select a UOM other than the default weight or linear UOM, which is specified in the
Weight UOM box or Linear UOM box on the Companies (CS101500) form, use the Units of
Measure (CS203100) form to specify the conversion from the default weight or linear UOM of
the company to the unit you have selected as the equivalent to the UOM used by the carrier.

7. Optional: In the Warehouse box, specify a particular warehouse for which the carrier's rates are applicable,
or leave the box empty if the carrier’s rates are applicable for all warehouses.
8. On the Plug-in Parameters tab, do the following:
• For the ENDPOINT parameter, enter https://swsim.stamps.com/swsim/swsimv69.asmx.
 Configuring Carriers, Packaging, and Freight | 30

• For the LOGIN parameter, type the login to be used to sign in to your organization's Stamps.com account.
• For the PASSWORD parameter, type the password to be used to sign in to your organization's
Stamps.com account.
• For the STAMPS CUSTOMER parameter, specify the customer identifier in Stamps.com, which is required
for USPS audits, aviation security, and Stamps.com insurance purchases.
• For the TEST MODE parameter, select the check box if you want to use the carrier in test mode for the
generation of sample labels.
• For the LOG TRACE parameter, select the check box if you want the system to record the requests and
results of the web calls in the trace log.
• For the SHIPPER FROM parameter, select the source of the contact information of the shipper.
• For the NOTIFY parameter, select the check box if you want the system to send a notification to the
recipient on the release of each shipment.
• For the LABEL FORMAT parameter, specify the type of data stream or bitmap to be returned for a label.
• For the PACKAGE TYPE parameter, specify the package type specific to USPS.
• For the ROTATION DEGREE parameter, specify the degree of counter-clockwise rotation of the label if
you want the system to rotate the label.
• If you selected PDF as the LABEL FORMAT parameter, for the PAPER SIZE parameter, select the paper
size for labels.
• If you have selected GIF, JPG, or PNG as the LABEL FORMAT parameter, for the IMAGE DPITYPE
parameter, select the resolution of labels.
• If you use a thermal printer to print labels, for the ELTRON DPITYPE parameter, select the appropriate
resolution.
• For the CERTIFIED MAIL parameter, select the check box if you want to use the USPS Certified Mail
service.
• For the REGISTERED MAIL parameter, select the check box if you want to use the USPS Registered Mail
service.
• For the SIGNATURE parameter, specify the delivery confirmation type.
• If you want to use insurance, for the INSURANCE parameter, select the type of insurance.
• For the RETURN RECEIPT parameter, select the check box to use the USPS Return Receipt service.
• For the RETURN RECEIPT ELECTRONIC parameter, select the check box to use the Electronic Return
Receipt service.
• For the RETURN RECEIPT MERCHANDISE parameter, select the check box to request the Return Receipt
for Merchandise service.
• For the INCLUDE RECEIPT parameter, select the check box if you want to include the receipt in each
label.
• For the PAY ON PRINT parameter, select the check box if you want to use the pay-on-print return labels.
• If you selected the PAY ON PRINT check box, for the RETURN LABEL EXPIRATION DAYS parameter,
specify the number of days until the expiration of the return label URL.
9. On the Customer Accounts tab, add all customers that have accounts with the carrier and should be billed
for the shipments they receive via this carrier. For each customer you add, do the following:
• In the Customer ID column, select the customer by its ID.
• Make sure the Active check box is selected.
• In the Location column, select the customer location to receive shipments via the carrier.

This column is displayed if the Business Account Locations feature is enabled on the Enable/
Disable Features (CS100000) form.

• In the Carrier Account column, enter the customer's account number with USPS.
• In the Postal Code column, type the postal code of the customer or the customer location, if applicable.
 Configuring Carriers, Packaging, and Freight | 31

10.Click Save on the form toolbar.

To Validate Addresses

If you need to validate the addresses of branches, warehouses and customers, you can do this on the Companies
(CS101500), Branches (CS102000), Warehouses (IN204000), and Customers (AR303000) forms as described in the
instructions below.

To Validate the Addresses of Companies

1. Open the Companies (CS101500) form.
2. For each of the companies, do the following:
a. Make sure that the following information is provided on the General Info tab: company name, country,
state, city, postal code, phone number (Phone 1), and address.
b. If the Validate Addresses feature is enabled on the Enable/Disable Features (CS100000) form, click
Validate Addresses on the form toolbar. If the feature is not enabled, click the View on map button and
validate the address manually.

To Validate the Addresses of Branches

1. Open the Branches (CS102000) form.
2. For each of your organization's branches, do the following:
a. Make sure that the following information is provided on the General Info tab: company name, country,
state, city, postal code, phone number (Phone 1), and address.
b. If the Validate Addresses feature is enabled on the Enable/Disable Features (CS100000) form, click
Validate Addresses on the form toolbar. Otherwise, click the View on map button and validate the
address manually.

To Validate the Addresses of Warehouses

1. Open the Warehouses (IN204000) form.
2. For each warehouse defined in the system, perform the following:
a. On the Address Information tab, make sure the required address is specified.
b. If the Validate Addresses feature is enabled on the Enable/Disable Features (CS100000) form, click
Validate Addresses on the More menu. Otherwise, click the View on map button and validate the
address manually.

To Validate the Addresses of Customers

1. Open the Customers (AR303000) form.
2. For each customer to which shipments will be sent via the integrated carrier, perform the following steps:
a. Open the General Info tab, and make sure that the main address is specified.
b. On the More menu, click Validate Addresses if the Address Validation feature is enabled on the Enable/
Disable Features (CS100000) form. If the Address Validation feature is not enabled, validate the addresses
manually.
 Configuring Carriers, Packaging, and Freight | 32

You can run validation for multiple business accounts at once by using the Validate Addresses (CR509020)
form.
c. Open the Locations tab, and make sure that the address information is specified for each customer
location.
d. On the More menu, click Validate Addresses if the Address Validation feature is enabled on the Enable/
Disable Features form. If the Address Validation feature is not enabled, validate the addresses manually.

To Define a Box

To send shipments via different delivery services and carriers, including integrated carriers (UPS, or FedEx), you
need to define the types of boxes used by each of the carriers. You can define boxes by using the Boxes (CS207600)
form.

To Define a Box
1. Open the Boxes (CS207600) form.
2. On the table toolbar, click Add Row.
3. In the Box ID column, type a unique identifier for the box.
4. In the Description column, specify a description for this box.
5. In the Box Weight column, specify the weight of the box in the selected UOM.
6. In the Max. Weight column, specify the maximum weight the box can hold.
7. In the Max Volume column, specify the maximum volume that the box can hold.
8. If the box will be used for shipping via an integrated carrier, specify the box's Length, Width, and Height.
9. If the box is used by an integrated carrier, in the Carrier's Package column, provide the identifier used for
this box by the carrier.
10.Make sure the Active by Default check box is selected for the box if boxes of this type are used for shipping
by most of the carriers and should appear by default on the list of boxes used for any ship via code on the
Ship via Codes (CS207500) form.
11.Click Save on the form toolbar.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• The measurement system that is used by the integrated carrier is specified in the Carrier Units box on the
Carriers (CS207700) form. If the linear UOM specified for the carrier differs from the company’s linear UOM
specified on the Companies (CS101500) form, you must define conversion rules between these units of
measure on the Units of Measure (CS203100) form so that shipping rates can be calculated correctly.
• For boxes to be used for shipping by delivery services that are not integrated carriers, you can specify the
linear dimensions (such as width, height,or length) for informational purposes only; the values are not used
in any calculations.
• The Carrier's Package column is displayed only if the Shipping Carrier Integration feature is enabled on the
Enable/Disable Features (CS100000) form.
 Configuring Carriers, Packaging, and Freight | 33

Related Links
• To Create Ship via Codes for the Integrated Carrier
• To Create a Ship via Code
• To Manually Select the Package Box for an Order

To Create Ship via Codes for the Integrated Carrier

In Acumatica ERP, you can create multiple ship via codes for an integrated carrier, each based on a service
method provided by the carrier and used by your company. You create ship via codes by using the Ship via Codes
(CS207500) form. Perform the following steps for each ship via code you define.

To Create a Ship via Code for the Carrier

1. Open the Ship via Codes (CS207500) form.
2. Enter the ship via code, which is an alphanumerical string of up to 15 characters. Consider using UPS, or
FedEx plus a string indicating the specific service method.
3. Enter a description of the code.
4. Select the External Plug-in check box to indicate that the ship via code is associated with an integrated
carrier. The elements used for integrated carriers appear on the form.
5. On the Details tab, do the following:
• Select the calendar that provides information about this carrier's work hours.
• Specify the carrier whose service method will be used under this code.
• Select the service method this code is based on.
• Make sure the Common Carrier check box is selected.
• Optional: Select the Confirmation for Each Box Is Required check box to help reduce errors on
shipments.
• Optional: Select the At Least One Package is Required check box if a shipment should have at least one
package.
• In the Tax Category box, select the tax category to be applied to the shipping and handling fees for
shipments performed under this code.
• In the Freight Sales Account box, select the income account to be used to record the freight sales (the
shipping and handling fees).
• If the Subaccounts feature is enabled on the Enable/Disable Features (CS100000) form, in the Freight
Sales Sub. box, select the subaccount to be used to record the freight sales.
• In the Freight Expense Account box, select the income account to be used to record the freight
expenses.
• If the Subaccounts feature is enabled on the Enable/Disable Features form, in the Freight Expense Sub.
box, select the subaccount to record the freight expenses.
6. On the Packages tab, do the following for each of the boxes to be used by this carrier with this service
method:
• Click Add Row on the table toolbar to add a row with information about a box.
• In the Box ID column, select a box that is used by the carrier with this service method.
• Click Save on the form toolbar. The system inserts the settings of the box in the appropriate columns.
 Configuring Carriers, Packaging, and Freight | 34

To Configure a Stock Item for Automatic Packaging

To enable the system to determine optimal packages for any sales order or shipment, you must specify packaging
settings for each stock item on the Stock Items (IN202500) form. If the Automatic Packaging feature is not enabled
on the Enable/Disable Features (CS100000) form, you can use these settings for the calculation of weight and
volume of each sales order and shipment, and users will be able to select the boxes for each order manually.

Before You Proceed

1. On the Companies (CS101500) form, make sure that the base weight UOM is selected in the Weight UOM box
and that the base volume UOM is selected in the Volume UOM box.
2. On the Units of Measure form, make sure that the UOM to measure the weight of the item's base unit is
defined and that a conversion factor to convert this UOM to the base weight UOM is specified. Also, make
sure that the UOM to measure the volume of the item's base unit is defined and that the conversion factor to
convert this UOM to the base volume UOM is specified.

To Configure a Stock Item for Automatic Packaging

1. Open the Stock Items (IN202500) form.
2. In the Inventory ID box, select a stock item.
3. On the Packages tab, in the Weight box, type the weight of the base unit of the item.
4. In the Weight UOM box, select the UOM used to measure the weight.
5. In the Volume box, type the volume of the base unit of the item.
6. In the Volume UOM box, select the UOM used to measure the volume.
7. If this item should always be packed separately from other items, select the Pack Separately check box.
8. If the Automatic Packaging feature is not enabled on the Enable/Disable Features (CS100000) form, proceed
to Step 10.
9. In the Packaging Option box, select one of the available options:
• Manual: If the item should always be packed manually.
• By Weight: If the item should be packed by weight. In the Boxes table (which appears), create a list of
boxes that can be used for this item.
• By Quantity: If the item should always be packed by quantity. An item to be packed by quantity is always
packed separately from other items. (When you select this option, the Pack Separately check box is
selected and unavailable for editing.)
In the Boxes table (which appears when you select this option), create the list of boxes, and for each box,
specify the maximum quantity of the base units of this item that this box can hold.
• By Weight and Volume: If the item can be packed by weight or volume jointly with other items from a
sales order.
In the Boxes table (which appears when you select this option), create the list of boxes that can be used
for this item.
10.Click Save on the form toolbar.
 Configuring Carriers, Packaging, and Freight | 35

Automatic Packaging for Local Carriers

If you use a set of standard boxes for shipping goods, you can configure the system to suggest boxes for each sales
order and shipment based on the packaging options and weights specified for stock items. With Acumatica ERP,
you can configure and use the automatic packaging functionality for all the local carriers used by your organization
to ship the sales orders. To use the automatic packaging functionality, make sure the Automatic Packaging feature
is enabled on Enable/Disable Features (CS100000) form.

Package Calculation for a Sales Order

Once the automatic packaging functionality has been configured, you can use it when you prepare a sales order for
shipping or create a consolidated shipment.
Because the calculation of packages is resource-intensive, the system calculates packages only when the user
requests this calculation. As you are preparing a sales order on the Sales Orders (SO301000) form and adding items,
the system calculates the weight and volume of the sales order. Once you specify the shipping information on the
Shipping tab—including the ship via code, the shipping terms, and the shipping zone—and save the order, the
system determines the set of boxes, each package weight, the freight cost, and the freight charges.
The system uses a heuristic algorithm (an algorithm that quickly finds a satisfactory set of boxes, however it does
not guarantee that this set is the best one) and the following information to make suggestions about the boxes
required for the order:
• The lists of boxes assigned to each ship via code, with the maximum weight and volume each box can hold
and the weight of the box (which must include the weight of any packaging material)
• The quantity of each stock item in base units, the weight and volume of the base unit of the item, and the
option instructing the system about how to pack this item
• The quantity of each non-stock item in base units, and the weight and volume of the base unit of the item
You can view the particular packages on the Shop for Rates dialog box, which opens when you click the Shop for
Rates button on the Shipping tab. You can review the calculated totals on the Totals tab of the Sales Orders form.
If freight for a specific ship via code should be specified manually, you can enter the total freight amount in the
Freight box on the Totals tab.
In some cases, you may need to edit the packages manually. If you select the Manual Packaging check box, you
can adjust information about the boxes and their contents to match the quantities and weights of actual packages.
For more information, see Manual Packaging of Items.

Automatic Packaging Suggestions for Shipments

If the automatic packaging is configured, once a shipment is generated for a sales order, the system updates
the packages calculated for the order. You can view the suggested minimal set of boxes for a shipment on the
Packages tab of the Shipments (SO302000) form. For packages that have been suggested automatically (those with
Auto selected in the Type column on the Packages tab of the Shipments (SO302000) form), the system adds the
weights of the boxes automatically. If needed, you can manually correct information about packages to match the
quantities and weights of the actual packages, or select another box or boxes.
You can create shipments for multiple orders by using the Process Orders (SO501000) form. If multiple orders are
consolidated into one shipment, you can recalculate the packages initially determined for sales orders by clicking
the Refresh Packages button on the table toolbar on the Packages tab of the Shipments (SO302000) form. Once
the set of boxes is determined for the consolidated shipment, you can review and edit this list if needed on the
Packages tab.
Related Links
• Freight Calculation
 Configuring Carriers, Packaging, and Freight | 36

• Shipments

To Configure Automatic Packaging

To make sales order processing more effective, you can configure the system to automatically determine the
optimal set of boxes for sales orders and for shipments to be sent via carriers, including integrated carriers.
Configuration includes the following major steps.

Before You Proceed

Make sure the Automatic Packaging feature is enabled on the Enable/Disable Features (CS100000) form.

1. Create the Weight and Volume UOMs

Start by compiling a list of the units of measure used in your system to measure weights and volumes for different
stock items that are usually shipped via carriers.
Then make sure that all these UOMs are defined in the system on the Units of Measure (CS203100) form. If any UOM
is not listed among the predefined UOMs, define it. For details, see Units of Measure Configuration: Implementation
Activity.

2. Specify the Base UOMs to Measure Weights and Volumes

Decide on the base unit of measure (UOM) to be used for weight and the base unit of measure to be used for
volume in your system; for more information, see Units of Weight and Volume. Aer you have created the UOMS that
you planned to use as the base UOMs for weights and volumes, you use the Companies (CS101500) form to select
these UOMs as the base weight and volume UOMs as follows:
1. Open the Companies form.
2. In the Weight UOM box, specify the UOM to be used to measure the weights of the stock items.
3. In the Volume UOM box, specify the UOM to be used to measure the volumes of the stock items.
4. Click Save on the form toolbar.

3. Specify the Rule for Converting the Base UOM to the Carrier UOM for Weight
If integration with any carrier system is configured in your system, notice the UOM (in the UOM box on the Carriers
(CS207700) form) selected as the unit that is equal to the UOM specified for the carrier in the Carrier Unit of Weight
box. Make sure that the conversion rules from the base weight UOM to the UOM (which is equal to the carrier unit of
weight) are defined on the Units of Measure (CS203100) form.
For more information on setting up integration with carriers, see To Set Up Integration with FedEx, and To Set Up
Integration with UPS.

4. Define the Boxes to Be Used for Shipping

To make it possible for the system to make packaging suggestions for sales orders, on the Boxes (CS207600) form,
list all the available boxes with their own weights (which may include the weight of all packaging materials) and
their capacities for weight and volume. For each box that will be used for the integrated carrier, you must specify
the box's linear dimensions (height, width, and length) because dimensions may affect the rates.
 Configuring Carriers, Packaging, and Freight | 37

By selecting the carrier's unit of weight, you also select the UOM to be used to specify the linear
dimensions (height, width, and length) of boxes used by the carrier. If the carrier uses SI Units
(Kilogram), the UOM for linear dimensions is centimeter; if the carrier uses US Units (Pound), the UOM
is inch.

For carriers that are not integrated with your system, linear dimensions for boxes are optional, and because they
can be used for information purposes only, the UOM for measurement can be selected arbitrary.
For details, see To Define a Box.

5. Create Ship via Codes and Assign Boxes

For each delivery service used by your organization, create a ship via code by using the Ship via Codes (CS207500)
form, specify the freight calculation method and freight rates, and create a list of boxes on the Packages tab. The
rates of different carriers or different delivery services for boxes of the same capacity may vary significantly, and
some services may be available for only packages with specific weights, volumes, or dimensions. For more details,
see To Create a Ship via Code .
If your system is integrated with any carrier, also create a ship via code for each service method of each carrier that
your organization uses, and assign the boxes. For details, see To Create Ship via Codes for the Integrated Carrier.

6. Configure Stock Items for Automatic Packaging

For each stock item, on the Packaging Settings tab of the Stock Items (IN202500) form, specify the weight and
volume of the base unit and the packaging option that defines how this stock item should be packed:
• By quantity, separately from other items
• By weight, separately from other items
• By weight, not necessarily separately from other items
• By weight and volume, generally with other items
• Manually
For detailed instructions, see To Configure a Stock Item for Automatic Packaging.
Related Links
• To Define a Box
• To Create a Ship via Code
• To Configure a Stock Item for Automatic Packaging

To Create a Ship via Code

In Acumatica ERP, you can create a ship via code for each delivery service your organization uses and specify which
boxes are used for this service and what the freight rates are.
You create ship via codes by using the Ship via Codes (CS207500) form. Perform the following steps for each ship via
code you need to define.

To Create a Ship via Code

1. Open the Ship via Codes (CS207500) form.
2. Enter the ship via code (which is an alphanumerical string of up to 15 characters) clearly identifying the
specific delivery service.
3. Enter a description of the code.
 Configuring Carriers, Packaging, and Freight | 38

4. Makes sure that the External Plug-in check box is cleared.

5. On the Details tab, select the calendar that provides information about this carrier's work hours.
6. Select the method to calculate the freight from the following options:
• Per Unit: To calculate the freight as the rate by weight.
• Net: To use flat rate.
• Manual: To specify the freight amount manually for each sales order in the Freight Cost box on the
Totals tab of the Sales Orders form.
7. In the Base Rate box, if Net is selected as the calculation method, type the value of the flat-rate charge to be
added to the freight amount. If Per Unit is selected as the calculation method, type the value of the per unit
rate.
8. On the Freight Rates tab, if Net is selected as the calculation method, specify the rate ranges as follows:
a. Click Add Row on the table toolbar to add a new rate range.
b. In the Rate column, specify the rate.
c. In the Weight column, specify the minimum weight to which the rate may be applied.
d. In the Volume column, specify the minimum volume to which the rate may be applied.
e. In the Zone column, specify the shipping zone to which the goods with the specified weight and volume
are shipped.
9. If integration with AvaTax is active, select the Common Carrier check box if the taxes associated with the
address of the customer location must be applied. Clear the check box if the taxes associated with the
address of the selling branch must be applied.
10.In the Tax Category box, select the tax category to be applied to the freight charges.
11.In the Freight Sales Account box, select an income account to record the freight sales.
12.In the Freight Sales Sub. box, select a subaccount to record the freight sales.
13.In the Freight Expense Account box, select an income account to record the freight expenses.
14.In the Freight Expense Sub. box, select a subaccount to record the freight expenses.
15.On the Packages tab, select each of the boxes to be used with this delivery service as follows:
• Click Add Row on the table toolbar to add information about a box.
• In the Box ID column, select a box that is used by the service method.
• Click Save on the form toolbar. The box information will appear in the appropriate columns.
16.Click Save on the form toolbar.

Related Links
• To Configure a Stock Item for Automatic Packaging

Manual Packaging of Items

You can specify that certain items should always be packed manually—for example, if the items are small and can
fit into a box packed with other items. To exclude such items from automatic packaging, you should select Manual
in the Packaging Option box on the Stock Items (IN202500) form (on the Packaging tab). Manual packaging can be
configured for items regardless of which carrier, integrated or local, is used for shipping these items.
Then when a user prepares a sales order with these items on the Sales Orders (SO301000) form, the user needs
to select the boxes to be used to ship these items in the Shop for Rates dialog box, and specify their gross
weights and the declared values in the Packages table. Recalculation of these packages will not be performed
 Configuring Carriers, Packaging, and Freight | 39

automatically for this order and that these particular packages will be used for shipping (even if the order is a part
of a consolidated shipment).

To Manually Select the Package Box for an Order

If you need to select the box for a sales order manually, you can do this from the Sales Orders (SO301000) form, as
described in the instructions below.

To Manually Select the Package Box for an Existing Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type of the order for which you need to specify boxes.
3. In the Order Nbr. box, select the reference number of the needed order.
4. On the Shipping tab, click the Shop for Rates button.
5. In the Shop for Rates dialog box, which opens, select the Manual Packaging check box to indicate that the
packages selected for the order will be used for shipping.
6. In the Packages table in the lower part of the dialog box, add a row, and in the Box ID column of the row,
select the needed box.
7. In the Ship From Warehouse column, select the warehouse from which the package should be shipped.
8. Click OK to save your changes and close the dialog box.
9. Review the Totals tab to make sure the calculated freight cost (in the Freight Info section) is correct.

If the Shipping Carrier Integration feature is disabled on the Enable/Disable Features (CS100000) form),
you have to click the Packages button on the Shipping Settings tab of the Sales Orders (SO301000)
form to open the Shop For Rates button. Further instructions do not change.

Related Links
• To Define a Box

Freight Calculation

When you provide delivery service to customers of your organization, you need to calculate the freight price to
charge customers. The freight price usually depends on any number of the following factors, most of which affect
the freight costs to your company: the shipping rates of the third-party carriers whose services your organization
uses, the shipping zones, the weight or volume of goods, and the total amount of the applicable order.
In Acumatica ERP, you can configure the system so that it calculates the freight price automatically on sales
documents. Also users can enter the freight price manually for each document. If automatic freight calculation
is set up, in most cases, users can still override the automatically calculated freight price on a sales order or
shipment.
In this topic, you will read about the calculation of freight costs and prices in Acumatica ERP.

Configuration of Automatic Freight Calculation

If you want to calculate freight cost and price automatically for particular order types, you do the following:
1. You enable automatic freight calculation for each applicable order type by selecting the Calculate Freight
check box on the General tab of the Order Types (SO201000) form. For shipments of sales orders of this
 Configuring Carriers, Packaging, and Freight | 40

type, this setting applies to only those with the Issue operation—that is, to only shipments for which Issue is
selected in the Operation box in the Summary area of the Shipments (SO302000) form.
2. For shipments of the Receipt operation (in the Summary area of the Shipments form) shipped via a local
carrier, you specify that the freight charges must be calculated and applied to these shipments by selecting
the Calculate Freight on Returns check box for the applicable ship via code on the Ship via Codes
(CS207500) form.
3. You create shipping settings for each shipping method by using the Ship via Codes form. Shipping settings
depend on the carrier. For details, see To Create Ship via Codes for the Integrated Carrier and To Create a Ship
via Code .
4. You create shipping terms, which the system will use to calculate freight price depending on the order
amount, by using the Shipping Terms (CS208000) form. For details, see Freight Price Calculation.

Freight Price Calculation

The ship via code specified on a sales order defines the freight cost. To calculate the freight price, the system uses
either default shipping terms that can be specified for a customer on the Customers (AR303000) form or shipping
terms that you specify manually on the sales order. The freight price may include insurance, handling fees, or line
handling fees.
To encourage larger orders, you can configure shipping terms so that customers won't pay freight on orders with
total amounts greater than a specified value. On the Shipping Terms (CS208000) form, you can create tiers (or break
points) based on shipping amount and specify the lower freight price for larger amounts.
The freight price is calculated similarly for all ship via codes, as shown below.

FreightPrice = (FreightCost * FreightCost% / 100) +

(LineTotal x InvoiceAmt% / 100) +
ShippingHandling +
(NumberOfLines x LineHandling)

Freight Information on Sales Documents

The first sales document that contains freight information is the sales order. If the sales process in your
organization includes shipments, you can edit the freight information on shipments (or leave the information if it
is correct for the shipment). An invoice (or multiple invoices) based on a sales order or shipment can contain the
freight price copied from the sales order or the shipment. For each shipping term, you can specify which document
will provide freight information to an invoice with this shipping term—a sales order or shipment—by selecting the
corresponding option in the Invoice Freight Price Based On box on the Shipping Terms (CS208000) form.

The value of the Invoice Freight Price Based On box on this form cannot be changed for the shipping
terms aer any order or shipment has been created with these shipping terms.

If the freight price can be determined when the sales order is entered, you can select Sales Order in this box, so that
changes of freight information on any shipment created for this sales order do not influence the freight price on the
invoice or invoices for the sales order. If the freight price should instead be defined during shipping, you can select
Shipment as the base document for freight price.

Freight Cost for Integrated Carriers

National carriers, such as UPS or FedEx, allow direct access to their automated systems to provide real-time
information about rates for their clients. In Acumatica ERP, you can configure integration with these carriers, so
they are referred to as integrated carriers. For more information, see Integration with Carriers.
 Configuring Carriers, Packaging, and Freight | 41

With integrated carriers, the freight cost is calculated on the carrier's side based on the specified shipping settings
and the dimensions and weights of packages. The full freight amount on the shipment is calculated based on the
freight charged by the carrier and on the shipping terms that apply to the shipments.
You can compare the freight amounts charged by various carriers by using the Shop for Rates dialog box, which
you open from the Sales Orders (SO301000) form by clicking the Shop for Rates button on the Shipping tab. You
will be able to see the freight rates offered by all the integrated carriers and select the carrier with the lowest freight
amount.
The freight price the customer is charged for goods delivered by an integrated carrier is calculated as a sum of the
bill amount for this delivery, the freight price calculated according to shipping terms, and the premium freight
price.

Freight Cost for Local Carriers

If the goods for a sales order are shipped via a local carrier, the system estimates the freight cost based on the rates
defined by the ship via code specified on the Ship via Codes (CS207500) form. You enter rates for each ship via code
based on a local carrier on the Freight Rates tab of the Ship via Codes (CS207500) form. For details, see To Create a
Ship via Code .

The number of decimal places for freight rates is defined by the value in the Price/Cost Decimal
Places box on the Companies (CS101500) form.

When a user enters a sales order with goods to be shipped by a local carrier, the system estimates the freight
cost for the order based on the ship via code—that is, based on the predefined rates you have specified for the
carrier. The weight of each order is calculated automatically in the same weight UOM that is specified in the Weight
UOM box on the Companies form. For details on setting up the weight calculation of a sales order, see Automatic
Packaging for Local Carriers.

By default, the currency of the freight is the base currency.

Rates are specified for shipping zones based on the weight of the total shipment and, optionally, the volume.
The weight of an order is compared to break points, and the first break point that is less than the order weight
determines the freight rate.
The system calculates the freight cost based on the calculation method selected on the Ship via Codes form for the
carrier as follows:
• For the Per Unit calculation method:
FreightCost = BaseRate + (FreightRate x Weight)

• For the Net calculation method:

FreightCost = BaseRate + FreightRate

Here, FreightRate is equal to the rate defined for a specific range of the shipment's weight and volume,
as specified on the Freight Rates tab of the Ship via Codes form.

Manual Entry of Freight Amounts

You can configure the system so that users can manually enter the freight cost, the freight price, or both of these on
a sales order or shipment.
To set up the ability to enter freight cost manually on sales orders, you select Manual in the Calculation Method
box of the Details tab on the Ship via Codes (CS207500) form for a ship via code of a local carrier. With this setting,
you can specify the freight cost manually in the Freight Cost box on the Totals tab on the Sales Orders (SO301000)
form.
 Configuring Carriers, Packaging, and Freight | 42

As an alternative to creating a ship via code, you can enter a freight price manually in a sales order or shipment.
The system preserves the manually entered freight price in the sales order or shipment, and does not recalculate
the price if any of the order lines (in particular, the quantities, extended price, or amount) are modified. You can do
the following to enter the freight price manually for the particular document type:
• Sales order: On the Totals tab of the Sales Orders (SO301000) form, you select the Override Freight Price
check box, and in the Freight Price box, you type the freight price for this sales order.
• Shipment: On the Shipping tab of the Shipments (SO302000) form, you select the Override Freight Price
check box, and in the Freight Price box, you type the freight price for this shipment.
The Override Freight Price check box is available for documents that meet any of the following conditions:
• The Shipping Terms box is empty for the sales order or shipment on the Sales Orders or Shipments form,
respectively.
• Sales Order is specified in the Invoice Freight Price Based On box on the Totals tab of the Sales Orders form
for the sales order.
• Shipment is specified in the Invoice Freight Price Based On box on the Shipping tab of the Shipments form
for the shipment.

Freight Amount on Partial Shipments

A sales order can be fulfilled by multiple shipments if the Back Order Allowed option is selected in the Shipping
Rule box of the Shipping tab on the Sales Orders (SO301000) form. With multiple shipments, you can define how
the freight amount (that is, the freight price and the premium freight price, if one is specified) should be allocated
among shipments by selecting one of the following options in the Freight Allocation on Partial Shipping box of
the General tab of the Sales Orders Preferences (SO101000) form:
• Full Amount First Time to assign the freight amount to the first shipment created for the order
• Allocate Proportionally to distribute the freight amount among shipments proportionally to partial shipment
amounts

Correction of Freight Price

If you want to charge a customer for any additional conditions, such as extreme fragility or unusual dimensions,
you can enter a premium freight price that the system will add to the order total. The premium freight price is
specified for a sales order as a flat amount on the Totals tab of the Sales Orders (SO301000) form.
Sometimes the real cost of freight and handling becomes known only aer all shipments have been completed and
the actual shipping charges for all packages have been provided by the carrier. With local carriers, the probability of
change is higher because the rates used can become obsolete, while integrated carriers provide real-time rates at
the time of shipment.
If you need to correct the excessive freight charges that were specified in one of the earlier orders, you can
manually adjust the premium freight price in the current order by decreasing it by an adjustment amount or by
entering a negative freight amount. If you need to adjust the total freight price in an invoice, you can specify the
needed positive or negative value in the Premium Freight Price column of the shipment line on the Freight tab of
the Invoices (SO303000) form.

The order's total amount aer you adjust the premium freight price must be greater than zero or,
at minimum, equal to zero—otherwise, the invoice that is later generated for the order cannot be
released.

Posting Settings for Freight Amounts

You can specify the General Ledger accounts that the system uses for posting freight amounts in the settings of the
following entities:
 Configuring Carriers, Packaging, and Freight | 43

• Order type
• Customer location
• Ship via code
You select the source of the freight account in the Use Freight Account From box on the Order Types (SO201000)
form. The freight account that you specify on this form in the Freight Account box is used as the default freight
account. If the Subaccounts feature is enabled on the Enable/Disable Features (CS100000) form, the freight
subaccount to record freight is generated according to the rule specified in the Combine Freight Sub. From box on
the Order Types form.
If you need to post a freight cost to an expense account, you specify this account in the Freight Expense Account
box on the Ship via Codes (CS207500) form. The freight cost determined for a sales order is not recorded to any
expense account until a bill from the carrier is processed. A bill from the carrier may include freight charges for all
the sales orders that were shipped by the carrier during a specific time interval (a week, two weeks, or a month). If
the bills are created for each ship via code used for shipping, the freight expense account can be manually selected
on the appropriate lines of the bill.
Related Links
• Ship via Codes
• Units of Weight and Volume
• Shipping Terms
• Sales Orders Preferences
 Configuring Order Approval | 44

Configuring Order Approval

Most companies establish their sales and purchase processes so that the entered documents must be reviewed by
responsible persons and approved for further processing. The topics of this part explain how you can configure the
approval maps for sales orders, purchase orders, purchase requests, and purchase requisitions.

Sales Order Approval

Most businesses have their own processes of reviewing and approving sales orders. Your organization can configure
the approval of specific sales orders—for instance, orders with greater than average amounts or orders that include
specific items.
With Acumatica ERP, you can set up as many approvals for specific types of sales orders and invoices as your
company's policies require.

The approval of sales orders with the Credit Hold status cannot be performed in Acumatica ERP.

Approval Support in the Sales Orders Module

The functionality of approvals is available only if the Approval Workflow feature is enabled on the Enable/Disable
Features (CS100000) form. If the feature is enabled, approvals can be configured for the following predefined order
types: CS, CR, IN, SO, SA, CM, TR, and QT. The order types for which approval can be configured have the Supports
Approval check box selected on the General tab of the Order Types (SO201000) form.

If custom order types are configured in your system, approval can be configured for orders of the
types whose templates use the Sales Order, Invoice, Transfer Order, and Quote automation behaviors.

If approval is required, when a sales order is taken off hold and saved, the system gives the order the Pending
Approval status and selects an approver for the order, in accordance with the approval map used for approval
assignment. Once each of the assigned persons approves the order on either the Sales Orders or Approvals
(EP503010) form, the order gets the Open status. If the approver rejects the order, the order gets the Rejected status.
If the order is then edited and taken off hold, the system assigns it for approval according to the approval map.

The orders with the Pending Approval and Open statuses cannot be edited.

Configuration of Approval for Sales Orders

To set up the approval of sales orders, perform the following general steps:
1. Identify the employees who will be reviewing sales orders of specific types, and plan the workgroups that
will include these employees. Review your organization's hierarchy of workgroups on the Company Tree
(EP204061) form, and add any new workgroups needed for approvals.
2. For each type of sales order, define the rules for the assignment of specific orders to specific employees.
Assignment can be done unconditionally or can be based on the specific properties of the order. Decide
whether a single approval is required or multiple approvals are required; if multiple approvals are required,
determine whether they should be performed in parallel or in multiple stages. Specify these rules by using
approval maps, which are created on the Assignment and Approval Maps (EP205500) form.
 Configuring Order Approval | 45

For each type of sales order for which approval is required, you should configure at least one
approval map. If multiple parallel approvals are required for orders of the type, create multiple
approval maps.

3. If needed, create email templates to notify approvers about new sales orders pending approval—then
once an order has been assigned to a specific employee or multiple employees for approval, the system
generates a email or multiple emails (based on the template you created) that will be sent to the employees
to notify them about the order pending approval. You can create email templates by using the Email
Templates (SM204003) form.

For details on setting up the approval of sales orders, see To Set Up Approval of Sales Orders.

General Rules for Configuring Parallel Approvals

If your company requires multiple independent approvals for a sales order of a specific type, you can configure
parallel approvals. In this case, every sales order of the type is approved by multiple employees in any order;
the number of required approvals can depend on the document total, specific customer, or particular item.
For example, in a small company, suppose that each sales order must be approved by the CEO, CFO, and CTO
independently—in this case, you will need three maps, each of which assigns all orders unconditionally to one of
these approvers.
In Acumatica ERP, you will need multiple approval maps, developed by using the Assignment and Approval Maps
form, for each sales order type. For each type, the rules can be very simple if all orders are to be approved by the
same persons, or more complicated if the approver is selected based on the properties of the order, such as the
total amount or the specific products being sold. For more information on creating an approval map, see Managing
Assignment and Approval Maps.

Parallel Approval Workflow

Aer parallel approval has been configured for a specific type of sales order in your system, an order of the type
will be processed as follows: When a user saves a new sales order that has the Hold check box cleared on the Sales
Orders (SO301000) form, the system uses all the applicable approval maps to select the appropriate approvers for
the order and changes the status of the order to Pending Approval.

Orders with the Pending Approval status cannot be edited.

If email templates are specified on the Approval tab of the Sales Orders Preferences (SO101000) form, emails are
generated and sent to the employees who have been assigned as approvers.
Each approver may approve or reject the order by using the Approvals (EP503010) form. If any approver rejects the
order, the system assigns the Rejected status to the order. Rejected orders cannot be removed from the system;
they are kept with the history of approvals. If your organization's policies allow rejected orders to be edited, the
orders can be modified. Any modification removes all approval records for this order, and the process of approval
starts again once the Hold check box is cleared on the Sales Orders form.

If the system doesn't assign an approver to an order while applying the rules of assignment, the
order gets the Open status. For instance, suppose that you designed an approval map that assigns an
approver for orders with amounts greater than $500. If you create an order with an order total of $450,
no approver will be assigned to it, and the order will get the Open status once you take it off hold.

The order gets the Open status only aer all required approvals (those specified on the Approval tab of the Sales
Orders Preferences form) have been performed. Open sales orders may be emailed, or printed and mailed, to the
customer.
 Configuring Order Approval | 46

General Rules for Configuring Multistage Approvals

If a sales order of a specific type should be approved sequentially by multiple people (perhaps at different levels of
the company hierarchy) in your company, you should configure multistage (sequential) approval of orders.

To configure multistage approval for orders of a specific type, you need to create only one approval
map (which assigns approvers sequentially) and specify this map for orders of the type on the
Approvals tab of the Sales Orders Preferences form.

Consider an example of multistage approvals. You might require that all sales orders in your company be approved
in the following stages:
1. By a senior accountant (with senior accountants belonging to Workgroup1)
2. By the manager of the accounting department (who belongs to Workgroup2)
3. For orders above $5000 only, by the CFO (the sole member of Workgroup3)

The assignment rules for multistage approval should be designed so that an order, when it is saved, is assigned
to Workgroup1 only if its current approval group is none, to Workgroup2 when its current approval group is
Workgroup1, and then to Workgroup3 when its current approval group is Workgroup2 and its amount is greater
than $5000. For each approval level, you can add conditions if needed (such as whether this order is from a specific
customer or requests a specific item, or the document amount exceeds a specific threshold).
For more details, see To Create an Approval Map for Multistage Approvals; the process of creating maps for sales
orders is similar to that of creating approval maps for purchase orders.

Multistage Approval Workflow

Aer multistage approval has been configured in your system, an order of the type will be processed as follows:
When a user saves a sales order with the Hold check box cleared, the system applies the specified rules to select
the initial approver for the order and changes the status of the order from On Hold to Pending Approval. Orders with
the Pending Approval status cannot be edited.

Upon application of the approval map, if an order has not been assigned to anybody, its status
changes to Open (Approved). For instance, if only orders with amounts that exceed a specific threshold
should be approved, specify conditions that assign only orders with amounts exceeding this
threshold. An order that does not exceed this threshold is given the Open status.

Once the initial approver approves the order, the system assigns the next approver, and so forth. Each of the
approvers can view the document at the appropriate stage in the approval process on the Approvals (EP503010)
form when the order is assigned to her or him.

If an order is first approved by an employee of a workgroup located higher (according to the company
tree) than any of the assigned approvers, or by an assigned approver who belongs to an higher group
than other approvers, the order is considered as getting all the required approvals at once.

If any of the approvers rejects the order, the system assigns the Rejected status to the order and the order will not
appear in the lists for other approvals. Rejected orders cannot be removed from the system; they are kept with the
history of approvals. If your organization's policies allow editing of the rejected orders, the orders can be modified.
Any modification removes all approval records for this order, and the process of approval can be started again from
the beginning—assigning approvers.
Once the last approver approves the order, the status of the order changes to Open. Open sales orders may be sent
to the customer via email, printing and mailing, or both methods.
 Configuring Order Approval | 47

Open orders cannot be edited.

Related Links
• Sales Orders Preferences
• Company Tree
• Assignment and Approval Maps

Purchase Order Approval

Most companies have established their own processes of reviewing and approving purchase orders. Generally, all
purchase orders require at least one approval, and orders with amounts above a particular threshold require one or
more additional approvals.
With Acumatica ERP, you can set up as many approvals for specific types of purchase orders as your company's
policies require. You can configure parallel or multistage approvals of orders.

The functionality related to approvals is available only if the Approval Workflow feature is enabled on
the Enable/Disable Features (CS100000) form.

Configuration of Approval for Purchase Orders

To make it possible to set up the approval of purchase orders, perform the following general steps:
1. Identify the employees who will be reviewing purchase orders of specific types, and plan the workgroups
that will include these employees. Review the organization's hierarchy of workgroups on the Company Tree
(EP204061) form, and add any new workgroups needed for approvals.
2. Do the following for each type of purchase orders (if you will have different rules for different types):
• Decide whether a single approval is required or multiple approvals are required; if multiple approvals
are required, determine whether they should be performed in parallel or in multiple stages. If multiple
parallel approvals are required, you will need to create multiple approval maps.
• Define the rules for assignment of specific orders to specific employees. Assignment can be done
unconditionally or can be based on the specific properties of the order.
• Specify these rules by using approval maps, which are created on the Assignment and Approval Maps
(EP205500) form.
3. If needed, create email templates to notify approvers about new orders pending approval—then, once an
order has been assigned to a specific employee or multiple employees for approval, the system generates
a email or emails (based on such a template) that will be sent to the employees to notify them about the
order pending approval. You can create email templates by using the Email Templates (SM204003) form.

For details on setting up the approval of purchase orders, see To Set Up Approval of Purchase Orders.

General Rules for Configuring Parallel Approvals

If your company requires multiple independent approvals for a purchase order, you can configure parallel
approvals. In this case, every purchase order is approved by multiple employees in any order; the number of
required approvals can depend on the document total, specific vendor, or particular item. For example, in a small
company, each purchase order might be approved by a buyer, purchasing manager, and CFO independently—in
this case you will need three maps, each of which assigns all orders unconditionally to one of these approvers.
In general, you will need multiple approval maps, developed by using the Assignment and Approval Maps form,
for each purchase order type: Normal, Blanket, and Standard. For each type, the rules can be very simple if all
 Configuring Order Approval | 48

orders are to be approved by the same persons, or more complicated if selection of the approver depends on the
properties of the order, such as total amount, number of order lines, or specific products to be purchased.

For each order type, you should configure one approval map per required approval.

For details, see To Create Approval Maps for Parallel Approvals.

Parallel Approval Workflow

Aer parallel approval has been configured for a specific type of purchase orders in your system, an order of the
type will be processed as follows. When a user saves a new purchase order that has the Hold check box cleared
on the Purchase Orders (PO301000) form, the system applies all the applicable approval maps to select the
appropriate approvers for the order and changes the status of the order to Pending Approval.
If email templates are specified on the Approval tab of the Purchase Orders Preferences (PO101000) form, emails
are generated and sent to the employees who have been assigned as approvers.
Each approver may approve or reject the order by using the Approvals (EP503010) form. If any approver rejects the
order, the system assigns the Rejected status to the order. Rejected orders cannot be removed from the system;
they are kept with the history of approvals. If your organization's policies allow editing of rejected orders, the
orders can be modified. Any modification removes all approval records for this order, and the process of approval
starts again once the Hold check box is cleared on the Purchase Orders form.

If the system (when applying the rules of assignment) doesn't assign an approver to an order, the
order gets the Open status. For instance, suppose you created an approval map that assigns approver
for orders with amounts greater than $500. If you create an order with an order total of $450, no
approver will be assigned, and the order will get the Open status once you take it off hold.

If purchase orders should be approved by multiple persons, order statuses do not indicate whether the orders
are approved by some users or not yet approved at all. Once an order is assigned for approval, it has the Pending
Approval status until all approvals have been completed. Detailed information about multiple approvals appears
on the Approvals tab of the Purchase Orders form. The order gets the Open status only aer all required approvals
have been received. Open purchase orders may be emailed, or printed and mailed, to the vendor.

Configuration of Multistep Approvals

If in your company a purchase order of a specific type should be approved sequentially by multiple people, you
should configure multistage approval of orders.

To configure multistep approval for orders of a specific type, you need to create only one approval
map (which would assign approvers in multiple stages) and specify this map for orders of this type on
the Approvals tab of the Purchase Orders Preferences form.

Consider an example of multistep approvals. You might require that all purchase orders in your company be
approved by a buyer (a member of the Buyer Workgroup), then the orders should be approved by the purchase
manager (who belongs to Purchase Manager Workgroup), and that the orders above $5000 then be signed by the
CFO (the sole member of CFO). The assignment rules for multistage approval should be designed in such a way that
an order, when it is saved, is assigned to Buyer workgroup only if its current approval group is none, to Purchase
Manager workgroup when its current approval group is Buyer, and to the CFO workgroup when its current approval
group is Purchase Manager and only if the order total is greater than $5000. For each approval level, you can add as
many level-specific conditions as needed (such as whether the order amount exceeds specific threshold amount or
whether the order lists specific items).
For details, see To Create an Approval Map for Multistage Approvals.
 Configuring Order Approval | 49

Multistep Approval Workflow

Aer multistep approval has been configured in your system, an order of the type will be processed as follows:
When a user saves a purchase order with the Hold check box cleared, the system applies the specified rules to
select the initial approver for the order and changes the status of the order from On Hold to Pending Approval.

Upon approval map application, if an order has not been assigned to anybody, its status changes
to Approved. For instance, if only orders with amounts that exceed a specific threshold should be
approved, specify conditions that assign only orders with amounts exceeding this threshold.

Once the initial approver approves the order, the system assigns the next approver, and so forth. Each of the
approvers will be able to view the document at the appropriate time (upon assignment to the first approver, or
aer the previous approval for subsequent approvals) by using the Approvals (EP503010) form.

If an order is first approved by an employee of a workgroup located higher (according to the company
tree) than any of the assigned approvers, or by an assigned approver who belongs to an higher group
than other approvers, the order gets all the required approvals at once.

If any of the approvers rejects the order, the system assigns the Rejected status to the order. Rejected orders cannot
be removed from the system because they are kept with the history of approvals. If your organization's policies
allow editing of the rejected orders, the orders can be modified. Any modification removes all approval records for
this order, and the process of approval can be started again from the lowest level.
Once the last approver approves the order, the status of the order changes to Open. Open purchase orders may be
emailed, or printed and sent to the vendor by mail.

Approval Escalation
Every workgroup has a wait time specified on the Company Tree (EP204061) form. If a document assigned to a
specific workgroup for approval is not approved by any user of the workgroup during the group's wait time, then
the document becomes escalated—visible to the group that is one level or multiple levels up in the company tree
—and any user from this higher-level workgroup can review the document and approve or reject it. If an order
that should be approved by multiple approvers in a multistage approval process has been approved only by an
approver from the highest-level workgroup (specified for this approval process), the order gets the Open status and
other approvals become unnecessary.
For some groups on the company tree, you can specify whether escalation bypasses them.
Related Links
• Managing Assignment and Approval Maps
• Assignment and Approval Maps
• To Set Up Approval of Purchase Orders

To Set Up Approval of Sales Orders

For many businesses, approval of sales orders is required for sales performed on credit. You can set up approval for
sales orders by using the Sales Orders Preferences (SO101000) form.

Before You Proceed

Before you can set up the approval of sales orders, make sure the following steps are completed in your system:
 Configuring Order Approval | 50

1. On the Order Types (SO201000) form, make sure that the Supports Approval check box is selected for each
order type for which you want to set up the approval of orders.
2. Review the organization's hierarchy of workgroups on the Company Tree (EP204061) form, and add new
groups whose members are authorized to approve sales orders, if needed.
Select the employee who will be the default owner of each workgroup—the member of the group to whom
the documents will be assigned for approval by default. A group may include only one default owner.
3. By using the Assignment and Approval Maps (EP205500) form, create the approval maps that will be used
to determine the employee or employees who should approve an order of a specific type with specific
properties. For details on configuring approval maps, see To Create Approval Maps for Parallel Approvals and
To Create an Approval Map for Multistage Approvals.

For each type of sales orders for which approval is required, you should configure at least one
approval map. If multiple parallel approvals are required, create an approval map for each
required approval.

4. For each order type, create email templates for notifications about orders pending approval. These emails
will be sent to employees authorized to approve sales orders of a specific type. You can create email
templates by using the Email Templates (SM204003) form.

To Set Up Approval
1. Open the Sales Orders Preferences (SO101000) form.
2. On the Approval tab of this form, select the Require Approval check box.
3. For each order type for which you need to configure approval, add an approval map as follows:
a. Click Add Row in the table.
b. In the SO Type column, select the type of sales orders that requires approval.
c. In the Approval Map column, select the approval map to be used for orders of the selected type.
d. In the Pending Approval Notification column, select the email template you created for generating
emails about orders of this type pending approval.
4. If multiple parallel approvals are required for orders of the specific type, repeat Step 3 for each of the
approval maps.
5. Click Save on the form toolbar.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• The functionality related to approvals is available only if the Approval Workflow feature is enabled on the
Enable/Disable Features (CS100000) form.
• Approvals are supported for the orders of the following predefined types: CS, CR, IN, SO, SA, CM, TR, and QT
They are also supported for orders of custom types that are based on the available templates that use the
following automation behaviors: Invoice, Sales Order, Transfer Order, and Quote.

Related Links
• To Create Approval Maps for Parallel Approvals
• To Create an Approval Map for Multistage Approvals
 Configuring Order Approval | 51

To Create a Map for Sales Order Approval

If in your company sales orders of specific type must be approved, you can configure approval of sales orders in
Acumatica ERP. In general, you will need an approval map, developed by using the Assignment and Approval Maps
(EP205000) form.
The rules can be very simple if all orders are to be assigned for approval to the same person, or more complicated
if the selection of the approver depends on the properties of the order, such as the total amount, the specific
products to be sold, or credit settings of the customer.
A company structure (company tree) and approval maps that use the structure of company's workgroups may
depend on many particular factors. In this topic, we describe how to create an approval map for the following
simple example: In a small company, sales orders over $10000 of the SO type must be approved by the CFO if the
customer credit limit is less than 50000.

Before You Proceed

Review the company tree structure and decide whether you need to add workgroups that will be involved in the
process of sales order approval. For our example, the company tree should have the CFO workgroup.
Make sure that user and employee accounts are created for each of the persons involved in approval of purchase
orders and that workgroups with the approvers as workgroup members are created.

To Create an Approval Map

1. Open the Assignment and Approval Maps (EP205000) form.
2. In the Name box in the Summary area of the form, type a name for a new approval map, for example,
Approval of Orders Over 10000.
3. In the Entity box, expand the nodes: Distribution > Purchase Orders > Work Area > Enter; click Sales
Orders.
4. Click Save on the form toolbar. Notice that the map name is shown now in the Map box.
5. In the Rules pane (to the right in the lower part of the form), click Add Row.
6. In the Type column, select Assign to.
7. In the Workgroup column, select the workgroup (in our example, CFO) to which the orders will be assigned
for approval.
8. In the Assign to column, make sure that the employee ID of the approver from the selected workgroup is
displayed.
9. In the pane, make sure All conditions are true is selected in the Rule Type box.
10.in the Conditions table, click Add Row.
11.in the Entity column, select the entity, Sales Order, whose properties will be used in the conditions for
assignment.
12.In the Field Name column, select Order Total.
13.In the Condition column, select Greater Than.
14.In the Value column, type 10000.
15.in the Conditions table, click Add Row.
16.in the Entity column, select the entity, Customer, whose properties will be used in the conditions for
assignment.
 Configuring Order Approval | 52

17.In the Field Name column, select Credit Limit.

18.In the Condition column, select Is Less Than or Equal To.
19.In the Value column, type 50000.
20.Click Save on the form toolbar.

With this map listed on the Approvals tab of the Sales Orders Preferences (SO101000) form for orders of the SO
type, the system will assign each new order over $10000 to CFO if the customer credit limit is less than $50000.

To Approve a Sales Order

If the Approval Workflow feature is enabled on the Enable/Disable Features (CS100000) form and the Supports
Approval check box is selected in the order type settings on the Order Types (SO201000) form, before an order of
this type can be processed further, you need to approve it.
You can approve a particular sales order on the Sales Orders (SO301000) form, or mass-approve multiple orders on
the Approvals (EP503010) form.

To Approve a Sales Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type.
3. In the Order Nbr. box, select the reference number of the order to be approved.
4. On the More menu, click Approve.

To Approve Multiple Sales Orders

1. Open the Approvals (EP503010) form.
2. On the My Approvals tab, select the unlabeled check boxes in the rows of the documents that require your
approval.
3. On the form toolbar, click Approve to approve the selected documents.

Related Links
• Sales Order Approval
• Approvals

To Set Up Approval of Purchase Orders

For many businesses, approval of purchase orders is essential for effective procurement. For more information on
approvals, see Purchase Order Approval. You can set up approval for purchase orders by using the Purchase Orders
Preferences (PO101000) form.

Before You Proceed

Before you can set up approval of purchase orders, make sure the following steps are completed:
1. Make sure the Approval Workflow feature is enabled on the Enable/Disable Features (CS100000) form.
2. Review the organization's hierarchy of workgroups on the Company Tree (EP204061) form, and add new
workgroups whose members are authorized to approve purchase orders if needed. Select the employee
 Configuring Order Approval | 53

who will be the default owner—the member of the group to whom by default the documents will be
assigned for approval. A group may include only one default owner.
3. By using the Assignment and Approval Maps (EP205500) form, for each type of purchase order, create the
approval maps that will be used to determine the employee who should approve an order of this type with
specific properties. For details on configuring maps, see To Create Approval Maps for Parallel Approvals and
To Create an Approval Map for Multistage Approvals.

For each type of purchase order for which approval is required, you should configure at least
one approval map. If multiple parallel approvals are required, create an approval map for each
required parallel approval for orders of the type.

4. For each order type, create the email templates for notifications about orders pending approval. These
templates will be used to generate emails that will be sent to employees authorized to approve purchase
orders. You can create email templates by using the Email Templates (SM204003) form.

To Set Up Approval
1. Open the Purchase Orders Preferences (PO101000) form.
2. On the Approvals tab of this form, select the Require Approval check box.
3. If you have configured a single approval map for each order type with approval, add them as follows:
a. In the PO Type column, select the type of purchase orders that require approval.
b. In the Approval Map column, select the approval map to be used for orders of the selected type.

If no map is selected for the specified order type, all new orders of this type will be
automatically approved.

c. In the Pending Approval Notification column, select the email template you created for generating
emails about orders of this type pending approval.
4. If multiple parallel approvals are required for orders of the specific type, repeat the three previous substeps
to add each of the approval maps.
5. Click Save on the form toolbar.

Related Links
• Purchase Order Approval
• To Create Approval Maps for Parallel Approvals
• To Create an Approval Map for Multistage Approvals
 Managing Sales Documents | 54

Managing Sales Documents

The topics of this chapter describe the specifics of processing sales documents (orders, invoices, and shipments)
and the system settings that you can specify to control the processing flow of documents. These topics also explain
how to print various types of sales documents.

Quick Processing of Sales Orders

The order workflow in the Sales Orders module depends on the order type and your organizational requirements,
and may include multiple operations, such as creating and confirming a shipment, creating an invoice, and
preparing printed forms. In Acumatica ERP, users can simplify multistep processing and configure quick processing
for a particular order type so that users can process the orders of this type with just one click. Quick order
processing is mostly intended for use at points of sale with a single warehouse.

Configuring Quick Processing for an Order Type

For quick order processing to be used, a user must allow quick processing for a particular order type and configure
the actions to be performed during quick processing. The user allows quick processing for a particular order
type by selecting the Allow Quick Process check box on the Template tab on the Order Types (SO201000) form.
This causes the Quick Processing tab to appear on the form. On this tab, the user configures the sequence of
order processing actions to be used by default for orders of this type. For each particular order of the type being
processed on the Sales Orders (SO301000) form, the list of actions to be performed can be changed. For step-by-
step instructions on configuring an order type for quick processing, see To Configure Quick Processing for an Order
Type.

Quick processing can be configured for predefined and custom order types, except for order types that are based
on the Quote and RMA Order automation behaviors (specified on the Template tab of the Order Types form). Also,
the sales order lines that are marked for purchasing—that is, those with the Mark for PO check box selected on the
Sales Orders form—are excluded from quick processing because the creation of a purchase order is not included in
the quick processing configuration flow.

Configuring Quick Processing for an Order

Aer quick processing is configured for a particular order type, a user can run quick processing from the Sales
Orders (SO301000) form. On the form toolbar of this form, the Quick Process button appears for the orders of this
type. When a user clicks this button for an order with the Open status, the system opens the Process Order dialog
box. In this dialog box, the user can change the following settings before quick processing an order:
• The warehouse ID (if applicable for the order type) of the warehouse from which the goods will be shipped.
• The date on which the shipment will be prepared.
Aer the user specifies the shipment date, the system checks the availability of the ordered items for the
specified date and displays the result in the Availability section of the dialog box. The following availability
states may be displayed:
• Green mark: The ordered items with the Ship Complete rule are available for shipping. The items with the
Cancel Remainder shipping rule are partially available or not available at all.
• Yellow mark: The ordered items are partially available, and back-ordering is allowed for these items.
• Red mark: The ordered items are not available for shipment, so the order cannot be processed further.
The shipping and invoicing operations (if applicable for the order type) to be performed during quick
processing. The user can change the default set of operations, which is copied from the settings of the order
type.
 Managing Sales Documents | 55

If the printing or emailing settings of the customer specified in the order differs from the
configured processing flow, the system will display a notification.

Aer reviewing the processing details, the user clicks OK in the dialog box to launch quick processing of the order.

Running Quick Processing

When a user launches quick processing, the system performs the selected processing steps and notifies the
user about the completion of each step in the Processing Results window. The window also shows links to all
documents prepared during processing, so that aer processing has completed, the user can click these links,
review the created documents, and send them for printing.

For a particular order type, you can select the Open All Created Documents in New Tabs on the
Order Types (SO201000) form, to make the system open the prepared documents in new browser tabs
aer quick processing has finished.

If a sales order contains items located in different warehouses, users need to run quick processing for each
warehouse separately. For a particular sales order, the shipment from the previous processing must be completed
before the next run of the quick processing can be performed.

To Configure Quick Processing for an Order Type

In Acumatica ERP, you can simplify multistep processing of orders of a particular order type by configuring quick
processing for this order type on the Order Types (SO201000) form.

To Configure Quick Processing for an Order Type

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the identifier of the order type for which you want to allow quick processing.
3. On the Template tab, select the Allow Quick Process check box.
4. On the Quick Processing tab, which appears, do the following to specify the settings that determine which
steps the system will perform when a user is quick processing an order of this type:
• In the Shipping section (if applicable for this order type):
• Select the Print Pick List check box if the system must print a pick list for a shipment associated with
the order.
• Select the Confirm Shipment check box if the system must confirm a shipment associated with the
order.
• Select the Print Labels check box if the system must print labels for a shipment associated with the
order.
• Select the Print Shipment Confirmation check box if the system must print a shipment confirmation
for a shipment prepared for the order.
• Select the Update IN check box if the system must update item availability information in the
Inventory module.
• In the Invoicing section (if applicable for this order type):
• Select the Prepare Invoice check box if the system must prepare a Sales Orders invoice.
• Select the Print Invoice check box if the system must print the prepared Sales Orders invoice.
• Select the Email Invoice check box if the system must send the prepared Sales Orders invoice to
customer by email.
 Managing Sales Documents | 56

• Select the Release Invoice check box if the system must release the prepared Sales Orders invoice.
• In the Printing Settings section:
• Select the Print with DeviceHub check box if the system must generate a preview and print all
selected documents by using the DeviceHub application.
• Select the Define Printers Manually check box, and specify the printer in the Printer box if the orders
of this type should be printed on a particular printer. (If the check box is cleared, the system selects
the printer automatically.)
5. Select the Open All Created Documents in New Tabs check box if you want the prepared documents to be
automatically opened in new browser tabs aer quick processing completes.
6. Optional: Select the Download All Created Print Forms if you want to automatically download the
prepared printable forms when a user opens the browser tabs aer quick processing completes.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about the settings on the Quick Processing tab:
• The Shipping section appears for the order types that have the Process Shipments check box selected on
the Template tab.
• The Invoicing section appears or any order types that have the AR Document Type on the Template tab set
to Invoice, Debit Memo, Credit Memo, Cash Sale, or Cash Return.
• The Download All Created Print Forms check box is available for selection only if the Open All Created
Documents in New Tabs check box is selected.
• The Printing Settings section appears only if the DeviceHub feature is enabled on the Enable/Disable
Features (CS100000) form, and any of the following check boxes is selected on this tab: Print Pick List, Print
Labels, Print Shipment Confirmation, and Print Invoice.

To Quickly Process an Order

If you need to perform quick processing for particular sales order, you can do this by using the Sales Orders
(SO301000) form.

To Quickly Process an Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type of the order that you want to process.
3. In the Order Nbr. box, select the reference number of the order that you want to process, or create a new
order and enter its information.
4. On the form toolbar, click Quick Process.
5. If the order type requires shipping, in the Process Order dialog box, which appears, specify the source
warehouse in the Warehouse ID box and the Shipment Date. Check the availability message that indicates
whether all ordered items are available.
6. Optional: In the Printing Settings section, modify the printing settings, if required
7. Optional: Modify the processing steps in the Shipping and Invoicing sections, if required.
8. Click OK to close the dialog box and run processing of the order.
 Managing Sales Documents | 57

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about the steps in this procedure:
• If the Quick Process button is not shown on the toolbar of the Sales Orders (SO301000) form, this means
that quick processing has not been configured for the selected order type on the Order Types (SO201000)
form.
• The default processing steps are copied from the settings of the order type, which have been specified on
the Quick Processing tab of the Order Types (SO201000) form.
• When quick processing runs, the system shows processing steps and links to prepared documents and
printable forms in the Processing Results window in real-time mode.
• The Shipping section appears in the Process Order dialog box for orders of the order type that have the
Process Shipments check box selected in the Template of the Order Types (SO201000) form.
• The Invoicing section appears in the Process Order dialog box for orders of the order types that have the
AR Document Type set to Invoice, Debit Memo, Credit Memo, Cash Sale, or Cash Return on the Template tab
of the Order Types (SO201000) form.
• The Printing Settings section appears in the Process Order dialog box only if the DeviceHub feature is
enabled on the Enable/Disable Features form and if any of the printing actions is selected to be performed
during quick processing.

Predefined Sales Order Types

Acumatica ERP provides predefined order types for common order processing operations. When you create a
new order on the Sales Orders (SO301000) form, you select the appropriate predefined type, which defines the
information to be entered, the processing operations to be performed for order completion, and the documents to
be generated during the order processing.

To be able to create an order of a particular type, you first need to activate this order type on the
Order Types (SO201000) form.

This chapter describes the settings of the preconfigured types of orders that you can use for performing basic order
management, sales, and return operations.

In This Chapter

• CM Order Type (Credit Memo) • RM Order Type (Merchandise Authorization Return)

• CR Order Type (Cash Return) • RR Order Type (Return with Replacement)
• CS Order Type (Cash Sale) • SA Order Type (Sales Order with Allocation)
• IN Order Type (Invoice) • SO Order Type (Sales Order)
• QT Order Type (Quote) • TR Order Type (Transfer)
• RC Order Type (Return for Credit)
 Managing Sales Documents | 58

CM Order Type (Credit Memo)

An order with the CM order type, or a credit memo order, is used to account for unauthorized returns from
customers; this order includes a reference to the original invoice. You can use credit memo orders to adjust
completed sales orders and account for unauthorized returns.

Order Type Activation

To give users in the system the ability to create credit memo orders, you need to select the CM order type on the
Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings
Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The CM order type has the following template settings:
• Automation Behavior: Credit Memo
The system uses the predefined Credit Memo workflow for a credit memo order. For more information, see
Creating Workflows.
• Default Operation: Receipt
This is the default inventory operation to be performed for a credit memo order.
• AR Document Type: Credit Memo
This setting means that an Accounts Receivable credit memo is generated during the processing of a credit
memo order.
• Process Shipments: Cleared
This setting means that no shipment is created during the processing of a credit memo order.
The template settings of the CM order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the CM order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.

Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Credit Memo Orders

To give users the ability to quickly process a credit memo order from the Sales Orders (SO301000) form, you need
to select the Allow Quick Process check box on the Template tab of the Order Types (SO201000) form. For more
information, see Quick Processing of Sales Orders.
 Managing Sales Documents | 59

Approval of Credit Memo Orders

Approvals can be configured for credit memo orders, if needed, because the Supports Approval check box is
selected (and cannot be cleared) for the CM order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that orders of the CM type should be approved before processing, you can
set up approval of credit memo orders. Aer approval has been configured, when a credit memo order is saved
on the Sales Orders (SO301000) form, it will be assigned to an approver, and its status will change to Pending
Approval. If it has been rejected, the order should be corrected, and aer the approver has edited the order, it will
be automatically reassigned for approval. If it has been approved, the order may be processed to completion. For
more information, see Sales Order Approval.

Calculation of Freight Charges

By default, freight is not calculated on credit memo orders. This is indicated by the Calculate Freight check box,
which is cleared by default for the CM order type on the General tab of the Order Types (SO201000) form. For more
information on the configuration and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the CM order type settings, you can specify how the system processes the orders of this type and related
documents that are generated during the processing of a CM order. For more information, see Changing the
Processing of Sales Documents.

CR Order Type (Cash Return)

To process a return of items that were sold in a cash sale and do not require shipping, you create a cash return
order (that is, an order of the CR order type).

Activation of the Order Type

To give users in the system the ability to create cash return orders, you need to select the CR order type on the
Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings
Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The CR order type has the following template settings:
• Automation Behavior: Invoice
The system uses the predefined Invoice workflow for a cash return order. For more information, see Creating
Workflows.
• Default Operation: Receipt
This is the default inventory operation to be performed for a cash return order.
• AR Document Type: Cash Return
This setting means that an Accounts Receivable cash return is generated during the processing of a cash
return order.
• Process Shipments: Cleared
 Managing Sales Documents | 60

This setting means that no shipment is created during the processing of a cash return.
Although the template settings of the CR order type can be edited, we do not recommend that you modify them. If
you want to modify the order processing, you can create a custom type based on the CR order type, and modify its
settings based on your needs. For more information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Cash Return Orders

To give users the ability to quickly process a cash return order from the Sales Orders (SO301000) form, you need
to select the Allow Quick Process check box on the Template tab of the Order Types (SO201000) form. For more
information, see Quick Processing of Sales Orders.

Approval of Cash Return Orders

Approvals can be configured for cash return orders, if needed, because the Supports Approval check box is
selected (and cannot be cleared) for the CR order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that orders of the CR type should be approved before processing, you can
set up approval of cash return orders. Aer approval has been configured, when an order is saved on the Sales
Orders (SO301000) form, it will be assigned to an approver, and its status will change to Pending Approval. If it has
been rejected, the order should be corrected, and aer the approver has edited the order, it will be automatically
reassigned for approval. If it has been approved, the order may be processed further. For more information, see
Sales Order Approval.

Calculation of Freight Charges

By default, freight is calculated on cash return orders. This is indicated by the Calculate Freight check box, which is
selected by default for the CR type on the General tab of the Order Types (SO201000) form. For more information on
configuring and calculating freight, see Freight Calculation.

Configuration of Document Processing

In the CR order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of a CR order. For more information, see Changing the Processing of Sales
Documents.

Related Links
• Processing Returns for Cash

CS Order Type (Cash Sale)

You create an order with the CS order type when you sell items directly to the customer (with no shipping) and
receive payment at that time (by cash or check).

Activation of the Order Type

To give users in the system the ability to create sales orders, you need to select the CS order type on the Order Types
(SO201000) form, select the Active check box, and save your changes.
 Managing Sales Documents | 61

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The CS order type has the following template settings:
• Automation Behavior: Invoice
The system uses the predefined Invoice workflow for a cash sale order. For more information, see Creating
Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for a cash sale order.
• AR Document Type: Cash Sale
This setting means that Accounts Receivable cash sale is generated during the processing of a cash sale
order.
• Process Shipments: Cleared
This setting means that no shipment is created during the processing of a cash sale.
The template settings of the CS order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the CS order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Cash Sale Orders

To give users the ability to quickly process a cash sale order from the Sales Orders (SO301000) form, you need to
select the Allow Quick Process check box on the Template tab of the Order Types (SO201000) form. For more
information, see Quick Processing of Sales Orders.

Approval of Cash Sale Orders

Approvals can be configured for cash sale orders, if needed, because the Supports Approval check box is selected
(and cannot be cleared) for the CS order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that orders of the CS type should be approved before processing, you can set
up approval of cash sale orders. Aer approval has been configured, when a cash sale order is saved on the Sales
Orders (SO301000) form, it will be assigned to an approver, and its status will change to Pending Approval. If it has
been rejected, the order should be corrected, and aer the approver has edited the order, it will be automatically
reassigned for approval. If it has been approved, the order may be processed to completion. For more information,
see Sales Order Approval.

Calculation of Freight Charges

By default, freight is calculated on cash sale orders. This is indicated by the Calculate Freight check box, which is
selected by default for the CS type on the General tab of the Order Types (SO201000) form. For more information on
the configuration and calculation of freight, see Freight Calculation.
 Managing Sales Documents | 62

Configuration of Document Processing

In the CS order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of a CS order. For more information, see Changing the Processing of Sales
Documents.

Related Links
• Processing Cash Sales of Stock Items

IN Order Type (Invoice)

An invoice order, which has the IN order type, is a special type of sales order you create when the goods requested
by a customer have been shipped already or do not require shipping, so the order processing requires only
preparing an invoice for the customer and does not involve shipments.

Activation of the Order Type

To give users in the system the ability to create invoice orders, you need to select the IN order type on the Order
Types (SO201000) form, select the Active check box, and save your changes.

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The IN order type has the following template settings:
• Automation Behavior: Invoice
The system uses the predefined Invoice workflow for an invoice order. For more information, see Creating
Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for an invoice order.
• AR Document Type: Invoice
This setting means that an Accounts Receivable invoice is generated during the processing of an invoice
order.
• Process Shipments: Cleared
This setting means that no shipment is created during the processing of an invoice order.
The template settings of the IN order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the IN order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.
 Managing Sales Documents | 63

Quick Processing of Invoice Orders

To give users the ability to quickly process an invoice order from the Sales Orders (SO301000) form, you need to
select the Allow Quick Process check box on the Template tab of the Order Types (SO201000) form. For more
information, see Quick Processing of Sales Orders.

Approval of the Invoice Orders

Approvals can be configured for invoice orders, if needed, because the Supports Approval check box is selected
(and cannot be cleared) for the IN order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that invoice orders be approved, you can set up their approval, as described
in Sales Order Approval. If approval is required, when an invoice order is taken off hold on the Sales Orders
(SO301000) form, the system assigns an invoice order the Pending Approval status and selects an approver for
the order, in accordance with the approval map used for invoice orders. If the approver approves the order, the
order can be processed further. If the approver rejects the order, the order is assigned the Rejected status. If it has
been rejected, the order should be corrected, and aer the approver has edited the order, it will be automatically
reassigned for approval.

Calculation of Freight Charges

By default, freight is not calculated on invoice orders. This is indicated by the Calculate Freight check box, which is
cleared by default for the IN type on the General tab of the Order Types (SO201000) form. For more information on
the configuration and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the IN order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of an IN order. For more information, see Changing the Processing of Sales
Documents.

Related Links
• Processing Sales of Stock Items Without Shipment

QT Order Type (Quote)

A quote is a proposal of future sales to a particular customer for a specified price on the specified date. You can use
order documents of the QT order type to plan production or sales orders and to register a customer's intention to
buy particular goods.

Order Type Activation

To give users in the system the ability to create quotes, you need to select the QT order type on the Order Types
(SO201000) form, select the Active check box, and save your changes.

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
 Managing Sales Documents | 64

The QT order type has the following template settings:

• Automation Behavior: Quote
The system uses the predefined Quote workflow for a quote order. For more information, see Creating
Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for a quote order.
• AR Document Type: No Update
This setting means that no Accounts Receivable document is generated during the processing of a quote.
• Process Shipments: Cleared
This setting means that no shipment is created during the processing of a quote.
The template settings of the QT order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the QT order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.
When you create an order based on quote, the accounts and subaccounts specified in the quote are copied to the
created order. For more information, see Processing Pre-Sale Quotes.

Quick Processing of Quotes

Quick processing cannot be configured for quotes because they are based on the Quote automation behavior,
which does not support quick processing.

Approval of Quote Orders

Approvals can be configured for quotes, if needed, because the Supports Approval check box is selected (and
cannot be cleared) for the QT order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that quotes should be approved before processing, you can set up approval
of QT orders. Aer approval has been configured, when a quote is saved on the Sales Orders (SO301000) form, it will
be assigned to an approver, and its status will change to Pending Approval. If it has been rejected, the quote should
be corrected, and aer the approver has edited the order, it will be automatically reassigned for approval. If it has
been approved, the quote may be processed further. For more information, see Sales Order Approval.

Calculation of Freight Charges

Freight is calculated on quotes. This is indicated by the Calculate Freight check box, which is selected by default
for the QT type on the General tab of the Order Types (SO201000) form. For more information on the configuration
and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the QT order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of a QT order. For more information, see Changing the Processing of Sales
Documents.

Related Links
• Processing Pre-Sale Quotes
 Managing Sales Documents | 65

RC Order Type (Return for Credit)

You use an order document of this type to authorize customer returns without replacement for credit in the
amount of the returned goods only. By customer request, an order of the RC type is created and a printed or
electronic copy of it is sent to the customer to accompany the goods the customer intends to return. Once the
goods have been returned, the received goods are returned to inventory, and the customer receives money back.

Activation of the Order Type

To give users in the system the ability to create return orders for credit, you need to select the RC order type on the
Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The RC order type has the following template settings:
• Automation Behavior: RMA Order
The system uses the predefined RMA Order workflow for a return order for credit. For more information, see
Creating Workflows.
• Default Operation: Receipt
This is the default inventory operation to be performed for a return order for credit.
• AR Document Type: Credit memo
This setting means that an Accounts Receivable credit memo is generated during the processing of a return
order for credit.
• Process Shipments: Selected
This setting means that the processing of a return order for credit requires the creation of a shipment.
Although the template settings of the RC order type can be edited, we do not recommend that you modify them. If
you want to modify the order processing, you can create a custom type based on the RC order type, and modify its
settings according to your needs. For more information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Return Orders for Credit

Quick processing cannot be configured for return orders for credit because they are based on the RMA Order
automation behavior, which does not support quick processing.

Approval of the Return Orders for Credit

Approvals cannot be configured for return orders for credit, because the Supports Approval check box is cleared
(and cannot be selected) for the RC order type on the General tab of the Order Types (SO201000) form.
 Managing Sales Documents | 66

Calculation of Freight Charges

By default, freight is calculated on return orders for credit. This is indicated by the Calculate Freight check box,
which is selected by default for the RC type on the General tab of the Order Types (SO201000) form. For more
information on the configuration and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the RC order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of an RC order. For more information, see Changing the Processing of
Sales Documents.

Related Links
• Processing Returns for Credit Without Receipt

RM Order Type (Merchandise Authorization Return)

RM is the basic order type used for returns with replacement or returns for credit within the product's warranty
period. You use a document of this type for the authorization of customer returns.

Activation of the Order Type

To give users in the system the ability to create merchandise authorization return orders, you need to select the RM
order type on the Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The RM order type has the following template settings:
• Automation Behavior: RMA Order
The system uses the predefined RMA Order workflow for a merchandise authorization return order. For more
information, see Creating Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for a merchandise authorization return order.
• AR Document Type: Invoice
This setting means that an Accounts Receivable invoice is generated during the processing of a merchandise
authorization return order.
• Process Shipments: Selected
This setting means that the processing of a merchandise authorization return order requires the creation of
a shipment.
The template settings of the RM order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the RM order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.
 Managing Sales Documents | 67

Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of the RM Orders

Quick processing cannot be configured for merchandise authorization return orders because they are based on the
RMA Order automation behavior, which does not support quick processing.

Approval of the RM Orders

Approvals cannot be configured for merchandise authorization return orders, because the Supports Approval
check box is cleared (and cannot be selected) for the RM order type on the General tab of the Order Types
(SO201000) form.

Calculation of Freight Charges

By default, freight is calculated on merchandise authorization return orders. This is indicated by the Calculate
Freight check box, which is selected by default for the RM type on the General tab of the Order Types (SO201000)
form. For more information on the configuration and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the RM order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of an RM order. For more information, see Changing the Processing of
Sales Documents.

Related Links
• Processing Returns with Replacement at Another Price

RR Order Type (Return with Replacement)

You create an order with the RR type for the authorization of a customer return with an exact replacement of the
returned goods.

Activation of the Order Type

To give users in the system the ability to create return orders with replacement, you need to select the RR order
type on the Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The RR order type has the following template settings:
• Automation Behavior: RMA Order
 Managing Sales Documents | 68

The system uses the predefined RMA Order workflow for a return order with replacement. For more
information, see Creating Workflows.
• Default Operation: Receipt
This is the default inventory operation to be performed for a return order with replacement.
• AR Document Type: No Update
This setting means that no Accounts Receivable document is generated during the processing of a return
order with replacement.
• Process Shipments: Selected
This setting means that the processing of a return with replacement order requires the creation of a
shipment.
Although the template settings of the RR order type can be edited, we do not recommend that you modify them. If
you want to modify the order processing, you can create a custom type based on the RR order type, and modify its
settings based on your needs. For more information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Return Orders with Replacement

Quick processing cannot be configured for return orders with replacement because they are based on the RMA
Order automation behavior, which does not support quick processing.

Approval of Return Orders with Replacement

Approvals cannot be configured for return orders with replacement, because the Supports Approval check box is
cleared (and cannot be selected) for the RM order type on the General tab of the Order Types (SO201000) form.

Calculation of Freight Charges

By default, freight is calculated on return with replacement orders. This is indicated by the Calculate Freight check
box, which is selected by default on the General tab of the Order Types (SO201000) form. For more information on
the configuration and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the RR order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the processing of an RR order. For more information, see Changing the Processing of
Sales Documents.

Related Links
• Returns for Replacement: General Information

SA Order Type (Sales Order with Allocation)

A sales order is a document with the SA order type that you create to represent a customer request to buy particular
goods in the specified quantities on the specified date, with the items in the sales order being shipped. When the
sales order with allocation is saved, the requested goods are automatically reserved in inventory for this order.
 Managing Sales Documents | 69

Activation of the Order Type

This predefined type of sales order is available only if at least one of the following features is enabled on the Enable/
Disable Features (CS100000) form: Lot and Serial Tracking, Inventory Subitems, Multiple Warehouse Locations, and
Sales Order to Purchase Order Link.

The Inventory Subitems check box has been removed from the Enable/Disable Features form
because the functionality associated with the Inventory Subitems feature will be phased out. If you
have this feature enabled in your system, the associated functionality remains available. To disable
the feature, contact your Acumatica support provider.

To give users in the system the ability to create sales orders of this type, you need to select the SA order type on the
Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings
Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The SA order type has the following template settings:
• Automation Behavior: Sales Order
The system uses the predefined Sales Order workflow for a sales order with allocation. For more
information, see Creating Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for a sales order with allocation.
• AR Document Type: Invoice
This setting means that an Accounts Receivable invoice is generated during the processing of a sales order
with allocation.
• Process Shipments: Selected
This setting means that the processing of a sales order with allocation requires the creation of a shipment.
• Require Stock Allocation: Selected
This setting means that orders of this type require the allocation (reservation) of ordered stock items in
inventory before the orders can be removed from hold.
The template settings of the SA order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the SA order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.

Allocation of Items in Inventory

When you save a new order of the SA type on the Sales Orders (SO301000) form, the specified quantities of the
line items are automatically reserved specifically for this order. You can view the allocation for each line item, and
change it, if needed. If there is an insufficient quantity in the specified warehouse, the system automatically splits
the requested quantity into two allocation schedules: one with the available quantity reserved in the specified
warehouse, and one with the remaining unallocated quantity, which you can allocate manually.

Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this type. You specify
 Managing Sales Documents | 70

the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Sales Orders with Allocation

To give users the ability to quickly process a sales order with allocation from the Sales Orders (SO301000) form, you
need to select the Allow Quick Process check box on the Template Settings tab of the Order Types (SO201000)
form. For more information, see Quick Processing of Sales Orders.

Approval of Sales Orders with Allocation

Approvals can be configured for sales orders with allocation, if needed, because the Supports Approval check box
is selected (and cannot be changed) for the SA order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that orders of the SA type should be approved before they can be shipped,
you can set up approval of sales orders with allocation. Aer approval has been configured, when a sales order is
saved, it will be assigned to an approver, and its status will change to Pending Approval. If it has been rejected, the
order should be corrected, and aer the approver edits the order, it will be automatically reassigned for approval.
If it has been approved, the order may be processed further to completion. For more information, see Sales Order
Approval.

Calculation of Freight Charges

By default, freight is calculated on sales orders with allocation. This is indicated by the Calculate Freight check
box, which is selected by default on the General tab of the Order Types (SO201000) form. For more information on
the configuration and calculation of freight, see Freight Calculation.

Credit Verification for Sales Orders with Allocation

For the SA order type, the Hold Document on Failed Credit Check check box is selected by default on the General
tab of the Order Types (SO201000) form. This means that once a sales order with allocation is saved, the Sales
Orders (SO301000) form, the system checks the credit history of the customer to verify that the customer has not
exceeded the specified credit limit or days past due. If the customer fails the credit check, the status of the order
changes to Credit Hold. For more information, see Checking the Credit Limit in Sales Documents.

Configuration of Document Processing

In the SA order type settings, you can specify how the system processes orders of this type and related documents
that are generated during the order processing. For more information, see Changing the Processing of Sales
Documents.

SO Order Type (Sales Order)

A sales order is a document with the SO order type that you create to represent a customer request to buy goods in
the specified quantities on the specified date, with the items in the sales order being shipped. A sales order of this
type can be created based on a quote or opportunity, or you can enter all its settings from scratch.

Activation of the Order Type

To give users in the system the ability to create sales orders of this type, you need to open the SO order type on the
Order Types (SO201000) form, select the Active check box, and save your changes.
 Managing Sales Documents | 71

Template Settings

Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The SO order type has the following template settings:
• Automation Behavior: Sales Order
The system uses the predefined Sales Order workflow for a sales order. For more information, see Creating
Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for a sales order.
• AR Document Type: Invoice
This setting means that an Accounts Receivable invoice is generated during the processing of a sales order.
• Process Shipments: Selected
This setting means that the processing of a sales order requires the creation of a shipment.
The template settings of the SO order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the SO order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Sales Orders

To give users the ability to quickly process a sales order from the Sales Orders (SO301000) form, you need to select
the Allow Quick Process check box on the Template Settings tab of the Order Types (SO201000) form. For more
information, see Quick Processing of Sales Orders.

Approval of Sales Orders

Approvals can be configured for sales orders with allocation, if needed, because the Supports Approval check box
is selected (and cannot be cleared) for the SO type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that orders of the SO type should be approved before they can be processed,
you can set up approval of sales orders. Aer approval has been configured, when a sales order is saved, it will be
assigned to an approver, and its status will change to Pending Approval. If it has been rejected, the order should
be corrected, and aer the approver has edited the order, it will be automatically reassigned for approval. If it has
been approved, the order may be processed to completion. For more information, see Sales Order Approval.

Calculation of Freight Charges

Freight is calculated on sales orders of the SO type. This is indicated by the Calculate Freight check box, which
by default is selected for the SO order type on the General tab of the Order Types (SO201000) form. For more
information on the configuration and calculation of freight, see Freight Calculation.
 Managing Sales Documents | 72

Credit Verification for Sales Orders

For the SO order type, the Hold Document on Failed Credit Check check box is selected by default on the General
tab of the Order Types (SO201000) form. This means that once a sales order is saved the Sales Orders (SO301000)
form, the system checks the credit history of the customer to verify that the customer has not exceeded the
specified credit limit or days past due. If the customer fails the credit check, the status of the order changes to
Credit Hold. For more information, see Checking the Credit Limit in Sales Documents.

Configuration of Document Processing

In the order type, you can specify how the system processes the orders of this type and related documents that are
generated during the order processing. For more information, see Changing the Processing of Sales Documents.
Related Links
• Processing Partial Shipments
• Order Types

TR Order Type (Transfer)

Transfer orders—orders with the TR order type—are used to account for stock items moved from one warehouse to
another when replenishment from the source warehouse is performed or when stock items are allocated (reserved)
to fulfill sales orders in other warehouses. You can fulfill transfer orders by using shipments. For more information
on processing transfer orders, see Sales from Multiple Warehouses: General Information.

Activation of the Order Type

This predefined order type is available only if the Multiple Warehouses feature is enabled on the
Enable/Disable Features (CS100000) form.

To give users in the system the ability to create sales orders of this type, you need to select the TR order type on the
Order Types (SO201000) form, select the Active check box, and save your changes.

Template Settings
Each predefined order type has an associated template: a collection of settings that controls the processing of
documents of the type, including what related documents it generates, whether it requires shipment, and how
the automation behavior determines the conditions for changing the statuses of orders of the type. The template
settings of the order type are displayed on the Template tab of the Order Types (SO201000) form.
The TR order type has the following template settings:
• Automation Behavior: Transfer Order
The system uses the predefined Transfer Order workflow for a transfer order. This workflow supports the
approval of documents of this order type. For more information, see Creating Workflows.
• Default Operation: Issue
This is the default inventory operation to be performed for a transfer order.
• AR Document Type: No Update
This setting means that no Accounts Receivable document is generated during the processing of a transfer
order.
• Process Shipments: Selected
 Managing Sales Documents | 73

This setting means that the processing of a transfer order requires the creation of a shipment.
The template settings of the TR order type cannot be changed. If you want to modify the order processing, you
can create a custom type based on the TR order type, and modify its settings based on your needs. For more
information, see Custom Sales Order Types.
Posting Settings
In the posting settings of the order type, you specify the set of rules for defining which accounts and subaccounts
should be used to post General Ledger transactions during the processing of an order of this order type. You specify
the posting settings on the General tab (Posting Settings section) of the Order Types (SO201000) form. For more
information, see Posting Settings in Sales Order Types.

Quick Processing of Transfer Orders

To give users the ability to quickly process a transfer order from the Sales Orders (SO301000) form, you need to
select the Allow Quick Process check box on the Template tab of the Order Types (SO201000) form. For more
information, see Quick Processing of Sales Orders.

Approval of Transfer Orders

Approvals can be configured for transfer orders, if needed, because the Supports Approval check box is selected
(and cannot be cleared) for the TR order type on the General tab of the Order Types (SO201000) form.
If your organization's policies require that orders of the TR type should be approved before they can be processed,
you can set up approval of transfer orders. Aer approval has been configured, when a transfer order is saved
on the Sales Orders (SO301000) form, it will be assigned to an approver, and its status will change to Pending
Approval. If it has been rejected, the order should be corrected and aer the approver has edited the order, it will
be automatically reassigned for approval. If it has been approved, the order may be shipped. For more information,
see Sales Order Approval.

Calculation of Freight Charges

By default, freight is calculated on transfer orders. This is indicated by the Calculate Freight check box, which
is selected by default on the General tab of the Order Types (SO201000) form. For more information on the
configuration and calculation of freight, see Freight Calculation.

Configuration of Document Processing

In the TR order type settings, you can specify how the system processes the orders of this type and related
documents that are generated during the processing of a TR order. For more information, see Changing the
Processing of Sales Documents.

Related Links
• Sales from Multiple Warehouses: General Information

Custom Sales Order Types

In addition to the predefined order types Acumatica ERP provides for common order processing operations, if the
Custom Order Types feature is enabled on the Enable/Disable Features (CS100000) form, you can create more order
types to support business processes in your company that cannot be supported with the predefined order types.
You configure custom order types that are based on the available templates, which generally involves creating a
new order type with a predefined template and making slight changes to the order type settings. Custom order
types that you have configured appear for selection in the Order Type box of the Sales Orders (SO301000) form.
 Managing Sales Documents | 74

Users can then create new orders of custom types and process them in accordance with the workflow configured
for the template.

Although the Template tab is not hidden, we do not recommend that you modify the available
templates. In exceptional cases, new custom templates can be created with the help of the Acumatica
ERP development team, and custom order types can be based on those templates.

The sections below describe the creation of custom order types based on predefined templates and custom
templates.

Order Types Based on Predefined Templates

On the Order Types (SO201000) form, you can view the settings of predefined order types and create new custom
order types that are based on predefined templates. When you create a new order type based on a predefined
template, you make minor modifications of the predefined template order type. For example, you can create
separate quote order types, based on the QT (Quote) template, for the customer price classes of wholesale, retail,
and catalog customers. These types might use different numbering sequences to determine order IDs and different
sets of General Ledger accounts and subaccounts. Also, the types might have different processing options specified
on the Order Types form, such as the setting that determines whether the system performs a credit check when the
quotes are entered.
The following order type templates are available:
• CM (Credit Memo): The built-in template for the CM order type. You use documents of this type to adjust
already-completed sales orders.
• CR (Cash Return): The built-in template for the CR order type. Documents of this type are used when the
customer returns goods from a cash sale order that did not involve shipping.
• IN (Invoice): The built-in template for the IN order type. You use documents of this type to bill the customer
for shipped goods.
• CS (Cash Sale): The built-in template for the CS order type. You use documents of this type to register cash
sales.
• QT (Quote): The built-in template for the QT order type. Documents of this type register the customer's
intention to buy goods in the specified quantity, on the specified date, and at the specified price.
• RC (Return for Credit): The built-in template for the RC order type. You use documents of this type to register
customer returns for credit without replacement.
• RM (Generic Authorized Return): The built-in template for the RM order type. Documents of this type register
customer returns with replacement for credit within the product's warranty period.
• RR (Return with Replacement): The built-in template for the RR order type. You use documents of this type to
register customer returns with exact replacement of goods.
• SA (Sales Order with Allocation): The built-in template for the SA order type. You create documents of this
type to record customers' requests to purchase goods and to reserve the requested goods for the orders.
• SO (Sales Order): The built-in template for the SO order type. Documents of this type are created to record
customers' requests to purchase goods that should then be shipped to the customer location.
• TR (Transfer): The built-in template for the TR order type. You generate documents of this type to record
stock replenishment by transferring goods from the source warehouse to a destination warehouse.
This order type appears only if the Multiple Warehouses feature is enabled on the Enable/Disable Features
(CS100000) form.

Order Types Based on Custom Templates

The functionality of order types is implemented through specific workflows developed for each of the forms
involved in order processing: Sales Orders, Shipments (SO302000), and Invoices (SO303000). This functionality
defines, for orders of specific types with each status, what actions are enabled and under what conditions. You
 Managing Sales Documents | 75

can use the Workflow Visual Editor to make changes in the predefined workflows. For details, see Diagram View:
General Information. Workflows use various built-in order and shipment plans. The following predefined workflows
are available:
• Sales Order: Implements typical sales order processing
• Invoice: Implements typical invoice order and cash sale order processing
• Transfer Order: Implements typical transfer processing
• Quote: Implements typical quote processing
• Credit Memo: Implements typical credit memo processing
• RMA Order: Implements processing for typical types of customer returns: returns for credit, returns with
replacement, and RMA returns
The settings in the Operations area on the Template tab of the Order Types (SO201000) form affect the integration
of orders with the inventory and accounts receivable functionality. For example, for the RC (Return for Credit)
template, the default inventory operation for receiving the returned goods will be Receipt and a credit memo will
be generated on the Invoices and Memos (AR301000) form to reimburse the customer for the returned goods. With
the RR (Return for Replacement) template, no accounts receivable document will be generated for an order of the
type, while the release of the receipt (the default inventory operation for this order type) will initiate the creation of
an issue to account for the replacement sent to the customer in the same quantity with the same price.
Related Links
• Sales Orders Preferences
• Shipments
• Invoices
• Automation Steps

To Configure a Custom Order Type

In Acumatica ERP, if the Custom Order Types feature is enabled on the Enable/Disable Features (CS100000) form, you
can create custom order types if the predefined order types do not fit your company's processes and requirements.
A custom order type, which you configure on the Order Types (SO201000) form, is generally based on one of the
existing templates.

To Configure a Custom Order Type

1. Open the Order Types (SO201000) form.
2. Optional: If you want to create a custom order type based on any of the predefined order types, open the
needed order type, and click Clipboard > Copy on the form toolbar to copy its settings.
3. In the Order Type box, specify the two-letter identifier for the new order type.
4. In the Description box, specify a brief description of the new type.
5. Optional: If you copied order type settings in Step 2, paste them by clicking Clipboard > Paste on the form
toolbar. (In further instructions, you will need to change only some of these settings instead of specifying all
of them. Review the copied settings to be sure each is what you need for the custom order type.
6. In the Order Template box, select the template to be used for the order type.
7. In the Order Numbering Sequence box, select the numbering sequence to be used for automatic
generation of reference numbers for documents of the type.
8. In the Invoice Numbering Sequence box, select the numbering sequence to be used for the Accounts
Receivable document generated for each order of the type.
9. In the Posting Settings section, specify General Ledger accounts and subaccounts, and rules for selecting
accounts and subaccounts for the order type.
 Managing Sales Documents | 76

10.Optional: Specify additional processing options, such as the following:

• Hold Orders on Entry: Whether an order of this type should be saved with the On Hold status when it is
entered
• Check Credit on Entry: Whether the system performs a credit check for the customer when an order of
this type is entered
• Require Control Total: Whether the user must type in the control total on order entry and modification
for orders of this type
• Bill Separately: Whether the system should generate separate Sales Orders invoices for each order of
this type
• Calculate Freight: Whether freight calculation is required when a user saves an order of this type
11.Optional: Select the Process Shipments check box if you want the shipments to be processed for this order
type.
12.Optional: Select the Require Lot/Serial Entry check box if you want the lot or serial number to be
mandatory for the items in the orders of this type.
13.Optional: Select the Require Stock Allocation check box if you want stock allocation to be mandatory for
the items in the orders of this type.
14.Optional: Select the Allow Quick Process check box if you want to use quick processing for the orders of
this type.
15.Click Save on the form toolbar to save the created order.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• You may want to specify separate sequences in the Order Numbering Sequence and Invoice Numbering
Sequence boxes. If you use a prefix for each order type, it will make it easier for users to track documents.
• For detailed instructions on how to configure quick processing for an order type, see To Configure Quick
Processing for an Order Type.

Related Links
• Quick Processing of Sales Orders
• Custom Sales Order Types

Changing the Processing of Sales Documents

In Acumatica ERP, you can require a user to perform additional steps during the processing of sales orders of a
particular order type and related documents, by configuring order settings on the General tab of the Order Types
(SO201000) form, and by configuring module preferences on the Sales Orders Preferences (SO101000) form.

Holding Documents on Entry

In the settings of an order type on the Order Types (SO201000) form, you can configure the following settings, which
specify whether the orders of this type and related documents should be on hold on creation:
• Hold Documents on Entry: If the check box is selected for an order type, new orders of this type will be
created with the On Hold status by default. Otherwise, if check box is cleared, a newly created order will be
created with the Open status.
 Managing Sales Documents | 77

• Hold Invoices on Entry: If the check box is selected for an order type, new invoices prepared for the order of
this type will be created with the On Hold status by default. Otherwise, if check box is cleared, invoices will
be created with the Balanced status.

Holding Orders on a Failed Credit Check

By default, a credit check is performed for sales orders of any type; the system displays a warning if the customer
fails the credit check. If you want to instead hold sales orders on a failed credit check, you need to select the Credit
Check on Entry check box on the Order Types (SO201000) form for the needed order type. Then if the customer
fails the credit check, the order is assigned the Credit Hold status.
Orders placed on credit hold can be released from credit hold if customer payments were entered or order amounts
were appropriately decreased. To release these orders from credit hold, you select the orders on the Process
Orders (SO501000) form, select the Release from Credit Hold action, and process the selected orders. This initiates
credit checks for each selected order, and gives the order the Open status if the credit check is successful. For more
details, see Checking the Credit Limit in Sales Documents.

Holding Invoices on a Failed Credit Check

New and edited invoices are put on credit hold for customers that fail credit check if the Hold Invoices on Failed
Credit Check check box is selected on the Sales Orders Preferences form.

Affecting the Processing of Inventory Issues

Generated inventory issues are released automatically if the Automatically Release IN Documents check box
is selected on the Sales Orders Preferences (SO101000) form. If the check box is cleared, inventory issues are
generated and saved with the Balanced status.

Making the Entry of Orders Error-Proof

You select the Require Control Total check box in the settings of an order type on the Order Types (SO201000) form
to prevent the orders of this type from being processed until a user types the total order amount in the Control
Total box, which is displayed on the data entry form if the check box is selected for an order type. The control total
that the user enters must be equal to the order total calculated by the system.

Making the Entry of Shipments Error-Proof

You select the Validate Shipment Total on Confirmation check box on the Sales Orders Preferences (SO101000)
form to prevent the shipment from being confirmed until a user types the total quantity of the items being shipped
in the Control Quantity box, which is displayed on the data entry form if the check box is selected. The quantity
that the user enters must be equal to the quantity calculated by the system.

Causing the Documents to Be Processed Separately

In the settings of an order type on the Order Types (SO201000) form, you can configure the following settings, which
specify whether the orders of this type and related documents should be processed individually from other orders
of this type:
• Bill Separately: If this check box is selected, the system prepares individual Sales Orders invoices for each
order of this type. Otherwise, if the check box is cleared, the system prepares consolidated invoices.
• Ship Separately: If this check box is selected, the system prepares individual shipments for each order of
this type. Otherwise, if the check box is cleared, the system prepares consolidated shipments.
 Managing Sales Documents | 78

The orders of the type for which the Ship Separately check box is selected can still be
consolidated into a single shipment if you manually add them using the Add Order button on
the Details tab of the Shipments (SO302000) form.

Affecting the Date of the Invoice Generation

In the settings on the Sales Orders Preferences (SO101000) form, you can select the Use Shipment Date for Invoice
Date check box, if you want to generate Sales Orders invoices with the date of shipment. Otherwise, if the check
box is cleared, the system uses the current business date for invoice generation.

Managing Lines in Sales Documents

You may need to reorder document lines in sales orders and invoices—for example, if you need the lines of the
printed document to be in a specific order, or if the customer wants you to sort the document lines in some custom
order (for example, by the shipment number and order number to make it easier to review a printable invoice).
Also, you may need to reorder a line or multiple lines in an existing sales order, or add a new line at the beginning of
a list or in the middle of it. The following sections describe how you can reorder lines in various sales documents.

Reordering Lines in Sales Orders and Invoices

The order number of each document line is shown in the Line Order column on the Details tab of the Sales Orders
(SO301000) form for sales orders, and of the Invoices (SO303000) form for invoices. (On both forms, these columns
are hidden by default, so you should use the Column Configuration dialog box to make the columns available
before you reorder lines.) Once you reorder the lines, the system automatically regenerates the order numbers for
each document line.
You can select the lines to be reordered in any combinations, such as the following:
• A single document line (for example, line 3 or 8). To select a single line, click it.
• Multiple non-contiguous lines (for example, lines 1, 3, and 7). To select these lines, hold Ctrl while clicking
the row selector next to the needed lines.
• A contiguous group of document lines (for example, line 5 through line 9). To select a group of lines, select
the first line in the group, and hold Shi while clicking the last line in the group. (Alternatively, you can click
the first line and then press Shi+Down Arrow until all the needed lines are selected.)
• A group of some contiguous lines and some non-contiguous lines (for example, line 5 through line 7, and
line 10). To select a non-contiguous group of lines, hold Ctrl while clicking the row selector next to the
needed lines.
All selected document lines are grouped, and thus are moved contiguously, even if you have selected multiple non-
contiguous document lines. Aer you have selected the needed lines, you move them to the new place in the table
in one of the following ways:
• Drag the selected document line or lines to the place where you want to move them. A thin red line between
the lines shows where these lines will be inserted. Once you drag the selected lines, the system moves these
lines and regenerates the Line Order numbers for all the lines in the table.
• When you need to move document lines between pages, cut the selected document lines and paste them
to the new place in the table. To cut the lines, press Ctrl+X, or right-click the table and then click Cut Row.
Then click the line above which the cut lines should be inserted, and press Ctrl+V; alternatively, you can
right-click the table, and then click Insert Cut Row.
Once you reorder the document lines, the system automatically regenerates the line number for each document
line. These numbers are used for numbering lines in the printable reports, such as the printable sales order shown
on the Sales Orders (SO641010) form or the printable invoice shown on the Invoice & Memo (SO643010) form.
You can cancel the line reordering by clicking Cancel on the form toolbar before you save these changes. You can
 Managing Sales Documents | 79

reorder the lines of a sales order until it has been completed; the lines of an invoice can be reordered until it has
been released.

Resetting the Line Order in Invoices

The invoice lines that you add by using the Add Order dialog box, which opens when you click the Add Order
button on the table toolbar of the Details tab of the Invoices (SO303000) form, are added to the table in the order in
which you have added them. If you need to rearrange the lines in the table to sort them by shipment numbers and
order numbers, you can click the Reset Order button on the table toolbar of the Document Details tab. When you
click this button, the system automatically sorts the invoice lines and regenerates Line Order numbers for all the
lines in the table.

Inserting New Lines into Sales Orders and Invoices

You can insert a single line anywhere in the document. To do this, click the line above which the new line should
be inserted and then press Shi+Insert, or right-click the needed line and then click Insert Row. The system adds a
new blank line. When you finish populating the line information and save your changes, the system automatically
regenerates the line numbers for all lines in the table.

Changing the Customer in a Sales Order

To simplify entering an order and minimize errors on data entry, you may start to create a sales order by copying
and pasting another sales order, which you use as a template. In this case, you need to change the customer ID
specified for the sales order to another one. You can change the customer ID in the Customer box of the Sales
Orders (SO301000) form for a sales order that has one of the following statuses:

• On Hold
• Open (if the order is new)
• Credit Hold (if the order is new)
• Back Order (if the new order has been placed on back order manually)
You can also change the customer ID in a return order that does not have lines linked to invoices and in a sales
quote that is not linked to a sales order.
The following sections describe the specifics of changing the customer in a document.

Information Kept Aer the Customer Is Changed

When you change the customer ID in the sales order, the system preserves the following information:
• Order type, order number, and description
• Currency ID, currency rate type, and currency rate
• Document date and date when the customer wants to receive the goods
• Order-level shipping rule, and shipping rules in the order lines
• Inventory IDs and warehouses specified in the order lines
• Hard allocations of inventory
• Notes, activities, and attachments

Information Updated Aer the Customer Is Changed

When you change the customer ID in the sales order, the system updates the following document information by
using the settings of the newly selected customer:
 Managing Sales Documents | 80

• Credit verification status

• Salesperson commissions
• Customer-specific settings on the Details, Financial Settings, Payment Settings, and Shipping Settings
tabs
• Taxes and freight tax category
• Group and document discounts
• Unit prices, except manual unit prices for which the Manual Price check box is selected in the document
line
• Line discounts, except manual line discounts for which the Manual Discount check box is selected in the
document line
The system does not automatically save the document aer you change the customer ID, so you can easily cancel
these changes.

Restrictions on Customer Override

There are some restrictions on changing the customer in a sales order. You cannot save the sales order aer
changing the customer in any of the following cases:
• The sales order has the Open status and is subject for approval.
• The sales order has a linked shipment, invoice, inventory issue, or drop-ship purchase order.
• Credit card payments have been authorized or captured for the sales order.
• Accounts Receivable payments or prepayments have been applied to the sales order.
• The currency of the newly selected customer differs from the currency that was previously specified in
the sales order, and the system cannot override the currency in the sales order. (This could happen if the
currency override is not allowed for the newly selected customer.)
To avoid situations when the system does not allow you to override the customer, we recommend that you create
order templates by currency and for each unique set of shipping rules, to make sure that shipments are processed
as expected.

Checking the Credit Limit in Sales Documents

This topic describes the credit check settings for sales orders and invoices. For details on setting up credit
verification rules for customers, see Credit Verification.

Credit Check for Sales Orders

The system performs a credit check of the customer for sales orders of most predefined types. When a user selects
a customer for the order on the Sales Orders (SO301000) form, the system performs the customer credit check.
If the credit rules specified for the customer on the Customers (AR303000) form have been violated (that is, if the
customer has exceeded the credit limit, the days past due, or both), the system displays a yellow exclamation mark
to the le of the Customer box. By pointing at the mark, the user can read the warning.
You can use the Hold Document on Failed Credit Check check box on the Order Types (SO201000) form to
indicate to the system how the orders of the specific type should be processed if the customer fails the credit
check:
• If this check box is selected for the order type, when an order of this type is saved (or taken off hold,
depending on whether the Hold Orders on Entry check box is selected for the order type), it will be
assigned the Credit Hold status. By default, the check box is selected only for the SA (Sales Orders with
Allocation) order type.
 Managing Sales Documents | 81

• If the check box is cleared for the order type, when an order of this type is saved or taken off hold, it will be
assigned the Open status. The order can be processed as the orders that passed the credit check can be
processed.
If customer payments were entered or order amounts were decreased for a customer that had violated the credit
rules, orders that were previously placed on credit hold can be released from it. On the Process Orders (SO501000)
form, you can select the Release from Credit Hold action (as long as your user account has access to this action),
select the orders with the Credit Hold status in the table, and click Process on the form toolbar. This initiates credit
checks for each order selected, and if the credit check is successful, the applicable order receives a status of Open.
If there is a prepayment or payment applied for the full balance of the sales order, the system automatically
changes the Credit Hold status to the Open status for the sales order.
Alternatively, you can release each order from credit hold individually by using the Sales Orders (SO301000) form.
If you as a user have access to the Remove Credit Hold command on the More menu of the Sales Orders form,
you can click this action to change the status of the order to Open and process it further despite of the failed credit
check. If when editing this order you increase the order amount, then when you save the order, it will get the Credit
Hold status. If you do not change the amount, you can process the order further; an invoice generated for the order
will not get the Credit Hold status (even if the Hold Invoices on Failed Credit Check check box is selected on the
Sales Orders Preferences (SO101000) form) and can be released.

Credit Check for Invoices

Generally, invoices are generated for sales orders that have passed the credit check; however, you may need to
perform a separate credit check for invoices and hold invoices if the credit check has failed. Depending on your
organization's business processes, the time range between shipment creation and invoice generation may be
significant, and during this time, the prices may change. Also, services and warranties may be added manually to
invoices, rather than to sales orders.
A credit check is performed for each new invoice that is created by using the Invoices (SO303000) form, and if the
customer fails the credit check, the system displays a yellow exclamation mark to the le of the Customer box and
a warning. However, you may want invoices to be placed on credit hold if they fail the credit check. You can select
the Hold Invoices on Failed Credit Check check box on the Sales Orders Preferences (SO101000) form to indicate
to the system that all invoices that fail the credit check should get the Credit Hold status. For invoices with the
Credit Hold status, on the Process Invoices and Memos (SO505000) form, you can periodically perform the Release
from Credit Hold action, which initiates a credit check and opens the invoices of those customers who have paid
their outstanding balances fully or partially or have extended the credit limits.
Related Links
• Credit Verification
• To Configure Default Credit Verification Rules

Printing Sales Documents

During the processing of orders, you may need to print copies of the processed documents. The printer the system
uses for printing documents, must be configured, as described in Configuring Hardware Devices in DeviceHub. The
following sections describe which printable Sales Orders documents you can prepare in Acumatica ERP.

Printing Orders and Quotes

You can print a sales order or quote by clicking the Reports > Print Sales Order/Quote action on the Sales Orders
(SO301000) form. This action opens the Sales Order (SO641010) report form with the printable form of the order or
quote.
 Managing Sales Documents | 82

Printing Pick Lists

A pick list is a document that is printed for a warehouse worker. It contains the lines from the shipment with
quantities, lot or serial numbers of items, and warehouse locations from which the items have to be collected; a
pick list does not contain information about prices. The pick list is prepared based on item availability information
and the pick priorities of warehouse locations. If the highest priority location has insufficient stock of any of the
requested items, the system will search for another location with some quantity available for shipping to fill the
remainder. On a pick list, items are ordered based on location, pick priority, and expiration dates of items.
With Acumatica ERP, you can print a pick list for a particular shipment with the On Hold or Open status by clicking
Action > Print Pick List on the form toolbar of the Shipments (SO302000) form. For a step-by-step procedure on
how to print a pick list for a particular shipment, see To Print a Pick List for a Shipment.
If you need to print pick lists for multiple shipments, you can select the Print Pick List action on the Process
Shipments (SO503000) form and process all the shipments on the list or only the selected shipments. For a step-by-
step procedure on how to mass-print pick lists for multiple shipments, see To Print Pick Lists for Multiple Shipments.

If a pick list was once printed for a shipment, the shipment will be listed on the Process Shipments
form for this processing only if the Show Printed check box is selected—this helps avoid double
packing for the same shipment.

Printing Shipment Confirmations

You can print a shipment confirmation for a particular shipment by clicking Reports > Print Shipment
Confirmation on the form toolbar of the Shipments (SO302000) form. This action opens the Shipment Confirmation
(SO642000) report form with the printable form of the shipment confirmation. For a step-by-step procedure on how
to print a shipment confirmation, see To Print a Shipment Confirmation.
For multiple shipments, you can print shipment confirmations by using the Print Shipment Confirmation action
on the Process Shipments (SO503000) form. For a step-by-step procedure on how to mass-print shipment
confirmations, see To Print Shipment Confirmations for Multiple Shipments.

Printing Sales Orders Invoices

You can print a Sales Orders invoice by clicking Reports > Print Invoice on the form toolbar of the Invoices
(SO303000) form. This action opens the Invoice & Memo (SO643000) report form with the printable form of the Sales
Orders invoice.
You can mass-print multiple invoices by using the Print Invoices action on the Process Invoices and Memos
(SO505000) form.

To Print an Order or Quote

If you need to print a sales order or a quote, you can do this from the Sales Orders (SO301000) form.

To Print a Sales Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type of the order to be printed.
3. In the Order Nbr. box, select the reference number of the order to be printed.
4. On the form toolbar, click Reports > Print Sales Order/Quote.
 Managing Sales Documents | 83

5. On the Sales Order (SO641010) report form, which opens, review the generated printed document.
6. On the report toolbar, click Print to print the order.

To Print a Quote
1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the QT order type.
3. In the Order Nbr. box, select the reference number of the order to be printed.
4. On the form toolbar, click Reports > Print Sales Order/Quote.
5. On the Quote (SO641000) report form, which opens, review the generated printed document.
6. On the report toolbar, click Print to print the quote.

To Print a Pick List for a Shipment

If you need to print a pick list for a particular shipment, you can do this from the Shipments (SO302000) form, as
described in the instructions below.

To Print a Pick List for a Shipment

1. Open the Shipments (SO302000) form.
2. In the Shipment Nbr. box, select the reference number of the needed shipment.
3. On the More menu (under Printing and Emailing), click Print Pick List.
4. On the Pick List (SO644000) report, which opens, review the prepared pick list.
5. On the report toolbar, click Print to print the pick list. Prepare the items for packaging and shipping
according to the pick list.

To Print Pick Lists for Multiple Shipments

You can print multiple pick lists for multiple shipments by using Process Shipments (SO503000) form.

To Print Pick Lists for Multiple Shipments

1. Open the Process Shipments (SO503000) form.
2. In the Action box, select Print Pick List.
3. In the table, select the check boxes in the rows of the shipments for which you want to print a pick list.
4. Click Process on the form toolbar.
5. Review the pick lists, which appear on the Pick List (SO644000) report.
6. On the report toolbar, click Print to print the pick lists.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
 Managing Sales Documents | 84

To narrow the range of documents shown in the table, do any of the following:
• In the Start Date and End Date boxes, specify the date range for the dates of the type you selected.
• To further narrow the list of documents, select a particular customer in the Customer box.
• In the Carrier box, select the carrier to be used for shipping.
• In the Ship Via box, select a particular ship via code.
• In the Warehouse box, select the source warehouse.
• Specify and apply a filter to select documents by specific criteria. You can create a reusable filter for the
form that will give you the ability to display particular documents each time you bring up this form. For
more information, see Filters.

To Print a Shipment Confirmation

If you need to print a shipment confirmation for a particular shipment, you can do this from the Shipments
(SO302000) form.

To Print a Shipment Confirmation

1. Open the Shipments (SO302000) form.
2. In the Shipment Nbr. box, select the reference number of the needed shipment.
3. On the More menu (under Printing and Emailing), click Print Shipment Confirmation.
4. On the Shipment Confirmation (SO642000) report, which opens, review the generated shipment
confirmation.
5. On the report toolbar, click Print to print the shipment confirmation.

To Print Shipment Confirmations for Multiple Shipments

Shipment confirmations can be printed on a per-shipment basis from the Shipments (SO302000) form.
Alternatively, you can print multiple shipment confirmations for multiple shipments by using the Process
Shipments (SO503000) form.

To Print Shipment Confirmations for Multiple Shipments

1. Open the Process Shipments (SO503000) form.
2. In the Action box, select Print Shipment Confirmation.
3. In the table, select the unlabeled check boxes in the rows of the shipments for which the shipment
confirmations have to be printed.
4. On the form toolbar, click Process.
5. Review the printed shipment confirmations, which appear on the Shipment Confirmation (SO642000) report.
6. On the report toolbar, click Print to print the shipment confirmations.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
 Managing Sales Documents | 85

To narrow the range of documents shown in the table, do any of the following:
• In the Start Date and End Date boxes, specify the date range for the dates of the type you selected.
• To further narrow the list of documents, select a particular customer in the Customer box.
• In the Carrier box, select the carrier to be used for shipping.
• In the Ship Via box, select a particular ship via code.
• In the Warehouse box, select the source warehouse.
• Specify and apply a filter to select documents by specific criteria. You can create a reusable filter for the
form that will give you the ability to display particular documents each time you bring up this form. For
more information, see Filters.

Related Links
• To Print a Shipment Confirmation
• To Print a Pick List for a Shipment
• To Print Pick Lists for Multiple Shipments

To Print a Sales Orders Invoice or Memo

If you need to print a Sales Orders invoice or memo, you can do this from the Invoices (SO303000) form.

To Print a Sales Orders invoice or Memo

1. Open the Invoices (SO303000) form.
2. In the Type box, select the type of the document to be printed.
3. In the Reference Nbr. box, select the reference number of the invoice or memo to be printed.
4. On the form toolbar, click Reports > Print Invoice.
5. On the Invoice & Memo (SO643000) report form, which opens, review the generated printed document.
6. On the report toolbar, click Print to print the document.

Configuration of Automatic Write-Offs in Invoices

When a company is integrating its e-commerce system with Acumatica ERP, sales orders and their applied
payments are imported to Acumatica ERP. The payment amounts are then transferred to the SO invoices created
for these sales orders. In some cases, a small discrepancy can occur between the payment amount applied to
a sales order and the amount of SO invoice created for this sales order (for example, as a result of the system
recalculating the applicable taxes in the SO invoice). You can configure the system to write off these small
discrepancies automatically when the SO invoice is released.
You configure the system to automatically generate adjustments on small discrepancies by doing the following:
1. On the Chart of Accounts (GL202500) form, you configure an expense account (and subaccount, if needed) to
be used for the small amounts that are written off.
2. On the Reason Codes (CS211000) form, you configure a reason code that specifies the account and
subaccount to be used for writing off balances. For details, see To Configure a Reason Code.
3. On the Accounts Receivable Preferences (AR101000), you specify the reason code that you have configured
in the Balance Write-Off Reason Code box. By default, the system will use this reason code for writing off
balances.
 Managing Sales Documents | 86

4. On the Order Types (SO201000) form, you select a particular sales order type, and you allow write-offs for
the orders of this type by selecting the Auto Write-Off check box on the General tab.
5. For each customer for whose documents you want to allow write-offs, on the Customers (AR303000) form,
you select the customer, and then you do the following on the General Info tab:
a. To allow write-offs for the documents for which this customer is selected, you select the Enable Write-
Offs check box.

On the Customer Classes (AR201000) form, you can specify that write-offs are enabled (or
not enabled) by default for customers of a particular class. (If needed, you can modify the
default setting for any customer of the class.)

b. In the Write-Off Limit box, you specify the customer's write-off limit. The system processes a write-off
for an invoice to the customer only if the calculated discrepancy does not exceed the customer's write-off
limit.

Aer you configure the listed entities and settings, the system will automatically calculate small write-offs for SO
invoices that are prepared for the orders of the order type for which you enabled write-offs, if the payment amount
differs from the invoice amount, and this difference does not exceed the write-off limit specified for the customer.
The write-off amount can be either positive (if the invoice amount is greater than the amount of its applied
payment or payments) or negative (if the invoice amount is less than the amount of applied payment or payments).
You can correct the calculated write-off amount, if needed, before releasing the SO invoice. When the SO invoice
is released, the write-off amount is posted to the account specified in the reason code. Accounts are affected as
shown below.

Table: Batch generated for positive write-off

Account Debit Credit

Balance Write-Off Account Amount 0.0

AR Account 0.0 Amount

Table: Batch generated for negative write-off

Account Debit Credit

Credit Write-Off Account 0.0 Amount

AR Account Amount 0.0

Note that if a payment is applied to multiple sales orders, the system automatically creates a write-off only on the
closing of the last payment application for the invoice that is related to the last sales order to which the payment is
applicable. If multiple payments are applied to the same sales order, then the system writes off the discrepancy for
the last payment application (the one that causes the SO invoice and the last payment to be closed).
Also, you can manually process small write-offs by entering them directly on the Documents to Apply tab of
the Payments and Applications (AR302000) form before applying a payment. For more information, see Invoice
Payments: Manual Payment Application. For a detailed description of the batch that is generated and posted to
the general ledger when you release the payment application with the written-off balance, see Invoice Payments:
Release of Application Records.

Related Links
• To Configure a Reason Code
• Invoice Payments: Manual Payment Application
 Managing Sales Documents | 87

Tax Application in Sales Documents

Based on where items are ordered from, they may be subject to particular sales taxes. The rate and the amount of
the sales taxes that apply to sales orders and SO invoices can depend on many factors, including the types of items
purchased, the delivery address of the customer, the address of the selling branch, and the business presence of
your organization in the customer location.
If automatic calculation of taxes is configured in your system, the system determines the applicable taxes for
each sales order or invoice based on the tax categories of the items sold and the tax zones assigned to customer
locations. For more information, see Tax Zones and Tax Categories.
With Acumatica ERP, to minimize tax-related errors that users make when they enter sales orders, cash sales, and
invoices, you can provide default values for the tax zones used for tax calculation, as described in this topic.

Sales Taxes on Sales Orders

You enter customers' sales orders on the Sales Orders (SO301000) form. The system inserts the default tax zone
(displayed in the Customer Tax Zone box on the Financial tab) into the sales order, copying it as follows:
• From the Revenue Tax Zone box on the Addresses tab of the Projects (PM301000) form, if the sales order
is related to a particular project, and the Calculate Project-Specific Taxes check box is selected on the
Projects Preferences (PM101000) form.
• From the tax zone specified for the opportunity on the Opportunities (CR304000) form if the order has been
created from an opportunity that has a tax zone specified.
• From the tax zone specified for the sales quote on the Sales Quotes (CR304500) form if the order has been
created from an opportunity that has a tax zone specified.
• From the tax zone of the customer location, if one has been specified. Tax zones for customer locations can
be specified on the Customer Locations (AR303020).
• From the tax zone determined by the ZIP code of the Ship To location specified in the sales order if no tax
zone has been specified for this customer location and if the sales order will be shipped by an integrated
carrier.

In the order, the ship via code denotes how the order is shipped. To check whether the ship via
code denotes a delivery method of a common carrier, use the Ship via Codes (CS207500) form.

• From the tax zone associated with the selling branch, which is specified on the Branches (CS102000)
form, if no tax zone has been specified for this customer location and if the order will not be shipped by
an integrated carrier. If the Branch Accounting feature is not activated on the Enable/Disable Features
(CS100000) form, the tax zone assigned to your organization on the Companies (CS101500) form is used.
If you know exactly which tax zone should be used for a specific sales order, you can override the default setting
and select it in the Customer Tax Zone box. For details, see Taxable Sales with Freight Charges: Process Activity.

Taxes Applicable to Freight Sales

If your company provides freight as an additional service that is subject to taxes, you configure a ship via code
for the shipping options provided by your company (that is, a ship via code with the Common Carrier check box
cleared on the Ship via Codes (CS207500) form), in the ship via code settings, you can specify the appropriate tax
category that applies to freight. The list of taxes that apply to the freight includes the taxes that are present both in
the tax category of the ship via code and in the tax zone of the branch that sold the goods.
If the goods are being shipped by an integrated carrier, the tax category is applied to only the amount of freight that
exceeds the freight cost. The list of taxes applied to the specified amount consists of the taxes from both the tax
category and the tax zone of the customer's delivery address (the specified tax zone of the customer location or,
 Managing Sales Documents | 88

if one has not been specified, the tax zone automatically determined by the ZIP code of the delivery address). For
details, see Taxable Sales with Freight Charges: Process Activity.

Sales Taxes on Sales Orders Invoices

When a sales order is shipped, the system generates an SO invoice, which you can view on the Invoices (SO303000)
form. For these invoices, the system copies all the details from the associated sales orders. Sales orders with
different tax zones cannot be added to the same invoice. When you mass-create invoices for multiple sales orders
by using the Prepare Invoice action on the Process Orders (SO501000) form, the system groups the sales orders by
tax zone.

When a user mass-prepares invoices to a customer that is assigned to the tax zone configured for
Avalara, shipments that have different ship-to addresses can be consolidated into one SO invoice.

Also, you can manually create invoices to bill customers for services rendered, or you can enter cash sales when the
customer immediately pays for the services. You can create an invoice by using the Invoices and Memos (AR301000)
or the Invoices (SO303000) form. Cash sales can be created on the Cash Sales (AR304000) form.
The system inserts the default tax zone for the accounts receivable or SO invoice or cash sale (displayed in the
Customer Tax Zone box on the Financial tab of the applicable form), copying it as follows:
1. From the Revenue Tax Zone box on the Addresses tab of the Projects (PM301000) form, if the invoice or
cash sale is related to a particular project, and the Calculate Project-Specific Taxes check box is selected
on the Projects Preferences (PM101000) form.
2. From the tax zone specified for the opportunity on the Opportunities (CR304000) form if the order has been
created from an opportunity that has a tax zone specified.
3. From the tax zone of the customer location specified on the document. Tax zones for customer locations
can be selected on the Customer Locations (AR303020) form.
4. From the tax zone associated with the selling branch if no tax zone is specified for this customer location.
If the Multibranch Support feature is disabled on the Enable/Disable Features (CS100000) form, the tax zone
assigned to your organization on the Branches (CS102000) form is used.

If you know exactly which tax zone should be used on a specific invoice or cash sale document, you can override
the default tax zone and select it in the Customer Tax Zone box.
On release of the SO invoice, the system generates a batch of the following general ledger transactions.

Account Debit Credit

Accounts Receivable account Amount + Tax Amount  

Sales account   Amount

Tax Payable account   Tax amount

Tax Calculation with Specialized Third-Party Soware

If your system is integrated with the AvaTax service of Avalara or another third-party tax calculation soware, the
applicable taxes are calculated by this service or soware and recorded to the sales order or invoice when you save
the document.
Once you remove a sales order or a SO invoice from hold, the system checks whether the customer location
specified in the document is in the tax zone configured for the tax calculation soware. If so, the system sends
a request to the tax calculation soware to determine the applicable taxes, based on the customer location
 Managing Sales Documents | 89

address, entity code, available exemption certificates, and tax rules (if any). The tax amounts computed by the tax
calculation soware are sent to Acumatica ERP and can be reviewed on the Taxes tab of the document entry form.

For sales orders, the taxes are shown for informational purposes only. Only taxes on invoices are
actually reported.

The way the system applies taxes depends on the settings of the origin (From) and destination (To) addresses
specified in a document (sales order or invoice). For the addresses that are specified in the document header, the
system inserts the address of the company branch (as specified on the Branches (CS102000) form) as the From
address, and the address of the customer location specified in the document as the To address.
The system inserts the From and To addresses of each sales order line by using the following rules:
• If the customer picks up the ordered item directly from a warehouse (that is, if the Will Call check box
is selected on the Shipping tab of the Sales Orders (SO301000) form), the system uses the From and To
addresses of the warehouse selected in the sales order line, as specified on the Warehouses (IN204000)
form.
• If the ordered item is shipped via a common carrier (that is, if the Will Call check box is cleared on the
Shipping tab of the Sales Orders form), the system uses the warehouse address as the From address and
the Ship-To address of the sales order as the To address.
In the lines of sales orders marked for drop-shipment, the system inserts the address of the default location of the
warehouse as the From address. If the warehouse's address is empty, the system uses the address of the branch.
The system inserts the Ship-To address specified in the sales order as the To address. In each related line of the
drop-ship invoice, the system uses the vendor's location address in the related purchase receipt as the From
address. The system inserts the Ship-To address in the related purchase order as the To address.
In a direct SO invoice, the system uses the From and To addresses of the warehouse selected in the sales order line,
as specified on the Warehouses (IN204000) form.
In an SO invoice that was created from a sales order, on the Invoices (SO303000) form, the system uses the
following rules to insert the from and ship-to information:
• In the document header, the system uses the address of the company branch as the From address, and the
Ship-To address of the SO invoice as the To address.
• In the document lines, if the SO invoice was prepared from a sales order that requires shipment, the system
uses the address of the warehouse specified in the line as the From address, and the Ship-To address of the
shipment as the To address.
• In the document lines, if the SO invoice was prepared from an order that does not require shipment, the
system uses the address of the warehouse or branch specified in the line as the From address, and the Ship-
To address of the sales order as the To address.
• If the SO invoice was prepared for multiple shipments, for each line, the system uses the address specified
for the line in the corresponding shipment.

If multiple shipments or sales orders with different addresses are included in the SO invoice,
the system selects the Multiple Ship-To Addresses check box on the Address Details tab of
the Invoices form.

• In a line added to the SO invoice without a link to sales order or shipment, the system inserts the address of
the company branch as the From address, and the Ship-To address of the SO invoice as the To address.
For an overview of the integration with Avalara AvaTax and instructions on how to configure the integration, see
Integrating Acumatica ERP with External Tax Providers.

Related Links
• Integration with Carriers
• Integrating Acumatica ERP with External Tax Providers
• Freight Calculation
 Managing Sales Documents | 90

• Sales Orders
• Invoices

Weight and Volume in Sales Orders

A third-party carrier used to deliver products from your company to a customer can charge your company specific
freight amounts that depend on the weights or volumes of the packages in shipments. The carrier may also set
restrictions on the weight or volume of packages. Landed costs incurred for shipments delivered from vendors to
your company can be allocated by the weight or volume of the items in the shipment.
In Acumatica ERP, you can configure the system to automatically calculate freight charges or suggest a box
for packing the order for shipping based on the total weight and volume of stock and non-stock items in this
order. Base units of weight and volume, which are used by default for each inventory item, are specified in the
configuration settings of a company on the Companies (CS101500) form. For each particular inventory item, you can
specify the weight and volume (and, optionally, change the units of weight and volume) on the Packaging tab of
the Stock Items (IN202500) form. For each item, its ordered quantity specified in the sales units is calculated in the
base units and multiplied by the weight of the base unit. You can view the calculated weight and volume totals for
a sales order on the Totals tab of the Sales Orders (SO301000) form. For more information on specifying base and
item units of measure, see Units of Weight and Volume.
If freight calculation is configured for a sales order, the system calculates freight charges by using freight rates that
are based on the total shipment weight and (optionally) volume. The weight of a shipment is compared to break
points, and the first one that is less than the shipment weight provides the freight rate. For more information on
calculating freight charges, see Freight Calculation.
If the Automatic Packaging feature is enabled on the Enable/Disable Features (CS100000) form, the system uses the
packaging options of the ship via code and the items' weight and volume to determine the set of boxes for each
shipment. If integration with any of the nationwide carriers is also configured, you can select the best rates for
boxes and print labels with tracking numbers for each package.
Related Links
• Units of Weight and Volume
• Configuring Carriers, Packaging, and Freight
• Companies

Posting Settings in Sales Order Types

Each order type has its own posting settings that specify to which accounts and subaccounts specific General
Ledger transactions should be posted during the processing of orders of this order type. The following sections
describe which accounts and subaccounts you can specify to be used for posting.

Posting Settings of Order Types

The system can obtain the accounts for transactions generated during the processing of a sales order from several
sources, depending on the policies established in your company. For each order type, you can specify the source of
the following accounts:
• The sales account (of the Income type) and subaccount to be used for each inventory item that is sold and
issued from your company's inventory. The system can obtain the sales account from the settings of the
inventory item, warehouse (if applicable), posting class, customer location (if applicable), or the reason
code.
 Managing Sales Documents | 91

This setting overrides the posting settings of a sales account specified in the posting class
assigned to an item.

• The freight account (of the Income type) and subaccount to be used for recording the freight revenue for
each item sold. The system can obtain the freight account from the settings of the order type, customer
location (if applicable), or ship via code.
• The discount account (of the Income type) and subaccount to be used for recording the discounts provided
for an order of this type. The system can obtain the discount account from the settings of the order type or
the customer location (if applicable).

Rules for Selecting Subaccounts

If the Subaccounts feature is enabled on the Enable/Disable Features (CS100000) form, you also need to specify for
each order type how the system selects the appropriate subaccounts to be used for transaction posting. By default,
for the subaccounts, the system uses the same sources as those for the corresponding accounts (as summarized
in the previous section). You can configure the posting settings in an order type to combine the segment values of
multiple subaccount segments from different sources to get subaccounts that would perfectly reflect all the details
of the transaction. For more details on the rules for combining subaccounts, see Combined Subaccounts: General
Information.

Related Links
• Posting Settings in the Inventory Module
• Posting Classes Creation: General Information
 Managing Purchase Documents | 92

Managing Purchase Documents

The topics of this chapter describe the specifics of processing purchase orders and receipts, and the system
settings that you can specify to control the processing flow of these documents. These topics also explain how to
manage lines in the purchase documents.

Support of COD Transactions

The type of purchasing transaction for which a buyer pays at the time of delivery is generally referred to as cash
on delivery (COD) or, because other methods of payment besides cash might be involved, collect on delivery (COD).
Acumatica ERP provides you with functionality that you can use to account for payments made on delivery.
This topic describes the basic workflow when you process a purchase order to be paid on delivery.

Basic Process
To process a purchase order that will be paid on delivery, you perform the following general steps:
1. Create a purchase order.
On the Purchase Orders (PO301000) form, create a purchase order. Select the vendor, and provide all the
required details about the goods and services to be purchased. Save the order.

Depending on your company's policies, additional steps might follow the creation of the
purchase order—for instance, for approval of the order.

2. Create a prepayment request linked to the purchase order.

While you are viewing the purchase order, on the More menu, select Create Prepayment Request. The
system opens the Bills and Adjustments (AP301000) form, with information filled in for a new prepayment
request from the purchase order; the reference number of the purchase order is shown in the Vendor
Ref. box. Save the prepayment request. For more details, see To Enter a Prepayment in the Simplified Way.
Release the prepayment request.

An unreleased prepayment request is synchronized with a purchase order as follows: If you

edit the details of the purchase order, the prepayment request is changed accordingly.

Open the purchase order on the Purchase Orders (AP301000) form, and make sure that the reference
number of the prepayment request is shown in the Prepayment Ref. Nbr. box.
3. Prepare an AP check.
On the Bills and Adjustments (AP301000) form, open the prepayment request, and click Pay on the More
menu. This action opens the Checks and Payments (AP302000) form with information filled in for a new AP
check, which is ready to be saved. Save and release the check.
4. Create a receipt for the purchase order.
Once the goods are received and payment is made, you can create a receipt in either of the following ways:
• On the Purchase Orders form, open the original purchase order. On the More menu, select Enter PO
Receipt. This opens the Purchase Receipts form with a ready-to-save receipt.
• On the Purchase Receipts form, specify the vendor, and on the table toolbar of the Details tab, click Add
PO. Select the original purchase order to add to the receipt.
Save the receipt.
5. Release the receipt.
 Managing Purchase Documents | 93

On release of the receipt, the system generates an AP bill, applies prepayment to the purchase order, and
changes the status of the purchase order to Closed.

Related Links
• Purchase Orders
• Bills and Adjustments

Purchase Order Configuration

In the purchase orders functionality of Acumatica ERP, many elements on the data entry forms may have default
values. If the default values you set are the values your organization uses most frequently, your users will save time
and minimize errors. Users can, of course, override these values at any time.
Some default settings are defined within the purchase orders functionality; others are defined on inventory and
accounts payable forms that integrate closely with the purchase orders functionality.

Default GL Accounts
To specify the default accounts for use in the purchase orders functionality, use the Purchase Orders Preferences
(PO101000) form. These default accounts include the following ones:
• Account and subaccount for freight expenses: You need to specify the account and subaccount for the
freight expenses incurred in the delivery of purchased goods from vendors. Enter the appropriate Freight
Expense Account and Freight Expense Sub. values.
• Accounts used for purchase return operations: You can define the accounts and subaccounts used for
purchase return operations by assigning a specific reason code for purchase returns in the PO Return
Reason Code box on the Purchase Orders Preferences form. Reason codes are defined on the Reason Codes
(CS211000) form.
For a detailed description of other settings that you can use to control the workflow of purchase orders and related
documents, see Changing the Processing of Purchase Documents.

Vendor Defaults
Once you select a vendor on a new purchase order, many elements on the order get default values. These values,
specified on the Vendors (AP303000) form, are used as default values on data entry forms related to the accounts
payable and purchase orders functionality. These settings include the following:
• The currency used by the vendor. The currency can be overridden on particular documents, if this is allowed
by vendor settings located on the General Info tab of the Vendors form.
• The credit terms.
• The shipping instructions.
• The vendor's shipping location.
• The carrier used by the vendor.
• The vendor's contact information.
• The payment settings used for payments made to vendors.
• GL accounts and subaccounts used to record expenses, freights, prepayments, and total liability.
A vendor's default settings also include the tax zone, which determines the taxes applicable to goods and services
purchased from the vendor. You can also define the minimum and maximum percentage of ordered goods that can
be accepted, and the actions to be performed if the ordered quantity differs from the received quantity when the
quantities of received goods fall outside the specified range.
 Managing Purchase Documents | 94

Inventory Item Defaults

The inventory item records provide default values for purchase orders and receipts, such as the units of measure,
vendor prices, and accounts involved. You can also provide the item settings associated with the specific
warehouse that is used in purchase receipts, and in the inventory receipts automatically generated to update the
costs and availability data of the item.
The default settings for stock items are defined on the Stock Items (IN202500) form. For more information on
configuring inventory items, see Specifying Basic Inventory Settings.
Related Links
• Processing Landed Cost Documents
• Purchase Orders Preferences
• Landed Cost Codes
• Numbering Sequences
• Reason Codes
• Assignment and Approval Maps
• Vendors

Purchase Order Statuses

Acumatica ERP supports four purchase order types: normal, drop ship, blanket, and standard. For all these types,
the same set of statuses is used; however, different processing steps can be configured for purchase orders of
different types.
The purchasing process usually starts when you create a purchase order in Acumatica ERP on the Purchase Orders
(PO301000) form. You can add goods to the purchase order and specify the details for each line. The system
changes the status of the purchase order during its processing.
The following table describes each of the possible statuses and the ways they fit into purchase order processing;
the statuses are listed in the order in which they occur, if applicable.
 Managing Purchase Documents | 95

Status Description

On Hold A newly created purchase order that does not originate from a change order has a status
of On Hold. The system may also assign the purchase order this status if it has been re-
jected by the person assigned to approve it or if you have selected the Hold check box on
the Purchase Orders form. The purchase order can be le on hold for future editing, in-
cluding the addition or removal of lines.
If a purchase order has a line related to a project with the change order workflow en-
abled, you can click Hold on the form toolbar only if the purchase order has the Rejected
status. You cannot click Hold for a purchase order that has at least one related change or-
der. For more information about change orders, see Tracking Changes to Project Budget.
When a purchase order is on hold, its totals and quantities of listed goods are not traced
or checked. To move the On Hold purchase order to the next step in its processing and
change its status, you click Remove Hold. You can turn on the validation of totals for pur-
chase orders of specific types by selecting the relevant check boxes in the Validate Total
on Entry section on the Purchase Orders Preferences (PO101000) form. This validation (if
it is turned on for purchase orders of the specific type) is performed when you clear the
Hold check box for the order.
Whether or not validation is performed, when you clear this check box, the system
changes the status of the purchase order to Pending Approval, Pending Printing, Pending
Email, or Open, depending on the purchase order approval rules specified in the system
and your required processing steps.

Pending Approval Depending on your organization's approval rules for purchase orders as defined in
Acumatica ERP, the status of a purchase order might be changed to Pending Approval af-
ter the Hold check box has been cleared. This status indicates that the purchase order re-
quires approval. This status remains until all required approvals have been performed.
To approve a purchase order with this status, an authorized user selects Approve on the
More menu of the Purchase Orders form. When the user performing the last (or only) re-
quired approval invokes this action, the system changes its status to Pending Printing,
Pending Email, or Open.
To reject a purchase order with this status, an authorized user selects Reject on the
More menu of the Purchase Orders form. When this user invokes this action, the system
changes its status to Rejected.

Rejected Depending on your organization's approval rules for purchase orders as defined in
Acumatica ERP, the status of a purchase order might be changed to Rejected after an em-
ployee who was assigned to approve the purchase order has rejected it.
You can save a purchase order with the Rejected status with the On Hold status for further
editing by selecting the Hold check box.
 Managing Purchase Documents | 96

Status Description

Pending Printing Printing a purchase order is an optional step in purchase order processing that is per-
formed if the vendor prefers to receive printed purchase orders by fax or postal mail.
Depending on the vendor settings, the status of the purchase order may be changed to
Pending Printing from On Hold or Pending Approval to Pending Printing. To require print-
ing in the purchase order processing steps for a particular vendor, you select the Print
Order check box on the Purchase Settings tab of the Vendors (AP303000) form. The
Printed check box on the Other tab of the Purchase Orders form shows whether the or-
der has been printed.
A newly created purchase order that originates from a change order is assigned the Pend-
ing Printing status if the vendor's settings require the printing of purchase orders. The
system also assigns the Pending Printing status to a purchase order if the vendor's set-
tings require the printing of purchase orders and the purchase order, which had the Open
status, has been changed by means of change orders.
The Pending Printing status indicates that an employee must print the purchase order
and then send or fax it to the vendor. To print the purchase order, you select Reports >
Print Purchase Order on the form toolbar of the Purchase Orders form. This changes the
status of the purchase order to Pending Email or Open.

Pending Email Emailing a purchase order to the vendor is an optional step in purchase order processing
that is performed if the vendor prefers to receive purchase orders by email. Depending on
the vendor settings, the status of the purchase order may be changed to Pending Email
from On Hold, Pending Approval, or Pending Printing. To require emailing in the purchase
order processing steps for a particular vendor, select the Email Order check box on the
Purchase Settings tab of the Vendors form. The Emailed check box on the Other tab of
the Purchase Orders form shows whether the order has been emailed.
A newly created purchase order that originates from a change order is assigned the Pend-
ing Email status if the vendor's settings require the emailing of purchase orders. The sys-
tem also assigns the Pending Email status to a purchase order if the vendor's settings re-
quire the emailing of purchase orders and the purchase order, which had the Open sta-
tus, has been changed by means of change orders.
When a purchase order has the Pending Email status, the purchase order must be sent by
email to the vendor. To complete this step, you select Email Purchase Order on the More
menu of the Purchase Orders form. This changes the order status to Open.

Canceled The status of the purchase order is changed to Canceled if the purchase order has been
canceled by a user selecting Cancel Order on the More menu of the Purchase Orders
form. This status means the purchase order cannot be edited, and no receipts can be cre-
ated for it.
The canceled purchase order keeps this status unless you change the status to On Hold
by selecting the Hold check box for it. If the status is changed to On Hold, the document
can be edited, and the usual purchase order processing steps can be performed.
 Managing Purchase Documents | 97

Status Description

Open The status of the purchase order is changed to Open after any necessary approvals and
any other required processing steps (printing the order, emailing it, or both) have been
performed for the purchase order. If no approvals or optional processing steps are re-
quired, the status of the purchase order changes from On Hold to Open when the Hold
check box is cleared.
A newly created purchase order that originates from a change order is assigned the Open
status if the vendor's settings do not require the printing or emailing of purchase orders.
The Open status means that the quantity of the items on purchase receipts for this pur-
chase order is less than the quantity required to complete the purchase order. In Acumat-
ica ERP, you create the receipts for the ordered and received items by using the Purchase
Receipts (PO302000) form.

When a purchase order has the Open status, the system traces the quantities of items re-
ceived for the order and displays the item availability information on the Inventory Alloca-
tion Details (IN402000) form in accordance with the availability calculation rule assigned
to the item class to which the item belongs. This rule is specified for the item class in the
Availability Calculation Rule box on the General tab of the Item Classes (IN201000)
form.

Completed The status of the purchase order is changed from Open to Completed when all the lines of
the purchase order have been completed based on the appropriate rules (that is, when
the Completed check box is selected for all the purchase order lines).
Also, you can manually complete the order by clicking Complete Order on the More
menu of the Purchase Orders form.

Closed The status of the purchase order is changed from Completed to Closed when all the lines
of the order have been received and billed in full.

Purchase Order Fulfillment

By using the Purchase Orders module of Acumatica ERP, you can gauge how promptly and completely vendors
fulfill the purchase orders. As you create purchase receipts and link them to purchase orders, you can track how the
purchase orders are fulfilled.

Linking Multiple Purchase Receipts to One Purchase Order

Based on the availability and delivery dates of purchased goods, there may be multiple purchase receipts to
fulfill a single purchase order—for example, when the vendor ships the ordered goods in several different lots. In
Acumatica ERP, each purchase order can be linked with multiple purchase receipts or a single receipt, based on
how you actually receive the goods.
You can create a purchase receipt for the vendor that has supplied the ordered goods by using the Purchase
Receipts (PO302000) form and link a purchase receipt to purchase orders of the Normal or Drop-Ship types—you
can add entire purchase orders to the receipt by using the Add Purchase Order Line action on the table toolbar, or
you can copy separate lines from different purchase orders by using the Add Purchase Order Line action. If this is a
partial receipt of the ordered items and more item quantities are expected, clear the Complete PO Line check box
for the relevant purchase receipt lines.
 Managing Purchase Documents | 98

Completing an Order Line

You can configure the system to take a specific action (Accept but Warn, Accept, or Reject) if the quantity of the
items received from a particular vendor on a receipt is outside the limits specified for this vendor on the Purchase
Settings tab of the Vendors (AP303000) form. You can specify the minimum and the maximum receipt percents.
These settings of the vendor provide the default values for the same-name settings on all purchase orders created
for this vendor. On any order, the user can change these values if needed.
With the Reject action selected on a purchase order line, a receipt cannot be saved if any line item quantity
is greater than the maximum receipt quantity or less than the minimum receipt quantity (the minimum and
maximum receipt quantities are calculated based on the line's ordered quantity and Max. Receipt (%) and Min.
Receipt (%), respectively).
With the Accept but Warn, or Accept action selected, any partial quantities can be accepted. On each subsequent
receipt, the system checks whether the order line has been completed by comparing the total received and the
threshold quantities.
In addition to the Min. Receipt (%) and Max. Receipt (%) values, you can specify the Receipt Threshold (%)
value for the vendor on the Vendors form. The threshold percent will provide the default value for the Complete at
setting for purchase orders of the vendor and will be used as follows: Once the total received quantity is equal to or
greater than the threshold quantity, the order line will be automatically completed.

When creating a new receipt on the Purchase Receipts (PO302000) form, you can manually complete
a line of the linked purchase order by selecting the Complete PO Line check box on the line of the
purchase receipt.

Tracking the Open Quantity and Balance

To check on the fulfillment of a purchase order, users can consult the Purchase Orders form, where the system
automatically keeps data up to date as receipts are entered. When some purchased goods have not been delivered,
the system tracks the open quantity and open balance, which can be found on the Other tab of the form. The open
quantity is calculated as the difference between the quantity of ordered goods and the quantity of received goods
on this purchase order (for purchase orders having the Normal or Drop-Ship type) or as the quantity of the ordered
goods and the received quantities on the Normal type orders that are linked to this purchase order (for Blanket
and Standard purchase orders if the Blanket and Standard Purchase Orders feature is enabled in your system). The
open balance is calculated as the difference between the total amount of the ordered items and the amount of the
received items (included in purchase receipts linked to the purchase order).
When the open quantity and open balance values are calculated, only released receipt documents are taken into
account.

Closing a Purchase Order

Once you have received all ordered items, the relevant lines of the purchase order are completed and the
Completed check box is selected for the lines. A purchase order does not receive the Closed status until all its
lines are completed. When all ordered goods have been received on the purchase order (and, thus, all lines are
completed), the system changes the purchase order's status to Closed. To manually complete the purchase order
lines, you can select the Completed check box on the Document Details tab of the Purchase Orders form.
Related Links
• Blanket and Standard Purchase Orders
• Purchase Orders
• Purchase Receipts
• Vendors
 Managing Purchase Documents | 99

Blanket and Standard Purchase Orders

If the Blanket and Standard Purchase Orders feature is enabled on the Enable/Disable Features (CS100000) form, the
orders of the Blanket and Standard type become available for processing.

Standard Orders
Standard purchase orders are used as templates for normal orders. If your company regularly purchases from a
vendor the same list of products in the same quantities, you can create a standard purchase order with those items
listed in the required quantities by using the Purchase Orders (PO301000) form.
You can create multiple normal purchase orders that reference the standard purchase order. To do this, you add the
entire standard sales order to a new normal purchase order, or add several lines from the standard sales order to a
normal purchase order and edit the resulting item quantities.
Unlike blanket purchase orders, standard orders have no expiration date, and their status does not change to
Closed when all goods in the related normal orders are received. The quantities of items on standard orders do not
update the items' availability data.

Blanket Orders
Blanket purchase orders are created for a longer time interval or a larger quantity of goods than your company
currently needs. You may choose to order goods in larger volumes for reserved stock if considerable volume
discounts are offered or the specified goods are not always available from the vendor. A blanket order has
expiration date aer which the order cannot be used for generating normal orders.
A blanket order can be fulfilled through multiple normal orders. To do this, you create purchase orders with the
Normal type that reference the blanket order. In this case, the open quantity on the blanket order is reduced by
the quantity specified in the purchase orders with the Normal type, and the price is transferred to normal orders
from the blanket order. When the entire quantity of goods included in the blanket order is purchased and received
through normal orders, the blanket order's status changes to Closed.
Related Links
• Purchase Orders
• Create Purchase Orders
• Inventory Preferences

Drop-Ship Purchase Orders

Drop-ship purchase orders are used for goods that will be delivered directly from the vendor to the customer that
ordered the goods from your company. These goods are not received in the inventory at your company. Orders
of this type are available only if the Drop Shipments feature is enabled on the Enable/Disable Features (CS100000)
form.
To create a drop-ship purchase order, you create a new purchase order on the Purchase Orders (PO301000) form
and select the Drop Ship type. If there are sales orders for the items your company plans to purchase from the
vendor, you can create a drop-ship order by using the Create Purchase Orders (PO505000) form. Once you select
an item and a vendor for a new drop-ship order, sales orders (if they include a line with the selected inventory item
that has the Mark for PO check box selected) are available for selection and can be added as document lines on
the Create Purchase Orders form. For details, see Sales with Drop Shipping: General Information. You can also add
lines with the Service line type to drop-ship purchase orders to record extra charges without generating another
invoice for the customer.
 Managing Purchase Documents | 100

Processing Different Line Types in Drop-Ship Orders

Drop-ship orders can include lines of different types. The type a particular line has depends on the settings of the
item selected in the Inventory ID box; the system processes lines of different types in different ways. The following
line types are available in drop-ship orders:
• Goods for Drop-Ship: The system assigns this line type to all stock items. Lines of this type are copied to
purchase receipts, where each Goods for Drop-Ship line must be linked to a sales order document. For more
information, see Sales with Drop Shipping: General Information.
• Non-Stock for Drop-Ship: The system assigns this line type to non-stock items that have both the Require
Receipt and Require Shipment check boxes selected on the Non-Stock Items (IN202000) form. Lines of
this type are copied to purchase receipts, where each Non-Stock for Drop-Ship line must be linked to a sales
order document.
• Non-Stock: The system assigns this line type to non-stock items that have the Require Receipt check box
selected and the Require Shipment check box cleared on the Non-Stock Items form. The Non-Stock lines are
copied to purchase receipts and do not need to be linked to a sales order document.
• Service: The system assigns this line type to non-stock items that have the Require Receipt check box
cleared on the Non-Stock Items form, and to lines in which no Inventory ID is specified. The way the system
processes Service lines in drop-ship orders depends on whether the Process Service Lines from Drop-
Ship Purchase Orders via Purchase Receipt check box is selected on the Purchase Orders Preferences
(PO101000) form. For more details, see the next section.
• Freight: You can add a line without an Inventory ID specified and select this line type manually to record
freight expenses for the order. Lines of this type are copied to purchase receipt, or could be added directly to
purchase receipt, and do not need to be linked to a sales order document. The freight amount is posted to
the Freight Expense account and subaccount specified on the Purchase Orders Preferences form.
• Description: You can add a line without an Inventory ID specified and select this line type manually. These
lines are used for informational purposes. Lines of this type are not copied to purchase receipts.

Kits cannot be drop-shipped, because they are manufactured in your company.

Processing Service Lines in Drop-Ship Orders

Depending on your business processes, you can select which workflow the system should use for processing
Service lines. You select the needed workflow by using the Process Service Lines from Drop-Ship Purchase
Orders via Purchase Receipt check box on the Purchase Orders Preferences (PO101000) form as follows:
• If the check box is selected, you can process Service lines through purchase receipts: When you create a
purchase receipt for the drop-ship purchase order, the non-stock lines of the Service type that haven't been
billed to the vendor yet are copied to the created purchase receipt. You cannot create an Accounts Payable
bill for the Service lines for which the purchase receipt has not been created yet. Also, you can add lines of
the Service type directly to purchase receipts without linking them to a purchase order and sales order.
This setting gives you the ability to handle charges added by vendors of drop-ship orders when their goods
are delivered to the customer. Your company will absorb these charges without again billing the customer
for them.
• If the check box is cleared (the default setting), processing Service lines doesn't involve creating a purchase
receipt an Accounts Payable bill (or multiple bills) has to be created directly from the drop-ship order. These
lines do not have to be linked to a sales order.

When you create a purchase receipt for a purchase order with lines of different types, the
system does not copy Service lines to a purchase receipt prepared from a purchase order. Also,
Service lines cannot be added to the purchase receipt manually.
 Managing Purchase Documents | 101

Approving Drop-Ship Purchase Orders

Depending on the order processing flows established in your company, you use the Approvals (EP503010) form
to approve drop-ship purchase orders and the Print/Email Purchase Orders (PO503000) form to email them to
vendors or to print them for sending by mail. Optionally, the Purchase Orders (PO301000) form can be used by the
users involved in this processing because the More menu includes the Approve, Email Purchase Order, and Print
Purchase Order menu commands.
Related Links
• Blanket and Standard Purchase Orders
• Sales Orders
• Purchase Orders
• Purchase Receipts
• Create Purchase Orders
• Process Shipments

Stock Item Lines in Purchase Orders

When you add a stock item to a purchase order on the Purchase Orders (PO301000) form, the system inserts Goods
for IN as the line type for this line. If a purchase order includes only stock items that are intended for inventory and
not linked to a drop-ship order or any other sales order, its processing involves the creation of a purchase receipt
(or multiple receipts if the order is fulfilled by multiple shipments from the vendor) and the preparation of an
accounts payable bill. You can configure a particular vendor so that the AP bill for a purchase order can be created
before the purchase receipt is processed.
This topic describes how the system processes stock lines added to a purchase order.

Processing of the Purchase Receipt for the Purchase Order

You can create a receipt for a purchase order by clicking Enter PO Receipt on the form toolbar of the Purchase
Orders (PO301000) form. Alternatively, on the Purchase Receipts (PO302000) form, you can create a receipt and
link it to an existing purchase order or a particular line of the order by clicking Add PO or Add PO Line on the table
toolbar of the Details tab. You can also allocate the lines with the Goods for IN line type by clicking Line Details on
the table toolbar of the Details tab of the Purchase Receipts (PO302000) form.
The inventory account that is used for a stock item on a receipt by default is selected according to the Use
Inventory/Accrual Account from setting of the posting class. On release of each purchase receipt linked to the
purchase order, the system automatically generates an inventory receipt for the items listed in the purchase receipt
and calculates the quantities of the received goods for each order line. These values are displayed in the Qty. On
Receipts column on the Details tab of the Purchase Orders form.
For each purchase receipt, you can create an AP bill or multiple bills.

Processing of the Accounts Payable Bill for the Purchase Order

The general workflow of processing purchase orders with lines of any type is to process a purchase receipt (if one
is needed) before creating an AP bill (see Purchases of Stock Items: General Information for details). However, if you
receive bills from a particular vendor before the ordered items are received to inventory, you can configure this
vendor so that for the purchase orders of this vendor, you can create and process an AP bill before the purchase
receipt is released.
To do this, you need to select the Allow AP Bill Before Receipt check box in the vendor settings on the Vendors
(AP303000) form; in addition, you can select this check box for a particular vendor location on the Vendor Locations
(AP303010) form. The state of this check box is copied to each purchase order created for this vendor, and can be
reviewed on the Other tab of the Purchase Orders (PO301000) form. For a detailed description on how to process a
 Managing Purchase Documents | 102

purchase order with the associated bill being prepared before the receipt, see Purchases with Billing Before Receipt:
General Information.

Rules for Closing and Completing Goods for IN Lines

A Goods for IN line of a purchase order is considered closed on release of the purchase receipt or AP bill if the sum
of the received quantity for all released purchase receipts prepared for this line is equal to the line quantity in all
released AP bills prepared for this line, and the quantity in the AP bill lines is equal to or greater than purchase
order line quantity * (Complete On %/100). The line is also considered closed on release of the purchase receipt
or AP bill if the sum of the received quantity for all released purchase receipts prepared for this line is equal to
the line quantity in all released AP bills prepared for this line, and the user has selected the Completed check box
manually.
A Goods for IN line of a purchase order is completed in any of the following cases:
• Automatically if the system has closed the line (that is, if the Closed check box is selected)
• On release of the purchase receipt prepared for the line if the user has selected the Completed check box
manually
• If the sum of the received quantity for all released purchase receipts prepared for this line is equal to or
greater than the quantity of the purchase order line * (Complete On %/100)
If a user processes the lines of a purchase order partially, multiple related purchase receipts and AP bills can be
prepared for a single purchase order. The system determines which purchase order lines should be added to the
prepared purchase receipt or AP bill depending on the status of the Completed and Closed check boxes in each
line, as follows:
• Completed purchase order lines are not added to the purchase receipt.
• Closed lines are added to neither purchase receipts, nor to AP bills.
If all purchase order lines have the Completed check box selected, and at least one line still has the Closed check
box cleared, the purchase order is assigned the Completed status. If all purchase order lines have the Completed
and Closed check boxes selected, the purchase order is assigned the Closed status.
Related Links
• Non-Stock Lines in Purchase Orders
• Service Lines in Purchase Orders

Non-Stock Lines in Purchase Orders

For each non-stock item, you define whether a purchase receipt is required by selecting or clearing the Require
Receipt check box on the General tab of the Non-Stock Items (IN202000) form. This setting affects the processing of
non-stock items that are included in purchase orders. In a purchase order line on the Purchase Orders (PO301000)
form, when you select a non-stock item that requires a receipt, the system inserts Non-Stock as the line type.
Processing a purchase order with Non-Stock lines always involves creating a receipt (or multiple receipts if the
ordered items are not delivered at the same time). When you create a purchase receipt for a purchase order, the
system copies all Non-Stock lines to the purchase receipt.
This topic describes how the system processes purchase order lines for non-stock items requiring receipt.

Processing of the Accounts Payable Bill for the Purchase Order

The general workflow of processing purchase orders with lines of any type is to process the associated purchase
receipt (if one is needed) before the creation of the associated AP bill (see Purchases of Stock Items: General
Information for details). However, if you receive bills from a particular vendor before the purchased items are
 Managing Purchase Documents | 103

received to inventory, you can configure this vendor so that for its purchase orders, you can create and process an
AP bill before the purchase receipt is released.
To do this, you need to select the Allow AP Bill Before Receipt check box in the vendor settings on the Vendors
(AP303000) form; in addition, you can select this check box for a particular vendor location on the Vendor Locations
(AP303010) form. The state of this check box will be copied to each purchase order created to this vendor, and
can be reviewed on the Other tab of the Purchase Orders (PO301000) form. For a detailed description on how to
process a purchase order with the associated bill being prepared before the receipt, see Purchases with Billing
Before Receipt: General Information.

Posting Accounts for Non-Stock Lines

For the Non-Stock lines on the Purchase Orders form, in the Account column, the system inserts the Expense
account defined by the Use COGS / Expense Account From setting of the posting class specified on the Posting
Classes (IN206000) form. If the Subaccounts feature is enabled in your system, in the Sub. column of the Purchase
Orders form, the system also inserts the subaccount, which is composed as defined by the rule in the Combine
Expense Sub. From box on the General Settings tab of the Accounts Payable Preferences (AP101000) form.
If the subaccount mask associated with the non-stock item—that is, I— is selected in the Combine Expense Sub.
From box on the Accounts Payable Preferences form, the subaccount is composed according to the rule which is
specified in the Use COGS / Expense Account From box on the Posting Classes form for the posting class of the
non-stock item.
Accounts and subaccounts are used for processing Non-Stock lines as follows:
• When an inventory receipt linked to the purchase receipt is released, the Expense account (with the Expense
subaccount) is debited for the line amount and the PO Accrual account (with the PO Accrual subaccount) is
credited for the same amount.
• When a bill is released for the purchase receipt, the PO Accrual account (with the PO Accrual subaccount) is
debited for the line amount and the Accounts Payable account (with the Accounts Payable subaccount) is
credited for the same amount.
The PO Accrual account to be used for receipt-related transactions is defined by the posting class of the item on
the Posting Classes (IN206000) form; the default account assigned to the item on the GL Accounts tab of the Non-
Stock Items form will be used if the posting class's Use PO Accrual Account From settings have the Inventory Item
option selected. The PO Accrual subaccount is also defined by the settings of the posting class of the item; the
default subaccounts assigned to the item on the GL Accounts tab will be used as the segment value sources for the
resulting subaccount based on the Combine PO Accrual Sub From rule. For more information, see Posting Classes
Creation: General Information.

Rules for Closing and Completing Non-Stock Lines

The way the lines of the Non-Stock type are completed and closed depends on the completion rule specified
for the applicable non-stock item in the Close PO Line box on the Non-Stock Items (IN202000) form. The system
determines if a line of the Non-Stock type should be closed and completed by using the following rules:
• If By Quantity is selected in the Close PO Line box for the item (the default option for non-stock items of the
Non-Stock Item type), the purchase order line is considered completed in either of the following cases:
• If the sum of the received quantity for the released purchase receipts prepared for the line is equal to or
greater than the quantity of the purchase order line * (Complete On %/100)
• On release of the purchase receipt prepared for the line if the user has selected the Completed check box
manually
With the By Quantity completion rule selected for the item, the line is considered closed on release of the
purchase receipt or AP bill if the sum of the received quantity for all released purchase receipts prepared
for this line is equal to the line quantity in all released AP bills prepared for this line, and the quantity in the
AP bill lines is equal to or greater than purchase order line quantity * (Complete On %/100). The line is also
considered closed on release of the purchase receipt or AP bill if the sum of the received quantity for all
 Managing Purchase Documents | 104

released purchase receipts prepared for this line is equal to the line quantity in all released AP bills prepared
for this line, and the user has selected the Completed check box manually in the purchase receipt line.
• If By Amount is selected in the Close PO Line box for the item (the default option for non-stock items of the
Labor, Service, Charge, and Expense types), the purchase order line is considered completed in either of the
following cases:
• Automatically if the system has closed the line (that is, if the Closed check box is selected)
• On release of the purchase receipt prepared for the line if the user has selected the Completed check box
manually
With the By Quantity completion rule selected for the item, the line is considered closed on release of the
purchase receipt or AP bill if the sum of received quantity for all released purchase receipts prepared for this
line is equal to the quantity in all released AP bills prepared for this line, and if the amount in the AP bill lines
is equal to or greater than the amount of the purchase order line.
If a user processes the lines of a purchase order partially, multiple related purchase receipts and AP bills can be
prepared for a single purchase order. The system determines which purchase order lines should be added to the
prepared purchase receipt or AP bill depending on the status of the Completed and Closed check boxes in each
line, as follows:
• Completed purchase order lines are not added to the purchase receipt.
• Closed lines are added to neither purchase receipts nor AP bills.
If all purchase order lines have the Completed check box selected, and at least one line still has the Closed check
box cleared, the purchase order is assigned the Completed status. If all purchase order lines have the Completed
and Closed check boxes selected, the purchase order is assigned the Closed status.
Related Links
• Stock Item Lines in Purchase Orders
• Service Lines in Purchase Orders

Service Lines in Purchase Orders

For each non-stock item, you define whether a purchase receipt is required by selecting or clearing the Require
Receipt check box on the General tab of the Non-Stock Items (IN202000) form. In a purchase order line on the
Purchase Orders (PO301000) form, when you select a non-stock item that does not require receipt, the system
inserts Service as the line type; also, the system inserts the Service line type in purchase order lines with no item
specified. Although the Service lines are not tracked in inventory and do not require receipt, if you want to list them
in purchase receipts for informational purposes, you can configure the system so that these lines are added to
purchase receipts.
This topic describes how the system processes Service lines added to a purchase order, and explains how the lines
with these items are completed.

General Workflow and Related Documents

The following diagram illustrates how the Service lines in purchase orders can be processed depending on the
system settings.
 Managing Purchase Documents | 105

The remainder of this topic describes in detail the processing steps shown in the diagram and issues related to how
this processing unfolds. The processing of the service order consists of the following steps:
1. Entering a purchase order
You enter a purchase order of the Normal type on the Purchase Orders (PO301000) form, and you add a
Service line or multiple lines to the order. The reference number for a new purchase order is generated in
accordance with the numbering sequence specified on the Purchase Orders Preferences (PO101000) form.
If the order is created with the On Hold status, you should click Remove Hold on the form toolbar for the
order to process it further.
2. Conditionally processing Service lines
The way the system processes Service lines depends on the state of the Process Service Lines from Normal
Purchase Orders via Purchase Receipt check box on the Purchase Orders Preferences (IN101000) form.
If the check box is cleared (the default setting), processing Service lines doesn't involve creating a purchase
receipt; an AP bill (or multiple bills) has to be created directly from the purchase order (see Step 4). When
a user creates a purchase receipt for a purchase order with lines of different types, some of which require
 Managing Purchase Documents | 106

receipt and some of which do not require receipt, the system does not copy Service lines to a purchase
receipt that is prepared from this purchase order. Also, in this case, Service lines cannot be added to the
purchase receipt manually.
3. Preparing a purchase receipt (optional)
If the Process Service Lines from Normal Purchase Orders via Purchase Receipt check box is selected,
a purchase receipt is required for the lines of the Service type. A user creates a purchase receipt from a
purchase order by clicking Enter PO Receipt on the form toolbar of the Purchase Orders form. The prepared
purchase receipt is available for reviewing on the Purchase Receipts (PO302000) form. If the purchase
receipt is created with the On Hold status, you should click Remove Hold on the form toolbar for the receipt
to process it further.
As an alternative to creating the purchase receipt while viewing the purchase order, a user can create a new
purchase receipt manually and add Service lines to it by clicking Add PO or Add PO Line on the table toolbar
of the Details tab of the Purchase Receipts form and using the dialog box that opens.
4. Preparing an AP bill
You prepare the AP bill by clicking Enter AP Bill on the form toolbar of the Purchase Orders form. The
system brings up the generated AP bill on the Bills and Adjustments (AP301000) form.

Processing of the Accounts Payable Bill for the Purchase Order

The general workflow of processing purchase orders with lines of any type is to process a purchase receipt (if it is
needed) before creating an AP bill (see Purchases of Stock Items: General Information for details). However, if you
receive bills from a particular vendor before the ordered items are received to inventory, you can configure this
vendor so that for the purchase orders of this vendor, you can create and process an AP bill before the purchase
receipt is released.
To do this, you need to select the Allow AP Bill Before Receipt check box in the vendor settings on the Vendors
(AP303000) form; in addition, you can select this check box for a particular vendor location on the Vendor Locations
(AP303010) form. The state of this check box is copied to each purchase order created for this vendor, and can be
reviewed on the Other tab of the Purchase Orders (PO301000) form. For a detailed description on how to process a
purchase order with the associated bill being prepared before the receipt, see Purchases with Billing Before Receipt:
General Information.

Posting Accounts for Service Lines

When you add a Service line to a purchase order on the Details tab of the Purchase Orders (PO301000) form, in
the Account column, the system inserts the expense account specified in the COGS/Expense Account box of the
item on the GL Accounts tab of the Non-Stock Items (IN202000) form. If the Subaccounts feature is enabled on the
Enable/Disable Features (CS100000) form, in the Sub. column of the Purchase Orders form, the system inserts the
subaccount composed as defined by the Combine Expense Sub. From box of the Accounts Payable Preferences
(AP101000) form.

Rules for Closing and Completing Service Lines

The way the lines of the Service type (including the Service lines with the Inventory ID column empty) are
completed and closed depends on whether the service lines are processed through receipts, and on the completion
rule specified for each non-stock item in the Close PO Line box on the Non-Stock Items (IN202000) form.

If you change the Close PO Line setting for a non-stock item on the Non-Stock Items form, the system
does not change this setting for already existing purchase orders; the newly specified setting applies
to new purchase orders only. Existing purchase orders will be billed with the settings that were
specified when the order was entered.

The system determines if a line of the Service type should be closed and completed by using the following rules:
 Managing Purchase Documents | 107

• If the Service line is processed through a receipt and By Amount is selected in the Close PO Line box for an
item, the line is completed automatically when the line is closed or on release of the purchase receipt if the
user has selected the Completed check box manually. The line is closed in either of the following cases:
• When a purchase receipt for the line is released if a user has selected the Complete PO Line check box
manually in the purchase receipt line on the Details tab of the Purchase Receipts (PO302000) form.
• When an AP bill for the line is released if the billed quantity for all bills that have been released for this
line is equal to or greater than the amount of the purchase order line.
• If the Service line is processed through a receipt and By Quantity is selected in the Close PO Line box for an
item, the line is closed when an AP bill for the line is released if the sum of the line quantities in all released
bills for this line is equal to or greater than the quantity of the purchase order line * (Complete On %/100).
The line is completed in the following cases:
• Automatically if the system has closed the line (that is, if the Closed check box is selected)
• On release of the purchase receipt prepared for the line if the user has selected the Completed check box
manually
• If the sum of the received quantity for the released purchase receipts prepared for the line is equal to or
greater than the quantity of the purchase order line * (Complete On %/100)
• If the Service line is processed without a receipt and By Amount is selected in the Close PO Line box for the
line item, the line is closed on release of the AP bill if the billed amount for all released bills for this line is
equal to or greater than the amount of the purchase order line. The line is completed automatically when it
is closed.
• If the Service line is processed without a receipt and By Quantity is selected in the Close PO Line box for
the line item, the line is closed on release of the AP bill if the sum of the quantities in released bills for this
line is equal to or greater than the quantity of the purchase order line * (Complete On %/100). The line is
completed automatically when it is closed.
If a user processes the lines of a purchase order partially, multiple related purchase receipts and AP bills can be
prepared for a single purchase order. The system determines which purchase order lines should be added to the
prepared purchase receipt or AP bill depending on the status of the Completed and Closed check boxes in each
line, as follows:
• Completed purchase order lines are not added to the purchase receipt.
• Closed lines are added to neither purchase receipts nor AP bills.
If all purchase order lines have the Completed check box selected, and at least one line still has the Closed check
box cleared, the purchase order is assigned the Completed status. If all purchase order lines have the Completed
and Closed check boxes selected, the purchase order is assigned the Closed status.
Related Links
• Non-Stock Lines in Purchase Orders
• Stock Item Lines in Purchase Orders

Managing Lines in Purchase Documents

You may need to reorder document lines in purchase orders and purchase receipts—for example, if you need the
lines of the printed document to be in a specific order other than in the document sent by vendor. Also, you may
need to add a new line to a purchase order or purchase receipt at the beginning of a list or in the middle of it. The
following sections describe how you can reorder lines in various Purchase Orders documents.

Reordering Lines in Purchase Orders

The order number of each document line is shown in the Line Order column on the Details tab of the Purchase
Orders (PO301000) form for purchase orders, and of the Purchase Receipts (PO302000) form for purchase receipts.
 Managing Purchase Documents | 108

(On both forms, these columns are hidden by default so you should use the Column Configuration dialog box to
make the columns available before you reorder lines.)
Once you reorder the lines, the system automatically regenerates the order numbers for each document line. You
can reorder lines in a purchase order that is on hold; in a purchase receipt, you can reorder the lines until this
receipt has been released. You can select the lines to be reordered in any combinations, such as the following:
• A single document line (for example, line 3 or 8). To select a single line, click it.
• Multiple non-contiguous lines (for example, lines 1, 3, and 7). To select these lines, hold Ctrl while clicking
the row selector next to the needed lines.
• A contiguous group of document lines (for example, line 5 through line 9). To select a group of lines, select
the first line in the group, and hold Shi while clicking the last line in the group. (Alternatively, you can click
the first line and then press Shi+Down Arrow until all the needed lines are selected.)
• A group of some contiguous lines and some non-contiguous lines (for example, line 5 through line 7, and
line 10). To select a non-contiguous group of lines, hold Ctrl while clicking the row selector next to the
needed lines.
All selected lines are grouped and thus are moved contiguously, even if you have selected multiple non-contiguous
document lines. Aer you have selected the needed lines, move them to the new place in the table in one of the
following ways:
• Drag the selected line or lines to the place where you want to move them. A thin red line between the table
lines shows where these lines will be inserted. Once you drag the selected lines, the system moves these
lines and regenerates the Line Order numbers for all the lines in the table.
• When you need to move purchase order or purchase receipt lines between pages, cut the selected
document lines and paste them to the new place in the table. To cut the lines, press Ctrl+X, or right-click the
table and then click Cut Row. Then click the line the cut lines should be inserted above, and press Ctrl+V;
alternatively, you can right-click the table, and then click Insert Cut Row.
Once you reorder the lines, the system automatically regenerates the line number for each document line. For
purchase receipts, these numbers are used for numbering lines in the printable reports, such as the printable
purchase receipt shown on the Purchase Receipt (PO646000) report. You can cancel the line reordering by clicking
Cancel on the form toolbar before you save these changes.

You cannot rearrange lines in the table if custom sorting by any column is applied to the table.

Inserting Lines into Purchase Orders and Purchase Receipts

On the Purchase Orders (PO301000) and Purchase Receipts (PO302000) form, you can insert a single line anywhere
in the document. To do this, click the line above which the new line should be inserted and then press Shi+Insert,
or right-click the needed line and then click Insert Row. The system adds a new blank line. When you finish
entering the line information and save your changes, the system automatically regenerates the line numbers for all
lines in the table.

Changing the Vendor in a Purchase Order

You may want to change the vendor in the existing purchase order—for example, if you want to compare the order
total for different vendors, or if the wrong vendor was selected in the purchase order. To change the vendor, you
need to change the vendor ID specified for the purchase order.
You change the vendor ID in the Vendor box of the Purchase Orders (PO301000) form for a purchase order that
has the On Hold status, check the settings of the purchase order that have changed, and save your changes. The
following sections describe the settings that are and are not preserved, as well as the restrictions on changing the
vendor in a document.
 Managing Purchase Documents | 109

Settings that Are Preserved When the Vendor Is Changed

When you change the vendor ID of the purchase order on the Purchase Orders (PO301000) form, the system
preserves the following settings in the Summary area:
• Type
• Order Nbr.
• Description
• Currency
The system also preserves the following information in the appropriate columns of the order lines on the Details
tab:
• Branch
• Inventory ID, UOM, and Order Qty.
• Warehouse
• Line Type
• Project and Project Task (if applicable)
• Tax Category
• The state of the Completed and Canceled check boxes
• Files and notes that have been attached to the line

Settings that Are Changed When the Vendor Is Changed

When you change the vendor ID in the purchase order on the Purchase Orders (PO301000) form, the system
updates the following information in the Summary area based on the new date and on the settings of the newly
selected vendor on the Vendors (AP303000) form:
• Date: The system inserts the current business date, but you can override it.
• Promised On: The system calculates this as the current business date plus the value specified as the Lead
Time (Days) of the new vendor.
• Location: The system inserts the default location of the selected vendor (or it inserts MAIN, if it is the only
location of this vendor). This box appears only if the Business Account Locations feature is enabled on the
Enable/Disable Features (CS100000) form.
• Owner: The system inserts the identifier of the employee corresponding to the user who changes the
vendor.
• Vendor Ref. Nbr.: This box is cleared so that a new vendor reference number can be entered, if applicable.
• Currency Rate: This rate, which can be found in the box right of the Currency box that shows the identifier,
is recalculated based on the new date specified for the order.
The system also updates certain document-level settings on the following tabs of the form:
• Shipping tab: In the Ship Via section, the FOB Point and Ship Via settings of the new vendor are inserted.
• Vendor Info tab: The settings of the newly selected vendor are inserted by default in the Vendor Contact
and Vendor Address sections, but you can override the inserted settings. Also, in the Info section, the
system inserts the vendor's settings in the following boxes:
• Terms: This box holds the credit terms of the vendor.
• Vendor Tax Zone: The system recalculates the taxes in the order based on the new tax settings).
• Pay-To Vendor : This box appears on the tab if the Vendor Relations feature is enabled on the Enable/
Disable Features form.
• Other tab: The system specifies the default states of the Don't Print and Don't Email check boxes based
on the Print Orders and Send Orders by Email settings (respectively) of the new vendor, which have been
 Managing Purchase Documents | 110

specified on the Purchase Settings tab of the Vendors form. Also, the Retainage Percent box is filled with
the percentage specified for the vendor; this box appear on the tab if the Apply Retainage check box is
selected on this tab and the Retainage Support feature is enabled on the Enable/Disable Features form.
On the Details tab, the system also updates information in the appropriate columns of the purchase order lines as
follows:
• The following columns related to prices and costs use the vendor-specific costs: Unit Cost and Ext. Cost
• Alternate ID: The system updates the column with the alternate ID of the item with the new vendor or clears
the box if no alternate ID is specified for a new vendor.
• Min. Receipt (%), Max. Receipt (%), Complete On (%), and Receipt Action: The default settings of the
vendor are inserted for each line, but they can be overridden.
• The following columns related to discounts are updated: Discount Percent and Discount Amount.
• The expense and accrual accounts and subaccounts: The system inserts the appropriate values in the
following columns: Account, Sub., Accrual Account, and Accrual Sub.
• The following columns related to dates are updated: Requested and Promised.
The system does not automatically save the document aer you change the vendor ID, so you can easily cancel
these changes by clicking Cancel on the form toolbar.

Restrictions on Changing the Vendor

You cannot save the purchase order aer changing the vendor in any of the following cases:
• At least one AP bill, prepayment, or purchase receipt has been linked to the purchase order.
• The purchase order has a line or multiple lines that have been created based on a blanket purchase order.

Changing the Processing of Purchase Documents

In Acumatica ERP, you can require a user to perform additional steps during the processing of purchase orders and
related documents. The following sections of this topic explain how you can adjust the workflow for processing the
purchase orders and the related documents as needed in your organization.

Holding Purchase Receipts and Landed Cost Documents on Entry

The following documents are created with the On Hold status if the respective check box is selected on the
Purchase Orders Preferences (PO101000) form:

• Purchase receipts: Hold Receipts on Entry

• Landed cost documents: Hold Landed Costs on Entry
If one of these check boxes is cleared, the newly created documents of the associated type are created with the
Balanced status.

Affecting the Processing of Generated Documents

The following documents are released automatically upon generation if the respective check box is selected on the
Purchase Orders Preferences (PO101000) form:

• Inventory receipts: Release IN Documents Automatically

• Landed cost adjustments: Release LC IN Adjustments Automatically
• Accounts payable documents: Release AP Documents Automatically
If one of these check boxes is cleared, the documents of the associated type are generated and saved with the
Balanced status.
 Managing Purchase Documents | 111

Making the Entry of Documents Error-Proof

In the Validate Total on Entry section on the Purchase Orders Preferences (PO101000) form, you can prevent
the particular type of document from being processed until a user types the total order amount in the Control
Total box (for orders and landed costs), or the total receipt quantity in the Control Qty. box, on the corresponding
document entry form. The control total or quantity that the user enters must be equal to the order total calculated
by the system. You can select the corresponding check boxes in this section to enable total validation for receipts,
normal and standard purchase orders, blanket orders, drop-ship purchase orders, and landed cost documents.

Making the Entry of an External Reference Number Foolproof

You select the Require Vendor Reference check box on the Accounts Payable Preferences (AP101000) form to
prevent any actions from being performed on a purchase receipt or a landed cost document (that is still editable)
until a user types the external reference number of the vendor's original document in the Vendor Ref. box, which is
displayed on the Purchase Receipts (PO302000) form (for purchase receipts) or Landed Costs (PO303000) form (for
landed cost documents).

Affecting the Purchase Receipt Creation

You can use the Default Receipt Quantity box on the Purchase Orders Preferences (PO101000) form to define
which quantities the system should specify in purchase receipts created from purchase orders. You can configure
the system to create purchase receipt lines with items' quantities from a purchase order (if the Open Quantity
is selected), or to create lines with a quantity of zero by default, so that the user enters the received quantity
manually.

Determining Whether Bills Are Created

To set up the workflow of the processing of purchase receipts, landed cost documents, and bills, you can use the
Create Bill On Receipt Release and Create Bill on LC Release check boxes on the Purchase Orders Preferences
(PO101000) form. These check boxes provides the default value for the Create Bill check box on the Purchase
Receipts (PO302000) form and on the Landed Costs (PO303000) form, respectively.

For the convenience of users, you should select these check boxes if bills should be generated automatically for
most receipts and landed cost documents. You should clear these check boxes if users should enter bills manually
for most receipts or landed cost documents or if users enter or import the bills and later link them to receipts and
landed cost documents. A user can override this setting if needed for a particular purchase receipt or landed cost
document.

Affecting the Processing of Bills

The Allow AP Bill Before Receipt check box, which can be selected or cleared for a particular vendor on the
Vendors (AP303000) form or for a particular vendor location on the Vendor Locations (AP303010) form, defines the
workflow for processing purchase orders and related documents. The state of the check box is copied to purchase
orders prepared for the vendor, and affects the processing as follows:
• If the check box is selected, you can create a purchase receipt and an AP bill for the purchase order in any
order.
• If the check box is cleared, you can prepare an AP bill for the lines with stock items and non-stock items
requiring receipt only aer the purchase receipt has been prepared and processed.
 Managing Purchase Documents | 112

Affecting the Processing of Service Lines

On the Purchase Orders Preferences (PO101000) form, you can specify whether the system should process lines of
the Service type in normal and drop-ship purchase orders, respectively, through purchase receipts by selecting or
clearing the following check boxes:
• Process Service Lines from Normal Purchase Orders via Purchase Receipt: If this check box is selected,
non-stock lines of the Service type in purchase orders of the Normal type are processed through purchase
receipts. If the check box is cleared, the non-stock lines of the Service type are not copied to purchase
receipts and are billed directly from purchase orders.
• Process Service Lines from Drop-Ship Purchase Orders via Purchase Receipt: If this check box is
selected, non-stock lines of the Service type in purchase orders of the Drop-Ship type are processed through
purchase receipts. If the check box is cleared, the non-stock lines of the Service type are not copied to
purchase receipts and are billed directly from drop-ship orders.

Calculating Use and Sales Taxes in Purchase Documents

A use tax is a type of a tax that is applied when a merchant purchases a product or service on which sales tax was
not initially paid, and then converts this product or service for its own use. For example, if your company purchases
tax-free goods from a vendor that is not registered in the state of your purchase, it must report the purchases and
pay the use tax directly to the tax agency of your state.
The rate and the amount of the use taxes that apply to a purchase document can depend on many factors,
including the types of items purchased, the vendor relations you have configured, the remittance address of the
vendor, and the address of the warehouse.

Use Tax Calculation with Avalara AvaTax

If your system is integrated with the AvaTax service of Avalara or another third-party tax calculation soware, the
applicable taxes are calculated by this service or soware and recorded to the purchase order or AP bill when you
save the document.
Once a user creates a document that is subject to taxes and removes it from hold (if applicable), the system
checks whether the vendor location specified in the document is in the tax zone configured for the tax calculation
soware. If so, the system sends a request to the tax calculation soware to determine the applicable taxes,
based on the vendor location address, entity code, available exemption certificates, and tax rules (if any). The tax
amounts computed by the tax calculation soware are sent to Acumatica ERP and can be reviewed on the Taxes
tab of the Purchase Orders (PO301000) form or Bills and Adjustments (AP301000) form.

For purchase orders, the taxes are shown for informational purposes only. Only taxes on AP bills are
actually reported to the applicable tax agency.

The way the tax calculation soware calculates use taxes depends on the settings of the origin (From) and
destination (To) addresses specified in an Acumatica ERP document. The following sections describes how
the system selects the From and To addresses in documents and individual document lines, depending on the
document type and vendor settings.

Sales Tax Calculation in Acumatica ERP

Acumatica ERP supports automatic calculation of sales taxes in purchase orders with the sales tax amount
included in the document total. You can also select a sales tax with the Input group manually on the Taxes tab of
the Purchase Orders (PO301000) form.
 Managing Purchase Documents | 113

For details on creating a sales tax of the Input type, see Sales Taxes: To Configure a Sales Tax for Use in AP.

Addresses in Purchase Orders

In the document header of a purchase order, the system specifies the remittance address of the vendor selected in
the purchase order as the From address, and the Ship-To address of the purchase order as the To address.
In the individual purchase order lines, the system specifies the From and To addresses by using the following rules:
• For lines of Normal, Blanket, and Standard purchase orders, the system specifies the vendor remittance
address as the From address, and the address of the warehouse in the line as the To address. (If the Multiple
Warehouses feature is not used in the system, the Ship-To address of the purchase order is used as the To
address.)
• For lines of Drop-Ship purchase orders, the system specifies the vendor remittance address as the From
address, and the Ship-To address of the purchase order as the To address.

Addresses in Accounts Payable Bills

If the Vendor Relations feature is disabled on the Enable/Disable Features (CS100000) form, the system specifies
the vendor location address of the bill as the From address, and the main address of the bill's branch as the To
address.
If the Vendor Relations feature is enabled on the Enable/Disable Features form and vendor relations are set up, the
system specifies the supplied-by vendor's location address of the bill as the From address, and the main address of
the bill's branch as the To address.
In the individual lines of the bills, the system specifies the From and To addresses by using the following rules:
• If a bill line is related to a line of a Normal purchase order, the system specifies the vendor address of the
related purchase order line as the From address, and the address of the warehouse in the related purchase
receipt line (or in the related purchase order line if the receipt has not been prepared yet) as the To address.
(If the Multiple Warehouses feature is not used in the system, the Ship-To address of the purchase order is
used as the To address.)
• If a bill line is related to a line of a Drop-Ship purchase order, the system specifies the vendor address of the
related purchase order line as the From address, and the Ship-To address of the purchase order as the To
address.
• If a bill line is related to a line of a direct purchase receipt (that is, one that is not linked to a purchase order),
the system uses the vendor location address of the related purchase receipt as the From address, and the
address of the warehouse in the related purchase receipt as the To address. (If the Multiple Warehouses
feature is not used in the system, the main address of the bill's branch is used as the To address.)
• If a bill line is not related to any line of a purchase order or purchase receipt, the system uses the vendor
location address of the bill as the From address, and the main address of the bill's branch as the To address.
For an overview of the integration with Avalara AvaTax and instructions on how to configure the integration, see
Integrating Acumatica ERP with External Tax Providers.

Inclusive VAT Support in Purchase Orders

The Purchase Orders module supports value added taxes (VATs) on purchased items if the VAT Reporting feature is
enabled on the Enable/Disable Features (CS100000) form.
In most European countries, where VATs are oen used, prices for consumers are tax-inclusive—that is, specified
with the tax amount included. In Acumatica ERP, you can configure the VAT-like taxes or sales taxes as calculated
separately on item prices or as extracted from prices. The base and sale prices, too, can be specified as including or
excluding the appropriate tax amount.
 Managing Purchase Documents | 114

Inclusive and non-inclusive taxes are configured on the Taxes (TX205000) form. For inclusive taxes, the Extract
from Item Amount option is selected.
On the Purchase Orders (PO301000) form, the document details include applicable taxes shown for informational
purposes on the Tax Details tab; the list of applicable taxes includes the taxes present in both the vendor tax
zone and the ordered item's tax category. On the Purchase Receipts (PO302000) form, tax amounts are calculated
because although value-added taxes for inventory items are paid to vendors, they are claimable from the tax
agency.

Correcting taxes in a purchase order does not affect the taxes in documents (purchase receipts and
Accounts Payable bills) created from this purchase order. The taxes for each document are calculated
when the document is created based on the tax settings of this document.

Example of Inclusive Tax Processing

Consider an example in which a company purchases 100 motherboards at $22 each with a 10% VAT included. The
total amount is $2200, and the VAT amount calculated for the document is $200.
The following transactions will be generated for the Inventory receipt.

Account Credit Debit

Inventory (Components) 0 2200 – 200 = 2000

PO Accruals 2000 0

The following transactions will be generated for the Accounts Payable bill.

Account Credit Debit

PO Accruals 0 2000 (accrued amount)

Accounts Payable 2200 (full receipt amount) 0

VAT Claimable Account 0 200

If any difference arises, because of rounding, between the original order amount and the sum of the tax amount
and the amount to be recorded to the accrual account, it will be added to the Purchase Price Variance account.
Related Links
• Bills and Adjustments
• Receipts
• Purchase Orders Preferences
• Purchase Orders
• Purchase Receipts
• Taxes

Vendor Catalogs

In Acumatica ERP, you can populate and maintain a vendor catalog for each vendor. A vendor catalog is a list of the
inventory items you purchase from the vendor, along with the last prices of the items and the purchasing settings
of the items, which are generally used for automated replenishment.
 Managing Purchase Documents | 115

By populating and maintaining vendor catalogs, you give users the ability to efficiently select the vendors that sell
specific items. For any item in the vendor catalog, you can also specify vendor-specific alternate IDs, so that users
can enter them in purchase orders.

Manual Population of Vendor Catalogs

You use the Vendor Inventory (PO201000) form to maintain and populate vendor catalogs. On this form, you can
select a vendor and populate the table with the items your company can purchase from this vendor.
If the Business Account Locations feature is enabled on the Enable/Disable Features (CS100000) form, the Location
box appears in the Summary area of the Vendor Inventory form. In this case, you can populate and view the items
your company can purchase from the selected vendor location.
For each item, you can specify (and update aer initial entry) the following information, some of which may be
specific to the vendor location:
• The vendor inventory ID, which is the identifier used by the vendor for the item. If you specify an alternate
ID, a user can enter the ID in a purchase order or receipt for the vendor, and the system will insert the correct
inventory ID. This alternate ID can be assigned to the item (or to the item–subitem pair if your organization
uses subitems). When you enter the alternate ID in the vendor catalog, the system copies the alternate ID
to the item settings on the Stock Items (IN202500) or Non-Stock Items (IN202000) form. If the alternate ID is
entered for the item, the system inserts in to the vendor catalog automatically.
• The unit of measure (UOM) in which the vendor sells the item at this location (defined as the item's purchase
unit in your organization). The system automatically copies the purchase UOM for the item from the item
settings on the Stock Items or Non-Stock Items form, but you can override the unit of measure.
• The economic order quantity, which represents the quantity of this item required to minimize the costs of
ordering from this vendor location.
• The vendor lead time, and the additional lead time (if any) for the inventory item purchased from the
vendor. The system uses the additional lead time to schedule the purchases from the vendor and calculate
the promised date. When a user creates a purchase order with the item, the system automatically calculates
the promised date by adding the lead time and additional lead time (if any was specified for the item) to the
requested date.
• The purchasing information that is used in automated replenishment:
• The minimum frequency of orders.
• The minimum and maximum quantity that form the range in which the order quantity must fall.

You cannot enter the prices in the Last Vendor Price column. The column is populated by the system
and updated automatically with the prices that were last used for the items. For details on setting up
automatic price updating, see the Updating of Last Vendor Prices section.

System Population of Vendor Catalogs

As mentioned, you can manually add a vendor's items to the vendor catalog on the Vendor Inventory (PO201000)
form and edit item settings. The system also populates and updates the vendor's catalog based on events and
settings in the system.
The vendors from which an item can be or has been purchased are listed on the Vendors tab of the Stock Items
(IN202500) form for a stock item and the Non-Stock Items (IN202000) form for a non-stock item. If you add a vendor
for an item on one of these forms, when you open the Vendor Inventory form and select the vendor, the added item
is listed in the vendor catalog. Similarly, if you delete the vendor in the item settings because the vendor no longer
provides the item or your company prefers not to purchase it from this vendor, the system removes it from the
vendor catalog.
If an item not already in the catalog is purchased from a vendor, the system can add the item to the vendor catalog,
depending on the option selected in the Vendor Price Update box on the Price/Discount Settings tab of the
Accounts Payable Preferences (AP101000) form. If On PO Entry or On AP Bill Release is selected, the item is added
 Managing Purchase Documents | 116

to the vendor catalog either when the purchase order is created or when the corresponding AP bill is released,
respectively. If None is selected in the Vendor Price Update box, the purchased item is not added to the vendor
catalog at all. In this case, you can add the item to the vendor catalog only manually.

Updating of Last Vendor Prices

You can update vendor catalogs manually at any time by adding items and updating any changed settings on the
Vendor Inventory (PO201000) form. However, the last used prices in the catalogs cannot be entered manually; the
system updates these prices automatically from prices used in vendor documents.
The system can automatically update the last used vendor prices in the vendor catalog based on the entry
or release of specific vendor documents. To make this possible, on the Pricing tab of the Accounts Payable
Preferences (AP101000) form, in the Vendor Price Update box, select one of the following options:

• On PO Entry
• On AP Bill Release
When the event specified by the respective Vendor Price Update option (purchase order entry, or release of an
AP bill that is linked to a purchase receipt or order) occurs, the item's unit price from the document replaces the
last price of the item with the same UOM in the vendor catalog. If the UOM of the last price is the same as in the
document, but the currency differs from the document's currency, the item's unit price in the document currency
replaces the last price. If the UOM in the document line differs from the UOM of the last price, the system adds a
new line to the vendor catalog.

The system does not keep the history of price changes in the vendor catalog.

If you do not want to maintain information about the last used prices in the vendor catalogs, select None as the
Vendor Price Update option. With this setting, the last used prices will not be updated automatically.

Use of the Prices from Vendor Catalogs

If you regularly receive vendors' price lists for all or most of their items, you can use the Vendor Prices (AP202000)
and Vendor Price Worksheets (AP202010) forms instead of the vendor catalog. These forms provide greater
flexibility in price maintenance because you can import price lists and calculate the updated prices by applying
specific percentages.
Maintaining vendor prices through vendor catalogs on the Vendor Inventory (PO201000) form is a better option if
a vendor's prices do not change oen or information about prices is not available in advance. Once the system
populates the Last Vendor Price column for items in the vendor catalogs, the system uses these last used prices as
the default prices for the corresponding items on new purchase orders.
When you create a purchase order on the Purchase Orders (PO301000) form or a purchase receipt on the Purchase
Receipts (PO302000) form, the system inserts the price of each item on the Details tab (Unit Cost column) as
follows:
• If no prices are listed for the item on the Vendor Prices form, the system inserts the last price from the
vendor catalog.
• If prices are listed for the item on the Vendor Prices form, the system selects the price to be inserted as
described in Vendor Prices: Automatic Price Selection. This may be a warehouse-specific price if the Multiple
Warehouses feature is enabled on the Enable/Disable Features (CS1000000) form. For details about vendor
prices, see Vendor Prices: General Information.
When you create a new purchase order based on a purchase requisition that has been created on the Requisitions
(RQ302000) form, the system uses the price defined in the purchase requisition for each item as the unit price of
the item in the purchase order. If the Vendor Prices form includes prices (including warehouse-specific prices) for
the item, the system will not override the price of the item, even though you changed the warehouse in the created
purchase order.
 Managing Purchase Documents | 117

If you are browsing the vendor catalog on the Vendor Inventory form, you can view this vendor's
current item prices by clicking the row with the item and then clicking the Vendor Prices button on
the table toolbar, which opens the Vendor Prices (AP202000) form.

You can override the default catalog prices on a purchase order or purchase receipt if the actual purchase prices
for inventory items are different from those listed in the vendor catalog. In this case, the new prices that you
enter will automatically appear in the vendor catalog as the last used prices; the particular event triggering this
update depends on the option selected in the Vendor Price Update box. The new prices will then appear on a new
purchase order when a user creates it.
However, if the Volume Pricing feature is enabled in your system and you purchase different volumes with different
prices from your vendors, consider whether you need to maintain price updating in the catalog, taking into account
that you will not know what volume the price listed in the catalog corresponds to.
Related Links
• Item Cross-References
• Purchase Orders Preferences
• Vendor Inventory

Vendor Relations in Purchase Documents

If the Vendor Relations feature is enabled on the Enable/Disable Features (CS100000) form, the vendor relations
functionality can be configured. The following sections describe how the vendor relations you configure may affect
the AP bills and debit adjustments created based on a purchase order or purchase receipt.

Vendor Relations Overview

In some companies that consist of multiple branches, the branches can collectively make on order to a vendor on
behalf of the company (that is, its head office) by sending purchase orders to that vendor. The supplier provides
goods and issues a bill to the head office of the company. The head office pays it, and, in turn, issues bills to its
branches. As a result, a branch receives goods from one vendor (specified in the purchase order), but pays for
those goods to another vendor (specified in the bill). In Acumatica ERP, you can set up vendor relations so that the
system accurately handles those vendor relations in documents. On the Vendors (AP303000) form, for each vendor
that supplies goods and services but does not receive payment (a supplied-by vendor), you specify its vendor for
which an AP bill or debit adjustment should be created if this vendor is specified in a purchase order or receipt (the
pay-to vendor). For details, see Vendor Relations Overview.

Vendor Relations in Purchase Orders and Purchase Receipts

When you create a purchase order on the Purchase Orders (PO301000) form, in the Vendor box of the Summary
area, you can select a vendor with either vendor relations set up (a supplied-by vendor) or a vendor with no vendor
relations set up. The system does one of the following for the purchase order:
• If the selected vendor is a supplied-by vendor, the system inserts in the Pay-to Vendor box of the Vendor
Info tab the pay-to vendor that is specified for the selected supplied-by vendor on the Vendors form.
• If vendor relations are not configured for the selected vendor, the system inserts this same vendor in the
Pay-to Vendor box of the Vendor Info tab.

For purchase receipts on the Purchase Receipts (PO302000) form, the system selects the Pay-to
Vendor in the same way. The only difference is that this box is located on the Financial Details tab, in
the Billing Settings section.

For a purchase order or a purchase receipt, you can override the vendor in the Pay-to Vendor box, if needed.
 Managing Purchase Documents | 118

With the vendor relations functionality set up, when you invoke Enter AP Bill on the form toolbar of the Purchase
Orders or Purchase Receipts form, the system creates an AP bill (or, for example, a debit adjustment for a purchase
receipt of the Return type) on the Bills and Adjustments (AP301000) form that has all the details copied from the
initial document except the vendor in the Vendor box. In this box, the system inserts the vendor specified in the
Pay-to Vendor box of the Purchase Orders or Purchase Receipts form. As a result, the bill will be paid to a different
vendor than the vendor for which the purchase order was created.

Discount Calculation
In an Accounts Payable document (bill or debit adjustment) on the Bills and Adjustments (AP301000) form that
is based on the purchase order, the system uses the discounts of the supplied-by vendor to calculate document
discounts.

Tax Calculation
For a purchase order or purchase receipt on the Purchase Orders (PO301000) or Purchase Receipts (PO302000) form
with vendor relations set up, the system calculates the tax and taxable amounts of the purchase order or purchase
receipt by using the tax zones of the supplied-by vendors (that is, of the vendor specified in the Vendor box of
the Summary area of the Purchase Orders or Purchase Receipts form). With vendor relations set up, the system
calculates the tax and taxable amounts of the Accounts Payable documents similarly.
If integration with Avalara AvaTax is configured and used for calculating taxes for purchase documents, the vendor
relations you configure may affect the way the system selects the From and To addresses in these purchase
documents. For more information, see Calculating Use and Sales Taxes in Purchase Documents.
Related Links
• Vendor Relations in Accounts Payable Documents
• Vendor Relations Overview
• Vendors
• Bills and Adjustments
• Purchase Orders
 Processing Pre-Sale Quotes | 119

Processing Pre-Sale Quotes

You can create a quote (an order of the QT type) to record a planned sale. The quantities of goods and the
document amounts on open quotes do not cause the allocation of stock items in inventory and do not update
accounts receivable. To be able to prepare an invoice for the customer for the quote and issue the included items
from inventory, you need to create a sales order of the needed type based on that quote and process the sales
order. As soon as any order (even for a partial quantity of items) has been prepared from the quote, the quote
becomes completed.

Entering a Quote
You create a sales order of the QT type on the Sales Orders (SO301000) form to represent a customer's interest in
possibly purchasing goods in a specified quantity on a specified date.
For a quote, you specify the following information:
• The customer and its location
• The planned order date and requested date
• The shipping rule for the order and for each order line
• The shipping terms
• The included stock and non-stock items with their quantities, units of measure, unit prices, and tax category
• The expiration date of the quote
New orders of the QT type are saved with the Open status by default because the Hold Documents on Entry check
box is cleared for this order type on the Order Types (SO201000) form; you can change this default setting. The first
time you save the new quote, the system generates a reference number for it according to the numbering sequence
assigned to this order type on the Order Types form.

Creating a Sales Order from a Quote

From the open quote on the Sales Orders (SO301000), you can create an order of any of the following types: SO
(sales order), IN (invoice order), or CS (cash sale order). To create an order from a quote, you click Copy Order on
the More menu. When you create an order based on a quote, the details of the quote (including the document lines
and the specified accounts and subaccounts) are copied to the created order. You can select whether to recalculate
discounts on sales orders copied from quotes. Aer you have copied a quote to a sales order, the quote remains
open until you cancel it.
Quotes can also be used as templates for repeating orders for a particular customer. In this case, you can create
orders based on quotes by using the standard copy-paste functionality on the Sales Orders (SO301000) form. When
you create an order in this way, the quote is not completed and is still available when you need to prepare other
sales orders.

Canceling a Quote
To reflect in the system that the customer is no longer considering a particular proposed sale (quote) or that your
company is no longer offering the included item or items at the specified price or prices, you need to cancel the
quote. For each newly created quote, you can specify an expiration date in the Cancel By box on the Shipping
Settings tab. By default, the system calculates the Cancel By date as follows: the number of days specified in the
Days to Keep box for the QT order type on the Order Types form (SO201000) is added to the Date specified in the
quote.
The system does not cancel the expired quotes automatically. A user should cancel an expired quote on the Sales
Orders (SO301000) or cancel multiple expired quotes by using the Cancel Order action on the Process Orders form
(SO501000).
 Processing Pre-Sale Quotes | 120

To Create a Quote (QT)

You create a quote of the predefined QT type to record a customer's interest in possibly purchasing goods by using
the Sales Orders (SO301000) form.

To Create a Quote
1. Open the Sales Orders (SO301000) form.
2. In the Order Type box in the Summary area, select QT (Quote).
3. Select the customer.
4. Optional: In the Location box, check the default location of the customer, and change it if needed for the
order.
5. Optional: Check the currency and the currency exchange rate; change these in the Currency box, if needed.
6. If this quote is associated with a particular project, in the Project box, change X (the non-project code,
which is selected by default) to the particular project.
7. In the Date box, specify the date of the quote (which by default is the current business date).
8. In the Requested On box, specify the date when the customer wants to receive the ordered items.
9. Optional: In the Description box, provide a brief description for this quote.
10.Optional: In the Customer Order Nbr. box, enter the reference number of the original customer document
the quote is based on.
11.On the Details tab, perform the following steps for each stock item you wand to add to the quote:
a. Click Add Items on the table toolbar. The Inventory Lookup dialog box appears with the list of inventory
items. You can use the selection criteria at the top of the dialog box to narrow the list of items.
b. In the line or lines with the items that you want to add, in the Qty. Selected column, specify the planned
quantity of the items to be sold (measured in the default sales unit of measure shown in the Sales Unit
column).
c. Click Add & Close at the bottom of the dialog box.
d. In the added line or lines, review the Shipping Rule, Requested On, and Ship On columns. Change any
of these settings, if needed.
12.On the Details tab, perform the following steps for each non-stock item you want to add to the quote:
a. On the table toolbar, click Add Row.
b. Optional: In the Inventory ID column, select the ID of the non-stock item sold or the service provided to
the customer.
c. Optional: In the Line Description column, enter a description of the line if it has not been filled in
automatically.
d. Optional: Enter the quantity of the item sold.
e. Optional: In the UOM column, enter the unit of measure for the item if it has not been filled in
automatically.
f. Optional: In the Unit Price column, enter the price per unit if it has not been filled in automatically.
g. In the Ext. Price column, enter the extended price if it has not been calculated automatically.
13.On the Shipping tab, specify the Cancel By date, which is the expiration date of the quote, aer which it can
be canceled if the customer has not yet committed to making this purchase.
 Processing Pre-Sale Quotes | 121

14.Click Save on the form toolbar to save the created quote.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• If QT is not available for selection in the Order Type box, enable the QT order type on the Order Types
(SO201000) form.
• To limit the range of items in the Inventory Lookup dialog box, you can do any of the following:
• Type a string in the Inventory box to find the item by this string in its inventory ID, description, or
alternate ID type.
• Click the Sold Since option button if the item has been sold recently. When you do, the Sold Since box
appears with a date that is three months earlier than the current business date; select another date if
needed. The list of items is populated with the items that have been sold in this date range.
• Select the Show Available Items Only check box to review only items whose available quantities are
greater than 0. Clear this check box to see all items.
• If subitems are used in your system, to narrow the resulting list to a particular subitem of the item, select
the needed subitem in the Subitem box.
• To narrow the list to items located in a particular warehouse, select the warehouse in the Warehouse
box.
 Processing Sales of Stock Items | 122

Processing Sales of Stock Items

Goods that are stored in inventory are called stock items. For these items, the system tracks the on-hand quantity
and the changes in the cost. In Acumatica ERP, you use sales orders of the predefined SO and SA types to record the
sales of stock items.
The topics of this chapter explain how to process a sale of stock items with shipping, and which documents are
prepared during the processing of the sale.

Sales of Stock Items: General Information

In a typical distribution organization, a customer order may be taken over the phone or received by email. In
Acumatica ERP, you can process a sale of stock items by creating and processing a corresponding sales order. A
sales order represents a customer request to buy particular goods in a specified quantity on a specified date.

Learning Objectives
In this chapter, you will do the following:
• Create a sales order with stock items
• Create the shipment for the sales order
• Confirm the shipment
• Create the invoice for the sales order
• Process the SO invoice and the related inventory and accounts receivable documents

Applicable Scenarios
You process a sales order with a stock item if you need to record the sale of goods with shipping the items to
customer, updating item quantities in inventory, and preparing an invoice to the customer for the sold goods.

Sale of Stock Items with Automatic or Manual Allocation

The standard sales process typically includes entering a sales order, processing a shipment of the items with items
being issued from inventory, and preparing the related invoice to a customer. In Acumatica ERP, to process a sale
that requires the items to be shipped before an invoice can be prepared, you can use a sales order of the SO or SA
type on the Sales Orders (SO301000) form. Consider the following points as you decide which of the order types to
use:
• For a new order of the SO type, the items are not reserved in inventory automatically. You can manually
allocate (reserve) the requested quantity for a specific stock item or multiple items if this is required by your
company policies or was requested by the customer. Also, you may want to reserve a line item if the item is
available but the quantity required for the order line is distributed between different warehouses and any
transfers are required.
• When you save a new order of the SA type, the system automatically reserves the requested quantities of
stock items for this order (or the available part, if only part of requested quantity is available for any item).
If the ordered quantity cannot be fully allocated at the specified location or warehouse, you can manually
allocate the unavailable quantity in other warehouses or locations. If you prepare a shipment for an SA
order that has an unallocated quantity, the order will be shipped partially even if the ordered quantities are
available for shipping at another warehouse or warehouse location but were not allocated for this particular
order.
 Processing Sales of Stock Items | 123

On the Details tab of the Sales Orders form, you can view the allocation for each sales order line and change it, if
needed, by clicking a line and clicking Line Details on the table toolbar. The quantities of the items that have been
allocated for the order (automatically or manually) cannot be shipped for another order.
The way the order will be fulfilled depends on the item availability and on the shipping rules specified for the order
and for the sales order lines on the Sales Orders (SO301000) form. These shipping rules determine whether the
goods in the sales order should be shipped only in full, partial shipments for the available quantities are allowed
with the remainder canceled, or partial shipments are allowed with the remainder on back order. For detailed
information, see Shipping Rule Combinations. On the Shipments (SO302000) form, you can review the details of a
shipment document prepared for an order; then you can confirm the shipment of items.
Aer you have prepared and confirmed the shipment or shipments related to the sales order, you need to bill
the customer for the shipped items by preparing an SO invoice, which is a financial document in the system that
contains links to the applicable shipments and sales orders. You can review the prepared SO invoice on the Invoices
(SO303000) form; then you can release it. When the SO invoice is released, the system automatically generates a
corresponding inventory issue for the shipped items with the date and posting period of the invoice. Also, when
the SO invoice is released, the system creates and releases a corresponding AR invoice, which you can view on the
Invoices and Memos (AR301000) form.

An AR invoice is a financial document that is similar to the SO invoice but does not contain the links to the
applicable shipments and sales orders. The system assigns the same reference number to the SO invoice and the
related AR invoice and prints this number in the customer statement; thus, these invoices appear to be a single
document from the customer's perspective. Both of these documents contain the link to the batch of the general
ledger transactions that was generated when the AR invoice was released. For more information on processing
accounts receivable invoices, see Processing AR Invoices.

Workflow of a Sale of Stock Items

For a sales order of the SO or SA type that includes stock items, the typical processing involves the actions and
generated documents shown in the following diagram.
 Processing Sales of Stock Items | 124

Sales of Stock Items: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales of stock items, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
Before you begin processing sales of stock items, you should make sure the needed features have been enabled,
settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Inventory feature is enabled.

Sales Orders Preferences (SO101000) form, Inventory Make sure that all necessary settings related to sales
Preferences (IN101000) form orders and inventory have been specified, as de-
scribed in Configuration of Order Management: General
Information.

Order Types (SO201000) form Make sure that the SO and SA order types are active
and have been configured, as described in Sales Order
Types: To Configure the SO Order Type.

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity .

Stock Items (IN202500) form Make sure that all stock items have been defined in the
system, as described in Stock Item Creation: Implemen-
tation Activity.

Other Settings That Affect the Workflow

You can affect the workflow of processing inventory sales by specifying additional settings as follows:
• To cause shipments to be created with the On Hold status (so that the user can verify them before
processing them further), select the Hold Shipments on Entry check box on the Sales Orders Preferences
(SO101000) form.
• To cause inventory issues to be automatically generated and released on release of SO invoices, select the
Automatically Release IN Documents check box on the Sales Orders Preferences (SO101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a sale of stock items, as
described in Sales of Stock Items: Process Activity.
 Processing Sales of Stock Items | 125

Sales of Stock Items: Process Activity

The following activity demonstrates how to prepare and process to completion a sales order with manual
allocation of stock items.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Video Tutorial
This video shows you the common process but may contain less detail than the activity has. If you want to repeat
the activity on your own or you are preparing to take the certification exam, we recommend that you follow the
instructions in the activity steps.
FEEDBACK

Story
Suppose that you are Grace Norman, a sales manager of the SweetLife Fruits & Jams company. On January 30,
2023, the GoodFood One Restaurant wholesale customer has ordered a large amount of orange and apple jams in
96-ounce jars from the main office of SweetLife, where you are employed, for the café's baking needs. The ordered
jams are stored in the warehouse of the SweetLife’s main office. You, as a sales manager, need to enter and process
the appropriate documents.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Order Types (SO201000) form, the SO order type has been configured and activated.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been
configured.
• On the Stock Items (IN202500) form, the APJAM96 and ORJAM96 stock items have been configured.
• On the Warehouses (IN204000) form, in the WHOLESALE warehouse, which has been configured, sufficient
quantities of the APJAM96 and ORJAM96 items are on hand.

Process Overview
To perform a sale of stock items with manual allocation, you create a sales order on the Sales Orders (SO301000)
form, select the customer to which the items are being sold, add items to the order, and reserve the items in
inventory. Then you create a shipment document on the Shipments (SO302000) form. On this form, you confirm the
settings that the system has inserted automatically based on the sales order, and then confirm the shipment. Aer
shipment confirmation, you use the Invoices (SO303000) form to prepare a corresponding invoice to the customer
and release it.
 Processing Sales of Stock Items | 126

System Preparation
Before you start performing a sale of stock items with manual allocation, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in to the system as sales
manager Grace Norman by using the norman username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.
4. On the Enable/Disable Features (CS100000) form, disable the Project-Specific Inventory feature.

Step 1: Creating a Sales Order

To create a sales order, do the following:
1. On the Sales Orders (SO301000) form, create a sales order, and specify the following settings:
• Order Type: SO
• Customer: GOODFOOD
• Date: 1/30/2023
• Requested On: 1/30/2023
• Description: Orange and apple jams

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the table toolbar of the Details tab, click Add Row and specify the following settings in the added row:
• Inventory ID: APJAM96
• Warehouse: WHOLESALE
• Quantity: 20
• Unit Price: 45.15
3. On the table toolbar, click Add Row and specify the following settings in the second row:
• Inventory ID: ORJAM96
• Warehouse: WHOLESALE
• Quantity: 20
• Unit Price: 35.99
4. On the form toolbar, click Save.

The sales order is saved with the Open status.

Step 2: Allocating Inventory Items

To manually allocate the inventory items for the sales order you have created, while you are still viewing the sales
order on the Sales Orders (SO301000) form, do the following:
1. On the Details tab, click the APJAM96 line, and review the Allocated quantity for the APJAM96 inventory item
in the table footer (which is currently equal to 0 because the system does not automatically allocate stock
items for SO orders).
 Processing Sales of Stock Items | 127

2. On the table toolbar, click Line Details.

3. In the Line Details dialog box, which opens, make sure that WHOLESALE is selected in the Alloc. Warehouse
column of the only row.
4. Select the Allocated check box for the allocation line.
5. Click OK to save the created allocation and close the dialog box.
6. In the table footer, review the Allocated quantity, and notice that it is now equal to the quantity specified in
the line, which means that the item has been allocated in inventory.
7. On the form toolbar, click Save.
8. click the ORJAM96 line, and review the Allocated quantity for the ORJAM96 stock item in the table footer
(which is currently equal to 0 because the system does not automatically allocate stock items for SO orders).
9. On the table toolbar, click Line Details.
10.In the Line Details dialog box, which opens, make sure that WHOLESALE is selected in the Alloc. Warehouse
column of the only row.
11.Select the Allocated check box for the allocation line.
12.Click OK to save the created allocation and close the dialog box.
13.In the table footer, review the Allocated quantity, and notice that it is now equal to the quantity specified in
the line, which means that the item has been allocated in inventory.
14.On the form toolbar, click Save.

You have manually allocated the inventory items for the sales order. Now you need to create a shipment document
for the sales order.

Step 3: Creating a Shipment

To create a shipment, do the following:
1. While you are still viewing the sales order you have created on the Sales Orders (SO301000) form, on the
form toolbar, click Create Shipment.
2. In the Specify Shipment Parameters dialog box, which opens, make sure that the 1/30/2023 date and the
WHOLESALE warehouse are selected, and click OK. The system closes the dialog box, creates a shipment,
and opens it on the Shipments (SO302000) form.

Step 4: Confirming the Shipment

To confirm the shipment, do the following:
1. While you are still viewing the shipment on the Shipments (SO302000) form, review the lines on the Details
tab. Make sure that both order lines have been included in the shipment and that the shipped quantity in
both lines is equal to the ordered quantity.
2. In both lines, specify Main in the Location column.
3. On the form toolbar, click Confirm Shipment.

The shipment is assigned the Confirmed status. Now you can prepare the invoice to bill the customer and increase
the customer's debt in the system.

Step 5: Processing the Invoice

To prepare and release the invoice, do the following:
1. While you are still viewing the shipment on the Shipments (SO302000) form, on the form toolbar, click
Prepare Invoice. The system prepares the invoice and opens it on the Invoices (SO303000) form.
 Processing Sales of Stock Items | 128

2. On this form, review the details of the prepared invoice. The invoice has two lines, as the initial sales order
does. In the Shipment Nbr. and Order Nbr. columns of the Details tab, notice that the system has inserted
the reference number links to the related shipment and sales order.
3. On the form toolbar, click Release to release the invoice. Wait for the system to complete the operation.
4. Return to the Sales Orders (SO301000) form, and open the sales order that you have processed.
5. On the Shipments tab, in the only row, click the link in the Inventory Ref. Nbr. column to view the
inventory issue that was generated when you released the invoice.
6. On the Issues (IN302000) form, which opens in a pop-up window, review the details of the inventory issue,
shown in the following screenshot. Make sure that the issue has the Released status, which means that the
issue has been released and the quantities of items in inventory have been decreased appropriately.

Figure: Inventory issue generated on release of the invoice

The sales order processing is now complete.

Activity Recap
In this activity, we have illustrated how the sales manager has done the following:
1. Created a sales order for the items to be sold
2. Manually allocated the inventory items for the sales order
3. Created and confirmed the shipment of the items
4. Prepared the invoice for the customer and has released it

Sales of Stock Items: Generated Transactions

To be able to process a sale of stock items, you create and process a sales order. The following sections describe the
GL transactions generated during processing the documents for a sale of stock items.

Sales orders of the SO and SA type and shipment documents do not produce any GL transactions.
 Processing Sales of Stock Items | 129

Transactions Generated for an SO Invoice

When you create and release an SO invoice with one line with a stock item, the system generates the following
general ledger transactions:

Account Source of Account Debit Credit

Accounts Receivable Customer Amount 0.00

account

Sales account Depends on the settings of the 0.00 Amount

order type on the Order Types
(SO201000) form.

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Transactions Generated for Inventory Issue

On release of the SO invoice, the system generates an inventory issue transaction with the line that has the Invoice
transaction type. When an inventory issue with one line of the Invoice type is released, the system generates the
following general ledger transactions:

Account Source of Account Debit Credit

Inventory account Depends on the settings 0.00 Amount

of the posting class of
the item specified on
the Posting Classes
(IN206000) form)

GOGS account Depends on the settings Amount 0.00

of the posting class of
the item specified on
the Posting Classes
(IN206000) form)

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Issues
(IN302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Sales of Stock Items: Mass-Processing of Documents

The following sections explain how to process multiple sales orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Shipments
Shipments can be mass-generated for sales orders. To generate shipments for multiple sales orders at a time, you
open the Process Orders (SO501000) form and select the Create Shipment action. Then you select the unlabeled
 Processing Sales of Stock Items | 130

check boxes in the rows of the orders to be processed, and click Process on the form toolbar. The system prepares
shipment documents for the selected sales orders.

Mass-Confirming Shipments
Shipments can be confirmed in bulk. To confirm multiple shipments at a time, you open the Process Shipments
(SO503000) form and select the Confirm Shipment action. Then you select the unlabeled check boxes in the rows of
the shipments to be processed, and click Process on the form toolbar. The system confirms the selected shipment
documents.

Mass-Creating Invoices
Invoices can be mass-generated for sales orders or for the corresponding shipments. To prepare multiple invoices
for sales orders, you open the Process Orders (SO501000) form. To prepare multiple invoices for shipments, you
open the Process Shipments (SO503000) form. Then you select the Prepare Invoice action, select the unlabeled
check boxes in the rows of the sales orders or shipments to be processed, and click Process on the form toolbar.
The system prepares invoices for the selected documents.

Mass-Printing Pick Lists

For multiple shipments with the On Hold and Open statuses, you can mass-print pick lists by using the Process
Shipments (SO503000) form. On this form, you select the Print Pick List action, select the unlabeled check boxes in
the rows of the shipments for which you need to print pick lists, and click Process on the form toolbar.

Mass-Printing Invoices
You can print multiple SO invoices at a time by using the Process Invoices and Memos (SO505000) form. On this
form, you select the Print Invoice action, select the unlabeled check boxes in the rows of the invoices to be printed,
and click Process on the form toolbar.

Sales of Stock Items: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about sales of stock items that have been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Shipments Related to a Sales Order

If you need to find a shipment linked to a particular sales order and review it, you can do this by opening the
sales order on the Sales Orders (SO301000) form and reviewing the Shipments tab, which lists all the shipments
that have been prepared for the order. To review the details of a shipment, you click its reference number in the
Document Nbr. column; the system opens the shipment for review on the Shipments (SO302000) form.

Tracking the Status of Order Fulfillment

To track how a sales order is being fulfilled, you can check its status in the Summary area of the Sales Orders
(SO301000) form. You can also check the quantities and amounts that are not yet shipped and not yet billed, and
the amount that is not yet paid, on the Totals tab.
 Processing Sales of Stock Items | 131

Printing Pick Lists

To prepare a printable pick list for a shipment document that is being processed, you use the Pick List (SO644000)
report. While you are viewing a shipment on the Shipments (SO302000) form, you can print the pick list for a
particular shipment by clicking Print Pick List on the More menu. The system opens the printable pick list on the
Pick List report; then you can review the pick list and print it by clicking Print on the report toolbar.

Printing Invoices
To prepare a printable form of the invoice that is being processed, you use the Invoice & Memo (SO643000) report.
While you are viewing an SO invoice on the Invoices (SO303000) form, you can print the SO invoice by clicking Print
Invoice on the More menu. The system opens the printable version of the invoice on the Invoice & Memo report;
then you can review the invoice and print it by clicking Print on the report toolbar.

To Reserve an Inventory Item for an Order

If some of the specific items require reservation (allocation) for the order, you can reserve them on the Sales Orders
(SO301000) form, as described in the following instructions.

To Reserve an Inventory Item in an Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type of the order for which you want to allocate items.
3. In the Order Nbr. box, select the reference number of the needed order.
4. On the Details tab, for each item whose quantities should be reserved in the source warehouse, perform the
following steps:
a. Click the order line with the needed item, and click Line Details on the table toolbar.
b. In the Line Details dialog box, which opens, select the Allocated check box for the allocation line. If the
full quantity is not available in the source warehouse, the system replaces the quantity in the line with
the available quantity and adds one more line for the remaining quantity.
c. For the additional line (if added), select the check box in the Line Details column. In the Alloc.
Warehouse column, select the source warehouse from the list of warehouses. If the item quantity
available in this warehouse (Quantity) is less than the remaining quantity, the system adds one more
allocation line with the remaining quantity; if it does, either adjust the requested quantity or continue
reserving item quantities in other warehouses.
d. Click OK to save the created allocations and close the dialog box.

Notes About the Procedure

Note the following about reserving an inventory item for an order:
• The functionality of stock allocation (reservation) is available only if any of the following features is enabled
on the Enable/Disable Features (CS100000) form: Multiple Warehouses, Sales Order to Purchase Order Link, or
Lot and Serial Tracking or Inventory Subitems.

The Inventory Subitems check box has been removed from the Enable/Disable Features form
because the functionality associated with the Inventory Subitems feature will be phased out. If
you have this feature enabled in your system, the associated functionality remains available.
To disable the feature, contact your Acumatica support provider.
 Processing Sales of Stock Items | 132

• If your order requires any transfers, you will need to create and process transfer orders.
• Non-stock items cannot be allocated.

Related Links
• To Create a Sales Order with Automatic Allocation (SA)
• To Specify Lot or Serial Numbers for Ordered Items

To Create a Sales Order with Automatic Allocation (SA)

You create a sales order of the predefined SA type with automatic stock reservation by using the Sales Orders
(SO301000) form.

To Create a Sales Order with Allocations

1. Open the Sales Orders (SO301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record.

3. In the Order Type box in the Summary area, select SA (Sales Order With Allocation).
4. In the Customer box, select the customer.
5. If needed, in the Location box, change the default location of the customer.
6. If this sales order is associated with a particular project, in the Project box, select the project. Otherwise,
leave X (Non-Project Code) specified by default.
7. In the Date box, change the date of the order (which by default is the current business date) if needed.
8. In the Requested On box, specify the date when the customer wants to receive the order.
9. If needed, in the Customer Order box, enter the reference number of the original customer document the
sales order is based on.
10.If needed, in the Description box, enter a brief description for this sales order.
11.On the Shipping tab, in the Sched. Shipment box, review the date when the shipment of this order is
scheduled. By default, it is the Requested On date minus the lead days for this customer. Change the date, if
needed.
12.In the Shipping Rule box, notice the default shipping rule used for this customer. Select another rule, if
needed.
13.On the Details tab, perform the following steps to add one item or multiple items to the sales order with
allocation:
a. Click Add Items on the table toolbar. The Inventory Lookup dialog box appears with the list of active
inventory items. You can use the selection criteria at the top of the dialog box to narrow the list of items.
b. In the line or lines with the items that you want to add, in the Qty. Selected column, specify the
requested quantity of the items (measured in the default unit of measure shown in the UOM column).
Notice the item availability data for the selected warehouse, which appears in the columns to the right.
c. Click Add & Close at the bottom of the dialog box.
d. In the added line or lines, review the Shipping Rule, Requested On, and Ship On columns. Change any
of these, if needed.
e. Click Save on the form toolbar.
 Processing Sales of Stock Items | 133

14.If needed, on the Details tab, select the needed order line, and click Line Details on the table toolbar to
review how the system has allocated the quantities of the items for the order.
15.On the form toolbar, click Save.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• If SA is not available for selection in the Order Type box, select the Active check box for the SA order type on
the Order Types (SO201000) form.
• The functionality of stock allocation (reservation) is available only if any of the following features are
enabled on the Enable/Disable Features (CS100000) form: Multiple Warehouses, Sales Order to Purchase
Order Link, and Lot and Serial Tracking.
• To facilitate order processing and tracking, you can attach scanned images or electronic versions of original
customer orders to sales orders. For instructions, see To Attach a File to a Record.
• To limit the range of items in the Inventory Lookup dialog box, you can do any of the following:
• Type a string in the Inventory box to find the item by this string in its inventory ID, description, or
alternate ID type.
• Click the Sold Since option button if the item has been sold recently. When you do, the Sold Since box
appears with a date that is three months earlier than the current business date; select another date if
needed. The list of items is populated with the items that have been sold in this date range.
• Select the Show Available Items Only check box to review only items whose available quantities are
greater than 0. Clear this check box to see all items.
• If subitems are used in your system, to narrow the resulting list to a particular subitem of the item, select
the needed subitem in the Subitem box.
• To narrow the list to items located in a particular warehouse, select the warehouse in the Warehouse
box.
• If the reserved quantity is split between multiple warehouses, the appropriate allocations will be visible on
the Create Transfer Orders (SO509000) form, and you can generate transfer orders for the allocations you
select or for all listed allocations.

Related Links
• To Reserve an Inventory Item for an Order
• To Specify Lot or Serial Numbers for Ordered Items
• To Manually Select the Package Box for an Order

To Add Sales Orders to an Invoice

You can create an invoice manually on the Invoices (SO303000) form, and add to it the lines of one sales order or
multiple sales orders of the same customer.

To Add Sales Orders to Invoice

1. Open the Invoices (SO303000) form.
2. In the Type box in the Summary area, select Invoice.
3. Select the customer in the Customer box.
4. In the Date box, specify the date on which the invoice should be prepared.
 Processing Sales of Stock Items | 134

5. On the Details tab, add the lines of each order to be invoiced as follows:
a. Click Add Order on the table toolbar. The Add Order dialog box appears.
b. Select the unlabeled check boxes in the rows of the orders to be added to the invoice.
c. Click Add & Close at the bottom of the dialog box.
6. Save the invoice.

To Create Invoices for Multiple Shipments

You can mass-create invoices for multiple shipments simultaneously on the Process Shipments (SO503000) form.

To Create Invoices for Multiple Shipments

1. Open the Process Shipments (SO503000) form.
2. In the Action box, select Prepare Invoice.
3. In the table, select the unlabeled check boxes in the rows of the shipments to be processed.
4. If needed, select the Bill Separately check box for the shipment or shipments for which separate invoices
must be prepared.
5. Click Process on the form toolbar.

The system processes the selected shipments and generates one invoice or multiple invoices, based on whether the
Bill Separately check box is selected for any shipments, or for an order type (the system groups invoices by order
type). The generated invoices are linked to the original sales orders.

To Create Invoices for Multiple Orders

You can mass-create invoices for multiple orders simultaneously on the Process Orders (SO501000) form.

To Create Invoices for Multiple Orders

1. Open the Process Orders (SO501000) form.
2. In the Action box, select Prepare Invoice.
3. In the table, select the unlabeled check boxes in the rows of the orders to be processed.
4. Click Process on the form toolbar.

To Prepare an Invoice for a Sales Order

If you need to prepare an invoice for a particular sales order, you can do this from the Sales Orders (SO301000)
form.

To Prepare an Invoice for a Sales Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box of the Summary area, select the order type of the order for which you want to create
an invoice.
 Processing Sales of Stock Items | 135

3. In the Order Nbr. box, select the reference number of the order for which you want to create an invoice.
4. On the form toolbar, click Prepare Invoice.
5. Review the details of the prepared invoice on the Invoices (SO303000) form, which opens.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• By default, when a user prepares invoices, the system uses the dates of corresponding shipments as invoice
date if the Use Shipment Date for Invoice Date check box is selected on the Sales Orders Preferences
(SO101000) form. If you clear this check box, the system will prepare invoices with the current business
date.
• The invoices are created with the Balanced status if the Hold Invoices on Entry check box is cleared in the
settings of the order type on the Order Types (SO201000) form. Otherwise, if the check box is selected, the
invoices are created with the On Hold status.
• You can mass-prepare invoices for orders by using the Prepare Invoice action on the Process Orders
(SO501000) form, as described in the To Create Invoices for Multiple Orders topic.

To Specify Lot or Serial Numbers for Ordered Items

If you need to specify lot numbers or serial numbers for the items in a particular order, you can do this on the Sales
Orders (SO301000) form, as described in the instructions below.

To Specify Lot or Serial Number For the Ordered Items

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box of the Summary area, select the order type of the order for which you want to specify
lot or serial numbers.
3. In the Order Nbr. box, select the reference number of the needed order.
4. For each item for which lot or serial numbers should be specified, perform the following steps:
a. On the Details tab, click the order line with the item, and click Line Details on the table toolbar.
b. In the Line Details dialog box, which opens, to specify particular lot or serial numbers for the item in
the allocation line, in the Lot/Serial Nbr. column, select one of the lot or serial numbers available in the
allocation warehouse. The line quantity changes to 1 if the item has serial numbers, or to the lot quantity
if the item has lot numbers; the system adds a new line for the remaining quantity. In the new line, select
another serial or lot number. Repeat this step until the remaining quantity is zero.
c. Click OK to save your changes and close the dialog box.

You can specify lot and serial numbers for items only if the Lot and Serial Tracking feature is enabled
on the Enable/Disable Features (CS100000) form.

Related Links
• To Create a Sales Order with Automatic Allocation (SA)
• To Reserve an Inventory Item for an Order
 Processing Sales of Stock Items | 136

To Create Shipments for Multiple Orders

You can mass-create shipments for multiple orders simultaneously on the Process Orders (SO501000) form.

To Create Shipments for Multiple Orders

1. Open the Process Orders (SO501000) form.
2. In the Action box, select Create Shipment.
3. In the table, select the unlabeled check boxes next to the orders to be processed.
4. Click Process on the form toolbar.
5. In the Processing dialog box, click Close when processing completes.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about the creation of shipments for multiple orders:
• Aer you have created shipments, you need to confirm each shipment and create transfer receipts for
transfer orders, if any have been processed.
• To narrow the range of documents shown in the table, do any of the following:
• In the Start Date and End Date boxes, specify the date range for the dates of the type you selected.
• To further narrow the list of documents, select a particular customer in the Customer box.
• In the Carrier box, select the carrier to be used for shipping.
• In the Ship Via box, select a particular ship via code.
• In the Warehouse box, select the source warehouse.
• Specify and apply a filter to select documents by specific criteria. You can create a reusable filter for the
form that will give you the ability to display particular documents each time you bring up this form. For
more information, see Filters.

Related Links
• To Print a Pick List for a Shipment
• To Print a Shipment Confirmation
 Correcting SO Invoices | 137

Correcting SO Invoices
In some cases, you may need correct an SO invoice that has already been released to change some significant data.
You can do this either by creating a correction invoice (which replaces the original invoice) or by canceling the
invoice and then creating a replacement invoice. In some situations, you may also need to cancel an invoice at the
customer's request and not create any replacement invoice.
The topics of this chapter explain how to correct and cancel SO invoices.

SO Invoice Correction: General Information

Aer items have been shipped to a customer, you create and release an SO invoice, which increases the customer's
debt. Once the SO invoice has been released, the settings of the invoice, including the invoice amounts, cannot be
changed directly in the SO invoice.
In Acumatica ERP, there are two ways to correct an SO invoice that has been released (which in this context is the
original invoice): either create correction invoice, or cancel the original SO invoice and then create a new invoice
with the correct settings.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a correction document for an SO invoice
• Cancel an SO invoice by creating a cancellation credit memo and applying this credit memo to it
• Review the correction and cancellation documents
• Review the GL transactions generated on release of correction or cancellation documents

Applicable Scenarios
You correct SO invoices in any of the following cases:
• You need to decrease the outstanding amount of an SO invoice because the invoice overcharged the
customer, the customer reported receiving damaged goods, or the applicable taxes were calculated
incorrectly.
• You need to increase the amount of an SO invoice because of additional expenses being incurred during the
delivery of the goods or services listed in the original invoice, or if the applicable taxes have been calculated
incorrectly.
• You need to cancel an SO invoice because the customer decided to negate the sale.
• You need to cancel an SO invoice and create a new one if some significant data in the invoice needs to be
changed (for example, if you need to add more lines to this invoice).

Correction of an SO Invoice
You can correct an SO invoice on the Invoices (SO303000) form if it has the Open status. If a payment or credit memo
has been applied to the SO invoice, you must first reverse the application and then correct the invoice.
To correct the SO invoice, while viewing it on the Invoices form, you click Correct Invoice on the More menu. The
system creates a correction invoice and displays it on the same form, with all the settings from the original invoice
copied to the correction invoice. In the correction invoice that has been created, you can correct any settings as
 Correcting SO Invoices | 138

needed, but you cannot add new lines or remove existing lines. Aer you have made all needed corrections, you
release the correction invoice.
On release of the correction invoice, the system automatically generates and releases a credit memo in the amount
of the original invoice, applies it to the original invoice, and assigns the Canceled status to the original invoice. Also,
the correction invoice is assigned the Open status; in the related sales order and shipment, the system replaces the
links to the original invoice with the links to the correction invoice.

Workflow of Invoice Correction

The following diagram illustrates the workflow related to the correction of an SO invoice.
Correcting SO Invoices | 139
 Correcting SO Invoices | 140

Known Process Limitations

The following limitations apply to the processes of correcting and canceling SO invoices that have been created on
the Invoices (SO303000) form:
• It is not possible to cancel or correct SO invoices whose credit terms (specified in the Terms box of the
Summary area of the form) are multiple-installment.
• It is not possible to cancel or correct SO invoices related to direct sales—that is, the invoices in which the
stock items listed on the Details tab have been added directly without links to related shipments and sales
orders (in the Shipment Nbr. and Order Nbr. columns, respectively).
• It is not possible to cancel or correct SO invoices created for sales orders that are processed and completed
without processing a shipment. For example, if an invoice is created and released for a sales order that
contains only service items (a service item is a non-stock item that has the Require Receipt and Require
Shipment check boxes cleared on the General tab of the Non-Stock Items (IN202000) form), this invoice
cannot be canceled or corrected.

SO Invoice Correction: Cancellation of an SO Invoice

This topic explains how you can cancel an SO invoice that has been prepared for a sales order and released.

Cancellation of an SO Invoice
You can cancel an SO invoice on the Invoices (SO303000) form if it has the Open status. If a payment or credit memo
has been applied the SO invoice, you must first reverse the application and then cancel the invoice.
To cancel the invoice, while viewing it on the Invoices form, you click Cancel Invoice on the More menu. The system
creates an SO credit memo—the cancellation credit memo—in the full amount of the invoice being canceled, with
all the settings from the original invoice copied, and displays it on the same form. In the credit memo that has been
created you can change the date, posting period, and description, all of which are copied from the SO invoice being
canceled.
The cancellation credit memo can be applied only to the original invoice for which it has been prepared. When
you release the cancellation credit memo, the system applies it to the original invoice automatically, assigns the
Canceled status to the original invoice, and assigns the Closed status to the cancellation credit memo.
When the original invoice is canceled, the system removes the links between it and the related sales orders and
shipments, and assigns the related shipment the Confirmed status. You can now create a new SO invoice for this
shipment, if needed. The inventory issue transaction related to the canceled invoice is not affected by the invoice
cancellation; it is still linked to the shipment.

Workflow of Invoice Cancellation

The following diagram illustrates the workflow related to the cancellation of an SO invoice.
Correcting SO Invoices | 141
 Correcting SO Invoices | 142

SO Invoice Correction: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
correcting of SO invoices, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
Before you begin correcting SO invoices, you should make sure the needed settings have been specified and
entities have been created, as summarized in the following checklist.

Form Criteria to Check

Sales Orders Preferences (SO101000) form, Inventory Make sure that all necessary settings related to sales
Preferences (IN101000) form orders and inventory have been specified, as de-
scribed in Configuration of Order Management: General
Information.

Order Types (SO201000) form Make sure that the SO order type is active and has
been configured, as described in Sales Order Types: To
Configure the SO Order Type.

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity.

Other Settings That Affect the Workflow

You can affect the workflow of correcting invoices by specifying additional settings as follows:
• To cause correction invoices and cancellation credit memos to be created with the Balanced (instead of On
Hold) status, clear the Hold Documents on Entry check box on the General Settings tab of the Accounts
Receivable Preferences (AR101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that for testing purposes, you correct an SO
invoice, as described in SO Invoice Correction: To Correct an SO Invoice, and cancel an SO invoice, as described in
SO Invoice Correction: To Cancel an SO Invoice.

SO Invoice Correction: To Correct an SO Invoice

The following activity will walk you through the process of correcting an SO invoice that was created for a sales
order.
 Correcting SO Invoices | 143

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that on January 21, 2023, GoodFood One Restaurant ordered 92 pounds of oranges from the main office
of SweetLife. The ordered fruits were shipped from the Wholesale warehouse to the customer's location, and an
SO invoice were prepared and paid. Further suppose that the customer later informed you that the price of oranges
in the invoice was specified incorrectly (the price in the invoice sent to customer was $2.15, and it should have
been $1.99). Acting as a sales manager, you need to correct the error introduced in sales documents, and prepare a
correct invoice for the customer.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• The Inventory feature, which provides the ability to create sales and purchase orders that include stock
items, have been enabled on the Enable/Disable Features (CS101000) form.
• On the Order Types (SO201000) form, the SO order type has been configured and activated.
• On the Stock Items (IN202500) form, the ORANGES stock item has been defined.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been defined.
Additionally, the following sales documents that you need to correct have been processed in the system:
a sales order for GOODFOOD has been created, a shipment for the sales order has been prepared and
confirmed, and an SO invoice has been prepared, released, and paid in full.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• The Inventory feature, which provides the ability to create sales and purchase orders that include stock
items, have been enabled on the Enable/Disable Features (CS101000) form.
• On the Order Types (SO201000) form, the SO order type has been configured and activated.
• On the Stock Items (IN202500) form, the ORANGES stock item has been defined.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been defined.
Additionally, the following sales documents that you need to correct have been processed in the system:
a sales order for GOODFOOD has been created, a shipment for the sales order has been prepared and
confirmed, and an SO invoice has been prepared, released, and paid in full.

Process Overview
To be able to correct the SO invoice that was processed and paid, you will first reverse the payment application on
the Payments and Applications (AR302000) form. Then on the Invoices (SO303000) form, you will create a correction
invoice with the correct unit price and release this invoice, which will cause the system to cancel the invoice with
the incorrect data and apply a credit memo to it. You will then apply the payment to the correction invoice.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley username and the 123 password.
 Correcting SO Invoices | 144

2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley username and the 123 password.
3. Sign in to the Ord2Cash tenant as a sales and purchasing manager by using the wiley username and the
provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, also on the top pane of the Acumatica ERP screen, make
sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the
Company and Branch Selection menu to view the list of branches that you have access to, and then click
SweetLife Head Office and Wholesale Center.

Step 1: Reversing the Payment Application

To reverse the payment application to the SO invoice that you are going to correct, do the following:
1. On the Sales Orders (SO301000) form, open the sales order for the GOODFOOD customer in the amount of
$210.66, dated 1/21/2023.
2. On the Shipments tab, click the link in the Invoice Nbr. column to open the SO invoice prepared for the
sales order on the Invoices (SO303000) form.
In the Summary area of the form, notice that the SO invoice is assigned the Closed status because it was
paid in full. You need to reverse the payment to be able to correct the invoice.
3. On the Applications tab, click the link in the Reference Nbr. column of the only row to open the payment
that was applied to invoice on the Payments and Applications (AR302000) form.
4. On the table toolbar of the Application History tab, click Reverse Application.
5. On the form toolbar, click Release to release the reversal of the payment application.
On the Application History tab, a reversing line for the full payment amount appears. The payment
application is now reversed; the payment is assigned the Open status.

Step 2: Creating the Correction Invoice

Now that you have reversed the payment, you can create the correction SO invoice as follows:
1. While you are still viewing the payment you have reversed on the Payments and Applications (AR302000)
form, on the Application History tab, click the link in the Reference Nbr. column of either row to open the
SO invoice on the Invoices (SO303000) form. Notice that the invoice is now assigned the Open status.
2. On the More menu, click Correct Invoice. The system creates a correction invoice and opens it on the same
form.
3. On the form toolbar, click Save to save the prepared invoice. The system displays a warning on the
Financial tab indicating that the current document is a correction document.
4. In the only line on the Details tab, change the Unit Price to 1.99.

In the correction invoice, it is not allowed to change the data related to the shipment, such as
inventory ID, quantity, or warehouse.

5. On the form toolbar, click Remove Hold, and then click Release. Notice that the invoice is assigned the
Open status.
6. On the Financial tab, click the Original Document link to open the original invoice (that is, the invoice that
was corrected) on the Invoices form.
 Correcting SO Invoices | 145

7. On the Applications tab, review the line with the Credit Memo document type, as shown in the following
screenshot. The credit memo was automatically generated when you released the correction invoice and
was applied to the original document; this is why the original invoice is now assigned the Canceled status,
as you can also see in the screenshot.

Figure: The original invoice, which is now canceled

8. On the Sales Orders (SO301000) form, again open the sales order for the GOODFOOD customer in the
amount of $210.66, dated 1/21/2023. On the Shipments tab, notice that the reference number of the
correction invoice (and a link to this invoice) is now shown in the Invoice Nbr. column.

Step 3: Applying a Payment to Correction Document

To apply the payment to the correction SO invoice that you have created, do the following:
1. On the Payments and Applications (AR302000) form, open the payment to GOODFOOD in the amount of
$210.66.
2. On the Documents to Apply tab, add a new line with the Invoice type, and in the Reference Nbr. box, select
the reference number of the correction invoice that you have created earlier in this activity.
3. On the form toolbar, click Release. Due to the changed price of the oranges, the payment still has an
available balance of $11.33 that can be applied to any other customer invoice (which is shown in the
Available Balance box in the Summary area).
4. On the Application History tab, click the reference number of the invoice to which you applied the payment
(that is, the correction invoice), to open it on the Invoices (SO303000) form. The invoice that was paid is now
assigned the Closed status.

You have finished the process of correcting the SO invoice.

SO Invoice Correction: To Cancel an SO Invoice

The following activity will walk you through the process of canceling an SO invoice that was created for a sales
order.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Correcting SO Invoices | 146

Story
Suppose that on January 28, 2023, FourStar Coffee & Sweets Shop ordered 15 pounds of apples from the main
office of SweetLife. The ordered fruits were shipped from the Wholesale warehouse to the customer's location, and
an SO invoice was prepared. Further suppose that you later noticed that the sales taxes had not been calculated for
the SO invoice because the EXEMPT tax category had been specified in the sales order line by mistake. Acting as a
sales manager, you need to cancel the incorrect invoice and create a new one with the correct information.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• The Inventory feature, which provides the ability to create sales and purchase orders that include stock
items, have been enabled on the Enable/Disable Features (CS101000) form.
• On the Order Types (SO201000) form, the SO order type has been configured and activated.
• On the Stock Items (IN202500) form, the APPLES stock item has been defined.
• On the Customers (AR303000) form, the COFFEESHOP (FourStar Coffee & Sweets Shop) customer has been
defined. Additionally, the sales documents that you need to correct have been processed in the system:
a sales order to COFFEESHOP has been created, a shipment for the sales order has been prepared and
confirmed, and an SO invoice has been prepared and released.

Process Overview
To correct the mistake of taxes not being charged on the SO invoice on the Invoices (SO303000) form, you will
cancel the invoice. Then you will change the tax category in the sales order line on the Sales Orders (SO301000)
form, and prepare a new SO invoice for the sales order with the correct information.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley username and the 123 password.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley username and the 123 password.
3. Sign in to the system as a sales and purchasing manager by using the wiley username and the provided
password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, also on the top pane of the Acumatica ERP screen, make
sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the
Company and Branch Selection menu to view the list of branches that you have access to, and then click
SweetLife Head Office and Wholesale Center.

Step 1: Canceling the SO Invoice

To cancel the SO invoice with the incorrect tax category, do the following:
1. On the Sales Orders (SO301000) form, open the sales order for the COFFEESHOP customer in the amount of
$37.50, dated 1/28/2023.
 Correcting SO Invoices | 147

2. On the Shipments tab, click the Invoice Nbr. link to open the SO invoice on the Invoices (SO303000) form.
3. Review the Taxes tab. Notice that the NYNOTAX tax code with the 0% tax rate has been applied to the SO
invoice, so the tax amount is $0.00, which is incorrect.
4. On the More menu, click Cancel Invoice.
The system creates a cancellation credit memo with the same settings as the invoice you were viewing, and
opens it on the same form.
5. On the form toolbar, click Remove Hold, and then click Release. The credit memo is assigned the Closed
status, because it has been applied in full to the invoice.
6. On the Financial tab, click the link in the Original Document box to open the invoice that was canceled on
the Invoices form. Notice that the invoice is now assigned the Canceled status.

Step 2: Creating the New SO invoice

To create the SO invoice with the correct tax information, do the following:
1. On the Sales Orders (SO301000) form, again open the sales order for COFFEESHOP (FourStar Coffee & Sweets
Shop) dated 1/28/2023.
2. On the form toolbar, click Prepare Invoice. The system creates the new SO invoice for the sales order and
opens it on the Invoices (SO303000) form.
3. In the only line on the Details tab, change the tax category to TAXABLE and save the invoice.
4. Review the Taxes tab, and make sure that the NYSTATETAX has been applied to the invoice and the
calculated tax amount is $3.33, as shown in the following screenshot.

Figure: The correct tax amounts in the corrected SO invoice

5. On the form toolbar, click Release to release the invoice.

6. On the Details tab, click the link in the Order Nbr. column in the only line to open the related sales order on
the Sales Orders form.
7. On the Shipments tab, notice that the reference number of the newly created invoice is now shown in the
Invoice Nbr. column.
 Correcting SO Invoices | 148

You have canceled the SO invoice with incorrect data and prepared a new one.

SO Invoice Correction: Generated Transactions

To be able to correct an SO invoice created for a sales order, you create and process a correction document (which
in this case is an SO invoice). Similarly, to be able to cancel an SO invoice created for a sales order, the correction
document you create and process is a cancellation credit memo. On release of these correction documents, the
system generates the GL transactions described in the following sections.

Transactions Generated for a Correction SO Invoice

When you release a correction SO invoice, the system generates the following general ledger transactions.

Account Source of Account Debit Credit

Accounts Receivable Customer Corrected amount 0.00

account

Sales account Order type 0.00 Corrected amount

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial Details tab of the
Invoices (SO303000) form while you are viewing the correction invoice. You can click the link in this box to view the
details of the batch on the Journal Transactions (GL301000) form.

Transactions Generated for SO Credit Memo

When you release a correction SO invoice or cancel an SO invoice, an SO credit memo is generated. On release of
this SO credit memo, the system generates the following general ledger transactions, which are the opposite of the
transactions generated for original SO invoice.

Account Source of Account Debit Credit

Accounts Receivable Customer 0.00 Original invoice

account amount

Sales account Order type Original invoice 0.00

amount

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial Details tab of the
Invoices (SO303000) form while you are viewing the SO credit memo. You can click the link in this box to view the
details of the batch on the Journal Transactions (GL301000) form.

SO Invoice Correction: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about SO invoices that have been processed or are being processed in the system.
 Correcting SO Invoices | 149

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing the Customer Information

You can review the balances of a specific customer on the Customer Details (AR402000) form. When you open this
inquiry and select a customer in the Customer box, the form shows the outstanding balances of the selected
customer and a list of the documents of this customer that have the Open status. If you want to include the
documents with the Canceled and Closed status in the inquiry, select the Show All Documents check box in the
Selection area of the form.

Reviewing the Details of an Unreleased Invoice

When an SO invoice has not yet been released, you can review the details of the invoice by running the AR Edit
Detailed (AR610500) report. When you run this report from the Invoices (SO303000) form by clicking Reports > AR
Edit, the report shows the details of the invoice that is opened on this form. You can review what GL batch the
system will create when you release the invoice, which accounts will be updated by the transaction, and how the
customer's balance will be affected.
When you run this report directly from the report form, you specify the needed report parameters and can view a
list of unreleased invoices based on these parameters.

Printing Invoices and Credit Memos

To prepare a printable form of an SO invoice or credit memo that is being processed, you use the Invoice & Memo
(SO643000) report. While you are viewing an SO invoice or SO credit memo on the Invoices (SO303000) form, you
can print the document by clicking Reports > Print Invoice on the form toolbar. The system opens the printable
version of the document on the Invoice & Memo report; then you can review the invoice or credit memo and print it
by clicking Print on the report toolbar.

SO Invoice Correction: Mass-Processing Documents

The following sections explain how to mass-process SO invoices, and how the system generates, changes, or works
with documents as a result of the mass processing.

Mass-Creating SO Invoices
Invoices can be mass-generated for sales orders or for the corresponding shipments. To prepare multiple invoices
for sales orders, you open the Process Orders (SO501000) form; to prepare multiple invoices for shipments, you
open the Process Shipments (SO503000) form. Then you select the Prepare Invoice action, select the unlabeled
check boxes in the rows of the sales orders or shipments to be processed, and click Process on the form toolbar.
The system prepares invoices for the selected documents.

Mass-Printing SO Invoices
You can print multiple SO invoices at a time by using the Process Invoices and Memos (SO505000) form. On this
form, you select the Print Invoice action, select the unlabeled check boxes in the rows of the invoices to be printed,
and click Process on the form toolbar.
 Correcting SO Invoices | 150

Mass-Releasing SO Invoices
You can release multiple SO invoices at a time by using the Process Invoices and Memos (SO505000) form. On this
form, you select the Release action, select the unlabeled check boxes in the rows of the SO invoices to be printed,
and click Process on the form toolbar.
 Processing Partial Shipments | 151

Processing Partial Shipments

Shipping goods is the main part of the order fulfillment process. Aer a sales order has been entered and the goods
have been picked for sending them to a customer, you process a shipment or multiple partial shipments. This
chapter includes an overview of shipment processing in Acumatica ERP.

Shipping Rule Settings

The shipping rules specified for a particular sales order define whether the goods for the sales order should be
shipped only in full or partial shipments for the available quantities are allowed. This topic explains how you can
set up the shipping rules to be used in sales orders by default.

Shipping Settings of a Customer

You can specify the shipping rule for each customer class in the Default Delivery Settings section on the General
Settings tab of the Customer Classes (AR201000) form. Then when you create a new customer and select this class
on the Customers (AR303000) form, the shipping rule specified in the customer class will be copied to the Shipping
Rule box on the Delivery Settings tab. If needed, for the selected customer, you can override the default shipping
rule copied from the customer class.
When you create a new sales order on the on the Sales Orders (SO301000) form and select the customer, the system
inserts the default shipping rule of the selected customer as the document-level shipping rule for this sales order
in the Shipping Rule box on the Shipping tab. Then when you add lines to the sales order, the system specifies the
document-level shipping rule to each added line by default.

You can override the document-level shipping rule so that all new lines in this sales order will be
added with this new rule (which differs from the customer's default shipping rule). Also, you can
change the shipping rule manually in any sales order line.

Shipping Settings of Customer Locations

If the Business Account Locations feature is enabled in your system on the Enable/Disable Features (CS100000) form,
the system copies the default shipping rule values from the customer to the customer locations. If needed, you can
specify different default shipping rules for different customer locations on the Customer Locations (AR303020) form.

Shipping Settings for Transfer Orders

Because transfer orders are created to account for transfers of items between warehouses, and warehouses are
assigned to particular branches, default shipping rules can be specified for branches on the Delivery Settings tab
of the Branches (CS102000) form.
Related Links
• Shipment Creation Rules
• Shipment Processing Steps
• Shipment Process Variations
• Shipping Rule Combinations
• Partial Shipping of Orders
• Back Ordering and Replanning Back Orders
 Processing Partial Shipments | 152

Shipment Creation Rules

This topic briefly explains how the system creates shipments for sales orders depending on the shipping rules
specified in these orders, and how you can consolidate shipments for multiple sales orders.

Shipment Creation by Shipping Rules

Each shipment is generated from one particular warehouse. The system creates an individual shipment from
each warehouse that is specified in sales order lines, as if these were multiple orders being shipped from different
warehouses. If you are creating shipments by processing orders on the Process Orders (SO501000) form, the system
creates the shipments one by one from each warehouse that is referred to in each processed order. The document-
level shipping rule of the sales order, which is specified on the Shipping Settings tab of the Sales Ordersform
(SO301000), is applied to each warehouse as follows:
• If the document-level shipping rule is Ship Complete, a shipment is created from the warehouse selected in
the line only if all other order lines with the same warehouse can be shipped from that warehouse according
to the shipping rule of each line. Ship Complete lines can be shipped in full, and other lines can be shipped at
least partially.
• If the document-level shipping rule is Cancel Remainder or Back-Order Allowed, a shipment is created from
the selected warehouse if at least one order line can be shipped from that warehouse according to the
shipping rule of the line.
When a shipment is created for a sales order, the system adds the lines with a nonzero open quantity to the
shipment according to the following logic:
1. The system adds to the shipment only the lines that have a Ship On date no later than the specified
shipment date and have to be shipped from the warehouse specified for the shipment.
2. The system adds the lines to the shipment according to the shipping rule of the line as follows:
• A Ship Complete line is added to the shipment only if the open quantity can be shipped in full from the
quantity available for shipping.
• A Back Order Allowed or Cancel Remainder line is added to the shipment with the quantity that is
available for shipping at the moment of shipment creation even if the quantity is less than the open
quantity of the line.
For more detailed information on shipping rules, see Shipping Rule Combinations.

Consolidated Shipments
You can consolidate shipments, creating one shipment (and corresponding shipment document) for multiple sales
orders of the same customer, unless the Ship Separately check box on the Order Types (SO201000) form is selected
for the order type being used. As long as the check box is cleared, you can use the Process Orders (SO501000)
form to create one shipment for multiple sales orders associated with the same customer. Sales orders with the
predefined order type SO don't require goods to be shipped separately for separate sales orders.

The orders of the type for which the Ship Separately check box is selected can still be consolidated
into a single shipment if you manually add them using the Add Order button on the Details tab of the
Shipments (SO302000) form.

One more setting that affects the creation of consolidated shipments is the Use Customer's Account setting
specified in a shipment document on the Shipment Settings tab of the Shipments (SO302000) form. The system
copies the state of this check box from the related sales order. Thus, if you mass-process multiple sales orders that
have different states of the Use Customer's Account check box on the Shipping tab of the Sales Orders (SO301000)
form, the system will group the sales orders by the state of this check box and create two consolidated shipments:
 Processing Partial Shipments | 153

The first shipment will include the sales orders in which the check box is selected, and the second shipment will
include the sales orders in which this check box is cleared.
Related Links
• Shipping Rule Combinations
• Shipment Processing Steps
• Partial Shipping of Orders
• Back Ordering and Replanning Back Orders

Shipment Processing Steps

Shipments, which are a key part of the order fulfillment process, can be incoming or outgoing. This topic discusses
the outgoing shipments (based on the Issue operation) that are generated when a user processes a sale of
items and ships the items to a customer; further we will refer to them as shipments. The processing of incoming
shipments (which are based on the Receipt operation, and thus are called receipts) involve customer returns based
on return orders and is described in the topics of the Returns for Replacement: General Information section.
For a shipment prepared for a sales order, the typical processing involves the actions and generated documents
shown in the following diagram.

Figure: Shipment process

The following sections describe in detail the processing steps shown in the diagram.
 Processing Partial Shipments | 154

1. Prepare the Shipment

You can directly create a shipment document for a particular sales order on the Sales Orders (SO301000) form
by selecting Create Shipment on the form toolbar; this brings up the Shipments (SO302000) form with the new
shipment document that includes the lines with items to be shipped. Alternatively, by using the Shipments form
as a starting point, you can create a new shipment document and add one order or multiple orders of the same
customer.
To create multiple shipments for multiple sales orders of multiple customers, you use the Process Orders
(SO501000) form. The system automatically assigns reference numbers to the created shipment documents, in
accordance with the numbering sequence assigned to shipments on the Sales Orders Preferences (SO101000) form.
If you use the Sales Orders form to create shipments for a sales order that includes items to be shipped from
multiple warehouses, you can create only one shipment at a time. Because an order with the Shipping status is
read-only, there can be only one open shipment for the order from a particular warehouse. Once you confirm the
open shipment, you can create a shipment to be sent from another warehouse. However, by using the Process
Orders form, you can create multiple shipments for these orders at once.

2. Print the Pick List

You can print a pick list for a particular shipment by using the Shipments (SO302000) form. For multiple shipments
with the On Hold or Open status, you can print pick lists by using the Process Shipments (SO503000) form. For more
details, see Shipment Processing Steps.

3. Confirm the Shipment

Aer all the required goods are picked and packed, you can confirm the shipment by clicking Confirm Shipment
on the form toolbar of the Shipments (SO302000) form. You can confirm multiple shipments by executing the
Confirm Shipment action for the selected shipments on the Process Shipments (SO503000) form. Shipment
confirmation updates the available quantities and changes the status of the associated sales order. During
shipment confirmation, the system checks that for all items for which lot or serial numbers are tracked, the
appropriate numbers were specified.

4. Print Shipment Confirmation

If authorization is required before the shipment is confirmed, you can print a shipment confirmation document to
be signed by the authorized person by clicking Reports > Print Shipment Confirmation on the form toolbar of the
Shipments (SO302000) form. For multiple shipments, you can print shipment confirmations by using the Process
Shipments (SO503000) form.

To complete the sale, you must generate Sales Orders invoices and inventory issues and release these documents.
The general workflow for most organizations is to first generate Sales Orders invoices and then release them; on
release of these invoices, inventory issues are generated automatically. Another shipment processing workflow,
in which an organization updates inventory and processes inventory issues before generating and processing
customer invoices, is described in Shipment Process Variations.

5. Correct the Shipment

If you need to correct a shipment that has already been confirmed, click Correct Shipment on the More menu of
the Shipments (SO302000) form to reopen the shipment and make the required corrections. The associated order's
status is changed to Shipping once you reopen the shipment.
If an order that has a confirmed shipment has been canceled, you can reopen the order by clicking Reopen Order
on the More menu of the Sales Orders (SO301000) form. You can then delete or correct the shipment by using the
Shipments form.
 Processing Partial Shipments | 155

If a shipment includes a sales order line that is also included in any subsequent shipments, you have to correct the
subsequent shipments prior to correcting the preceding one. Aer you have completed all needed corrections, you
can confirm the shipment or shipments that you have reopened.
Related Links
• Sales Orders Preferences
• Sales Orders
• Shipments
• Process Orders
• Process Shipments
• Assignment and Approval Maps

Shipment Process Variations

Due to shipment policies, your organization may process customer invoices later than it does inventory issues. In
this case, you can first create issues, then generate invoices, and finally release invoices and issues.
The processing of a sales order with issues created before invoices includes the steps and generated documents
shown in the following diagram.
 Processing Partial Shipments | 156

The following sections describe in detail the processing steps shown in the diagram.

1. Enter the Sales Order

You create a new sales order on the Sales Orders (SO301000) form. If the order is created with the On Hold status,
you should click Remove Hold on the form toolbar to process the order further.
 Processing Partial Shipments | 157

2. Prepare and Confirm the Shipment

For a particular order, you can create a shipment by clicking Create Shipment on the form toolbar of the Sales
Orders (SO301000) form. Then you need to confirm the shipment. For more details, see Shipment Processing Steps.

3. Update Inventory
To manually create the inventory issue for a shipment, you can click Create Shipment on the form toolbar of the
Shipments (SO302000) form, or you can create inventory issues for multiple selected shipments by executing the
Update IN action on the Process Shipments (SO503000) form.

4. Release the Inventory Issue

To release the inventory issue (and thus, to update the item availability information in inventory), you click Release
on the form toolbar of the Issues (IN302000) form. When the inventory issue is released, the batch of General
Ledger transactions is generated.

5. Process the Sales Orders Invoice

You can prepare a Sales Orders (SO) invoice for a particular order by clicking Prepare Invoice on the form toolbar
of the Shipments (SO302000) form, or you can create invoices for multiple selected shipments by executing the
Prepare Invoice action on the Process Shipments (SO503000) form.
To release the SO invoice, you click Release on the form toolbar of the Invoices (SO303000) form aer reviewing its
details. When the SO invoice is released, the batch of General Ledger transactions is generated.
To adjust the dates in the invoices generated for confirmed shipments, you can use the Use Shipment Date for
Invoice Date check box on the Sales Orders Preferences (SO101000) form as follows:
• Select this check box to set the shipment date as the invoice date.
• Clear the check box to use the current business date as the default date for the invoice.

Shipping Rule Combinations

The shipping rules specified for a particular sales order define how the goods in the sales order should be shipped
—whether they should be shipped only in full or partial shipments for the available quantities are allowed. The
shipment rules for a sales order are applied when you create a shipment for a single order—by using the Create
Shipment action on the Sales Orders (SO301000) form—or mass-create shipments for multiple orders, by running
the Create Shipments process from the Process Orders (SO501000) form.

Shipping Rule Options

On the Sales Orders (SO301000) form, you can specify the document-level shipping rule for the sales order
document as a whole (in the Shipping Rule box on the Shipping tab) and for each sales order line (in the Shipping
Rule column on the Details tab).
You can specify any of the following shipping rule options for order lines and for orders:
• Ship Complete
• Cancel Remainder
• Back Order Allowed
The shipping rules applied to order lines are explained in the following table.
 Processing Partial Shipments | 158

Table: Line-Level Shipping Rules

Shipping Rule Option Result

Ship Complete If a negative quantity is not allowed for the item specified in the line, the item can
be included in a shipment only if the full ordered quantity is available for shipping.
If the quantity of the item that is available for shipping is less than the ordered
quantity, then the item in this line is not included in the shipment. The ordered
quantity is shown as the Open Quantity, and the line remains Open.
If shipping of the negative stock is allowed for the order type—that is, if Ship in Full
If Negative Stock Is Allowed is selected on the Order Types (SO201000) form—the
items for which a negative quantity is allowed are included in a shipment in the full
ordered quantity, regardless of whether this quantity is available for shipping. (This
rule does not apply to lot- or serial-tracked stock items.)
After this shipment has been confirmed, the line has the Completed status on the
Sales Orders form. For details, see Processing Partial Shipments.

Cancel Remainder With this shipping rule, shipping for the line is performed only once.
If a negative quantity is not allowed for the item specified in the line, the item can
be included in a shipment if any nonzero quantity that is less than or equal to the
ordered quantity is available for shipping.
If shipping of the negative stock is allowed for the order type, the items for which a
negative quantity is allowed are included in a shipment in the full ordered quantity,
regardless of whether it is available for shipping. (This rule does not apply to lot- or
serial-tracked stock items.)
After this shipment has been confirmed, the line is marked as Completed, and the
Open Quantity value is set to zero.

If you reopen a sales order line for which at least one shipment has
been performed, the system changes the shipping rule to Back-Order
Allowed for this line on the Sales Orders form.

Back Order Allowed If a negative quantity is not allowed for the item specified in the line, the item can
be included in a shipment if any nonzero quantity that is less than or equal to the
ordered quantity is available for shipping. The remaining quantity (if applicable) is
shown as the Open Quantity on the line. The ordered quantity can be shipped in
multiple shipments. The line gets the Completed status once the full ordered quan-
tity has been shipped.
If shipping of the negative stock is allowed for the order type, the items for which a
negative quantity is allowed are included in a shipment in the full ordered quantity,
regardless of whether the full quantity is available for shipping. (This rule does not
apply to lot- or serial-tracked stock items.) After this shipment has been confirmed,
the line has the Completed status.
If shipping of the negative stock is not allowed for an order type, but you don't want
to rely completely on availability data for the classes of items for which negative
quantity is allowed, select the Add Zero Lines for Items Not in Stock check box on
the Sales Orders Preferences form. Then in the orders of this type, for order lines
with the Back Order Allowed shipping rule, a zero-quantity line is added to the
shipment if the item is not in stock; you can manually enter the actually available
quantity of the item.
 Processing Partial Shipments | 159

See the table below for details about how the shipping rule of a sales order affects the mass-processing of the sales
orders, which you perform by using the Process Orders (SO501000) form.

If you initiate shipment creation for an individual sales order (by using the Sales Orders form) and
the system detects a shortage of the items, the system displays the message informing you that the
order cannot be shipped in full so that you can make an appropriate decision on the fulfillment of this
order and change the quantities, create a partial shipment, or change the order status to Back Order
manually.

Table: Document-Level Shipping Rules

Document-Level Rule Result

Ship Complete If shipping cannot be performed for each line of the order, no shipment is created,
and the order is assigned the Back Order status.
The shipment is created (and the order is assigned the Shipping status) if shipping
can be performed for each line—that is, if the lines meet the following criteria:
• For each Ship Complete line: The ordered quantity is available for shipping and
can be shipped in full.
• For each Cancel Remainder line: Any nonzero quantity that is equal to or less
than the ordered quantity is available for shipping.
• For each Back Order Allowed line: Any nonzero quantity that is equal to or less
than the ordered quantity is available for shipping.
You cannot specify different Requested On dates for different lines in the order.
When the shipment has been confirmed, the order is assigned the Completed sta-
tus if all the lines have the Completed status. If any line is not completed, the order
is assigned the Back Order status.

Cancel Remainder If shipping cannot be performed for any of order lines, no shipment is created, and
the order is assigned the Back Order status.
If full or partial shipping can be performed for at least one line (according to the
line's shipping rule), the shipment is created.
You cannot specify different Requested On dates for different lines in the order.
When the shipment has been confirmed, the order is assigned the Completed sta-
tus if at least one line has the Completed status and the lines not included in ship-
ment have the Cancel Remainder rule. The order is assigned the Back Order status if
at least one line is not completed (that is, if it has a nonzero open quantity).
 Processing Partial Shipments | 160

Document-Level Rule Result

Back Order Allowed If shipping cannot be performed for any of the order lines, no shipment is created,
and the order is assigned the Back Order status.
You can specify different Requested On dates for different lines in the order, and
different lines will be shipped on different dates.

If you change the Requested On date for the order, the system
prompts you to choose whether you want to keep the dates specified
for each line or to update the respective dates with the new Request-
ed On date.

If full or partial shipping can be performed for at least one line according to the
line's shipping rule, the shipment is created. After the shipment has been con-
firmed, the order is assigned the Back Order status if other lines are not completed.

Examples of the Application of Shipping Rules

The table below presents the examples that illustrate how the shipping rules specified for the sales order and its
lines affect the fulfillment of the order. Assume this order has the following lines:
• Line 1: Product 1 with an ordered quantity of 150
• Line 2: Product 2 with an ordered quantity of 100
Each row of the table shows a combination of shipping rules, with the first column indicating the rule specified for
the sales order as a whole and the second column indicating the rules specified for the lines of the sales orders.
The third column shows the quantity of each product that is available for shipping in the example in the row. The
fourth column then shows, for the particular shipping rules and available quantities, the result of and conditions.
The table includes enough combinations to give you an idea how these settings work together without covering an
overwhelming amount of detail.

Table: Examples of the Application of Shipping Rules

Document-Level Rule Shipping Rules for Order Qty. Avail- Result

Lines) able for
Shipping

Ship Complete • Line 1: Ship Complete • 300 A shipment is created that includes both
• Line 2: Ship Complete • 2000 lines (150 of Product 1 and 100 of Prod-
uct 2), and the sales order is assigned
the Shipping status. On shipment confir-
mation, the order is assigned the Com-
pleted status.

Ship Complete • Line 1: Ship Complete • 300 No shipment is created, and the sales
• Line 2: Ship Complete • 99 order is assigned the Back Order status.

Ship Complete • Line 1: Ship Complete • 300 A shipment is created that includes both
• Line 2: Cancel Remainder • 50 lines (150 of Product 1, and 50 of Product
2), and the sales order is assigned the
Shipping status. On shipment confirma-
tion, the order is assigned the Complet-
ed status.
 Processing Partial Shipments | 161

Document-Level Rule Shipping Rules for Order Qty. Avail- Result

Lines) able for
Shipping

Ship Complete • Line 1: Ship Complete • 300 A shipment is created that includes both
• Line 2: Back Order Al- • 50 lines (150 of Product 1, and 50 of Product
lowed 2), and the sales order is assigned the
Shipping status. On shipment confirma-
tion, the sales order is assigned the Back
Order status.

Cancel Remainder • Line 1: Ship Complete • 300 A shipment is created that includes only
• Line 2: Cancel Remainder • 0 one line (150 of Product 1), and the sales
order is assigned the Shipping status. On
shipment confirmation, the order is as-
signed the Completed status.

Cancel Remainder • Line 1: Ship Complete • 100 A shipment is created that includes only
• Line 2: Cancel Remainder • 50 one line (50 of Product 2), and the sales
order is assigned the Shipping status. On
shipment confirmation, the order is as-
signed the Back Order status.

Cancel Remainder • Line 1: Cancel Remainder • 0 No shipment is created and the sales or-
• Line 2: Cancel Remainder • 0 der is assigned the Back Order status.

Back Order Allowed • Line 1: Ship Complete • 300 A shipment is created that includes both
• Line 2: Cancel Remainder • 50 lines (150 of Product 1 and 50 of Prod-
uct 2), and the sales order is assigned
the Shipping status. On shipment confir-
mation, the sales order is assigned the
Completed status.

Back Order Allowed • Line 1: Ship Complete • 300 A shipment is created that includes both
• Line 2: Back Order Al- • 50 lines (150 of Product 1 and 50 of Product
lowed 2), and the sales order is assigned the
Shipping status. On shipment confirma-
tion, the order is assigned the Back Or-
der status.

Back Order Allowed • Line 1: Cancel Remainder • 100 A shipment is created that includes both
• Line 2: Back Order Al- • 50 lines (100 of Product 1 and 50 of Product
lowed 2), and the sales order is assigned the
Shipping status. On shipment confirma-
tion, the sales order is assigned the Back
Order status.

Shipment Thresholds
You can use undershipment and overshipment thresholds, in addition to shipping rules, to determine whether a
shipment results in changing the status of the sales order line to Completed.
On the Details tab on the Sales Orders (SO301000) form, for each line of a sales order, you can specify whether
undershipment and overshipment are allowed as follows:
 Processing Partial Shipments | 162

• To allow overshipment, you enter in the Overship. Threshold (%) column a value greater than 100
(meaning 100%). For an order line with the Ship Complete shipping rule for 100 yards of fabric, you might
opt to have the whole lap shipped (a lap of fabric has 100 meters, and each meter is 1.093 yards). To do this,
you can specify the overshipment threshold at 110%, which allows up to 10% more fabric than the ordered
amount to be shipped.
• To allow undershipment, you enter in the Undership. Threshold (%) a value that is less than 100. Suppose
that when you create a shipment, for an order line with the Back Order Allowed shipping rule, the system
detects a small shortage of goods—for example, only 99 units are available for shipping and 100 have been
ordered. If the line's undershipment threshold was specified at 99% or lower, the 99 units for the line will be
included in the shipment, the line will be marked as Completed, and no open quantity will be le on the line
for a back order.

If 100 is specified in both these columns, it means that undershipment or overshipment are not
allowed.

Related Links
• Sales Orders
• Customer Classes
• Customers

Partial Shipping of Orders

When you create a shipment for a sales order (by using either Sales Orders or Process Orders form), the system
checks the availability of the items included in the sales order and uses the shipping rules to determine whether
the shipment can be created. This topic describes how the partial shipments are created and processed, and how
to add zero lines for the items that currently are not available for shipment.

Shipping of Stock Items in Parts

You can create partial shipments for the sales orders if the Shipping Rule box on the Sales Orders (SO301000) form
has the Back Order Allowed option selected and Back Order Allowed shipping rule is selected for at least one order
line. These settings let you ship the available quantity of goods in one shipment and the remainder in one shipment
or multiple shipments as the goods are received.
If the Cancel Remainder shipping rule is specified in a line, shipping for the line is performed only once. Aer the
partial shipment of available items has been prepared and confirmed, the line is completed, and the open quantity
of the line is set to zero. The lines with the Ship Complete shipping rule cannot be shipped partially. For more
information on shipping rules, overshipment, and undershipment, see Shipping Rule Combinations.
When you create a shipment by using the Sales Orders form, if the system detects that no shipment can be created
according to the shipment rules (due to a shortage of items), the system displays a warning; you then decide how
to process the order further. If you mass-create shipments for multiple sales orders from the Process Orders form,
and the system detects that no shipment can be created for a particular order according to the shipment rules,
the system changes the status of the order to Back Order. For information, on how to replan back-orders, see Back
Ordering and Replanning Back Orders.

Partial Shipping of Free Items

If a sales order is fulfilled with multiple partial shipments, the Free Item Shipping setting, located on the Price/
Discount Calculation tab of the Sales Orders Preferences (SO101000) form, defines how free items should be
shipped: proportionally to the amounts of goods in the partial shipments (Proportional), or sent with the last
shipment (On Last Shipment).
 Processing Partial Shipments | 163

If free items are sent with the last shipment and only part of the needed quantity of free items is available, only the
available quantity is shipped, and no back order is initiated for the missing free items.
If the quantity of the free items should be distributed between the partial shipments, the total quantity of free
items on all partial shipments for the order may be less than the quantity initially calculated for the applicable
group discount, because the system rounds the free item quantity down on each partial shipment. In such a case,
you can add the missing quantity of the free item manually to any of the partial shipments.

Shipments With Zero Lines

Your organization may prefer to send customer invoices that list all the items from their sales orders so that they
can see which items were ordered but at the time were unavailable. To allow the system to add these zero lines to
shipments, select the Add Zero Lines for Items Not in Stock check box on the Sales Orders Preferences form.
Selecting this option also can be helpful if you don't want to rely completely on availability data, because in some
cases, although the system shows an item as not in stock, the quantities required for a shipment may be available
for some reason. You should select this check box if you have item classes for items of which negative quantities
are allowed and if shipments are created manually on a per-order basis—then users can edit the shipments and
specify the quantities that are currently not reflected on the books correctly and may be available on shipment
confirmation (for instance, if shown as quantities on purchase receipts). For example, if you prepare a shipment
for a sales order with a line that have the Back Order Allowed shipping rule, and the available quantity of the item
is zero, the shipment will include a zero-line for this item, if the Add Zero Lines for Items Not in Stock is selected.
You can then correct the quantity tho specify the quantity that is actually available for this order line.
If the Add Zero Lines for Items Not in Stock check box is selected, you should also decide whether to allow the
creation of shipments with all zero-quantity lines. To allow the creation of such shipments, you should select the
Create Zero Shipments check box on the Sales Orders Preferences form. However, we do not recommend using
this option if in your organization, shipments are generally created automatically by using the Process Orders form.
Related Links
• Back Ordering and Replanning Back Orders

Back Ordering and Replanning Back Orders

This topic explains when the system back-orders a sales order and how to replan a back order to process it further.

Completing Sales Orders Lines on Shipping

Lines with stock and non-stock items that require shipping are completed based on the item quantity in the
shipments prepared for the sales order. When you confirm a shipment of the full open quantity of an order line,
the Completed check box becomes selected in the order line. Non-stock lines that do not require shipping are
completed by the prepared invoice. Aer all lines have been completed, the order is assigned the Completed status.
When you confirm a partial shipment, if an open Ship Complete line or an incomplete Back Order Allowed line
remains in the order, the remaining open quantity of the line becomes classified to the SO Back Ordered allocation
type, and the sales order is assigned the Back Order status. The open quantities of Cancel Remainder lines are set to
zero and the Completed check box is selected for the lines.
Sales order lines that require shipping but cannot be shipped at the moment are assigned the SO Back Ordered
allocation type if shipment creation has failed for them. For an individual sales order with the Back Order status,
you can create a shipment directly from the Sales Orders (SO301000) form without replanning the order once the
quantities of the items become above zero. To be able to mass-prepare shipments for back orders by using the
Create Shipment action on the Process Orders (SO501000) form, you need to replan the back orders.
 Processing Partial Shipments | 164

Automatic Replanning of Back Orders

Replanning of a back order is a process that moves the ordered items with the SO Back Ordered allocation type
to the SO Booked allocation type so that the back order can be shipped. You can make the system auto-replan
back orders by selecting the Replan Back-Orders check box on the Inventory Preferences (IN101000) form. If this
check box is selected, the system automatically replans back orders on release of every inventory transaction
that increases the inventory on hand (inventory receipt, inventory transfer, or positive inventory adjustment). The
system performs the replanning process for the items that are involved in the released inventory transactions.

Manual Replanning of Back Orders

If automatic replanning is switched off— that is, if the Replan Back-Orders check box is cleared on the Inventory
Preferences (IN101000) form— you can run the manual replanning process for the needed inventory items from the
Recalculate Inventory (IN505000) form with the Replan Back Orders check box selected. Also, you can configure a
schedule to run the process on that form at an appropriate interval, such as once a day.

Back Order Replanning Process

When automatic replanning is in process, for each inventory item being processed, the system selects the SO
Booked and SO Back Ordered lines of open sales orders. The selected lines are sorted by Ship On date (starting from
the earliest one), allocation type (SO Booked lines are organized before SO Back Ordered lines), and line quantity,
starting from the greatest quantity. SO Booked lines are included in the process to make sure that the units that
are booked for orders created earlier are not counted for the fulfillment of back orders created later. The system
distributes the quantity available for shipping among the selected lines in their sort order as follows:
1. The quantities of SO Booked lines are subtracted from the quantity available for shipping that can be
distributed to the next lines.
2. If there is some quantity available for shipping that can be distributed to an SO Back Ordered line, the
system changes the allocation type of the line to SO Booked. For lines with the Ship Complete shipping rule,
the system changes the allocation type to SO Booked only if the line quantity can be booked in full.
3. If the quantity available for shipping is not enough to distribute among all the selected lines, the remaining
lines maintain the original SO Back Ordered status. Each processed line is replanned in full or not replanned
at all (and never split) if the quantity that can be booked for the line is less than the line quantity.

The system does not reallocate items when it replans back orders. For each replanned back order of
an order type that requires allocation—that is, if the Require Stock Allocation check box is selected
for the order type on the Order Types (SO201000) form—you have to manually allocate items before
further processing the order.

Related Links
• To Replan Back Orders
• Shipment Creation Rules
• Shipping Rule Combinations
• Shipment Processing Steps
• Partial Shipping of Orders

To Replan Back Orders

If some items have been received to inventory, you can replan the back orders that include these items from the
Recalculate Inventory (IN505000) form. Alternatively, you can open the particular back orders from the Process
Orders (SO501000) form.
 Processing Partial Shipments | 165

To Replan Back Orders for Received Items

1. Open the Recalculate Inventory (IN505000) form.
2. In the table, select the unlabeled check boxes for the items that have become available for shipping.
3. On the table toolbar, select the Replan Back Orders check box.
4. On the form toolbar, click Process.

The system does not reallocate items when it replans back orders. For each replanned back order of
the order type that requires allocation—that is, if the Require Stock Allocation check box is selected
for the applicable order type on the Order Types (SO201000) form—you have to manually allocate
items before further processing the order.

To Open Back Orders

1. Open the Process Orders (SO501000) form.
2. In the Action box, select Open Order.
3. In the table, select the unlabeled check boxes in the rows of the orders with the Back Order status that you
want to open.
4. On the form toolbar, click Process.

To Add Sales Orders to a Shipment

You can create a shipment manually on the Shipments (SO302000) form, and add to it the lines of one sales order or
multiple sales orders of the same customer to it.

To Add Sales Orders to Shipment

1. Open the Shipments (SO302000) form.
2. In the Type box in the Summary area, select Shipment.
3. Select the customer in the Customer box.
4. Change the default warehouse and location, if needed.
5. In the Operation box, select Issue.
6. In the Shipment Date box, select the date of the shipment.
7. On the Details tab, add the lines of each order to be shipped as follows:
a. Click Add Order on the table toolbar. The Add Sales Order dialog box appears.
b. In the Order Type box, select the type of the order whose lines you want to add to shipment.
c. In the Order Nbr. box, select the reference number of the order whose lines you want to add to
shipment. The lines available for shipping appears in the table.
d. Select the unlabeled check boxes next to the lines to be shipped.
e. Click Add & Close at the bottom of the dialog box.
8. Save the shipment.
 Processing Partial Shipments | 166

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about this procedure:
• You can add to a shipment sales orders only if they have the same customer and warehouse specified.
• You can add the sales orders to a shipment regardless of whether the orders of this type need to be shipped
separately.
 Processing Sales from Multiple Warehouses | 167

Processing Sales from Multiple Warehouses

In some cases, you may need to fulfill a sales order with items that are stored in different warehouses, which
require the allocation of some items in another warehouse (or multiple warehouses) and transfer of the items to a
destination warehouse, from which the order will then be shipped.
The topics of this chapter explain how to process sales orders for which not all items are located in the same
warehouse.

Sales from Multiple Warehouses: General Information

When you are entering a sales order, you may notice that some of the ordered items are not available in the
warehouse from which you are going to ship the order, but the quantity needed to fulfill the order is available in
another warehouse. For fulfilling this sales order, you need to allocate items in the other warehouse, and then
transfer these items to the warehouse from which the order will be shipped. In Acumatica ERP, you can process the
transfer of allocated goods from one warehouse to another by creating and processing a transfer order based on
the applicable sales order.

Learning Objectives
In this chapter, you will do the following:
• Create a sales order with items allocated in different warehouses.
• Prepare a transfer order for a sales order.
• Process a transfer order to completion to transfer the included items.
• Process a sales order aer the items have been transferred to the destination warehouse.

Applicable Scenarios
You may need to process a sales order with goods from multiple warehouses in the following cases:
• You have only a part of the ordered items in the warehouse specified in the sales order, but the rest of the
items are currently available at another warehouse (or multiple warehouses), so the sales order can be
completed with the items from different warehouses.
• Your company uses one warehouse as a distribution center, so that all items are received to this warehouse
and then are distributed to smaller warehouses on demand.

Sale of Stock Items from Multiple Warehouses

When you process a sale of inventory items, you can reserve one line or multiple lines of an open sales order of the
SO type in a warehouse other than the warehouse selected in the line. To be able to process a sales order with stock
items that you have allocated (that is, reserved) in a remote warehouse (that is, a warehouse other than the one
specified in the order), you first need to transfer the reserved items from the remote source warehouse (where you
reserved the items) to the destination warehouse (for which the sales order is processed). For this purpose, you
need to prepare and process a transfer order (that is, an order of the TR predefined order type).
The standard sales process typically starts with the entry of a sales order on the Sales Orders (SO301000) form.
To obtain the sufficient quantity of items for the sales order, you manually reserve the quantity for each specific
item in the source warehouse. For the items allocated in a warehouse other than the warehouse specified in the
sales order, the system automatically generates transfer requests of the SO Allocated plan type based on which
you generate transfer orders related to sales orders. To be able to complete the sales order, you need to perform a
 Processing Sales from Multiple Warehouses | 168

transfer of the items allocated in a source warehouse to the destination warehouse by creating and processing a
transfer order (or multiple orders).
To create a transfer order for a sales order, while viewing the sales order with allocated items on the Sales Orders
(SO301000) form, you click Create Transfer Order on the More menu; then you create one transfer order or
multiple transfer orders on the Create Transfer Orders (SO509000) form, which opens. This form shows transfer
requests for the sales orders that have the Open status.
A transfer order is fulfilled by one shipment or by multiple shipments from the source warehouse (in which the
item is allocated) to the destination warehouse. You create a shipment for a transfer order from the Sales Orders
(SO301000) form by clicking Create Shipment on the More menu; on the Shipments (SO302000) form, which is
opened, you then confirm the shipment by clicking Confirm Shipment on the More menu.
To update the item quantities in the source warehouse and complete the shipment, while you are still viewing
the shipment on the Shipments form, you click Update IN on the More menu; the system generates the two-step
inventory transfer transaction, which issues items from the source warehouse. On release of this inventory transfer,
the system generates a batch of general ledger transactions.
To complete the processing of the two-step inventory transfer, you prepare a transfer receipt to record the receiving
of items to the destination warehouse. You manually create the transfer receipt (a receipt of the Transfer Receipt
type) on the Purchase Receipts (PO302000) form and add to the receipt the lines from one transfer order or multiple
transfer orders. A transfer receipt may include only some of the lines from a transfer order; also, you can change the
quantity in a particular line if the items specified in this line were received partially.
On release of the transfer receipt, the inventory receipt transaction is generated in the system to reflect the receipt
of the items to the destination warehouse. On release of the inventory receipt, a batch of GL transactions is
generated. Thus, the quantity of the item that has been transferred from the source warehouse to the destination
warehouse becomes available for sale.
Aer all transferred stock items have been received to the destination warehouse, you complete the sales order as
you would if you had just entered it: You process a shipment of all items from the destination warehouse, and you
process the related SO invoice. For information about the general steps of sales order processing, see Processing
Sales of Stock Items.

Workflow of a Sale from Multiple Warehouses

For a sales order for which the items have been allocated in multiple warehouses, the processing involves the
actions and generated documents shown in the following diagram.
 Processing Sales from Multiple Warehouses | 169

Sales from Multiple Warehouses: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
sales from multiple warehouses, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
Before you begin processing sales from multiple warehouses, you should make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Inventory and Order Management,
Inventory, and Multiple Warehouses features are en-
abled.

Sales Orders Preferences (SO101000) form, Inventory Make sure that all necessary settings related to sales
Preferences (IN101000) form orders and inventory have been specified, as de-
scribed in Configuration of Order Management: General
Information.

Warehouses (IN204000) form Make sure that all warehouses have been configured,
as described in Warehouses: Implementation Activity.

Order Types (SO201000) form Make sure that the SO and TR order types are active.
The configuration and activation of these types is de-
scribed in Sales Order Types: To Configure the SO Or-
der Type and Sales from Multiple Warehouses: Imple-
mentation Activity.
 Processing Sales from Multiple Warehouses | 170

Form Criteria to Check

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity.

Stock Items (IN202500) form Make sure that all stock items have been defined in the
system, as described in Stock Item Creation: Implemen-
tation Activity.

Other Settings That Affect the Workflow

You can affect the workflow of processing sales from multiple warehouses by specifying additional settings as
follows:
• To cause shipments to be created with the On Hold status (so that the user can verify them before
processing them further), select the Hold Shipments on Entry check box on the Sales Orders Preferences
(SO101000) form.
• To cause inventory transfers to be automatically released when a user releases a transfer order, select the
Automatically Release IN Documents check box on the Sales Orders Preferences (SO101000) form.
• To cause inventory receipts to be automatically released when a user releases a transfer receipt, select the
Release IN Documents Automatically check box on the Purchase Orders Preferences (PO101000) form.
• To cause general ledger batches generated during the processing of sales and inventory documents to
be posted automatically, select the Automatically Post on Release check box on the General Ledger
Preferences (GL102000) form. For information on the processing of general ledger batches, see GL
Transactions: General Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a sale of stock items from
multiple warehouses, as described in Sales from Multiple Warehouses: Process Activity.

Sales from Multiple Warehouses: Implementation Activity

In the following implementation activity, you will learn how to configure and activate the TR order type.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are an implementation manager of the SweetLife Fruits & Jams company. You need to configure
the TR order type for processing sales with items transferred from at least one other warehouse.

System Preparation
Before you start configuring and activating order types, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as implementation
manager Kimberly Gibbs by using the gibbs username and the 123 password.
 Processing Sales from Multiple Warehouses | 171

2. Make sure that the Inventory and Order Management, Inventory, and Multiple Warehouses features are
enabled on the Enable/Disable Features (CS100000) form.

Step: Configuring and Activating an Order Type

To specify settings to configure the TR order type and activate this type, do the following:
1. Open the Order Types (SO201000) form.
2. Select the TR order type.
3. On the General tab, clear the Calculate Freight check box.
4. In the Freight Account box, make sure 51300 (COGS – Freight) is selected.
5. In the Summary area, make sure that the Active check box is selected.
6. On the form toolbar, click Save.
7. On the Sales Orders (SO301000) form, make sure that TR is available for selection in the Order Type box.
This indicates that the order type has been activated.

For a description of the settings that affect the processing workflow for orders of the TR type, see Sales Order
Types: Implementation Checklist.

Sales from Multiple Warehouses: Process Activity

The following activity will walk you through the processing of a sales order with items allocated in multiple
warehouses.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the FourStar Coffee & Sweets Shop customer ordered cherry jam in 32-ounce jars and lemon jam
in 96-ounce jars at SweetLife’s retail store. When entering this sales order, a sales manager has noticed that the
32-ounce jars of cherry jam are currently out of stock in the retail warehouse, and has decided to allocate the
unavailable quantity of jam in the SweetLife’s wholesale warehouse.
To complete the customer’s request, acting as sales manager of the SweetLife store Regina Wiley, you need to enter
the sales order and allocate the needed items, process a transfer of cherry jam from the wholesale warehouse to
the SweetLife store's warehouse, and then process the sales order to completion.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• Multiple Warehouses, which provides the ability to process transfers of items between warehouses
• On the Warehouses (IN204000) form, the WHOLESALE and RETAIL warehouses have been created.
 Processing Sales from Multiple Warehouses | 172

• On the Customers (AR303000) form, the COFFEESHOP customer has been created.
• On the Stock Items (IN202500) form, the CHERJAM32 and LEMJAM96 stock items have been created.
• On the Order Types (SO201000) form, the TR order type has been configured.

Process Overview
In this activity, to perform a sale of stock items from multiple warehouses, you will create a sales order on the Sales
Orders (SO301000) form, select the customer to which the items are being sold, and add items to the order. Then
you will allocate the unavailable items in the warehouse in which these items are currently on hand.
To transfer items from the source warehouse to the destination warehouse, you will create a transfer order on the
Create Transfer Orders (SO509000) form. Then you will process a transfer order to completion: You will process the
related shipment between warehouses (which causes the items to be issued from the source warehouse) on the
Shipments (SO302000) form, and you will process the related transfer receipt (which records the receipt of the items
to the destination warehouse) on the Purchase Receipts (PO302000) form. Aer you process the transfer receipt,
all the items required for the sales order become available in the destination warehouse, so you can process the
initial sales order to completion. On the Shipments (SO302000) form, you will create a shipment document for the
sales order and confirm the shipment. You then will use the Invoices (SO303000) form to prepare the corresponding
invoice for the customer and release it.

System Preparation
Before you start performing a sale of stock items from multiple warehouses, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.
4. Make sure that you have completed the Sales from Multiple Warehouses: Implementation Activity.
5. Make sure that you have completed the Sales from Multiple Warehouses: Implementation Activity.

Step 1: Creating the Sales Order

To create the sales order, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Order Type: SO
• Customer: COFFEESHOP
• Description: Sale of cherry jam and lemon jam
3. On the Details tab, add rows with the settings shown in the following table.

Branch Inventory ID Warehouse Quantity Unit Price

RETAIL CHERJAM32 RETAIL 10 16.89

RETAIL LEMJAM96 RETAIL 3 49.49

 Processing Sales from Multiple Warehouses | 173

Notice that the system displays a warning in the Quantity column of the CHERJAM32 line indicating that the
specified quantity is not available in the selected warehouse.
4. On the form toolbar, click Save. The sales order is saved with the Open status.

Now you can reserve 32-ounce jars of cherry jam, which are not available in the SweetLife Store warehouse, in a
warehouse which has a sufficient quantity of the item.

Step 2: Allocating the Items in Another Warehouse

To allocate the items that are not available in the RETAIL warehouse, while you are still viewing the sales order on
the Sales Orders (SO301000) form, do the following:
1. On the Details tab, click the CHERJAM32 line, and on the table toolbar, click Line Details.
2. In the Line Details dialog box, which opens, do the following:
a. In the only line, select the Allocated check box.
b. In the Alloc. Warehouse box, select WHOLESALE.
c. Click OK
Notice that the warehouse in the line on the Details tab has not changed, but in the table footer, the
Allocated quantity is now equal to 10.
3. On the form toolbar, click Save.

Now you can create a transfer order to move the items from the Wholesale warehouse to the SweetLife's Store
warehouse.

Step 3: Creating the Transfer Order

To create the transfer order for the allocated items from the sales order, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, click Create Transfer Order
on the More menu.
2. On the Create Transfer Orders (SO509000) form, which opens, select the unlabeled check box in the line
with SO Allocated specified as the Plan Type and CHERJAM32 specified as the Inventory ID. This line is
the transfer request related to the line of the sales order that you have allocated in another warehouse. In
the line, make sure that WHOLESALE is specified as the From Warehouse and RETAIL is specified as the To
Warehouse.
3. On the form toolbar, click Process to process the transfer request you have selected. The system creates a
transfer order of the TR order type and opens it on the Sales Orders form.
4. In the Description box in the Summary area, type Transferred goods for sales order from
COFFEESHOP.
5. On the form toolbar, click Save.

Now you can process the created transfer order to completion.

Step 4: Processing the Transfer Order

To process the transfer order to completion, do the following:
1. While you are still viewing the transfer order that you have created on the Sales Orders (SO301000) form, on
the More menu, click Create Shipment.
2. In the Specify Shipment Parameters dialog box, which opens, make sure the today's date and the
WHOLESALE warehouse are selected, and click OK. The system creates a shipment with the Transfer type
and opens it on the Shipments (SO302000) form.
 Processing Sales from Multiple Warehouses | 174

3. Review the Summary area of the shipment, and make sure that Warehouse ID is WHOLESALE and To
Warehouse is RETAIL. Also, review the only line included in the shipment, and make sure its details are
correct.
4. On the form toolbar, click Confirm Shipment. The shipment is assigned the Confirmed status.
5. On the form toolbar, click Update IN to generate the inventory transfer transaction that issues the items
from the source warehouse to the destination warehouse. The shipment is assigned the Completed status.
6. On the Orders tab, click the link in the Inventory Ref. Nbr. column in the only row.
7. On the Transfers (IN304000) form, which opens in a pop-up window, make sure that the generated inventory
transfer has been completed.

Step 5: Processing the Transfer Receipt

To process the transfer receipt, do the following:
1. On the Purchase Receipts (PO302000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Transfer Receipt
• Warehouse: RETAIL
3. On the table toolbar of the Details tab, click Add Transfer. The Add Transfer Order dialog box opens. The
dialog box shows the list of completed transfer orders with completed shipments whose items have not
been received to the destination warehouse yet.
4. In the dialog box, select the unlabeled check box for the transfer order you have processed earlier, and click
Add & Close to close the dialog box and return to the Purchase Receipts form.
5. On the Details tab, review the details of the added line with the CHERJAM32 item.
6. On the form toolbar, click Release to release the transfer receipt.
7. On the Other tab, click the IN Ref. Nbr. link to open the related inventory receipt transaction on the Receipts
(IN302000) form.
8. Make sure the inventory receipt has the Released status, which means that the items have been received to
the RETAIL warehouse and are now available for shipping. Close the pop-up window.

Now you can finish processing the sales order, because all of the ordered items are on hand in the SweetLife's Store
warehouse.

Step 6: Processing the Shipment

To create and process the shipment that is associated with the sales order, do the following:
1. On the Sales Orders (SO301000) form, open the sales order of the SO type that you have created in Step 1,
and on the form toolbar, click Create Shipment.
2. In the Specify Shipment Parameters dialog box, which opens, make sure that today's date and the RETAIL
warehouse are selected, and click OK. The system creates a shipment and opens it on the Shipments
(SO302000) form.
3. On the Details tab, make sure that both order lines have been included in the shipment and that the
shipped quantity in both lines is equal to the ordered quantity.
4. On the More menu, click Confirm Shipment.

The shipment is assigned the Confirmed status, and now you can prepare the invoice to bill the customer and
increase the customer's debt in the system.
 Processing Sales from Multiple Warehouses | 175

Step 7: Processing the AR Invoice for the Customer

To complete the processing of a sale, you need to generate an invoice to the customer. Do the following:
1. While you are still viewing the shipment that you have created on the Shipments (SO302000) form, on the
form toolbar, click Prepare Invoice.
2. On the Invoices (SO303000) form, which opens, review the details of the invoice to make sure that both
items have been included in the invoice.
3. On the form toolbar, click Release to release the invoice.
4. Return to the sales order of the SO type on the Sales Orders form, and notice that the order is now assigned
the Completed status, as shown in the following screenshot.

Figure: Sale from multiple warehouses completed

Sales from Multiple Warehouses: Generated Transactions

To be able to process a sales order with items from multiple warehouses, you create and process a transfer
order. Processing a transfer order includes initially creating a shipment of the Transfer type and the related two-
step inventory transfer transaction; it then involves creating a transfer receipt and the related inventory receipt
transaction. To record the movements of items between warehouses in the general ledger, the system generates
the GL transactions described in the following sections.

Transactions Generated for the Inventory Transfer

When you create and release a two-step transfer, the system generates the following general ledger transactions.

Account Source of Account Debit Credit

Inventory account Posting class settings 0.00 COGS amount

on the Posting Classes
(IN206000) form
 Processing Sales from Multiple Warehouses | 176

Account Source of Account Debit Credit

In-Transit account Inventory preferences COGS amount 0.00

on the Inventory Pref-
erences (IN101000)
form

You can view the reference number of the GL batch on the Financial tab of the Transfers (IN304000) form. You can
click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.

Transactions Generated for the Inventory Receipt

Aer you have received the goods, you need to create an inventory receipt to record receiving items in the
destination warehouse. When this inventory receipt is released, the system generates a batch of the following GL
transactions.

Account Source of Account Debit Credit

In-Transit account In-Transit layer (that 0.00 COGS amount

is, the account spec-
ified in the inventory
transfer)

Inventory account Posting class settings COGS amount 0.00

on the Posting Classes
(IN206000) form

You can find the reference number of the GL batch on the Financial tab of the Receipts (IN301000) form. You can
click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.

Sales from Multiple Warehouses: Mass Processing of Documents

The following sections explain how to create multiple transfer orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Transfer Orders

Transfer orders can be mass-generated for multiple sales orders at a time. To mass-create transfer orders, you open
the Create Transfer Orders (SO509000) form, on which you can create transfer orders based on the transfer requests
that have been created for sales orders.
On this form, aer you specify any needed criteria to limit the requests listed, you select the unlabeled check boxes
in the rows of the transfer requests to be processed (which are the lines with the SO Allocated plan type) and click
Process on the form toolbar to generate the applicable transfer orders. The system creates a consolidated transfer
order for each group of transfer requests with the same source warehouse–destination warehouse pair.

Mass-Creating Shipments
Shipments can be mass-generated for transfer orders. To generate shipments for multiple transfer orders at a
time, you open the Process Orders (SO501000) form and select the Create Shipment action, as well as any selection
criteria for filtering the orders. Then you select the unlabeled check boxes in the rows of the orders to be processed,
and click Process on the form toolbar. The system prepares a consolidated shipment document for each group of
 Processing Sales from Multiple Warehouses | 177

the selected transfer orders with the same source warehouse–destination warehouse pair; the lines in the prepared
shipments are grouped by stock items in these lines.

Mass-Confirming Shipments
Shipments can be confirmed in bulk. To confirm multiple shipments at a time, you open the Process Shipments
(SO503000) form and select the Confirm Shipment action, as well as any selection criteria for filtering the
shipments. Then you select the unlabeled check boxes in the rows of the shipments to be processed, and click
Process on the form toolbar. The system confirms the selected shipment documents.

Mass-Printing Pick Lists

For multiple shipments with the On Hold and Open statuses, you can mass-print pick lists by using the Process
Shipments (SO503000) form. On this form, you select the Print Pick List action (and any other needed selection
criteria for filtering the shipments), select the unlabeled check boxes in the rows of the shipments for which you
need to print pick lists, and click Process on the form toolbar.

Sales from Multiple Warehouses: Related Report and Inquiry Forms

In the following sections, you can find details about report and inquiry forms that provide information related to
warehouses.

Viewing Items' Availability by Warehouse

If you want to view detailed information about inventory items that are available at particular warehouses, you use
the Inventory Summary (IN401000) form.

Viewing Inventory Valuation by Warehouse

To review the quantities on hand and the total cost of inventory by inventory account you use the Inventory
Valuation (IN615500) report. In this report, you can view details for different warehouses or for only a particular
warehouse.

Viewing Goods That Need to Be Received

To find information about the items that have been transferred from the source warehouse and have not yet been
received at the destination warehouse, you use the Goods in Transit (IN616500) report.

Finding Documents with Items in Transit

When you need to find documents with stock items that are in transit, you can use the Inventory Allocation Details
(IN402000) form. On this form, you can select a stock item and view the on-hand quantity of the item in a particular
warehouse, the actual quantity of the item according to unreleased documents, and the list of unreleased
documents that contain this item.

To Create Transfer Orders for Multiple Sales Orders

If you need to record the movement of goods from one warehouse to another, you create a transfer order of the
predefined TR type. You can create transfer orders for multiple sales orders simultaneously on the Create Transfer
Orders (SO509000) form.
 Processing Sales from Multiple Warehouses | 178

To Create Transfer Orders for Multiple Orders

1. Open the Create Transfer Orders (SO509000) form.
2. In the Creation Date box, select the date on which the transfer order or orders should be prepared.
3. In the table, select the unlabeled check boxes in the needed line or lines with the SO Allocated plan type.
4. Click Process on the form toolbar, or click Process All to process all lines shown in the table.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
To narrow the range of documents shown in the table, you can do any of the following:
• In the From Warehouse and To Warehouse boxes, specify the source and destination warehouses,
respectively.
• In the Customer box, specify a particular customer whose orders you want to process.
• In the Item Class ID, specify a particular item class.
• In the Inventory ID box, specify a particular inventory item to see the transfer requests for this item.
• Specify and apply a filter to select documents by specific criteria. You can create a reusable filter for the
form that, once created, gives you the ability to display particular documents each time you bring up this
form. For more information, see Filters.
 Processing Sales of Stock Items Without Shipment | 179

Processing Sales of Stock Items Without Shipment

An invoice order, which has the IN order type selected on the Sales Orders (SO301000) form, is a special type of
sales order that you create when the goods requested by a customer have been shipped or delivered already, and
thus the order does not require a shipment to be processed. The processing of an invoice order involves the actions
and generated documents shown in the following diagram.

If quick processing is configured for the IN order type, you can perform complete processing of the
order directly from the Sales Orders form. For more information, see Quick Processing of Sales Orders.

The following sections describe in detail the processing steps shown in the diagram.

1. Enter the Sales Order

A new sales order of the IN type is created on the Sales Orders (SO301000) form. The reference numbers for a
new order is generated according to the numbering sequence assigned to this order type on the Order Types
(SO201000)form. If the order is created with the On Hold status, you should click Remove Hold on the form toolbar
to process the order further.

For items that have lot or serial numbers tracked in Acumatica ERP, you can specify these numbers in
the document lines, thus indicating that these particular items have been delivered to the customer.
 Processing Sales of Stock Items Without Shipment | 180

2. Prepare the Sales Orders Invoice

You can prepare a sales orders (SO) invoice for an order by clicking Prepare Invoice on the More menu of the Sales
Orders (SO301000) form, or you can create multiple invoices by specifying the Prepare Invoice action on the Process
Orders (SO501000) form and processing multiple selected orders.

Any prepared SO invoice can be reviewed on the Invoices (SO303000) form.

3. Release the Sales Orders Invoice

To release the SO invoice, you click Release on the form toolbar of the Invoices (SO303000) form. When the SO
invoice is released, a batch of GL transactions is generated. Also, when the SO invoice is released, the system
automatically generates a corresponding inventory issue with the date and posting period of the invoice. The
related AR invoice with the same reference number becomes available for reviewing on the Invoices and Memos
(AR301000) form. For more information on processing AR invoices, see Processing AR Invoices.

4. Release the Inventory Issue

The generated inventory issue is released automatically if the Automatically Release IN Documents check box
is selected on the Sales Orders Preferences (SO101000) form. If this check box is cleared, you have to release the
inventory issue manually by clicking Release on the form toolbar of the Issues (IN302000) form. On release of the
inventory issue, a batch of GL transactions is generated.
Related Links
• IN Order Type (Invoice)

To Enter an Invoice Order (IN)

You create an order of the predefined IN type to record a sale of stock items that have been already shipped to
customer (or customer picks them at the sale point). You create an IN order on the Sales Orders (SO301000) form.

To Enter an Invoice Order

1. Open the Sales Orders (SO301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record.

3. In the Order Type box in the Summary area, select IN (Invoice).
4. Select the customer in the Customer box.
5. If needed, in the Location box, change the default location of the customer.
6. If this invoice order is associated with a particular project, in the Project box, change the X non-project code
(which is shown by default) to the particular project.
7. In the Date and Requested On boxes, change the dates of the order (which by default is the current
business date) if needed.
8. If needed, in the Customer Order box, enter the reference number of the original customer document the
invoice order is based on.
9. If needed, in the Description box, provide a brief description for this invoice order.
 Processing Sales of Stock Items Without Shipment | 181

10.On the Details tab, perform the following steps to add one item or multiple items to the invoice order:
a. Click Add Items on the table toolbar. The Inventory Lookup dialog box appears with the list of active
stock items. You can use the selection criteria at the top of the dialog box to narrow the list of items.
b. In the line or lines with the items that you want to add, in the Qty. Selected column, specify the
requested quantity of the items (measured in the default unit of measure shown in the UOM column).
Notice the item availability data in the Qty. Available and Qty. On Hand column, and make sure that the
specified quantity is available in the selected warehouse for each item to be added to the invoice order.
c. Click Add & Close at the bottom of the dialog box.
11.On the form toolbar, click Save.

To Process an Invoice Order

To record a sale of stock items that have been already shipped to customer, you process an invoice order (that is, an
order of the IN order type) by using the Sales Orders (SO301000) form.

To Process an Invoice Order

1. Open the Sales Orders (SO301000) form.
2. Select the order by specifying its type (IN) and its reference number.
3. On the form toolbar, click Prepare Invoice. This generates a sales orders invoice. The system opens the
Invoices (SO303000) form to display the new document.
4. On the form toolbar of the opened form, click Release to release the sales orders invoice. The system
generates an inventory transaction of the Invoice type to issue the items from inventory. Once you release
the sales orders invoice, the original IN order gets the Completed status.
 Processing Cash Sales of Stock Items | 182

Processing Cash Sales of Stock Items

To process a sale of items directly to the customer when you are receiving payment at that time (by cash or check),
you can create a cash sale order of the CS order type by using the Sales Orders (SO301000) form. The processing of
cash sales orders involves the actions and generated documents shown in the following diagram.

If quick processing is configured for the CS order type, you can perform complete processing of the
order directly from the Sales Orders (SO301000) form. For more information, see Quick Processing of
Sales Orders.

The following sections describe in detail the processing steps shown in the diagram.

1. Enter the Sales Order

You create a new sales order of the CS type on the Sales Orders (SO301000) form. You can save the order of the CS
type only aer you specify the payment information, including the payment method, cash account, and payment
reference number.
The reference number for a new order is generated according to the numbering sequence assigned to this order
type on the Order Types (SO201000) form. If the order is created with the On Hold status, you should click Remove
Hold on the form toolbar to process the order further.
 Processing Cash Sales of Stock Items | 183

2. Prepare the Sales Orders Invoice

You can prepare a sales orders (SO) invoice by clicking Prepare Invoice on the More menu of the Sales Orders
(SO301000) form, or you can create invoices by specifying the Prepare Invoice action on the Process Orders
(SO501000) form and processing multiple selected orders. For the cash sale order, an SO invoice of the Cash Sale
type is prepared.
Any prepared SO invoice can be reviewed on the Invoices (SO303000) form.

3. Release the Sales Orders Invoice

To release the SO invoice, you click Release on the More menu of the Invoices form. When an SO invoice of the Cash
Sale type is released, a batch of GL transactions is generated. Also, when the SO invoice is released, the system
automatically generates a corresponding inventory issue with the date and posting period of the SO invoice.
The related AR cash sale with the same reference number becomes available for reviewing on the Cash Sales
(AR304000) form. For more information on processing AR cash sales, see To Enter a Cash Sale.

4. Release the Inventory Issue

The generated inventory issue is released automatically if the Automatically Release IN Documents check box
is selected on the Sales Orders Preferences (SO101000) form. If this check box is cleared, you have to release the
inventory issue manually by clicking Release on the form toolbar of the Issues (IN302000) form. On release of the
inventory issue, a batch of GL transactions is generated.

Important Notes
Note the following about the processing of cash sales orders:
• If you process a cash sales order with only non-stock items, no inventory issue is generated when the SO
invoice of the Cash Sale type is released.
• For non-stock items and services, you can enter a process a cash sale directly on theCash Sales (AR304000)
form without creating and processing a cash sale order.
• For items that have lot or serial numbers tracked in Acumatica ERP, you can specify these numbers, thus
indicating that these particular items have been delivered to the customer.

Related Links
• CS Order Type (Cash Sale)

To Enter a Cash Sale Order (CS)

You create an order of the predefined CS type to record a sale of stock items that is immediately paid by cash and
does not require shipping. You use the Sales Orders (SO301000) form to enter the CS order.

To Create a Cash Sale Order

1. Open the Sales Orders (SO301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record.

 Processing Cash Sales of Stock Items | 184

3. In the Order Type box in the Summary area, select CS (Cash Sale).
4. Select the customer in the Customer box.
5. If needed, in the Location box, change the default location of the customer.
6. If needed, in the Project box, change the X non-project code to the particular project.
7. In the Date and Requested On boxes, change the dates of the order (which by default is the current
business date) if needed.
8. If needed, in the Customer Order box, enter the reference number of the original customer document the
case sale order is based on.
9. If needed, in the Description box, provide a brief description for this cash sale order.
10.On the Financial tab specify the following information:
a. In the Payment Method box, check the customer's default payment method. The cash sale must be paid
by a method based on cash or check.
b. In the Cash Account box, check the default cash account of the selected payment method. Change it, if
needed.
c. In the Payment Ref. box, enter the reference number of the customer payment.
11.On the Details tab, perform the following steps to add one item or multiple items to the cash sale order:
a. Click Add Items on the table toolbar. The Inventory Lookup dialog box appears with the list of active
stock items. You can use the selection criteria at the top of the dialog box to narrow the list of items.
b. In the line or lines with the items that you want to add, in the Qty. Selected column, specify the
requested quantity of the items (measured in the default unit of measure shown in the UOM column).
Notice the item availability data in the Qty. Available and Qty. On Hand column, and make sure that the
specified quantity is available in the selected warehouse for each item to be added to the cash sale.
c. Click Add & Close at the bottom of the dialog box.
12.On the form toolbar, click Save.

To Process a Cash Sale Order (CS)

You process an order of the predefined CS type to record a sale of stock items that is immediately paid by cash and
does not require shipping. You process a CS order on the Sales Orders (SO301000) form.

To Process a Cash Sale

1. Open the Sales Orders (SO301000) form.
2. Select the order by specifying its type (CS) and its reference number.
3. On the form toolbar, click Prepare Invoice. This generates an SO invoice with a Cash Sale type. The system
opens the Invoices (SO303000) form to display the new document.
4. On the form toolbar of the opened form, click Release to release the SO cash sale. The system generates an
inventory transaction of the Credit Memo type to issue the items from inventory. Once you release the cash
sale, the original CS order gets the Completed status.
 Processing Sales with Payments and Prepayments | 185

Processing Sales with Payments and Prepayments

In Acumatica ERP, you can use the payment and prepayment functionality to record the incoming funds for sales
orders and invoices.

Sales with Payments and Prepayments: General Information

Companies need to keep the track of the incoming funds that were paid for the sold items for an accurate
accounting of what has been paid and what needs to be paid, and in some cases, these funds need to be paid
before the items can be purchased or produced. In Acumatica ERP, the payment and prepayment functionality is
used to record the amount of funds that has already been paid for each sales order.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a sales order
• Create a prepayment or payment for the sales order
• Create a shipment for the sales order
• Confirm the shipment
• Create an invoice for a sales order
• Process the invoice

Applicable Scenarios
You create sales orders with payments and prepayments in the following cases:
• When you sell goods that you produce or purchase only aer you have received the payment, per company
policy
• When you have a contract with a customer that requires a certain prepayment percent before the goods can
be shipped

Sales Orders with Payments and Prepayments

The standard processing of a sales order with a payment or prepayment typically includes entering a sales order,
entering a payment or prepayment, processing a shipment of the items, and preparing the related invoice for the
customer.
In Acumatica ERP, to begin processing a sale that requires the items to be shipped before billing occurs, you enter a
sales order on the Sales Orders (SO301000) form and add to the order the items the customer has requested.
When the customer pays the amount that is required before the sales order can be processed further, you create a
prepayment document and apply it to the sales order.
Then you use the Shipments (SO302000) form to prepare and confirm the shipment or shipments related to the
sales order. When the shipment confirmation is complete, you need to bill the customer for the shipped items
by preparing an SO invoice, which is a financial document in the system that contains links to the applicable
shipments and sales orders. You can review the prepared SO invoice on the Invoices (SO303000) form. If any
payment is still required for the sales order, aer the money is received, you create a payment and apply it to the
 Processing Sales with Payments and Prepayments | 186

SO invoice; then you can release the invoice. When the SO invoice is released, you can also view it on the Invoices
and Memos (AR301000) form.

An AR invoice is similar to the SO invoice, but it does not contain the links to the applicable shipments and sales
orders. Both of these documents contain the link to the batch of general ledger transactions that was generated
when the AR invoice was released. For more information on processing accounts receivable invoices, see Processing
AR Invoices.

Workflow of Processing a Sales Order with a Payment or Prepayment

For a sales orders with a payment or prepayment, the typical processing involves the actions and generated
documents shown in the following diagram.

Sales Orders with Payments and Prepayments: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales orders with payments and prepayments, and to understand (and change, if needed) additional
settings that affect the processing workflow.

Implementation Checklist
Before you begin processing sales orders with payments and prepayments, you should make sure the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in the
following checklist.

Form Criteria to Check

Sales Orders Preferences (SO101000) form All necessary settings related to sales orders have
been specified, as described in Order Management Ba-
sic Configuration: General Information.

Enable/Disable Features (CS100000) form The Inventory feature is enabled.

 Processing Sales with Payments and Prepayments | 187

Form Criteria to Check

Order Types (SO201000) form The SO order type is active and has been configured,
as described in Sales Order Types: To Configure the SO
Order Type.

To streamline the sales process and avoid small dis-

crepancies between the payment amount applied to
a sales order and the amount of the SO invoice creat-
ed for this sales order (for example, as a result of the
system recalculating the applicable taxes in the SO in-
voice), select the Auto Write-Off check box. For more
information on the configuration of automatic write-
offs, see Configuration of Automatic Write-Offs in Invoic-
es.

Customers (AR303000) form All needed customers have been defined in the sys-
tem, as described in Customers: Implementation Activi-
ty.

Stock Items (IN202500) form, Non-Stock Items All stock and non-stock items to be sold have been de-
(IN202000) form fined in the system, as described in Stock Item Cre-
ation: Implementation Activity and Creating Non-Stock
Items: Implementation Activity.

Credit Terms (CS2065000) form For each applicable set of credit terms, if you need to
predefine the prepayment percent that must be paid
before the shipment can be created, the Prepayment
Required check box is selected and the required per-
cent is specified in the Prepayment Percent box.

Other Settings That Affect the Workflow

You can affect the workflow of processing sales orders with payments and prepayments by specifying additional
settings as follows:
• To cause shipments to be created with the On Hold status (so that the user can verify them before
processing them further), select the Hold Shipments on Entry check box on the Sales Orders Preferences
(SO101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Sales with Payments and Prepayments: Generated Transactions

To be able to process a sale of items, you create and process a sales order. The following sections describe the GL
transactions generated during the processing of the documents for a sale of an item.

Sales orders and shipment documents do not produce any GL transactions.

 Processing Sales with Payments and Prepayments | 188

Transaction Generated for an SO invoice

When you create and release an SO invoice, the system generates the following general ledger transaction.

Account Source of Account Debit Credit

Accounts Receivable account Customer Amount 0.00

Sales account Specified in the settings 0.00 Amount

of the order type on the
Order Types (SO201000)
form

You can view the reference number of the GL batch in the Batch Nbr. box on the Details tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Transaction Generated on Release of Inventory Issue

When an inventory issue is created and released, the system generates the following general ledger transaction.

Account Source of Account Quantity Debit Credit

Inventory asset account for line 1 Stock item Quantity with the 0.00 0.00
of the sales order minus sign

COGS account for line 1 of the Stock item Quantity 0.00 0.00
sales order

Inventory asset account for line 2 Stock item Quantity with the 0.00 0.00
of the sales order minus sign

COGS account for line 2 of the Stock item Quantity 0.00 0.00
sales order

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Issues
(IN302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Sales Orders with Payments: Related Report and Forms

In the following sections, you can find details about ways to gather information about the sales of items that have
been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.
 Processing Sales with Payments and Prepayments | 189

Finding Shipments Related to a Sales Order

If you need to find a shipment that is linked to a particular sales order and view it, you can do this by opening the
sales order on the Sales Orders (SO301000) form and viewing the Shipments tab, which lists all the shipments that
have been prepared for the order. To view the details of a listed shipment, you click its reference number in the
Document Nbr. column; the system opens the shipment on the Shipments (SO302000) form.

Tracking the Status of Order Fulfillment

To track how a sales order is being fulfilled, you can check its status in the Summary area of the Sales Orders form.
On the Totals tab of this form, you can also check the quantities and amounts that are not yet shipped and not yet
billed, as well as the amount that is not yet paid.

Printing Pick Lists

To prepare a printable pick list for a shipment document that is being processed, you use the Pick List (SO644000)
report. While you are viewing a shipment on the Shipments (SO302000) form, you can go to this report for the
selected shipment by clicking Print Pick List on the More menu. The system opens the printable pick list on the
Pick List report; then you can view the pick list and print it by clicking Print on the report toolbar.

Printing Invoices
To prepare a printable form of the SO invoice that is being processed, you use the Invoice & Memo (SO643000)
report. While you are viewing an SO invoice on the Invoices (SO303000) form, you can go to this report by clicking
Reports > Print Invoice on the form toolbar. The system opens the printable version of the SO invoice on the
Invoice & Memo report; then you can view the SO invoice and print it by clicking Print on the report toolbar.
 Processing Customer Returns for Credit with Receipt | 190

Processing Customer Returns for Credit with Receipt

Acumatica ERP supports the basic types of customer returns of items your company has sold. This includes returns
in which you receive the item or items to inventory and issue a credit memo to adjust the customer's balance in
the system. The topics of this chapter explain how to process customer returns of items with returned items being
received to inventory and a credit memo being prepared for the customer.

Returns for Credit with a Receipt: General Information

Acumatica ERP provides support for the most common types of return processes, which gives you the flexibility to
manage various types of customer returns according to the return policies of your company.
Returns for credit with receipt of items are one type of returns. These returns are processed in the system as return
orders of the RC order type. With this type, a customer returns an item, which you need to receive to inventory. You
then process a credit memo to adjust the customer's balance in the system.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Create a return order that is linked to the sales order in which the returned items were sold
• Create an incoming shipment (receipt) of the returned item or items, and confirm the shipment
• Create an SO credit memo for the original sales order
• Process the SO credit memo and the related inventory and AR documents

Applicable Scenario
You create a return order for credit (that is, an order with the RC predefined order type) to perform a customer
return for credit with the returned item or items received to inventory and the AR documents issued to adjust the
customer balance in the system.

Processing of Returned Items for Credit

The standard process of return for credit typically includes the entry of a return order, the addition of items to be
returned, the processing of the receipt of the returned items to inventory, and the preparation of the related AR
document to a customer.
In general, the Sales Orders (SO301000) form is the starting point for the creation of a customer return. You create a
new return order and add the item or items that are being returned by the customer. You can add a line and select
the item to be returned without linking it to a sales document, or add a line with a reference to the original SO
invoice for which the return is performed. To add an item with a link to the original SO invoice, on the Sales Orders
form, you click Add Invoice on the table toolbar of the Details tab and select the line of the needed invoice in the
Add Invoice Details dialog box (which opens). If an item to be returned has a specific lot or serial number, you
should select this particular item from the list of invoice lines.
The receipt of the items returned to inventory is processed in the system as an incoming shipment document with
the Receipt operation type. Aer you have prepared and confirmed the document reflecting the receipt of items
to inventory, you need to update the customer's balance in the amount of the returned items by preparing and
releasing an SO credit memo (which is an SO invoice document of the Credit Memo type). The SO credit memo is a
financial document in the system that contains links to the applicable shipments and sales orders. You can review
the prepared SO credit memo on the Invoices (SO303000) form; then you can release it. When the SO credit memo is
 Processing Customer Returns for Credit with Receipt | 191

released, the system automatically generates a corresponding inventory receipt for the returned items and creates
and releases a corresponding AR credit memo, which you can view on the Invoices and Memos (AR301000) form. An
AR credit memo is a financial document that is similar to the SO credit memo but does not contain the links to the
applicable shipments and sales orders. Also, unlike the SO document, the AR credit memo can be applied to the
customer balance.
To finish the return process, you need to process the AR credit memo to completion. You can apply the credit memo
to the original invoice, or process a customer refund if the original invoice was already paid. For details on credit
memo application, see AR Invoice Correction: General Information. For details on the processing of a customer
refund, see Customer Refunds: To Create a Customer Refund and Apply a Credit Memo to It.

Workflow of a Return for Credit with Receipt

The processing of a return order for credit involves the actions and generated documents shown in the following
diagram.

Returns for Credit with Receipt: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of customer returns for credit with the returned items being received to inventory, and to understand
(and change, if needed) the settings that affect the processing workflow.

Implementation Checklist
Before you begin processing returns for credit with the returned items received to inventory, you should make sure
the needed settings have been specified, as summarized in the following checklist.
 Processing Customer Returns for Credit with Receipt | 192

Form Criteria to Check

Sales Orders Preferences (SO101000) form Make sure that all necessary settings related to sales
orders and purchase orders have been specified, as
described in Configuration of Order Management: Gen-
eral Information.

Order Types (SO201000) form Make sure that the RC order type is active and has
been configured, as described in Returns for Credit with
Receipt: Implementation Activity.

Specifying Other Settings That Affect the Workflow

You can affect the workflow of processing customer returns for credit with the returned items received to inventory
by specifying additional settings as follows:
• To cause sales orders of a particular order type to be created with the On Hold status (so that the user can
verify them before processing them further), select the Hold Documents on Entry check box for the order
type on the Order Types form. For more information on other order type settings that affect the workflow of
sales orders, see Sales Order Types: General Information.
• To cause the system to automatically post general ledger batches generated during the processing of
sales documents, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a return for credit with
returned items received to inventory, as described in Returns for Credit with a Receipt: Process Activity.

Returns for Credit with Receipt: Implementation Activity

By completing the following implementation activity, you will learn how to configure and activate the RC order
type.
By completing the following implementation activity, you will learn how to configure the RC order type.

Story
Suppose that you, as the implementation manager, need to configure the processing of customer returns for credit.
Thus, you need to configure and activate the RC order type in the system.
Suppose that you, as the implementation manager, need to configure the processing of customer returns for credit.
Thus, you need to configure and activate the RC order type in the system.

System Preparation
1. In a new tenant, prepare the company with basic settings as described in Company Without Branches:
General Information.
2. Launch the Acumatica ERP website, and sign in to the prepared company as admin.

Launch the Acumatica ERP website, and sign in to the prepared company as gibbs.
 Processing Customer Returns for Credit with Receipt | 193

Step: Configuring and Activating an Order Type

1. Open the Order Types (SO201000) form.
2. Open the RC order type.
3. In the Freight Account box of the General Settings tab (Posting Settings section), specify 51300 (COGS –
Freight).
4. In the Summary area, select the Active check box.
5. On the form toolbar, click Save.
6. Open the Sales Orders (SO301000) form. In the Summary area, make sure that RC is available for selection in
the Order Type box.

Step: Configuring an Order Type

1. Open the Order Types (SO201000) form.
2. Open the RC order type.
3. In the Freight Account box of the General Settings tab (Posting Settings section), make sure that 51300
(COGS – Freight) is specified.
4. In the Summary area, make sure that the Active check box is selected.
5. Open the Sales Orders (SO301000) form. In the Summary area, make sure that RC is available for selection in
the Order Type box.

Returns for Credit with a Receipt: Process Activity

The following activity demonstrates how to prepare and process to completion a customer return for a particular
sales order with the returned item or items being received to inventory and a credit memo to the customer being
created.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Video Tutorial
This video shows you the common process but may contain less detail than the activity has. If you want to repeat
the activity on your own or you are preparing to take the certification exam, we recommend that you follow the
instructions in the activity steps.
FEEDBACK

Story
Suppose that you are Grace Norman, a sales manager in the SweetLife Fruits & Jams company. On January 30,
2023, the FourStar Coffee & Sweets Shop customer requests authorization for the return of the oranges ordered on
January 29, 2023, because the customer was not satisfied with the quality of the shipped fruits. You authorize the
return with shipping of the returned items to SweetLife’s main warehouse. Acting as the sales manager, you need to
process this return.
 Processing Customer Returns for Credit with Receipt | 194

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Order Types (SO201000) form, the RC order type has been configured and activated.
• On the Customers (AR303000) form, the COFFEESHOP (FourStar Coffee & Sweets Shop) customer has been
defined.
• On the Stock Items (IN202500) form, the ORANGES and LEMONS stock items have been created.
• On the Invoices (SO303000) form, the invoice for the COFFEESHOP customer that has ORANGES and LEMONS
stock items and dated 1/29/2023 has been created.
• The following sales documents for which you will process a return, as well as the items included in these
documents, have been created:
• On the Sales Orders (SO301000) form, the sales order for the COFFEESHOP customer dated 1/29/2023
• On the Shipments (SO302000) form, the shipment for the COFFEESHOP customer dated 1/29/2023

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Order Types (SO201000) form, the RC order type has been configured and activated.
• On the Customers (AR303000) form, the COFFEESHOP (FourStar Coffee & Sweets Shop) customer has been
defined.
• On the Stock Items (IN202500) form, the ORANGES and LEMONS stock items have been created.
• On the Invoices (SO303000) form, the invoice for the COFFEESHOP customer that has ORANGES and LEMONS
stock items and dated 1/29/2023 has been created.
• The following sales documents for which you will process a return, as well as the items included in these
documents, have been created:
• On the Sales Orders (SO301000) form, the sales order for the COFFEESHOP customer dated 1/29/2023
• On the Shipments (SO302000) form, the shipment for the COFFEESHOP customer dated 1/29/2023

Process Overview
To process a return for credit with a receipt, you will create a return order of the RC type on the Sales Orders
(SO301000) form, and add to it the line or lines of the SO invoice that has been prepared for the sales order for
which you need to process a return. Then you will receive the returned items to inventory on the Shipments
(SO302000) form by creating a shipment with the Receipt operation and confirming it. Aer the items have been
received to inventory, you will create an SO credit memo to decrease the customer's debt in the system by the
amount of the returned items. Finally, aer reviewing the details of the prepared credit memo on the Invoices
(SO303000) form, you will release it.
 Processing Customer Returns for Credit with Receipt | 195

System Preparation
Before you start preparing and processing the customer return, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as sales manager Grace
Norman by using the norman username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as sales manager Grace
Norman by using the norman username and the 123 password.
3. Sign in to the Ord2Cash tenant as a sales manager by using the norman username and the provided
password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating a Return Order

To create a return order, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Order Type: RC
• Customer: COFFEESHOP
• Date: 1/30/2023
• Requested On: 1/30/2023
• Description: Return of unconditional fruits
3. On the form toolbar, click Save.

Step 2: Adding the Item To Be Returned

To add to the return order the line of the SO invoice, do the following:
1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the table toolbar of the
Details tab, click Add Invoice.
2. In the Add Invoice Details dialog box, which opens, do the following:
a. In the Type box, select Invoice.
b. In the Reference Nbr. box, select the reference number of the invoice to COFFEESHOP dated 1/29/2023.
The invoice lines appear in the table of the dialog box.
c. In the table, select the unlabeled check box in the ORANGES line.
d. Click Add & Close, which closes the dialog box and adds the line to the Details tab of the return order.
3. Review the details of the added line, and make sure that the related invoice reference number is specified in
the Invoice Nbr. column.
4. On the form toolbar, click Save.
 Processing Customer Returns for Credit with Receipt | 196

Step 3: Receiving the Returned Items

To process the receipt of items to inventory, do the following:
1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the form toolbar, click
Create Receipt to create a receipt of the returned items.
2. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected as the
Shipment Date and WHOLESALE is selected as the Warehouse ID.
3. Click OK. The system closes the dialog box and opens the prepared shipment with the Receipt operation on
the Shipments (SO302000) form.
4. On the form toolbar, click Confirm Shipment.

Step 4: Processing a Credit Memo

To prepare a credit memo to the customer to adjust the customer's balance, do the following:
1. While you are still viewing the shipment on the Shipments (SO302000) form, on the form toolbar, click
Prepare Invoice. Wait for the system to complete the operation. The system creates a credit memo to the
customer and opens it on the Invoices (SO303000) form.
2. In the Summary area, make sure that the Date is set to 1/30/2023.
3. On the form toolbar, click Release to release the credit memo, which is assigned the Open status, as shown
in the following screenshot.

Figure: Credit memo prepared for the return order

You have completely processed the customer return.

Activity Recap
In this activity, we have illustrated how the sales manager has done the following:
1. Created a return order of the RC type and has added the items the customer is returning
2. Created and confirmed a shipment with the Receipt operation type
3. Prepared and released a credit memo to adjust the customer’s balance
 Processing Customer Returns for Credit with Receipt | 197

Returns for Credit with Receipt: Mass-Processing of Documents

The following sections explain how to mass-process documents related to the processing of customer returns for
receipt, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Shipments
You can create multiple shipments on the Process Orders (SO501000) form by selecting the Create Shipment action,
selecting the unlabeled check box in the return order lines to be processed (which could include lines from the
return order or orders you were working with, as well as lines of any other order requiring shipping), and click
Process on the form toolbar to generate the shipments.

Mass-Printing Pick Lists

For multiple shipments that have the On Hold or Open status, you can mass-print pick lists by using the Process
Shipments (SO503000) form. On this form, you select the Print Pick List action, select the unlabeled check boxes in
the rows of the shipments for which you need to print pick lists, and click Process on the form toolbar.

Mass-Confirming Shipments
Shipments can be confirmed in bulk. To confirm multiple incoming and outgoing shipments at a time, you open the
Process Shipments (SO503000) form and select the Confirm Shipment action. Then you select the unlabeled check
boxes in the rows of the shipments to be processed, and click Process on the form toolbar. The system confirms the
selected shipment documents.

Mass-Creating SO Invoices
You can create multiple SO invoices (which are of the Credit Memo type for returns for credit) on the Process Orders
(SO501000) form by selecting the Prepare Invoice action, selecting the unlabeled check boxes in the return order
lines to be processed (which could include lines from the return order or orders you were working with, or lines of
any other order), and click Process on the form toolbar.
 Processing Customer Returns for Replacement | 198

Processing Customer Returns for Replacement

Acumatica ERP supports the basic types of customer returns of items your company has sold. This includes returns
in which you receive the items to inventory and replace the items with the same items or other items at exactly the
same price. With this return type, you don’t need to process an invoice or a credit memo. The topics of this chapter
explain how to process customer returns of items with returned items being received to inventory and replacement
items being shipped to the customer.

Returns for Replacement: General Information

Acumatica ERP provides support for the most common types of return processes, which gives you the flexibility to
manage various types of customer returns according to the return policies of your company.
Returns for replacement are one type of returns. These returns are processed in the system as return orders of the
RR (Return with Replacement) order type. With this type, a customer returns an item and requests that the item be
replaced with the same or another item at exactly the same price, so that you do not need to process an invoice or a
credit memo. Return orders of the RR type may involve the exact replacement of a single item or multiple items.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Create a return order that is linked to the sales order that was used to record the sale of the returned item or
items
• Create an incoming shipment (receipt) of the returned item or items, and confirm the shipment
• Create a shipment of the replacement item or items to the customer
• Update inventory forms to reflect the replacement of the returned item or items

Applicable Scenario
You create a return for replacement (that is, an order with the RR predefined order type) to perform a customer
return in which the customer receives an exact replacement of a particular item or specific items. The exact
replacement is the replacement of the same items at the same price. The customer returns the rejected goods, the
goods are returned to inventory, and the customer receives a replacement for the rejected goods. Since the items
are replaced at exactly the same price, you do not need to process any AR documents.

Processing of Returned Items for Replacement

The standard process of return for replacement typically includes the following operations:
• The entry of a return order
• The addition of the items to be returned and the items to be shipped for replacement
• The processing of the receipt of the returned items to inventory
• The processing of a shipment of replacement items to the customer
• The updating of the inventory
In general, the Sales Orders (SO301000) form is the starting point for the creation of a customer return. You create
a new return order and add the item or items that the customer has returned. You can add an item to be returned
without linking it to a sales document, or add a line with a reference to the original SO invoice for which you
perform the return. To add the item to be returned with a link to the original SO invoice, on the Sales Orders form,
 Processing Customer Returns for Replacement | 199

you click Add Invoice on the table toolbar of the Details tab and select the line of the needed invoice in the Add
Invoice Details dialog box (which opens).
A line corresponding to an item being returned (whether or not it is linked to an SO invoice) should have the Receipt
operation specified in the Operation column. Because this is an order of the RR type, each return line should have
a corresponding replacement line: a line with the Issue operation type for a replacement item. If the item in a line
with the Receipt operation is not tracked by serial or lot numbers, you can select the Auto Create Issue check box
for the line so that the system will automatically add the corresponding replacement line when you confirm the
receipt of the returned items to inventory.
If an item to be returned has a specific lot or serial number, you should select this particular item (with its lot or
serial number) from the list of invoice lines. For the items to be returned that are lot- or serial- tracked, you must
clear the Auto Create Issue check box for the return line. Instead, you add the replacement line manually.
Aer you have specified the details in the return order, you need to create and confirm two documents: a receipt
of returned items (also referred to as an incoming shipment) and a shipment of replacement items to customer. To
create a receipt, on the More menu of the Sales Orders form, you click Create Receipt. To create a shipment, on
the More menu of the Sales Orders form, you click Create Shipment. The incoming and outgoing shipments can
be reviewed on the Shipments (SO302000) form. Aer you review each of the shipments, you have to confirm it by
clicking Confirm Shipment on the More menu of the Shipments form.
You can update the inventory for each shipment separately by opening the shipment on the Shipments form and
clicking Update IN on the More menu; this causes the system to generate the appropriate inventory transaction
and to update the item availability data. On release of the inventory documents, batches of GL transactions are
generated.
SO invoices and AR invoices are not generated for an RR order because the returned item is replaced with another
item at the same price.

Workflow of a Return for Replacement

The processing of a return order for replacement involves the actions and generated documents shown in the
following diagram.
 Processing Customer Returns for Replacement | 200

Returns for Replacement: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of returns for replacement, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
Before you begin processing returns for replacement, you should make sure the needed settings have been
specified, as summarized in the following checklist.

Form Criteria to Check

Sales Orders Preferences (SO101000) form Make sure that all necessary settings related to sales
orders and purchase orders have been specified, as
described in Configuration of Order Management: Gen-
eral Information.

Order Types (SO201000) form Make sure that the RR order type is active and has
been configured, as described in Returns for Replace-
ment: Implementation Activity.

Specifying Other Settings That Affect the Workflow

You can affect the workflow of processing returns for replacement by specifying additional settings as follows:
• To cause sales orders of a particular order type to be created with the On Hold status (so that the user can
verify them before processing them further), select the Hold Documents on Entry check box for the order
type on the Order Types form. For more information on other order type settings that affect the workflow of
sales orders, see Sales Order Types: General Information.
• To cause the system to automatically post general ledger batches generated during the processing of
sales documents, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a return for replacement,
as described in the Returns for Replacement: Process Activity.

Returns for Replacement: Implementation Activity

By completing the following implementation activity, you will learn how to configure and activate the RR order
type.
By completing the following implementation activity, you will learn how to configure the RR order type.
 Processing Customer Returns for Replacement | 201

Story
Suppose that you, as the implementation manager, need to configure the processing of customer returns with the
replacement of items for the same price. Thus, you need to configure and activate the RR order type in the system.
Suppose that you, as the implementation manager, need to configure the processing of customer returns with the
replacement of items for the same price. Thus, you need to configure the RR order type in the system.

System Preparation
1. In a new tenant, prepare the company with basic settings as described in Company Without Branches:
General Information.
2. Launch the Acumatica ERP website, and sign in to the prepared company as admin.

Launch the Acumatica ERP website, and sign in to the prepared company as gibbs.

Step: Configuring and Activating an Order Type

1. Open the Order Types (SO201000) form.
2. Open the RR order type.
3. In the Freight Account box of the General Settings tab (Posting Settings section), specify 51300 (COGS –
Freight).
4. In the Summary area, select the Active check box.
5. On the form toolbar, click Save.
6. Open the Sales Orders (SO301000) form. In the Summary area, make sure that RR is available for selection in
the Order Type box.

Step: Configuring and Activating an Order Type

1. Open the Order Types (SO201000) form.
2. Open the RR order type.
3. In the Freight Account box of the General Settings tab (Posting Settings section), make sure that 51300
(COGS – Freight) is specified.
4. In the Summary area, make sure that the Active check box is selected.
5. Open the Sales Orders (SO301000) form. In the Summary area, make sure that RR is available for selection in
the Order Type box.

Returns for Replacement: Process Activity

The following activity demonstrates how to prepare and process to completion a customer return of items with the
exact replacement of items (that is, with the same items for the same price), which does not require an invoice to
be processed.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Processing Customer Returns for Replacement | 202

Video Tutorial
This video shows you the common process but may contain less detail than the activity has. If you want to repeat
the activity on your own or you are preparing to take the certification exam, we recommend that you follow the
instructions in the activity steps.
FEEDBACK

Story
Suppose that you are Grace Norman, a sales manager in the SweetLife Fruits & Jams company. On January 30,
2023, the GoodFood One Restaurant customer asks for the replacement of five small jars of orange jam (ordered
on January 25, 2023) with the same number of the same jam jars because the lids appeared to be dented. The
returned jars must be temporarily placed to inventory so that the quality assurance would assess them to track the
source of the damage. You authorize the return.
Acting as the sales manager, you need to process the return of items to inventory with shipping the exact
replacement of the returned items to the customer.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items by using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Order Types (SO201000) form, the RR order type has been configured and activated.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been defined.
• On the Invoices (SO303000) form, the invoice for the GOODFOOD customer in the amount of $201.74 USD has
been created.
• On the Stock Items (IN202500) form, the ORJAM08 and APJAM08 stock items have been created.
• The following sales documents, for which you will process a return, have been created:
• On the Sales Orders (SO301000) form, the sales order for the GOODFOOD customer that includes the
ORJAM08 and APJAM08 stock items and is dated 1/25/2023
• On the Shipments (SO302000) form, the shipment to the GOODFOOD customer that includes the ORJAM08
and APJAM08 stock items and is dated 1/25/2023

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items by using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Order Types (SO201000) form, the RR order type has been configured and activated.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been defined.
• On the Invoices (SO303000) form, the invoice for the GOODFOOD customer in the amount of $201.74 USD has
been created.
 Processing Customer Returns for Replacement | 203

• On the Stock Items (IN202500) form, the ORJAM08 and APJAM08 stock items have been created.
• The following sales documents, for which you will process a return, have been created:
• On the Sales Orders (SO301000) form, the sales order for the GOODFOOD customer that includes the
ORJAM08 and APJAM08 stock items and is dated 1/25/2023
• On the Shipments (SO302000) form, the shipment to the GOODFOOD customer that includes the ORJAM08
and APJAM08 stock items and is dated 1/25/2023

Process Overview
To process a customer return with an exact replacement, you will create a return order of the RR type on the Sales
Orders (SO301000) form, and add to it the line or lines of the SO invoice that has been prepared for the sales order
for which you need to process a return. You will receive the returned items to inventory by creating a shipment with
the Receipt operation. Then you will process another shipment to record the delivery of the replacement items to
the customer. Because the returned and replacement items have the same price, you will not need to process any
accounts receivable documents.
Finally, you will update the inventory by using the Update IN command on the Shipments (SO302000) form; this
action generates inventory documents that record the receiving and issuing of the items in this return order.

System Preparation
Before you start preparing and processing the customer return, do the following:
1. Launch the Acumatica ERP website, and sign in as a sales manager Grace Norman by using the norman
username and the 123 password.
2. Launch the Acumatica ERP website, and sign in as a sales manager Grace Norman by using the norman
username and the 123 password.
3. Sign in to the Ord2Cash tenant as a sales manager by using the norman username and the provided
password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating a Return Order

To create a return order, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Order Type: RR
• Customer: GOODFOOD
• Date: 1/30/2023
• Requested On: 1/30/2023
• Description: Authorized replacement
3. On the form toolbar, click Save.
 Processing Customer Returns for Replacement | 204

You have created a sales order of the Return with Replacement type, but have not added lines to it. Now you can
add to the return order the line of the SO invoice that had been prepared for the sales order for which you need to
process a return.

Step 2: Adding the Items to Be Returned

To add the line of the SO invoice to return order for which you need to process a return, do the following:
1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the table toolbar of the
Details tab, click Add Invoice.
2. In the Add Invoice Details dialog box, which opens, do the following:
a. In the Type box, select Invoice.
b. In the Reference Nbr. box, select the reference number of the invoice to GOODFOOD in the amount of
201.74 dated 1/25/2023. The invoice lines appear in the table of the dialog box.
c. In the table, select the unlabeled check box in the ORJAM08 line.
d. Click Add & Close, which closes the dialog box and adds the line to the Details tab.
3. Review the details of the added line, and make sure that the related invoice reference number is specified in
the Invoice Nbr. column.
4. In the line, change Quantity to 5, which is the number of jars to be replaced.
5. Also, in the line, make sure that the Auto Create Issue check box is selected. With this check box selected,
the line with the item for replacement will be created and added automatically to the return order on
receipt confirmation.
6. On the form toolbar, click Save. Notice that the return order has the Open status.

Step 3: Receiving the Returned Items

To process the receipt of items to inventory, do the following:
1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the form toolbar, click
Create Receipt to create a receipt of returned items.
2. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected as the
Shipment Date and WHOLESALE is specified in the Warehouse ID box.
3. Click OK. Wait for the system to complete the operation. The system closes the dialog box and opens the
prepared shipment with the Receipt operation on the Shipments (SO302000) form.
4. On the form toolbar, click Confirm Shipment to confirm the receipt of the returned items.

Now you can process the shipping of the items replacement to the customer.

Step 4: Shipping the Replacement Items

To process the shipping of the items replacement to the customer, do the following:
1. Open the RR order that you have prepared on the Sales Orders (SO301000) form and review it. On the
Details tab, notice that the line with the replacement item has been added automatically when you
confirmed the receipt of the returned items. The line has the same inventory item, quantity, and unit price
as the item that had been returned. The line has the Issue operation.
2. On the form toolbar, click Create Shipment to create a shipment of the replacement item to the customer.
3. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected in the
Shipment Date box and WHOLESALE is specified in the Warehouse ID box. Click OK. Wait for the system
to complete the operation. The system opens the prepared shipment with the Issue operation on the
Shipments form.
 Processing Customer Returns for Replacement | 205

4. On the Details tab, in the only line, specify Main in the Location column.
5. On the form toolbar, click Confirm Shipment.

The replacement item has the same price and quantity, so no invoice to the customer is required. To record the
movement of items and complete the process, you need to update the inventory.

Step 5: Updating Inventory

To update the inventory, do the following:
1. Open the Process Shipments (SO503000) form.
2. In the Action box, select Update IN.
3. In the End Date box, specify 1/30/2023.
4. In the table, select the unlabeled check boxes next to the lines with two confirmed shipments to the
GOODFOOD customer that you have prepared earlier in this activity.
5. On the form toolbar, click Process. The Processing dialog box opens. Wait for the system to complete
the operation. Close the dialog box. The table no longer lists any lines with shipments. For the selected
shipment lines, the system generates two inventory issues: an issue with the Return transaction type for the
receipt, and an issue with the Issue transaction type for the shipment of the replacement item.
6. Open the order of the RR type that you have prepared on the Sales Orders (SO301000) form and review the
return order. The return order now has the Completed status, as you can see in the following screenshot.
On the Shipments tab, make sure that the reference numbers of both the receipt and the shipment are
shown in the Inventory Ref. Nbr. column (also shown in the following screenshot), which indicates that the
corresponding inventory documents have been generated.

Figure: Return order processed to completion

7. Click the link in the Inventory Ref Nbr. column in the first line. On the Issues (IN302000) form, which opens
in a pop-up window, make sure that the issue has the Released status. Close the issue.
8. Click the link in the Inventory Ref Nbr. column in the second line. On the Issues form, which opens in a pop-
up window, make sure that the issue has the Released status. Close the issue.

The customer return with replacement is now complete.

Activity Recap
In this activity, we have illustrated how the sales manager has done the following:
 Processing Customer Returns for Replacement | 206

1. Created a return order of the RR type and has added the items the customer is returning
2. Created and confirmed a shipment with the Receipt operation type
3. Created and confirmed a shipment of the replacement items to the customer
4. Updated the inventory to reflect the movement of received and issued items

Returns for Replacement: Mass-Processing of Documents

The following sections explain how to mass-process documents related to the processing of customer returns with
replacement, and how the system generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Shipments
You can create multiple shipments on the Process Orders (SO501000) form by selecting the Create Shipment action,
selecting the unlabeled check box in the return order lines to be processed (which could include both return
and replacement lines from the return order or orders you were working with, as well as lines of any other order
requiring shipping), and click Process on the form toolbar to generate the shipments.

Mass-Printing Pick Lists

For multiple shipments that have the On Hold or Open status, you can mass-print pick lists by using the Process
Shipments (SO503000) form. On this form, you select the Print Pick List action, select the unlabeled check boxes in
the rows of the shipments for which you need to print pick lists, and click Process on the form toolbar.

Mass-Confirming Shipments
Shipments can be confirmed in bulk. To confirm multiple incoming and outgoing shipments at a time, you open the
Process Shipments (SO503000) form and select the Confirm Shipment action. Then you select the unlabeled check
boxes in the rows of the shipments to be processed, and click Process on the form toolbar. The system confirms the
selected shipment documents.

Mass-Updating Inventory
To reflect the replacement of the items in inventory for multiple return orders at a time, you can use the Process
Shipments (SO503000) form. On this form, you select the Update IN action, select the unlabeled check boxes in the
rows of the confirmed shipments for which you need to update inventory, and click Process on the form toolbar.
 Processing Returns for Credit Without Receipt | 207

Processing Returns for Credit Without Receipt

Acumatica ERP gives you the flexibility to manage various types of customer returns. Depending on your company's
return policies, you may need to perform a return for credit when shipping of returned items to inventory is not
needed. This topic describes the processing steps you need to perform, and the transactions generated during
these steps.
To process an unauthorized return without receipt and shipment, you can use a credit memo (CM) order. The
processing of a return for credit involves the actions and generated documents shown in the following diagram.

The following sections describe in detail the processing steps shown in the diagram.
 Processing Returns for Credit Without Receipt | 208

1. Enter the Credit Memo Order

You create a new credit memo order on the Sales Orders (SO301000) form. A reference number for the new return
order is generated according to the numbering sequence assigned to this order type on the Order Types (SO201000)
form. If the order is created with the On Hold status, you should click Remove Hold on the form toolbar to process
the order further.

2. Link the Original Invoice Line to the Order

Each line in the order of the CM order type can include a reference to the original invoice for which the return is
performed. To add an item to be returned and include a link to original invoice, on the Sales Orders (SO301000)
form, you can click Add Invoice on the table toolbar of the Details tab and select the line of the needed invoice in
the Add Invoice Details dialog box (which opens).

You can also add a stock item to be returned without linking it to an invoice. To do this, click Add
Items on the table toolbar of the Details tab, and select the item in the Inventory Lookup dialog box
(which opens).

3. Prepare the Sales Orders Invoice

You can prepare the sales orders (SO) invoice by clicking Prepare Invoice on the More menu of the Sales Orders
(SO301000) form, or you can create any number of invoices by selecting the Prepare Invoice action and processing
multiple orders on the Process Orders (SO501000) form.
The prepared document or documents of the Credit Memo type can be reviewed on the Invoices (SO303000) form.
You can print an SO invoice by clicking Reports > Print Invoice on the form toolbar of this form.

4. Release the Sales Orders Invoice

For the credit memo order, the released SO invoice acts as a shipment does: On release of the invoice, the system
updates the Qty. on Shipments value in the order lines based on the quantity specified in the credit memo lines,
and inserts the reference number of the SO credit memo on the Shipments tab of the Sales Orders (SO301000)
form.
When the SO invoice is released, a batch of GL transactions is generated, and the system automatically generates
an inventory issue with the Credit Memo transaction type that adds the returned item to inventory. Also, a
corresponding AR credit memo is generated and becomes available for review on the Invoices and Memos
(AR301000) form.

5. Release the Inventory Issue

The generated inventory issue is released automatically if the Automatically Release IN Documents check box
is selected on the Sales Orders Preferences (SO101000) form. If this check box is cleared, you have to release the
inventory issue manually by clicking Release on the form toolbar of the Issues (IN302000) form. On release of the
inventory issue, a batch of GL transactions is generated.

To finish the return process, you need to process the AR credit memo to completion. You can apply
the credit memo to the original invoice, or process the customer refund if the original invoice was
already paid. For details on credit memo application, see AR Invoice Correction: To Create a Credit
Memo. For details on the processing of a customer refund, see Customer Refunds: To Create a
Customer Refund and Apply a Credit Memo to It.
 Processing Returns for Credit Without Receipt | 209

Related Links
• CM Order Type (Credit Memo)
• To Process a Credit Memo Order (CM)
• Customer Refunds: To Create a Customer Refund and Apply a Credit Memo to It

To Create a Credit Memo Order (CM)

To credit a customer for returned goods without shipping items, you enter a credit memo order (that is, an order of
the CM order type) by using the Sales Orders (SO301000) form.

To Enter a Credit Memo Order

1. Open the Sales Orders (SO301000) form.
2. In the Summary area, select CM as the order type.
3. Select the customer in the Customer box.
4. Check the location of the customer in the order, and change it if needed.
5. Check the currency and the currency exchange rate on the corresponding document from the customer, and
change these in the order if needed.
6. Notice the non-project code that is shown in the Project box; if this order is associated with a particular
project, select the project.
7. Check the date of the order, and change it if needed.
8. In the Requested on box, specify the date of the customer document.
9. In the Description box, provide a brief description of this credit memo order.
10.On the Details tab, add all the invoices that list the items that have been returned. For each invoice, click
Add Invoice on the table toolbar and perform the following steps:
a. In the Reference Nbr. box of the Add Invoice Details dialog box, which opens, select the customer
invoice by its identifier.
b. Once the line or lines of the selected document appear in the table, select the unlabeled check box to the
le of each line with an item to be returned.
c. Click the Add & Close button to add the selected lines to the order (on the Details tab) and close the
dialog box.
d. Click Save on the form toolbar.
11.Optional: To add other items that will be returned, perform the following steps for each item:
a. On the Details tab, click Add Items on the table toolbar. The Inventory Lookup dialog box appears with
a list of active inventory items.
b. In the dialog box, to find the item by a string in its inventory ID or description, type this string in the
Inventory box.
c. To further narrow the list to a particular subitem of the item (if subitems are used in your system), select
it in the Subitem box.
d. In the resulting list of items, select the unlabeled check box in the row of the item you want to add, and in
the Qty. Selected column, specify the quantity of the item to be returned (measured in the sales unit of
measure shown in the Sales Unit column).
e. Click the Add & Close button, which adds the items and closes the dialog box.
f. Click Save on the form toolbar.
12.On the form toolbar, click Remove Hold.
 Processing Returns for Credit Without Receipt | 210

13.On the form toolbar, click Save.

To view and add particular stock items of non-stock kits in the Inventory Lookup dialog box, select
the Show Non-Stock Kits by Components check box.

To Process a Credit Memo Order (CM)

To credit a customer for returned goods without shipping items, you process a credit memo order (that is, an order
of the CM order type) by using the Sales Orders (SO301000) form.

To Process a Credit Memo Order

1. Open the Sales Orders (SO301000) form.
2. In the Summary area, select the credit memo order to be processed by specifying its type (CM) and reference
number.
3. On the More menu, click Prepare Invoice.
This generates a credit memo with the returned items listed. The system opens the Invoices (SO303000)
form to display the new document.
4. On this form, release the credit memo by clicking Release on the form toolbar.
This creates an issue transaction of the Credit Memo type in the Inventory module. Once you release the
credit memo, the original CM order is assigned the Completed status.

Related Links
• To Process a Credit Memo Order (CM)
 Processing Returns for Cash | 211

Processing Returns for Cash

Acumatica ERP gives you the flexibility to manage various types of customer returns. Depending on your company's
return policies, you may need to perform a return of an inventory item for cash. This topic describes the processing
steps you need to perform and the transactions generated during these steps.
To process a return for cash, you can use a return order for cash (that is, an order with the CR predefined order
type). The processing of a return for cash involves the actions and generated documents shown in the following
diagram.

The following sections describe in detail the processing steps shown in the diagram.
 Processing Returns for Cash | 212

1. Enter the Return Order for Cash

You create a new return order for cash on the Sales Orders (SO301000) form. A reference number for the new return
order for cash is generated according to the numbering sequence assigned to this order type on the Order Types
(SO201000) form. If the order is created with the On Hold status, you should click Remove Hold on the form toolbar
to process the order further.

2. Link the Original Invoice Line to the Order

Each line in the order of the CR order type can include a link to the original invoice for which the return is
performed. To add an item to be returned with a link to the original invoice, on the Sales Orders (SO301000) form,
you can click Add Invoice on the table toolbar of the Details tab and select the line of the needed invoice in the
Add Invoice Details dialog box (which opens). If an item to be returned has a specific lot or serial number, you
should select this particular item from the list of invoice lines.

You can also add a stock item to be returned without linking it to an invoice. To do this, click Add
Items on the table toolbar of the Details tab, and select an item in the Inventory Lookup dialog box
(which opens).

In each line added on the Details tab for an order of the CR type, you must specify a reason code. Also, the payment
information on the Payment Settings tab is required for the cash return.

3. Prepare the Sales Orders Invoice

You can prepare the sales orders (SO) invoice by clicking Prepare Invoice on the More menu of the Sales Orders
(SO301000) form, or you can create multiple invoices by selecting the Prepare Invoice action and performing this
action for multiple orders on the Process Orders (SO501000) form.
The prepared document or documents of the Cash Return type can be reviewed on the Invoices (SO303000) form.
You can print an SO invoice by clicking Reports > Print Invoice on the form toolbar of the Invoices (SO303000)
form.

4. Release the Sales Orders Invoice

When the SO invoice of the Cash Return type is released, the system automatically generates an inventory issue
with the Credit Memo transaction type that adds the returned item to inventory; you can review the generated issue
on the Issues (IN302000) form. Also, the related AR cash return with the same reference number becomes available
for reviewing on the Cash Sales (AR304000) form. The document updates the appropriate sales and cash accounts.

5. Release the Inventory Issue

The generated inventory issue is released automatically if the Automatically Release IN Documents check box is
selected on the Sales Orders Preferences form. If this check box is cleared, you have to release the inventory issue
manually by clicking Release on the form toolbar of the Issues (IN302000) form. On release of the inventory issue, a
batch of GL transactions is generated.

To Create a Cash Return Order (CR)

To process a return of items that were sold on a cash sale, you create a cash return order (that is, an order of the CR
order type) by using the Sales Orders (SO301000) form.
 Processing Returns for Cash | 213

To Create a Cash Return Order

1. Open the Sales Orders (SO301000) form.
2. In the Summary area, select CR as the order type.
3. Select the customer in the Customer box.
4. Check the location of the customer in the order, and change it if needed.
5. Check the currency and the currency exchange rate on the corresponding document from the customer, and
change these in the order if needed.
6. Notice the non-project code that is shown in the Project box; if this order is associated with a particular
project, select the project.
7. Check the date of the order, and change it if needed.
8. In the Requested on box, specify the date of the customer document.
9. In the Description box, provide a brief description of this return order.
10.To specify the items to be returned, you can either add items or add original documents. To add the items to
be returned, go to Step 12. If the items to be returned were listed on cash sales documents, on the Details
tab, add the original cash sales document. To do this, click Add Invoice on the table toolbar and perform
the following steps for each returned item:
a. In the Type box of the Add Invoice Details dialog box, which opens, select Cash Sales.
b. In the Reference Nbr. box, select the customer document by its identifier.
c. Once the line or lines of the selected invoice appear in the table, select the unlabeled check boxes to the
le of each line with an item that is being returned.

To view and add particular stock items of non-stock kits, select the Show Non-Stock Kits
by Components check box.

d. Click the Add & Close button to add selected lines to the order and close the dialog box.
e. On the Details tab, specify the Reason Code for the return in each added line.
f. Click Save on the form toolbar.
11.To add the items that will be returned and that were paid by one payment, perform the following steps for
each item:
a. On the Details tab, click Add Items on the table toolbar. The Inventory Lookup dialog box appears with
a list of active inventory items.
b. In the dialog box, to find the item by a string in its inventory ID or description, type this string in the
Inventory box.
c. To further narrow the list to a particular subitem of the item (if subitems are used in your system), select
it in the Subitem box.
d. In the resulting list of items, select an unlabeled check box in the row of the item you want to add, and
in the Qty. Selected column, specify the requested quantity of the item (measured in the default unit of
measure shown in the UOM column).
e. Click the Add & Close button, which closes the dialog box.
f. In the row on the Details tab with the item you added, specify the Reason Code for the return.
g. Click Save on the form toolbar.
12.In the Payment Ref. box on the Payments tab, type the payment reference number.
13.On the form toolbar, click Remove Hold.
 Processing Returns for Cash | 214

14.On the form toolbar, click Save.

To Process a Cash Return Order (CR)

To record a return of items that were sold in a cash sale, you process a cash return order (that is, an order of the CR
order type) by using the Sales Orders (SO301000) form.

To Process a Cash Return Order

1. Open the Sales Orders (SO301000) form.
2. In the Summary area, select the order by specifying its type (CR) and reference number.
3. On the More menu, click Prepare Invoice.
This generates a cash return document with the returned items listed. The system opens the Invoices
(SO303000) form to display the new document.
4. On the More menu of the opened form, select Release to release the cash return document.
The system updates the availability data by creating an inventory transaction of the Credit Memo type, and
generates a cash transaction of the Cash Return type. Once you release the cash return, the original CR order
is assigned the Completed status.
 Processing Returns with Replacement at Another Price | 215

Processing Returns with Replacement at Another Price

Acumatica ERP gives you the flexibility to manage various types of customer returns. Depending on your company's
return policies, you may need to perform a merchandise authorization return of an inventory item for possible
credit and replacement. For this purpose, you an use a merchandise authorization return order, and you can send
the customer a printed or electronic copy of it along with the goods to be returned. Once the goods are received
by your organization, they are returned to inventory, and the customer receives other goods instead. For this type
of return order, different items than those returned may be included for replacement, freight and shipping and
handling charges may be included, and the items could be returned at higher or lower prices.
To process a merchandise authorization return, you can use a return order of the RM predefined order type. The
processing of a RM order (further in this topic referred to as a return order) involves the actions and generated
documents shown in the following diagram.

The following sections describe in detail the processing steps shown in the diagram.

1. Enter the Merchandise Return Order

You create a new return order of the RM order type on the Sales Orders (SO301000) form. A reference number for
the new return order is generated according to the numbering sequence assigned to this order type on the Order
 Processing Returns with Replacement at Another Price | 216

Types (SO201000) form. If the order is created with the On Hold status, you should click Remove Hold on the form
toolbar to process the order further.

2. Link the Original Invoice Line to the Order

Each return line in an order of the RM order type could include a reference to the original invoice for which the
return is performed. To add an item to be returned and include a link to the original invoice, on the Sales Orders
(SO301000) form, you can click Add Invoice on the table toolbar of the Details tab and select the line of the needed
invoice in the Add Invoice Details dialog box (which opens).

You can also add a stock item to be returned without linking it to an invoice. To do this, click Add
Items on the table toolbar of the Details tab, and select the item in the Inventory Lookup dialog box
(which opens).

An added return line (whether or not it is linked to an invoice) has the Receipt operation specified in the Operation
column. Aer you have added the Receipt lines, make sure that the Auto-Create Issue check box is cleared in these
lines (because you need to add replacement items and specify their details manually).

3. Add a Line with the Item for Replacement

Each line with the Receipt transaction type in an RM order should have a corresponding line with the Issue
operation type for a replacement item. You need to add a line of the Issue type for the replacement lines manually.
Alternatively, if the returned item is not tracked by serial or lot numbers, and the item price wasn't changed
between the original sale and return, you can select the Auto-Create Issue check box for the line; on shipment
confirmation, the system will add the corresponding lines of the Issue type automatically and copy the line details
from the lines of the Receipt type.

4a–4b. Process the Return and the Replacement

To complete the order, you need to process the receipt of the returned item and the shipment of the replacement
item. You can process the return and replacement in any order on its own, or you can process multiple returns and
replacements simultaneously on mass-processing forms. You perform the following general steps for processing:
1. Prepare the receipt (for return) and the shipment (for replacement) by doing the following:
• You prepare the receipt (that is, the incoming shipment with the Receipt operation type) by clicking
Create Receipt on the More menu of the Sales Orders(SO301000) form.
• You prepare the outgoing shipment with the Issue operation type by clicking Create Shipment on the
form toolbar of the Sales Orders form.
The prepared shipment can be reviewed on the Shipments (SO302000) form.
Alternatively, you can use the Process Orders (SO501000) form to create both incoming and outgoing
shipments for one order or multiple orders. To do this, you select the Create Shipment action, select the
needed orders, and click Process on the form toolbar.
2. Confirm the receipt and the shipment.
You can confirm a particular receipt or shipment by clicking Confirm Shipment on the form toolbar of the
Shipments form; to confirm multiple shipments, you can select the Confirm Shipment action, select the
needed shipments, and click Process on the form toolbar of the Process Shipments (SO503000) form.
3. Prepare the SO invoices.
You prepare the Sales Orders invoice for a particular receipt or shipment by clicking Prepare Invoice on the
More menu on the Shipments form, or you can create invoices by processing the Prepare Invoice action for
multiple selected shipments on the Process Shipments form.
 Processing Returns with Replacement at Another Price | 217

The prepared document or documents can be reviewed on the Invoices (SO303000) form. For the return,
the system generates an SO invoice of the Credit Memo type; for the shipment, the system generates an SO
invoice of the Invoice type.
You can print an SO invoice by clicking Reports > Print Invoice on the form toolbar of the Invoices form.
4. Release the SO invoices.
When the SO invoices are released, the system automatically generates two inventory issues: one with the
Return transaction type for the return, and one with the Issue transaction type for replacement. Also, the
related AR credit memo and invoice with the same reference numbers become available for reviewing on
the Invoices and Memos (AR301000) form.
Once you release the SO invoices, the original RM order is assigned the Completed status.
5. Release the generated inventory issues.
The generated inventory issues are released automatically if the Automatically Release IN Documents
check box is selected on the Sales Orders Preferences (SO101000) form. If this check box is cleared, you have
to release each inventory issue manually by clicking Release on the form toolbar of the Issues (IN302000)
form. On release of each inventory issue, a batch of GL transactions is generated.

Related Links
• To Process a Merchandise Authorization Return Order (RM)

To Create a Merchandise Authorization Return Order (RM)

On the Sales Orders (SO301000) form, you can create a merchandise authorized return—an order document of
the RM order type—when a customer wants to replace any returned item with an item with a higher price, or when
shipping and handling fees are charged for returns.

To Create an Authorized Return Order

1. Open the Sales Orders (SO301000) form.
2. In the Summary area of the form, select RM as the order type.
3. Select the customer in the Customer box.
4. Check the location of the customer in the order, and change it if needed.
5. Check the currency and the currency exchange rate on the corresponding document from the customer, and
change these in the order if needed.
6. Notice the non-project code that is shown in the Project box; if this order is associated with a particular
project, select the project.
7. Check the date of the order, and change it if needed.
8. In the Requested on box, specify the date of the customer document.
9. In the Description box, provide a brief description of this return order.
10.On the Details tab, add all the invoices that list the items to be returned. For each invoice, click Add Invoice
on the table toolbar and perform the following steps:
a. In the Reference Nbr. box of the Add Invoice Details dialog box, which opens, select the customer
invoice by its identifier.
b. Once the line or lines of the selected invoice appear in the table, select the unlabeled check boxes to the
le of each line with an item that is being returned.
 Processing Returns with Replacement at Another Price | 218

To view and add particular stock items of non-stock kits, select the Show Non-Stock Kits
by Components check box.

c. Click the Add & Close button to add the selected lines to the order (on the Details tab) and close the
dialog box.
d. For each added line, in the Operation column, make sure that Receipt is selected.
e. In the Summary area, notice the warning indicated by a red circle at the Order Total box. Point to the
mark to read the warning: Document balance will go negative. Document will not be released.

Until you add a replacement line (of the Issue type) or multiple lines of this type to make
the order balance positive, you can save the document only with the On Hold status.

f. If the status of the document is other than On Hold, on the form toolbar, click Hold.
g. On the form toolbar, click Save.
11.Optional: To add other items that will be returned, perform the following steps for each item:
a. On the Details tab, click Add Items on the table toolbar.
The Inventory Lookup dialog box appears with a list of active inventory items.
b. In the dialog box, to find the item by a string in its inventory ID or description, type this string in the
Inventory box.
c. To further narrow the list to a particular subitem of the item (if subitems are used in your system), select
it in the Subitem box.
d. In the resulting list of items, select the unlabeled check box in the row with the item you want to add,
and in the Qty. Selected column, specify the requested quantity of the item (measured in the default
unit of measure shown in the UOM column).
e. Click the Add & Close button, which closes the dialog box.
f. In the Operation column of the added table row, make sure that Receipt is selected.
g. Click Save on the form toolbar.
12.On the Details tab, do the following for each row (with the Issue operation) you want to add for a
replacement item:
a. Click Add Items on the table toolbar. The Inventory Lookup dialog box appears with a list of active
inventory items.
b. In the dialog box, type the inventory ID of the item in the Inventory box.
c. Type its subitem (if subitems are used in your system) in the Subitem box.
d. In the resulting list of items, select the unlabeled check box in the row with the item, and in the Qty.
Selected column, specify the quantity of the replacement item.
13.Click the Add & Close button, which closes the dialog box.
14.Click Save on the form toolbar.
15.Optional: Add a line (with the Issue operation) for a refund as follows:
a. In the Inventory box, select the refund non-stock item.
b. Optional: In the Quantity column, specify the quantity of the item.
c. In the Extended Price column, type the refund amount.
d. Click the Add & Close button, which closes the dialog box.
e. Click Save on the form toolbar.
16.On the form toolbar, click Remove Hold.
 Processing Returns with Replacement at Another Price | 219

17.On the form toolbar, click Save.

When you create an order of the RM type, make sure that for each line with the Receipt transaction
type, the order has a line with Issue as the transaction type for a replacement item. You can add
these lines manually (at this point, you can select other items for replacement), or you can select the
Auto-Create Issue check box for each Receipt-type line (for items that are not tracked by serial or lot
numbers) to make the system add the lines of the Issue type automatically.

To Process a Merchandise Authorization Return Order (RM)

On the Sales Orders (SO301000) form, you can process an authorized return with additional charges. The
processing of an authorized return order includes two subprocedures, processing the receipt of returned items and
processing the shipment of replacement items, that can be performed in any order. Both of these subprocedures
are provided in this topic.

To Process the Receipt of Returned Items

1. Open the Sales Orders (SO301000) form.
2. In the Summary area, select the order by its type (RM) and reference number.
3. On the More menu, click Create Receipt to create a shipment (with the Receipt operation) that accounts for
the returned goods.
The system opens the Shipments (SO302000) form to display the new shipment with the Receipt operation
selected in the Summary area.
4. On the opened form, review the shipment details, on the form toolbar, click Remove Hold and then click
Save.
5. Click Confirm Shipment.
6. Click Prepare Invoice.
This generates a credit memo with the returned items listed. The system opens the Invoices (SO303000)
form to display the new document.
7. Optional: On the opened form, release the credit memo by clicking Release on the More menu. This creates
an issue transaction of the Credit Memo type in the Inventory module.

To Process the Issue of Replacement Items

1. Open the Sales Orders (SO301000) form by searching for or navigating to it.
2. In the Summary area, select the order by its type (RM) and reference number.
3. On the More menu, click Create Shipment to create a shipment (with the Issue operation) that accounts for
the replacement items.
The system opens the Shipments (SO302000) form to display the new shipment with the Issue operation
specified in the Summary area.
4. Optional: On the More menu of this form, to print a pick list for the selected replacement items, click Print
Pick List.
5. On the More menu, click Confirm Shipment.
6. Click Prepare Invoice to generate an Accounts Receivable invoice with the Balanced status. The system
assigns the original RM order the Invoiced status.
 Processing Returns with Replacement at Another Price | 220

Related Links
• Processing Returns with Replacement at Another Price
• RM Order Type (Merchandise Authorization Return)
 Processing Sales of Non-Stock Items with Shipping | 221

Processing Sales of Non-Stock Items with Shipping

If your company sells and ships items whose quantities are not tracked in inventory, these items can be defined as
non-stock items in Acumatica ERP. You can then process sales of these items by using sales orders of the SO type.

In Acumatica ERP, a sales order can contain stock items, non-stock items, or a mix of both types of
items. For simplicity, this chapter will focus on sales orders of the SO type that contain only non-stock
items that will be shipped.

The topics of this chapter explain how to process a sale of non-stock items with shipping, and which documents are
prepared during the processing of the sale.

Sales of Non-Stock Items with Shipping: General Information

Non-stock items in Acumatica ERP, which are defined on the Non-Stock Items (IN202000) form during
implementation, are used to represent products that cannot be stocked in warehouses (such as services or
charges) or physical entities whose quantities you do not need to track.
The following sections describe the sales process of non-stock items that are shipped to the customer.

Learning Objectives
In this chapter, you will learn how to do the following:
• Prepare a sales order for a sale of non-stock items with shipping
• Prepare the shipment for the sales order
• Prepare the invoice that corresponds to the sales order

Applicable Scenarios
You process a sales order with non-stock lines, and then create a shipment if a customer buys some goods that are
defined as non-stock items in the system, and the goods must be delivered to the customer's place.

Sales of Non-Stock Items with Shipping

The standard sales process with order management soware typically includes entering a sales order, processing
a shipment of the items, and preparing the related sales invoice for the customer. In Acumatica ERP, to begin
processing a sale that requires the items to be shipped before billing occurs, you enter a sales order of the SO type
on the Sales Orders (SO301000) form and add to the order the non-stock items the customer has requested.
Then you use the Shipments (SO302000) form to prepare and confirm the shipment or shipments related to the
sales order. When the shipment is confirmed, you need to bill the customer for the shipped items by preparing an
SO invoice, which is a financial document in the system that contains links to the applicable shipments and sales
orders. You can review the prepared SO invoice on the Invoices (SO303000) form; then you can release it. When
the SO invoice is released, the system releases a corresponding AR invoice, which you can view on the Invoices and
Memos (AR301000) form.

An AR invoice is a financial document that is similar to the SO invoice but does not contain the links to the
applicable shipments and sales orders. The system assigns the same reference number to the SO invoice and the
related AR invoice. Both of these documents contain the link to the batch of the general ledger transactions, which
was generated when the AR invoice was released. For more information on processing accounts receivable invoices,
see Processing AR Invoices.
 Processing Sales of Non-Stock Items with Shipping | 222

Workflow of Sales of Non-Stock Items with Shipping

If a sales order includes only non-stock items with shipment, the processing of the sales order involves the steps
and generated documents shown in the following diagram.
 Processing Sales of Non-Stock Items with Shipping | 223

Sales of Non-Stock Items with Shipping: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales of non-stock items with shipping, and to understand (and change, if needed) the settings that
affect the processing workflow.

Implementation Checklist
Before you begin processing sales of non-stock items with shipping, you should make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Criteria to Check

Sales Orders Preferences (SO101000) form Make sure that all necessary settings related to sales
orders have been specified, as described in Order Man-
agement Basic Configuration: General Information.

Enable/Disable Features (CS100000) form Make sure that the Inventory feature is enabled.

Order Types (SO201000) form Make sure that the SO order type is active and has
been configured, as described in Sales Order Types: To
Configure the SO Order Type.

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity.

Non-Stock Items (IN202000) form • Make sure that all non-stock items have been de-
fined in the system, as described in Creating Non-
Stock Items: Implementation Activity.
• Make sure that the Require Shipment check box is
selected for non-stock items that you plan to ship.

Other Settings That Affect the Workflow

You can affect the workflow of processing sales of non-stock items with shipping by specifying additional settings
as follows:
• To cause shipments to be created with the On Hold status (so that the user can verify them before
processing them further), select the Hold Shipments on Entry check box on the Sales Orders Preferences
(SO101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings have been configured correctly, we recommend that you process a sale of non-stock
items, as described in Sales of Non-Stock Items with Shipping: Process Activity.
 Processing Sales of Non-Stock Items with Shipping | 224

Sales of Non-Stock Items with Shipping: Process Activity

The following activity will walk you through the process of preparing and processing of a sales order for non-stock
items that need to be shipped to the customer's location.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the GoodFood One Restaurant customer has asked SweetLife to conduct a two-day training course on
home canning for the café's employees.
The materials to be used for the upcoming training on home canning (which are included in the price of the
training) need to be delivered to the customer's location before the course is conducted. You, as a sales manager,
need to reflect these details in the system by entering and processing the appropriate documents.

Configuration Overview
For the purposes of this activity, the following prerequisites actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
• On the Order Types (SO201000) form, the SO order type has been configured and activated.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been
configured.
• On the Non-Stock Items (IN202000) form, the OFLCOURSE (Home canning courses at customer's place) non-
stock item has been configured, and the Require Shipment check box has been selected for this item on the
General tab.

Process Overview
In this activity, you will create a sales order on the Sales Orders (SO301000) form, and then add a non-stock item
to it. Aer that, you will create a related shipment document on the Shipments (SO302000) form. On this form, you
will check the settings that the system has specified automatically, and then confirm the shipment. Aer shipment
confirmation, you will use the Invoices (SO303000) form to prepare an SO invoice to the customer and release it.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the norman login and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step 1: Entering a Sales Order

To create a sales order, do the following:
 Processing Sales of Non-Stock Items with Shipping | 225

1. On the Sales Orders (SO301000) form, add a new record.

2. In the Summary area, specify the following settings:
• Order Type: SO
• Customer: GOODFOOD
• Description: Home canning training
3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Inventory ID: OFLCOURSE
• Warehouse: WHOLESALE
• Quantity: 2
• Unit Price: 45
4. Save the order.

Now you need to create a shipment for the materials that need to be shipped in advance of the training.

Step 2: Creating a Shipment

To create the shipment related to the sales order, do the following:
1. While you are still viewing the sales order you have created on the Sales Orders (SO301000) form, on the
form toolbar, click Create Shipment.
2. In the Specify Shipment Parameters dialog box, which is opened, make sure that the today's business date
and the WHOLESALE warehouse are selected, and click OK.

The system closes the dialog box, creates a shipment and opens it on the Shipments (SO302000) form.

Step 3: Confirming the Shipment

To confirm the shipment, do the following:
1. While you are still viewing the shipment on the Shipments (SO302000) form, review the lines on the Details
tab, and make sure that the order line with the non-stock item has been included in the shipment.
2. On the form toolbar, click Confirm Shipment.

Notice that the shipment is assigned the Confirmed status. Now you can prepare the invoice to bill the customer
and increase the customer's debt in the system.

Step 4: Processing the Invoice

To prepare and release an SO invoice related to the sales order (and shipment), do the following:
1. While you are still viewing the shipment on the Shipments (SO302000) form, on the form toolbar, click
Prepare Invoice. The system prepares the invoice and opens it on the Invoices (SO303000) form.
2. On this form, review the details of the prepared invoice. The invoice has one line on the Details tab, as the
initial sales order does. In the Shipment Nbr. and Order Nbr. columns of this tab, the system has inserted
the reference numbers of the related shipment and sales order (which you created in Steps 1 and 2 of
this activity); these numbers are also links that you can click to view the shipment and sales order on the
appropriate forms.
3. On the form toolbar, click Release to release the SO invoice. The invoice is assigned the Open status.
4. On the Details tab, in the only row, click the link in the Order Nbr. column to view the associated sales
order.
 Processing Sales of Non-Stock Items with Shipping | 226

5. On the form, which opens, review the details of the sales order, as shown in the following screenshot. Notice
that the sales order has the Completed status, which the system assigned on release of the SO invoice and
which means that the processing of the sale is completed.

Figure: Sales order completed on release of the SO invoice

Sales of Non-Stock Items with Shipping: Generated Transactions

To be able to process a sale of non-stock items, you create and process a sales order. The following sections
describe the GL transactions generated during the processing of the documents for a sale of non-stock items.

Sales orders of the SO type and shipment documents do not produce any GL transactions.

Transactions Generated for an SO Invoice

When you create and release an SO invoice with one line with a non-stock item, the system generates the following
general ledger transactions.

Account Source of Account Debit Credit

Accounts Receivable Customer Amount 0.00

account

Sales account Depends on the settings of the 0.00 Amount

order type on the Order Types
(SO201000) form

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.
 Processing Sales of Non-Stock Items with Shipping | 227

Sales of Non-Stock Items with Shipping: Related Reports and Forms

In the following sections, you can find details about ways to gather information about sales of non-stock items that
have been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Shipments Related to a Sales Order

If you need to find a shipment that is linked to a particular sales order and review it, you can do this by opening the
sales order on the Sales Orders (SO301010) form and reviewing the Shipments tab, which lists all the shipments
that have been prepared for the order. To review the details of a listed shipment, you click its reference number in
the Document Nbr. column; the system opens the shipment for review on the Shipments (SO302000) form.

Tracking the Status of Order Fulfillment

To track how a sales order is being fulfilled, you can check its status in the Summary area of the Sales Orders form.
On the Totals tab of this form, you can also check the quantities and amounts that are not yet shipped and not yet
billed, and the amount that is not yet paid.

Printing Pick Lists

To prepare a printable pick list for a shipment document that is being processed, you use the Pick List (SO644000)
report. While you are viewing a shipment on the Shipments (SO302000) form, you can navigate to this report for the
selected shipment by clicking Print Pick List on the More menu. The system opens the printable pick list on the
Pick List report; then you can review the pick list and print it by clicking Print on the report toolbar.

Printing Invoices
To prepare a printable form of the SO invoice that is being processed, you use the Invoice & Memo (SO643000)
report. While you are viewing an SO invoice on the Invoices (SO303000) form, you can navigate to this report by
clicking Print Invoice on the More menu. The system opens the printable version of the SO invoice on the Invoice &
Memo report; then you can review the SO invoice and print it by clicking Print on the report toolbar.

Sales of Non-Stock Items with Shipping: Mass-Processing of Documents

The following sections explain how to process multiple sales orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Shipments
Shipments can be mass-generated for sales orders. To generate shipments for multiple sales orders at a time, you
open the Process Orders (SO501000) form and select the Create Shipment action. Then you select the unlabeled
check boxes in the rows of the orders to be processed, and click Process on the form toolbar. The system prepares
shipment documents for the selected sales orders.
 Processing Sales of Non-Stock Items with Shipping | 228

Mass-Confirming Shipments
Shipments can be confirmed in bulk. To confirm multiple shipments at a time, you open the Process Shipments
(SO503000) form and select the Confirm Shipment action. Then you select the unlabeled check boxes in the rows of
the shipments to be processed, and click Process on the form toolbar. The system confirms the selected shipment
documents.

Mass-Creating Invoices
SO invoices can be mass-generated for sales orders or for the shipments that correspond to sales orders. To
prepare multiple SO invoices for sales orders, you open the Process Orders (SO501000) form. To prepare multiple
invoices for shipments, you open the Process Shipments (SO503000) form. On either form, you select the Prepare
Invoice action, select the unlabeled check boxes in the rows of the sales orders or shipments to be processed, and
click Process on the form toolbar. The system prepares invoices for the selected documents.

Mass-Printing Pick Lists

For multiple shipments with the On Hold or Open status, you can mass-print pick lists by using the Process
Shipments (SO503000) form. On this form, you select the Print Pick List action, select the unlabeled check boxes in
the rows of the shipments for which you need to print pick lists, and click Process on the form toolbar.

Mass-Printing Invoices
You can print multiple SO invoices at a time by using the Process Invoices and Memos (SO505000) form. On this
form, you select the Print Invoice action, select the unlabeled check boxes in the rows of the SO invoices to be
printed, and click Process on the form toolbar.
 Processing Sales of Services | 229

Processing Sales of Services

If your company sells services, these services can be defined as non-stock items in Acumatica ERP. You can then
process sales of services by using sales orders of the SO or IN type.

In Acumatica ERP, a sales order can contain stock items, non-stock items (including services), or a mix
of both types of items. For simplicity, this chapter will focus on sales orders that contain only non-
stock items that are services.

The topics of this chapter explain how to process a sale of services, and which documents are prepared during the
processing of the sale.

Sales of Services: General Information

Non-stock items in Acumatica ERP, which are defined on the Non-Stock Items (IN202000) form during
implementation, are used to represent the products that cannot be stocked in warehouses (such as services or
charges) or physical entities whose quantities you do not need to track.
The following sections describe the sales process of non-stock items that represent services.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will do the following:
• Create a sales order for a sale of services
• Prepare the invoice that corresponds to the sales order

Applicable Scenarios
You process a sales order with a service line or multiple service lines if you need to track this sale (and then bill the
customer for the provided services), which does not involve a shipment being processed in the system.

Sales of Services
Although you could record the billing for a sale of services directly in the system by using an AR invoice, by entering
sales orders for all sales, you implement a single entry point for the processing and tracking of sales, including the
sales of services. For a sale of services, you start with entering a sales order of the SO or IN type on the Sales Orders
(SO301000) form and add to the order the non-stock item or items representing the needed services.
Aer you have entered the sales order, you need to bill the customer for the sold services by preparing an SO
invoice, which is a financial document in the system that contains links to the applicable sales orders. You can
review the prepared SO invoice on the Invoices (SO303000) form; then you can release it. When the SO invoice
is released, the system releases the corresponding AR invoice, which you can view on the Invoices and Memos
(AR301000) form.
An AR invoice is a financial document that is similar to the SO invoice but does not contain the links to the other
applicable documents. The system assigns the same reference number to the SO invoice and the related AR
invoice. Both of these documents contain the link to the batch of the general ledger transactions, which was
generated when the AR invoice was released. For more information on processing accounts receivable invoices, see
Processing AR Invoices.
 Processing Sales of Services | 230

Workflow of Sales of Services

If a sales order includes only services that do not involve shipping, the typical processing of the sales order involves
the steps and generated documents shown in the following diagram.

Sales of Services: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales of services, and to understand (and change, if needed) the settings that affect the processing
workflow.
 Processing Sales of Services | 231

Implementation Checklist
Before you begin processing sales of services, you should make sure the needed features have been enabled,
settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Sales Orders Preferences (SO101000) form Make sure that all necessary settings related to sales
orders have been specified, as described in Order Man-
agement Basic Configuration: General Information.

Order Types (SO201000) form Make sure that the SO or IN order type is active and has
been configured, as described in Sales Order Types: To
Configure the SO Order Type. (If needed, you can set up
and activate both of these order types.)

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity.

Non-Stock Items (IN202000) form Make sure that all non-stock items have been defined
in the system, as described in Creating Non-Stock
Items: Implementation Activity.

Other Settings That Affect the Workflow

To cause general ledger batches generated during the processing of sales documents to be posted automatically,
select the Automatically Post on Release check box on the General Ledger Preferences (GL102000) form. For
information on processing general ledger batches, see GL Transactions: General Information.

Testing of Settings
To make sure that all settings have been configured correctly, we recommend that you process a sale of stock
items, as described in Sales of Services: Process Activity.

Sales of Services: Process Activity

The following activity will walk you through the process of preparing and processing of a sales order for non-stock
items that represent services and thus do not need to be shipped to the customer's location.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the GoodFood One Restaurant manager has ordered a three-day training course on home canning for
the restaurant's employees. The online course is a service, so no shipping needs to occur. You, as a sales manager,
need to reflect these details in the system by entering and processing the appropriate documents.
 Processing Sales of Services | 232

Configuration Overview
For the purposes of this activity, the following prerequisites actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory and Order Management feature has been
enabled.
• On the Order Types (SO201000) form, the SO order type have been configured and activated.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been
configured.
• On the Non-Stock Items (IN202000) form, the ONLCOURSE (Home canning courses online (website session)
non-stock item has been configured.

Configuration Overview
For the purposes of this activity, the following prerequisites actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory and Order Management feature has been
enabled.
• On the Order Types (SO201000) form, the SO order type have been configured and activated.
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been
configured.
• On the Non-Stock Items (IN202000) form, the ONLCOURSE (Home canning courses online (website session)
non-stock item has been configured.

Process Overview
In this activity, you will create a sales order on the Sales Orders (SO301000) form, and then add a service line to it.
Aer that, you will use the Invoices (SO303000) form to prepare a related invoice to the customer and release it.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the norman login and the 123 password.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the norman login and the 123 password.
3. Sign in to the Ord2Cash tenant as a sales and purchasing manager by using the norman username and the
provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step 1: Entering a Sales Order

To create a sales order, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Order Type: SO
• Customer: GOODFOOD
 Processing Sales of Services | 233

• Description: Home canning training

3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Inventory ID: ONLCOURSE
• Quantity: 3
• Unit Price: 14.5
4. Save the order, and notice that it has the Open status.

Step 2: Processing the SO Invoice

To prepare and release the SO invoice that is related to the sales order, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu, click
Prepare Invoice. The system prepares an SO invoice and opens it on the Invoices (SO303000) form.
2. On this form, review the details of the prepared invoice. The invoice has one line on the Details tab, as the
initial sales order does. In the Order Nbr. column of this tab, the system has inserted the reference number
of the related sales order; this number is also a link you can click to view the document on the Sales Orders
form. Notice that the Shipment Nbr. column of the Details tab has no number.
3. On the form toolbar, click Release to release the invoice. The invoice is assigned the Open status. Once
released, the invoice becomes available on the Invoices and Memos (AR301000) form.
4. On the Details tab, in the only row, click the link in the Order Nbr. column to view the associated sales
order.
5. On the Sales Orders (SO301000) form, which opens, review the details of the sales order, as shown in the
following screenshot. Notice that the sales order has the Completed status, which the system assigned on
release of the SO invoice and which means that the processing of the sale is completed.

Figure: Sales order completed on release of the invoice

Sales of Services: Generated Transactions

To be able to process a sale of non-stock items, you create and process a sales order. The following sections
describe the GL transactions generated during the processing of the documents for a sale of non-stock items.

Sales orders of the SO type do not produce any GL transactions.

 Processing Sales of Services | 234

Transactions Generated for an SO Invoice

When you create and release an SO invoice with one line with a non-stock item that doesn't require shipping, the
system generates the following general ledger transactions.

Account Source of Account Debit Credit

Accounts Receivable Customer Amount 0.00

account

Sales account Depends on the settings of the 0.00 Amount

order type on the Order Types
(SO201000) form

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Sales of Services: Related Report

In the following sections, you can find details about ways to gather information about sales of services that have
been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Printing Invoices
To prepare a printable form of the invoice that is being processed, you use the Invoice & Memo (SO643000) report.
While you are viewing an SO invoice on the Invoices (SO303000) form, you can navigate to this report by clicking
Print Invoice on the More menu. The system opens the printable version of the invoice on the Invoice & Memo
report; then you can review the invoice and print it by clicking Print on the report toolbar.

Sales of Services: Mass-Processing of Documents

The following sections explain how to process multiple sales orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Invoices
Invoices can be mass-generated for sales orders or for the shipments that correspond to sales orders. To prepare
multiple invoices for sales orders, you open the Process Orders (SO501000) form. On either form, you select
the Prepare Invoice action, select the unlabeled check boxes in the rows of the sales orders or shipments to be
processed, and click Process on the form toolbar. The system prepares invoices for the selected documents.
 Processing Sales of Services | 235

Mass-Printing Invoices
You can print multiple SO invoices at a time by using the Process Invoices and Memos (SO505000) form. On this
form, you select the Print Invoice action, select the unlabeled check boxes in the rows of the invoices to be printed,
and click Process on the form toolbar.
 Processing Sales with Drop Shipping | 236

Processing Sales with Drop Shipping

In Acumatica ERP, you can add items to sales orders that will be drop-shipped from the vendor directly to the
customer. The topics of this chapter explain how to create and process sales orders whose goods are intended for
drop shipping.

Sales with Drop Shipping: General Information

In Acumatica ERP, you can create sales orders whose goods are intended for drop shipping. Drop shipping means
that a customer orders the goods from your company, pays your company for the order, and receives the goods
(which your company has ordered) directly from one of your vendors. With the Drop Shipments feature enabled on
the Enable/Disable Features (CS100000) form, you can mark particular goods for drop shipping and create drop-ship
orders for these goods.

Learning Objectives
In this chapter, you will do the following:
• Configure the processing of drop shipments in Acumatica ERP
• Mark items for drop shipment in a sales order
• Create a drop-ship purchase order for a sales order and process the drop shipment to completion
• Mass-process drop shipments
• Process the sales order and related purchase documents, inventory documents, and accounts payable
documents
• Find the information about documents related to drop shipment

Applicable Scenarios
You use drop shipment to fulfill a sales order with items that your company does not have in stock.

Drop Shipment Process

To process a sale with drop shipment, you create a sales order of the SO order type on the Sales Orders (SO301000)
form, and add the stock items ordered by the customer. You mark items for drop shipping by selecting the check
box in the Mark for PO column and selecting Drop-Ship in the PO Source column, which means that the items
will be ordered from the vendor and shipped directly to the customer. The system does not allocate stock items in
inventory based on the quantities of goods and the document amounts on sales orders for drop shipping.
When you mark items for drop shipping, the system creates purchase requests of the Drop-Ship plan type. You
create drop-ship purchase orders by processing Drop-Ship purchase requests on the Create Purchase Orders
(PO505000) form. Each drop-ship purchase order generated from purchase requests contains links to the related
sales order. The items from this purchase order are not shipped to the company's warehouse; rather, they are
shipped directly to the customer. Aer you have received confirmation that the customer has received the goods
from the vendor, you prepare and release the purchase receipt for the drop-ship purchase order. When you release
the purchase receipt (which functions as a shipment document for drop-ship lines of sales orders), the status of
the drop-ship purchase order is changed to Closed; the sales order is assigned the Completed status, and then you
prepare an SO invoice to the customer.
On release of a purchase receipt prepared for drop-ship purchase order, the system does not create an inventory
receipt, because the items are not received to inventory and are instead delivered directly to the customer. The
 Processing Sales with Drop Shipping | 237

quantities of stock items on completed drop-ship orders are not included in the quantities available at any
warehouse of your company.

Workflow of a Sale with Drop Shipment

For a sales order that includes stock items intended for drop shipping, the typical processing involves the actions
and generated documents shown in the following diagram.

Sales with Drop Shipping: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales for drop shipment, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
Before you initially process sales for drop shipment, you should make sure the needed features have been enabled,
settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Drop Shipments feature is enabled.

Sales Orders Preferences (SO101000) form, Purchase Make sure that all necessary settings related to sales
Orders Preferences (PO101000) form orders and purchase orders have been specified as de-
scribed in Configuration of Order Management: Imple-
mentation Activity.

Order Types (SO201000) form Make sure that the SO order type is active and has
been configured as described in Sales Order Types: To
Configure the SO Order Type.
 Processing Sales with Drop Shipping | 238

Form Criteria to Check

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: Implementation Activity.

Customers (AR303000) form Make sure that all needed customers have been con-
figured as described in Customers: Implementation Ac-
tivity.

Stock Items (IN202500) form Make sure that all stock items are configured as de-
scribed in Stock Item Creation: Implementation Activity.

Other Settings That Affect the Workflow

You can affect the processing workflow by specifying additional settings:
• To cause sales orders of a particular order type to be created with the On Hold status (so the user can verify
them before processing them further), select the Hold Documents on Entry check box for the order type
on the Order Types form. For more information on other order type settings affecting the workflow of sales
orders, see Sales Order Types: General Information.
• To cause the system to automatically create an accounts payable bill on release of a purchase receipt
by default, select the Create Bill on Receipt Release check box on the Purchase Orders Preferences
(PO101000) form. In this case, when a user creates a purchase receipt on the Purchase Receipts (PO302000)
form, the system automatically selects the Create Bill check box. (The user can clear this check box for a
particular bill.) For information on processing bills, see AP Bills: General Information.
• To cause the system to automatically post general ledger batches generated during the processing of sales
and purchase documents, select the Automatically Post on Release check box on the General Ledger
Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions:
General Information.

Validation of Settings
To make sure that all settings are configured correctly, process a sale with drop shipping, as described in the Sales
with Drop Shipping: Process Activity.

Sales with Drop Shipping: Process Activity

In the following activity, you will learn how to prepare and process to completion a sales order with items marked
for drop shipping.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the FourStar Coffee & Sweets Shop (COFFEESHOP) customer ordered a variety of green, black, and
fruit teas at the SweetLife’s retail store. Although the tea varieties are presented in SweetLife’s website catalog,
the company does not keep tea in the wholesale or retail warehouse. When a customer orders tea, SweetLife drop-
ships it from the Tea & Spices (TEACOMPANY) vendor directly to the customer who ordered the tea. To complete the
customer’s request, acting as the sales manager of the SweetLife store, you need to process a drop shipment.
 Processing Sales with Drop Shipping | 239

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• Drop Shipments, which provides the ability to create and process drop-shipped orders
• On the Customers (AP303000) form, the COFFEESHOP customer has been created.
• On the Vendors (AP303000) form, the TEACOMPANY vendor has been created.
• On the Stock Items (IN202500) form, the GREENTEA06, BLACKTEA06, and FRUITTEA12 stock items have been
created. For each of these items, the TEACOMPANY vendor has been added to the Vendors tab.

Process Overview
In this activity, to process a sale with drop shipment, you will create a sales order of the SO order type on the Sales
Orders (SO301000) form; on the Details tab, you will add the inventory items ordered by the customer. Because the
items are not in stock, you will mark each of them for drop shipping by selecting the check box in the Mark for PO
column and selecting Drop-Ship in the PO Source column, which means that the items will be ordered from the
vendor and shipped directly to the customer. You will create drop-ship purchase orders by processing Drop-Ship
purchase requests on the Create Purchase Orders (PO505000) form. Each drop-ship purchase order generated from
purchase requests can be viewed and processed further on the Purchase Orders (PO301000) form and contains
links to the related sales order.
Aer you have received confirmation that the customer has received the goods from the vendor, on the Purchase
Receipts (PO302000) form, you will prepare and release the purchase receipt for the drop-ship purchase order. Aer
drop shipping has completed, you will prepare an invoice for the customer by using the Invoices (SO303000) form.

System Preparation
Before you start processing a sale with drop shipping, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. Sign in as purchasing manager by using the wiley username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
4. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.

Step 1: Creating a Sales Order

To create a sales order, do the following:
1. On the Sales Orders (SO301000) form, create a sales order, and specify the following settings:
• Order Type: SO
• Customer: COFFEESHOP
• Description: Website order #00784 (tea)
 Processing Sales with Drop Shipping | 240

2. On the Details tab, add rows with the settings shown in the following table.

Branch Inventory ID Warehouse Quantity Unit Price

RETAIL GREENTEA06 RETAIL 2 22.99

RETAIL BLACKTEA06 RETAIL 1 23.99

RETAIL FRUITTEA12 RETAIL 2 32.99

Notice that the system displays warnings in the Quantity column in each line on the Details tab indicating
that the specified quantity is not available in the selected warehouse.
3. On the form toolbar, click Save. The sales order is saved with the Open status.

Step 2: Marking the Items for Drop Shipment

To mark items for drop shipment, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, for each of the lines on the
Details tab, do the following:
• Select the Mark for PO check box.
• Select Drop-Ship in the PO Source column.
2. On the form toolbar, click Save.

Step 3: Creating a Drop-Ship Purchase Order

To create a drop-ship purchase order from purchase requests, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu, click
Create Purchase Order.
2. On the Create Purchase Orders (PO505000) form, which opens, select the unlabeled check boxes in the three
lines with Drop Ship specified as the Plan Type. These are the lines that are related to the sales order that
you have prepared earlier in this activity.
3. In all of the lines, specify TEACOMPANY in the Vendor column.
4. On the form toolbar, click Process to process the purchase requests you have selected.
The system creates a drop-ship purchase order for the TEACOMPANY vendor and opens it on the Purchase
Orders (PO301000) form. On the Details tab, in the Sales Order Nbr. column, review the number of the sales
order to which this purchase order lines are linked.
5. In the Description box in the Summary area, type Purchase for website order #00784.
6. On the form toolbar, click Remove Hold.

Step 4: Processing the Drop-Ship Purchase Order

To process the drop-ship purchase order to completion, do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the form toolbar,
click Enter PO Receipt.
2. On the Purchase Receipts (PO302000) form, which the system opens with the created receipt, review the
details of the prepared purchase receipt, and make sure that all purchase order lines have been added with
the appropriate quantities.
 Processing Sales with Drop Shipping | 241

3. In the Summary area, select the Create Bill check box to make the system generate the bill automatically on
release of the purchase receipt.
4. On the form toolbar, click Release to release the purchase receipt.
The system releases the purchase receipt and assigns it the Released status.
5. On the Billing tab, review the only line in the table, which shows the generated bill, and make sure the bill
has the Open status.
6. On the Other tab, notice that IN Ref. Nbr. is empty. No inventory documents need to be generated because
the items are shipped directly from the vendor to the customer.

Step 5: Processing the AR Invoice for the Customer

To complete the processing of a sale with drop shipment, you need to generate an invoice to the customer. Do the
following:
1. On the Sales Orders (SO301000) form, open the sales order for the COFFEESHOP customer that you have
created earlier in this activity.
2. On the form toolbar, click Prepare Invoice.
3. On the Invoices (SO303000) form, which opens, review the details of the invoice to make sure that all items
have been included in the invoice.
4. On the form toolbar, click Release to release the invoice.
5. Return to the sales order on the Sales Orders form, and on the Shipments tab, review the only line, which
has the shipment for the order. Notice that the purchase receipt that you have processed acts as a shipment
for this sales order, and the reference number link to this purchase receipt is shown in the Document Nbr.
column in the only line in the table (see the following screenshot).

Figure: Sales order with drop shipment processed to completion

Sales with Drop Shipping: Mass Processing of Documents

This topic explains how to process multiple sales for drop shipment, and how the system generates, changes, or
works with documents as a result of the mass processing.

Mass-Creating Drop-Ship Purchase Orders

Drop-ship purchase orders can be mass-generated for multiple sales orders at a time. To mass-process sales orders
marked for drop shipping, you open the Create Purchase Orders (PO505000) form, on which you can create drop-
 Processing Sales with Drop Shipping | 242

ship purchase orders based on the drop-ship purchase requests that have been created for this sales order. On this
form, you select the unlabeled check boxes in the rows of the lines to be processed (which could include lines from
the sales order you were working with or any other order) and click Process on the form toolbar to generate the
purchase order or orders of the Drop-Ship type. A sales order can have two or more linked drop-ship orders, but
each generated drop-ship order has only one linked sales order. The system creates a consolidated drop-ship order
for each group of purchase requests for which both the sales order and the vendor are the same.

Mass-Creating SO Invoices
You can create multiple invoices on the Process Orders (SO501000) form by selecting the Prepare Invoice action,
selecting the unlabeled check box in the sales order lines to be processed (which could include lines from the sales
order you were working with, or lines of any other order), and click Process on the form toolbar to generate the SO
invoice or invoices.

Sales with Drop Shipping: Related Report and Inquiry Forms

In the following sections, you can find details about the reports, inquiry forms, and dialog boxes you may want to
review to gather information about sales for drop shipment that have been processed or are being processed in the
system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Orders Pending Drop Shipment

You can find purchase requests of the Drop Ship type on the Create Purchase Orders (PO505000) form. On the form,
you can filter purchase requests by any of the following criteria: warehouse, vendor, order type, order number,
inventory identifier, item class, customer, product manager, and workgroup. For the selected list of purchase
requests, you can generate purchase orders of the Drop Ship type for all the lines in the list, or you can select
particular lines (by selecting the unlabeled check boxes in the lines) and generate these purchase orders.

Reviewing the Purchase Order Linked to a Sales Order Line

You can find the purchase order that is linked to a particular line of a sales order by clicking the sales order line
on the Details tab of the Sales Orders (SO301000) form, and then clicking PO Link on the table toolbar. The
Purchasing Details dialog box, which opens, lists all the purchase orders that are linked to the selected line of the
sales order.

Reviewing Item Plans Related to Drop-Ship Orders

On the Inventory Allocation Details (IN402000) form, you can select an item in the Inventory ID box, and on the Item
Plans tab, review the quantity of the item that is currently listed in drop-ship orders. The SO to Drop-Ship plan type
indicates that a sales order has items marked for drop shipping. The Drop-Ship for SO Prepared plan type indicates
that a purchase order was prepared for the sales order with items marked for drop shipment.

Printing Reports and Documents

To prepare a printable form of the purchase order that is being processed, you use the Purchase Order (PO641000)
report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print the
purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version of the
 Processing Sales with Drop Shipping | 243

document on the Purchase Order report; then you can review the order and print it by clicking Print on the report
toolbar.

Finding Drop-Ship SO Lines Awaiting Link

To find sales order lines that have the Drop-Ship value in the Source column on the Details tab of the Sales Orders
(SO30100) form and do not have a link to lines of a drop-ship purchase order or that have an inactive link, you use
the SO Drop-Ship Lines Awaiting Link (SO402000) inquiry form.

Finding Drop-Ship PO Lines Awaiting Link

To find drop-ship purchase order lines that do not have a link to lines of a sales order or that have an inactive link,
you use the Drop-Ship PO Lines Awaiting Link (PO401000) inquiry form.

To Create Drop-Ship Purchase Orders for Multiple Sales Orders

You can create multiple drop-ship purchase orders for sales orders at the same time by mass-processing purchase
requests of the Drop-Ship type on the Create Purchase Orders (PO505000) form.

To Create Drop-Ship Purchase Orders for Multiple Sales Orders

1. Open the Create Purchase Orders (PO505000) form.
2. In the Order Type box of the Selection area of the form, select SO (or a custom order type used in your
organization for drop shipping).
3. If needed, change the Creation Date, which is the date on which the purchase order will be generated.
4. In the table, select the unlabeled check boxes in the rows of the needed lines with the Drop-Ship type, and
make sure each of the selected lines has the proper vendor specified.
5. Click Process on the form toolbar, or click Process All to generate purchase orders for all listed sales orders.
The system generates the drop-ship purchase orders.

To Create a Consolidated Purchase Receipt for Drop-Ship Orders

You can create a consolidated purchase receipt for multiple drop-ship purchase orders of the same vendor by using
the Purchase Receipts (PO302000) form.

To Create a Consolidated Purchase Receipt for a Drop-Ship Order

1. Open the Purchase Receipts (PO302000) form.
2. Select Receipt as the document type.
3. Select the vendor that has delivered the goods or services to the customers.
4. On the table toolbar of the Details tab, click Add PO.
The Add Purchase Order dialog box opens with the list of the vendor's open purchase orders.
5. In the Type box of the dialog box, select Drop-Ship.
6. Select the unlabeled check boxes in the rows of the drop-ship purchase orders you want to add to the
receipt.
7. Click Add & Close to add the lines of the selected orders to the receipt and close the dialog box.
 Processing Sales with Drop Shipping | 244

8. On the Details tab, for each line with an item that is tracked by lot or serial numbers and for which the
Required for Drop Shipments check box is selected on the Lot/Serial Classes (IN207000) form, click
Allocations on the table toolbar, and assign the lot numbers to specific quantities or the serial numbers to
particular units of the item.

The system ignores the assignment method of the lot or serial class for items on drop-ship
orders and, by default, requires assignment in the purchase receipt.

9. If the Control Qty. box appears in the Summary area of the form, type the control total.
10.Make sure the Hold check box is cleared, and save the receipt.
 Processing Drop-Ship Vendor Returns | 245

Processing Drop-Ship Vendor Returns

This chapter describes how you can process a return of drop-shipped items directly from a customer to a vendor,
without receiving the items into your inventory.

Drop-Ship Vendor Returns: General Information

In Acumatica ERP, you can process the return of the drop-shipped items directly from a customer to a vendor,
without receiving the items to your inventory. You handle these vendor returns by creating and processing a return
order (that is, a sales order of an order type designated for returns) with the drop-shipped items to be returned and
a purchase return, as well as the needed documents to adjust the customer and vendor balances.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a return order and add the drop-shipped items to this order
• Create a purchase return (that is, a purchase order of the Return type) for the drop-shipped items
• Process the purchase return and the related documents

Applicable Scenarios
In most cases, the drop-ship sales process is completed when the customer receives the items from the vendor and
the corresponding accounts payable and receivable documents are released to adjust your balance with the vendor
and customer. In some cases, however, items are delivered in an unsatisfactory condition or shipped by mistake
and should be returned to the vendor for replacement or reimbursement.

Drop-Ship Vendor Returns

The standard drop-ship vendor return process includes the creation of a return order (which is a type of sales order
document), the specification of the returned items and their quantities in the return order, the return of the items
to the vendor, and the adjustment to the vendor and customer balances in the system in the returned amount.
In Acumatica ERP, to begin processing a drop-ship vendor return, on the Sales Orders (SO301000) form, the sales
manager enters a return order—that is, an order whose type is based on a template with RMA automation behavior.
Then the manager finds the invoice with the items to be returned by clicking Add Invoice on the Details tab of
the Sales Orders form; the manager selects the lines with the required items and adds them to this tab of the
return order. The manager selects the Mark for PO check box for each added line to indicate that the items will be
returned by the customer and shipped directly to the vendor. Then the manager saves the return order.

You cannot mark for PO lines with the Issue option specified for a line in the Operation column on the
Details tab of the Sales Orders form if the return order has an order type with the RMA Order value in
the Automation Behavior box and the No Update value in the AR Document Type box specified on
the Template tab of the Order Types (SO201000) form.

While still viewing the return order on the Sales Orders form, the sales manager creates a direct purchase return for
the vendor by clicking Create Vendor Return on the More menu. The system creates the purchase return on the
Purchase Receipts (PO302000) form with the line details copied from the sales order. On the Shipments tab of the
Sales Orders form, the system inserts a link to this purchase return in the Document Nbr. box. When the items are
delivered to the vendor, the sales manager opens the purchase return (by clicking the link in the Document Nbr.
box or by navigating directly to the Purchase Receipts form) and releases it.
 Processing Drop-Ship Vendor Returns | 246

To process a debit adjustment for the items that have been returned to the vendor, the purchasing manager opens
the purchase return on the Purchase Receipts form and creates a debit adjustment by clicking Enter AP Bill on the
More menu. The system opens the Bills and Adjustments (AP301000) form with a debit adjustment for the vendor
with line details copied.
To process the credit memo to the customer, the sales manager opens the previously created return order on the
Sales Orders form and creates an invoice by clicking Prepare Invoice on the form toolbar. The system opens the
Invoices (SO303000) form with a credit memo created. Then you release the credit memo by clicking Release on the
form toolbar.

Workflow of a Drop-Ship Vendor Return

For a drop-ship vendor return, the typical processing involves the actions and generated documents shown in the
following diagram.

Drop-Ship Vendor Returns: Process Activity

The following activity will walk you through the processing of a drop-ship vendor return.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Processing Drop-Ship Vendor Returns | 247

Story
Suppose that SweetLife's retail store regularly drop-ships a variety of green, black, and fruit teas from the Tea &
Spices (TEACOMPANY) vendor to the FourStar Coffee & Sweets Shop (COFFEESHOP) customer. Based on a customer
satisfaction survey, a manager of the FourStar Coffee & Sweets Shop has found out that the demand for the fruit
tea is very low. Thus, the FourStar Coffee & Sweets Shop has decided to stop buying the fruit tea from the SweetLife
store. Also, the FourStar Coffee & Sweets Shop wants to return the fruit tea from its last order.
To complete the customer’s request, acting as the sales and purchasing manager of the SweetLife store, you need
to process the drop-ship vendor return for the Tea & Spices (TEACOMPANY) vendor by creating and processing the
needed documents in the system.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following features have been enabled on the Enable/
Disable Features (CS100000) form:

• Inventory, which provides the ability to create sales orders that include stock items
• Drop Shipments, which provides the ability to create and process drop-shipped orders
Also, the following entities, which you will use in this activity, have been configured in the system:
• The COFFEESHOP customer on the Customers (AP303000) form.
• The TEACOMPANY vendor on the Vendors (AP303000) form.
• The GREENTEA6, BLACKTEA6, and FRUITTEA12 stock items on the Stock Items (IN202500) form. For each of
these items, the TEACOMPANY vendor has been added on the Vendors tab.
Additionally, the purchase documents for which you will process a drop-ship purchase return have been created
and processed in the system.

Process Overview
In this activity, to process a drop-ship vendor return, you will first create a sales order of the RC type (that is, a
return order) on the Sales Orders (SO301000) form; on the Details tab, you will add a line with FRUITTEA12 stock
item to be returned by selecting it from the invoice. Because you want the customer to return the item directly to
the TEACOMPANY vendor without receiving it at your warehouse, you will select the check box in the Mark for PO
column. You will create a purchase return—a purchase receipt of the Return type— for the vendor on the Purchase
Receipts (PO302000) form and then release it.

Then you will prepare a debit adjustment for the vendor on the Bills and Adjustments (AP301000) form. When the
vendor receives the returned items, you will release the debit adjustment. Finally, you will prepare a credit memo
for the customer on the Invoices (SO303000) form.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley username and the 123 password.
2. Sign in as purchasing manager by using the wiley username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.
 Processing Drop-Ship Vendor Returns | 248

4. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.

Step 1: Creating a Return Order

To create a return order (a sales order of the RC type), do the following:
1. Open the Sales Orders (SO301000) form, create a sales order, and specify the following settings in the
Summary area:
• Order Type: RC
• Customer: COFFEESHOP
• Description: Return of drop-shipped tea (FRUITTEA12)
2. On the table toolbar of the Details tab, click Add Invoice.
3. In the Add Invoice Details dialog box, which opens, open the lookup table for the Reference Nbr. box, and
select the invoice dated 1/15/2023.
4. In the table of the dialog box, select the unlabeled check box in the FRUITTEA12 line.
5. Click Add and Close to add this line to the return order and close the dialog box.
6. On the form toolbar, click Save.

Step 2: Creating and Releasing a Direct Purchase Return

To create a direct purchase return for the vendor, do the following:
1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the Details tab, select
the Mark for PO check box for the only line to indicate that this item has been previously drop-shipped to
the customer and should not be shipped to the warehouse of your company.
For the line, the system automatically inserts the Drop-Ship value in the PO Source column.
2. On the form toolbar, click Save.
3. On the More menu, click Create Vendor Return.
The system has created a corresponding direct purchase return for the vendor on the Purchase Receipts
(PO302000) form with line details copied from the sales order.
4. On the Shipments tab of the Sales Orders form, click the link in the Document Nbr. box, which the system
has inserted upon creation of the direct purchase return.
The system opens the purchase return on the Purchase Receipts form. In the Summary area, notice that the
system has inserted Return in the Type box and TEACOMPANY in the Vendor box.
5. On the Details tab, review the only line (for which relevant settings have been copied from the sales order
line), and notice that it has the Goods for Drop-Ship value in the Line Type column.
6. On the form toolbar, click Release.

Step 3: Entering the Debit Adjustment

To process the debit adjustment for the items that have been returned to the vendor, do the following:
1. While you are still viewing the purchase return on the Purchase Receipts (PO302000) form, click Enter AP
Bill on the form toolbar.
The system opens the Bills and Adjustments (AP301000) form and creates a debit adjustment for the vendor
with the line details copied from the purchase return.
2. On the form toolbar, click Remove Hold, and then click Release.
 Processing Drop-Ship Vendor Returns | 249

Step 4: Preparing and Releasing a Credit Memo for the Customer

To process the return of money to the customer, do the following:
1. Return to the previously created sales order of the RC type on the Sales Orders (SO301000) form.
2. On the form toolbar, click Prepare Invoice.
The system opens the Invoices (SO303000) form and creates a credit memo.
3. On the form toolbar, click Release.
The following screenshot shows the resulting drop-ship return order, which has the Completed status.

Figure: The drop-ship return order aer it has been processed to completion

Drop-Ship Vendor Returns: Mass-Processing Forms

In the following sections, you can find details about the mass-processing forms you may want to review to simplify
the processing of documents.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Processing Multiple Returns

You can release multiple returns on the Release Purchase Receipts (PO501000) form by selecting the unlabeled
check box for the purchase returns to be processed in the table and clicking Process on the form toolbar to release
the process return.

Mass-Creating SO Invoices
You can create multiple invoices on the Process Orders (SO501000) form by selecting the Prepare Invoice action,
selecting the unlabeled check box for the sales orders to be processed in the table, and clicking Process on the
form toolbar to generate the SO invoice or invoices.

Mass-Creating Drop-Ship Invoices

You can create multiple drop-ship invoices on the Process Shipments (SO503000) form by selecting the Prepare
Drop-Ship Invoice action in the Selection area, selecting the unlabeled check box for the documents to be processed
in the table, and clicking Process on the form toolbar to generate the drop-ship invoice or invoices.
 Processing Drop-Ship Vendor Returns | 250

Drop-Ship Vendor Returns: Generated Transactions

When you process a drop-ship vendor return, you create and process a debit adjustment and credit memo. To
update customer and vendor balances, the system generates the GL transactions described in the following
sections.

Transactions Generated for a Debit Adjustment

When you create and release a debit adjustment, the system generates the following general ledger transactions.

Account Source of Account Debit Credit

Accounts Payable account Vendor Amount 0.00

Purchase Accrual account Settings on the Post- 0.00 Amount

ing Classes (IN206000)
form

Transactions Generated for a Credit Memo

When you create and release a credit memo, the system releases an inventory issue, which generates the following
general ledger transactions.

Account Source of Account Debit Credit

Purchase Accrual account Settings on the Post- Amount 0.00

ing Classes (IN206000)
form

COGS account Settings on the Posting 0.00 Amount

Classes form
 Processing Drop Shipments of Non-Stock Items | 251

Processing Drop Shipments of Non-Stock Items

The topics of this chapter explain how to process sales and purchase orders for non-stock items your company will
sell and then have the items drop-shipped to the customer.

Drop Shipments of Non-Stock Items: General Information

In Acumatica ERP, you can create sales orders whose goods are intended for drop shipping. Drop shipping means
that a customer orders the goods from your company, pays your company for the order, and receives the goods
(which your company has ordered) directly from one of your vendors. In the system, you define these goods as non-
stock items because your company does not keep them in stock.
If the Drop Shipments feature is enabled on the Enable/Disable Features (CS100000) form, you can mark particular
non-stock items for drop shipping and create drop-ship orders for these items.

Learning Objectives
In this chapter, you will learn how to do the following:
• Process a sales order for non-stock items to be drop-shipped
• Mark items for drop shipment in a sales order
• Create a drop-ship purchase order for the sales order and process the drop shipment to completion

Applicable Scenarios
You use a drop shipment to fulfill a sale of non-stock items that your company does not keep in its warehouses.
Instead, your company processes the needed documents to have your vendor ship the items directly to the
customer.

Drop-Shipping Process
To process a sale with drop shipment, you create a sales order of the SO order type on the Sales Orders (SO301000)
form, and add the non-stock items ordered by the customer. On the Details tab of the form, you mark the non-
stock items for drop shipping by selecting the check box in the Mark for PO column and selecting Drop-Ship in
the PO Source column, which means that the items will be ordered from the vendor and shipped directly to the
customer.
When you mark items for drop shipping and save the sales order with the Open status, the system creates purchase
requests of the Drop-Ship plan type. You then create a drop-ship purchase order by processing Drop-Ship purchase
requests on the Create Purchase Orders (PO505000) form. This drop-ship purchase order contains links to the
related sales order.
The items from this purchase order are not shipped to the company's warehouse; rather, they are shipped directly
to the customer. Aer you have received confirmation that the customer has received the items from the vendor,
you prepare and release the purchase receipt for the drop-ship purchase order. When you release the purchase
receipt (which is listed as a shipment document for the sales order on the Sales Orders (SO301000) form), the status
of the drop-ship purchase order and sales order is changed to Completed. You can then prepare an SO invoice for
the customer.
 Processing Drop Shipments of Non-Stock Items | 252

Workflow of a Sale with Drop Shipment

For a sales order with non-stock items intended for drop shipment, the typical processing involves the actions and
generated documents shown in the following diagram.

Drop Shipments of Non-Stock Items: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales of non-stock items intended to be drop-shipped, and to understand (and change, if needed) the
settings that affect the processing workflow.

Implementation Checklist
Before you initially process sales with drop shipment, you should make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Drop Shipments feature is enabled.

Sales Orders Preferences (SO101000) form, Purchase Make sure that all necessary settings related to sales
Orders Preferences (PO101000) form orders and purchase orders have been specified as de-
scribed in Configuration of Order Management: Imple-
mentation Activity.
 Processing Drop Shipments of Non-Stock Items | 253

Form Criteria to Check

Order Types (SO201000) form Make sure that the SO order type is active and has
been configured as described in Sales Order Types: To
Configure the SO Order Type.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: Implementation Activity.

Customers (AR303000) form Make sure that all needed customers have been con-
figured as described in Customers: Implementation Ac-
tivity.

Non-Stock Items (IN202000) form Make sure that all non-stock items are configured as
described in Creating Non-Stock Items: Implementation
Activity.

Other Settings That Affect the Workflow

You can affect the processing workflow by specifying additional settings as follows:
• To process service lines marked for drop shipment on the Sales Orders (SO301000) form with receipt, select
the Process Service Lines from Drop-Ship Purchase Orders via Purchase Receipts on the Purchase
Orders Preferences (PO101000) form.
• To cause sales orders of a particular order type to be created with the On Hold status (so the user can verify
them before processing them further), select the Hold Documents on Entry check box for the order type on
the Order Types (SO201000) form. For more information on other order type settings affecting the workflow
of sales orders, see Sales Order Types: General Information.
• To cause the system to automatically create an accounts payable bill on release of a purchase receipt
by default, select the Create Bill on Receipt Release check box on the Purchase Orders Preferences
(PO101000) form. In this case, when a user creates a purchase receipt on the Purchase Receipts (PO302000)
form, the system automatically selects the Create Bill check box. (The user can clear this check box for a
particular bill.) For information on processing bills, see AP Bills: General Information.
• To cause the system to automatically post general ledger batches generated during the processing of sales
and purchase documents, select the Automatically Post on Release check box on the General Ledger
Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions:
General Information.

Validation of Settings
To make sure that all settings are configured correctly, process a sale with drop shipment, as described in the Drop
Shipments of Non-Stock Items: Process Activity.

Drop Shipments of Non-Stock Items: Process Activity

The following activity will walk you through the process of preparing a sales order with non-stock items marked for
drop shipping and processing this sales order to completion.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Processing Drop Shipments of Non-Stock Items | 254

Story
Suppose that the FourStar Coffee & Sweets Shop (COFFEESHOP) customer has ordered two rare teas at SweetLife’s
retail store. Although these teas are presented in SweetLife’s website catalog, the company does not keep them in
the wholesale or retail warehouse; they are defined in Acumatica ERP as non-stock items. When a customer orders
these teas, SweetLife drop-ships them from the Tea & Spices (TEACOMPANY) vendor, which regularly stocks these
teas, directly to the customer who ordered the teas. To fulfill the customer’s request, acting as the sales manager of
the SweetLife store, you need to process a drop shipment.

Configuration Overview
For the purposes of this activity, the Drop Shipments feature, which provides the ability to create and process sales
orders with drop shipment, has been enabled on the Enable/Disable Features (CS101000) form.
The following entities, which you will use in this activity, have been predefined in the system:
• On the Customers (AP303000) form, the COFFEESHOP customer has been configured.
• On the Vendors (AP303000) form, the TEACOMPANY vendor has been configured.
• On the Non-Stock Items (IN202000) form, the EMPTEA and KINGTEA non-stock items have been configured.
For each of these items, the TEACOMPANY vendor has been added to the Vendors tab. Also, the Require
Receipt and Require Shipment check boxes have been selected for these items on the General tab. These
settings are required to process drop-ship sales.

Process Overview
In this activity, to process a sale with drop shipment, you will create a sales order of the SO order type on the Sales
Orders (SO301000) form; on the Details tab, you will add the items ordered by the customer. Because the items
are not kept in stock, you will mark each of them for drop shipping by selecting the check box in the Mark for PO
column and selecting Drop-Ship in the PO Source column, which means that the items will be ordered from the
vendor and shipped directly to the customer.
You will then create a drop-ship purchase order by processing purchase requests of the Drop-Ship plan type on the
Create Purchase Orders (PO505000) form. The drop-ship purchase order generated from purchase requests, which
can be viewed and processed further on the Purchase Orders (PO301000) form, contains links to the related sales
order.
Aer you have received confirmation that the customer has received the items from the vendor, on the Purchase
Receipts (PO302000) form, you will prepare and release the purchase receipt for the drop-ship purchase order. You
will then prepare an invoice for the customer by using the Invoices (SO303000) form.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.
 Processing Drop Shipments of Non-Stock Items | 255

Step 1: Creating a Sales Order

To create a sales order, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Order Type: SO
• Customer: COFFEESHOP
• Description: Website order #00785 (tea)
3. On the Details tab, add rows with the settings shown in the following table.

Branch Inventory ID Warehouse Quantity Unit Price

RETAIL EMPTEA RETAIL 10 47.99

RETAIL KINGTEA RETAIL 10 54.99

4. Click Save on the form toolbar to save the sales order with the Open status.

Step 2: Marking the Items for Drop Shipment

To mark items for drop shipment, while you are still viewing the sales order on the Sales Orders (SO301000) form,
do the following:
1. For each of the lines on the Details tab, select the Mark for PO check box and select Drop-Ship in the PO
Source column.
2. On the form toolbar, click Save.

Step 3: Creating a Drop-Ship Purchase Order

To create a drop-ship purchase order from purchase requests, do the following:
1. On the More menu of the Sales Orders (SO301000) form while you are still viewing the sales order, click
Create Purchase Order.
2. On the Create Purchase Orders (PO505000) form, which opens, select the unlabeled check boxes in the two
rows with Drop Ship specified as the Plan Type (which are the lines that are related to the sales order that
you have prepared).
3. In both of the rows, make sure that TEACOMPANY is specified in the Vendor column.
4. On the form toolbar, click Process to process the purchase requests you have selected.
The system creates a drop-ship purchase order for the TEACOMPANY vendor and opens it on the Purchase
Orders (PO301000) form.
5. On the Details tab of this form, review the Sales Order Nbr. column, which shows the number of the sales
order to which this purchase order lines are linked.
6. In the Description box of the Summary area, type Purchase for website order #00785.
7. On the form toolbar, click Remove Hold.
 Processing Drop Shipments of Non-Stock Items | 256

Step 4: Processing the Drop-Ship Purchase Order

Suppose that you have been notified that the customer has received the ordered teas. To process the drop-ship
purchase order to completion, do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter PO
Receipt on the form toolbar.
2. On the Purchase Receipts (PO302000) form, which the system opens with the created receipt, review the
details of the prepared purchase receipt, and make sure that both purchase order lines have been added
with the appropriate quantities.
3. In the Summary area, select the Create Bill check box to make the system generate the bill automatically on
release of the purchase receipt.
4. On the form toolbar, click Release to release the purchase receipt.
The system releases the purchase receipt and assigns it the Released status.
5. On the Billing tab, review the only line in the table, which shows the generated bill, and make sure the bill
has a status of Closed.

Step 5: Processing the AR Invoice for the Customer

To complete the processing of a sale with drop shipment, you need to generate an invoice to the customer. Do the
following:
1. On the Sales Orders (SO301000) form, open the sales order for the COFFEESHOP customer that you have
created earlier in this activity.
2. On the form toolbar, click Prepare Invoice.
3. On the Invoices (SO303000) form, which opens, make sure that both items have been included in the
invoice.
4. On the form toolbar, click Release to release the invoice.
5. Return to the sales order on the Sales Orders form, and notice the Completed status (shown in the following
screenshot), which reflects that you have processed the sales order to completion. Then on the Shipments
tab, review the only row (also shown in the following screenshot), which indicates the shipment for the
order. Notice that the purchase receipt that you have processed is listed as a shipment for this sales order
and that the reference number of this purchase receipt is shown in the Document Nbr. column of the row
(see the following screenshot).
 Processing Drop Shipments of Non-Stock Items | 257

Figure: Sales order with drop shipment processed to completion

Drop Shipments of Non-Stock Items: Generated Transactions

To be able to process a sale of non-stock items intended for drop shipment, you create and process a sales order
and a purchase order. The following sections describe the GL transactions generated during the processing of the
documents for a sale of non-stock items for drop shipment.

Sales orders of the SO type do not produce any GL transactions.

Transactions Generated for an SO Invoice

When you create and release an SO invoice with a line with a non-stock item, the system generates the following
general ledger transactions.

Account Source of Account Debit Credit

Accounts Receivable Customer Amount 0.00

account

Sales account Depends on the settings of the 0.00 Amount

order type on the Order Types
(SO201000) form

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Transactions Generated on AP Bill Release

When an accounts payable bill prepared for a purchase order (or for purchase receipt) is released, the system
creates a batch of the following transactions.
 Processing Drop Shipments of Non-Stock Items | 258

Account Source of Account Debit Credit

Accounts Payable account Vendor 0.00 Amount

PO Accrual account Item Amount 0.00

You can view the reference number of the GL batch generated for a particular AP bill in the Batch Nbr. box on the
Financial tab of the Bills and Adjustments (AP301000) form. You can click the link in this box to view the details of
the batch on the Journal Transactions (GL301000) form.

Drop Shipments of Non-Stock Items: Related Reports and Forms

In the following sections, you can find details about the reports, inquiry forms, and dialog boxes you may want to
review to gather information about sales with drop shipment that have been processed or are being processed in
the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Purchase Requests Pending Drop Shipment

You can find purchase requests of the Drop Ship type on the Create Purchase Orders (PO505000) form. On the form,
you can filter purchase requests by any of the following criteria: warehouse, vendor, order type, order number,
inventory ID, item class, customer, product manager, and workgroup.
You can generate purchase orders of the Drop Ship type for all the listed purchase requests, or you can select
particular purchase requests (by selecting the unlabeled check boxes in the rows) and generate these purchase
orders.

Reviewing the Purchase Order Linked to a Sales Order Line

You can find the purchase order that is linked to a particular line of a sales order by clicking the sales order line
on the Details tab of the Sales Orders (SO301000) form, and then clicking PO Link on the table toolbar. The
Purchasing Details dialog box, which opens, lists all the purchase orders that are linked to the selected line of the
sales order.

Printing Reports and Documents

To prepare a printable form of the purchase order that is being processed, you use the Purchase Order (PO641000)
report. To do this while you are viewing the purchase order on the Purchase Orders (PO301000) form, you click
Print Purchase Order on the More menu. The system opens the printable version of the purchase order on the
Purchase Order report; aer you review the order, you can print it by clicking Print on the report toolbar.

Drop Shipments of Non-Stock Items: Mass-Processing of Documents

This topic explains how to process multiple documents related to sales with drop shipment, and how the system
generates, changes, or works with documents as a result of the mass processing.
 Processing Drop Shipments of Non-Stock Items | 259

Mass-Creating Drop-Ship Purchase Orders

Drop-ship purchase orders can be mass-generated for purchase requests related to multiple sales orders at a time.
To mass-process sales orders marked for drop shipment, you open the Create Purchase Orders (PO505000) form,
on which you can create drop-ship purchase orders based on the drop-ship purchase requests that have been
created for sales orders.
On this form, you select the unlabeled check boxes in the rows of the purchase requests of the Drop-Ship plan type
to be processed and click Process on the form toolbar to generate the purchase order or orders of this type. A sales
order can have two or more linked drop-ship purchase orders, but each generated drop-ship purchase order can
have only one linked sales order. The system creates a consolidated drop-ship purchase order for each group of
purchase requests for which both the sales order and the vendor are the same.

Mass-Creating SO Invoices
You can create multiple invoices on the Process Orders (SO501000) form by selecting the Prepare Invoice action,
selecting the unlabeled check box in the rows of the sales orders to be processed, and click Process on the form
toolbar to generate the SO invoice or invoices.
 Reserving Payments for Sales Orders | 260

Reserving Payments for Sales Orders

Many businesses perform sales on credit: A customer order is paid aer the order has been shipped and an
invoice for the shipped goods and services has been sent to the customer. In some cases, businesses may require
prepayments or payments to be made for particular orders, or your organization may charge a customer card for
specific orders. If you rely on payment auto-application, payments are applied to unrelated invoices starting from
the earliest documents, and it is difficult to perform reconciliation of balances later.
With Acumatica ERP, you can create payments and prepayments directly on the Sales Orders (SO301000) form,
thus reserving these payments or prepayments for the particular order in full or in part. Also, you can link an order
to existing prepayments or payments by their reference numbers. There may be many variations of processing
a sales order with a reserved payment, such as multiple shipments and multiple invoices for the order, multiple
payments reserved for one order, and multiple orders paid by one prepayment. If the order is being shipped in
multiple shipments, you can track how the payment's partial amounts were applied to multiple invoices.

Linking of Orders and Payments

When you enter a new sales order on the Sales Orders (SO301000) form, you can create a payment or prepayment
directly from the Payments tab by clicking Create Payment or Create Prepayment on the table toolbar. The
system brings up the Payments and Applications (AR302000) form in a pop-up window. Aer you enter and save
the payment or prepayment, it is linked to the sales order and can be reviewed on the Payments tab of the Sales
Ordersform.

When you enter a new customer prepayment or payment on the Payments and Applications form, you can link it
directly to a particular order or multiple orders by adding the order or orders on the Orders to Apply tab. Payments
with balances that have been partially applied to invoices (whether or not the invoices are related to the order) can
also be reserved for sales orders.
If the customer pays by using a credit card, you can create a payment, link it to a particular sales order or multiple
orders, and charge the credit card by using the same form, Payments and Applications.

Application of Parent and Child Payments

If the Parent-Child Customer Relationship feature has been enabled on the Enable/Disable Features (CS100000)
form, you can configure parent-child relationships between customer accounts. If the Consolidate Balance check
box is selected for a child account on the Billing Settings tab of the Customers (AR303000) form, you can apply
parent payments and prepayments to the open sales orders of this child account. When the invoice is prepared
for the sales order, the payment application amount is transferred to the invoice. If you enter an invoice for a child
customer directly on the Invoices (SO303000) form, you can also apply payments and prepayments of the parent
customer to this invoice.
For more information on the configuration of parent-child relationships, see Managing Parent-Child Relationships.

Processing of Orders with Reserved Payments

An order with a payment linked is processed in the same way as any other order is. Once an order with linked
payments or prepayments is shipped, the payment or prepayment amount applied to an order is transferred to
the Sales Orders invoice or invoices generated for the order. On release of the SO invoices, the system applies the
payment amounts reserved for the order to the invoices. If the amount of payments is equal to the order total, the
invoices are closed. If the total amount of payments or prepayments applied to the order is less than the order
total, the system leaves one of the invoices open with the unpaid balance (which is the difference between the
order total and the payments' total).
You can view the history of application on the Application History tab of the Payments and Applications (AR302000)
form. As orders linked to this payment are shipped and completed, you will see the list of applied invoices
(generated for those orders) on this tab.
 Reserving Payments for Sales Orders | 261

When a full-amount payment has been reserved for an order, once the order has been shipped and an invoice has
been generated and released, the payment amount is applied to the invoice; the invoice is assigned the Closed
status on the Invoices (SO303000) form, while the order is assigned the Completed status on the Sales Orders
(SO301000) form. If an order with a full-amount payment is shipped partially and then is completed or canceled,
the amount applied to the order is reset to zero, while the payment with an unapplied balance is assigned the Open
status and its applied amount is transferred to the invoice.

Limitations on Payment Application

The application of payments to sales orders has the following limitations:
• Payments and prepayments can be applied to only sales orders with single-installment credit terms
specified in the Terms box on the Financial Settings tab of the Sales Orders (SO301000) form. If you change
single-installment credit terms to multiple-installment terms for an existing sales order with payments or
prepayments applied, these applications will be unlinked from the sales order. For more information on
configuring credit terms, see Setup of Credit Terms.
• If approval of sales orders is required in your organization, you can specify payments for only orders that
have undergone the required approvals and have the Open status. For details about approval processes, see
Sales Order Approval.

Canceling of Payment Reservation

If no invoice has been generated for the order, you can cancel payment application by removing the reserved
payment from the list on the Payments tab of the Sales Orders (SO301000) form.
Related Links
• Checking the Credit Limit in Sales Documents
• Sales Order Approval

To Enter a New Payment for an Order

You can enter a customer prepayment or a payment intended for a particular sales order directly from the Sales
Orders (SO301000) form.

To Enter a New Payment for an Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type.
3. In the Order Nbr. box, select the reference number of the order.
4. On the table toolbar of the Payments tab, click Create Payment.
5. In the Create Payment dialog box, which opens, do the following:
a. In the Payment Amount box, specify the total of the payment.
b. In the Description box, specify the description of the payment.
c. Make sure that in the Payment Method box, the appropriate payment method is selected.
d. Make sure that in the Cash Account box, the appropriate cash account is selected.
e. Click OK.
6. While you are still on the Payments tab, click the link in the Reference Nbr. column.
7. The Payments and Applications (AR302000) form opens in a pop-up window with the created document of
the Payment type.
 Reserving Payments for Sales Orders | 262

8. On the form toolbar, click Release to release the payment.

To Enter a New Prepayment for an Order

You can enter a customer prepayment intended for a particular sales order directly from the Sales Orders
(SO301000) form.

To Enter a New Prepayment for an Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type.
3. In the Order Nbr. box, select the reference number of the order.
4. On the table toolbar of the Payments tab, click Create Prepayment.
5. In the Create Prepayment dialog box, which opens, specify the following:
a. In the Payment Amount box, specify the total of the prepayment.
b. In the Description box, specify the description of the prepayment.
c. Make sure that in the Payment Method box, the appropriate payment method is selected.
d. Make sure that in the Cash Account box, the appropriate cash account is selected.
e. Click OK.
6. While you are still on the Payment tab, click the link in the Reference Nbr. column.
7. The Payments and Applications (AR302000) form opens in a pop-up window with created document of the
Prepayment type.
8. On the form toolbar, click Release to release the payment.

To Link an Existing Payment to an Order

You can link an existing customer payment to a particular sales order on the Sales Orders (SO301000) form.

To Link an Existing Payment to an Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type.
3. In the Order Nbr. box, select the reference number of the order.
4. On the Payments tab, add a new row to the table. In the Doc. Type column, select Payment, and in the
Reference Nbr. column, select the reference number of the payment to be linked to the order.
5. On the form toolbar, click Save to save your changes.

To Link an Existing Prepayment to an Order

You can link an existing customer prepayment to a particular sales order on the Sales Orders (SO301000) form.
 Reserving Payments for Sales Orders | 263

To Link an Existing Prepayment to an Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type.
3. In the Order Nbr. box, select the reference number of the order.
4. On the Payments tab, add a new row to the table. In the Doc. Type column, select Prepayment, and in the
Reference Nbr. column, select the reference number of the prepayment to be linked to the order.
5. On the form toolbar, click Save to save your changes.
 Processing Purchases for Sale | 264

Processing Purchases for Sale

Your company may purchase certain items from vendors only when those items are added to a sales order. In
Acumatica ERP, you can add these items to a sales order and mark them for purchase. When you create a purchase
order for these items, it will be linked to the sales order. The topics of this chapter explain how to create and
process sales orders whose goods are intended for purchasing.

Purchases for Sale: General Information

If your company sells certain items that are purchased only when sales orders for these items exist, a sales order
may result in multiple purchase orders for different vendors, and a purchase order may include items from multiple
sales orders. These factors could make it difficult to track the fulfillment of sales orders. In Acumatica ERP, you
can link sales orders to existing purchase orders and receipts, so that the system will allocate the items listed on
purchase receipts to specific sales orders.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Configure the processing of purchases for sale in Acumatica ERP
• In a sales order, mark items to be purchased for the sale
• Create a purchase order linked to a sales order
• Mass-create purchase orders
• Process the sales order and related purchase documents, inventory documents, and accounts payable
documents
• Find information about documents related to a purchase for sale

Applicable Scenarios
You may need to process purchases for sale in the following cases:
• You need to process a sales order that includes items that your company does not have in stock; such items
are purchased only for specific sales orders.
• You have multiple warehouses and perform purchasing only to particular larger warehouses (distribution
centers). During the processing of a purchase for sale, the system will generate the required transfers
between warehouses, so you can easily track where the particular sales order is in the fulfillment process.
• You need to promptly fulfill a sales order line for which the quantity of the item is insufficient. Aer you have
shipped the available quantity of the item (if any units are available), you need to order the quantity that
was unavailable at the time of shipping.

Creation of Sales Orders with Items Requested for Purchase

If the quantity of an item added to a sales order is fully or partially out of stock, you can purchase the remaining
quantity. You specify that the remaining quantity should be purchased for the order by selecting the Mark for PO
check box for the line on the Details tab. The quantity initially allocated for the order remains allocated, while the
quantity that must be purchased remains unallocated.
On the Sales Orders (SO301000) form, if you click Remove Hold of the form toolbar, the system creates a purchase
request for this order on the Create Purchase Orders (PO505000) form. By default, for each line, the system specifies
 Processing Purchases for Sale | 265

the vendor, which is set as default for a stock item specified in this line. You can change the vendor, if needed.
From the purchase requests, you generate purchase orders that will be linked to the original sales order. Once you
prepare and release the purchase receipt for the purchase order, the items become available for shipping, so you
can complete the processing of the sales order.

Workflow of a Purchase for Sale

For a sales order that includes stock items intended for purchasing, the typical processing involves the actions and
generated documents shown in the following diagram.
Processing Purchases for Sale | 266
 Processing Purchases for Sale | 267

Process Limitations
The following limitations apply to the processing of purchases for sale:
• Sales order lines marked for purchasing cannot be processed during the quick processing of a sales order
until the items are received to stock. For more information, see Quick Processing of Sales Orders.
• In a sales order of the RR or RM type, lines with the Return operation type cannot be marked for purchasing
for sale, because these are the items to be received to inventory.

Purchases for Sale: Linking Sales and Purchase Documents

The following sections describe how you can establish connections between sales orders and the purchase
documents that relate to these sales orders.

Linking Sales Orders to Purchase Orders

You can link a line of a sales order with the Mark for PO check box selected to an existing purchase order, for
instance, if you have created a new sales order that lists the same items as an open purchase order does. To link a
sales order line to a purchase order line, on the Details tab of the Sales Orders (SO301000) form, you need to click
the sales order line and then click PO Link on the table toolbar. In the Purchasing Details dialog box, which opens,
you should select the unlabeled check box in the needed line of the needed purchase order, and click Save.

Linking Purchase Receipts to Sales Orders

Items marked for purchase in a sales order may be received to warehouses other than the warehouse specified
on the sales order. If the users properly specify the links between the purchase receipts and purchase orders,
Acumatica ERP enables the tracking of sales order fulfillment, reserves the received items for sales orders, and
automates the transfers of the items to the needed warehouses.
To make it possible to track items in receipts to the original sales orders, when you create these receipts, you need
to link each receipt to the corresponding purchase order in one of the following ways:
• Open the purchase order on the Purchase Orders (PO301000) form, and create a receipt for it by selecting
Enter PO Receipt on the More menu
• Create a receipt on the Purchase Receipts (PO302000) form, and link all the related purchase orders or
purchase order lines to this new receipt by clicking Add PO or Add PO Line on the table toolbar
Aer a purchase receipt has been properly linked to all the related purchase orders, you will be able to track the
stage of fulfillment for each line of the original sales order. On release of the purchase receipt, the quantities
of items required for the sales orders are deducted from the item quantities available for shipping. If items are
received to a warehouse other than the warehouse specified on the sales order, the system will generate a transfer
request, which you can use to create a transfer order by using the Sales Orders (SO301000) form for a single transfer
order, or by using the Create Transfer Orders (SO509000) form for multiple transfer orders.

Purchases for Sale: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases for sale, and to understand (and change, if needed) the settings that affect the processing
workflow.
 Processing Purchases for Sale | 268

Implementation Checklist
Before you initially process purchases for sale, you should make sure the needed features have been enabled,
settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Sales Order to Purchase Order Link
feature is enabled.

Sales Orders Preferences (SO101000) form, Purchase Make sure that all necessary settings related to sales
Orders Preferences (PO101000) form orders and purchase orders have been specified as de-
scribed in Configuration of Order Management: Imple-
mentation Activity.

Order Types (SO201000) form Make sure that the SO order type is active and has
been configured as described in Sales Order Types: To
Configure the SO Order Type.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: Implementation Activity.

Customers (AR303000) form Make sure that all needed customers have been con-
figured as described in Customers: Implementation Ac-
tivity.

Stock Items (IN202500) form Make sure that all stock items are configured as de-
scribed in Stock Item Creation: Implementation Activity.

Other Settings That Affect the Workflow

You can affect the processing workflow by specifying the following additional settings:
• To cause sales orders of a particular order type to be created with the On Hold status (so the user can verify
them before processing them further), select the Hold Documents on Entry check box for the order type
on the Order Types form. For more information on other order type settings affecting the workflow of sales
orders, see Sales Order Types: General Information.
• To cause the system to automatically create an accounts payable bill on release of a purchase receipt
by default, select the Create Bill on Receipt Release check box on the Purchase Orders Preferences
(PO101000) form. In this case, when a user creates a purchase receipt on the Purchase Receipts (PO302000)
form, the system automatically selects the Create Bill check box. (The user can clear this check box for a
particular bill.) For information on processing bills, see AP Bills: General Information.
• To cause the system to automatically post general ledger batches generated during the processing of sales
and purchase documents, select the Automatically Post on Release check box on the General Ledger
Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions:
General Information.

Testing of Settings
To make sure that all settings are configured correctly, process a sale for purchase, as described in the Purchases
for Sale: Process Activity.
 Processing Purchases for Sale | 269

Purchases for Sale: Process Activity

In this activity, you will learn how to process a purchase of items that are not in stock for a particular sales order,
and how to process the sales order to completion aer receipt of the items that were purchased for sale.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the GoodFood One Restaurant customer has ordered tropical fruits (3 pounds of dragon fruits and
2 pounds of tangerines) on SweetLife's website. SweetLife's warehouses do not have the appropriate conditions
for keeping delicate tropical fruits; also, these fruits are ordered rarely and in small quantities. To provide fresh
and high-quality fruits to the customers, the sales manager purchases these tropical fruits on demand from the
All Fruits Mall company, and once the fruits are delivered to the retail warehouse of the SweetLife store, they
are immediately shipped to the customer that ordered them. Acting as sales manager Regina Wiley, you need to
process the sales order and the related purchase order in the system.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• Sales Order to Purchase Order Link, which provides the ability to link sales orders to existing purchase
orders and receipts, and to create new purchase orders for existing sales orders
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been created.
• On the Vendors (AP303000) form, the ALLFRUITS (All Fruits Mall) vendor has been created.
• On the Stock Items (IN202500) form, the DRAGONFR (Fresh dragon fruit 1 lb) and TANGERINES (Fresh
tangerines 1 lb) stock items have been created. For each item, the ALLFRUITS vendor has been added on the
Vendors tab, and the last vendor price has been specified.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• Sales Order to Purchase Order Link, which provides the ability to link sales orders to existing purchase
orders and receipts, and to create new purchase orders for existing sales orders
• On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been created.
• On the Vendors (AP303000) form, the ALLFRUITS (All Fruits Mall) vendor has been created.
 Processing Purchases for Sale | 270

• On the Stock Items (IN202500) form, the DRAGONFR (Fresh dragon fruit 1 lb) and TANGERINES (Fresh
tangerines 1 lb) stock items have been created. For each item, the ALLFRUITS vendor has been added on the
Vendors tab, and the last vendor price has been specified.

Process Overview
In this activity, to process a sales order that includes items that must be purchased for sale, you will first create a
sales order on the Sales Orders (SO301000) form and add all of the stock items that were ordered by the customer.
Because the items are not in stock, you will mark them for purchasing in the sales order; to ship these lines, you
have to receive the purchased items at the warehouse specified in the sales order lines.
When you mark items for purchasing, the system creates purchase requests of the SO to Purchase type. You
will create purchase orders by mass-processing purchase requests of this type on the Create Purchase Orders
(PO505000) form. Each purchase order generated from a purchase request or from multiple requests will be linked
to the related sales order. When you receive the items of each linked purchase order to inventory, the items will be
allocated directly to the related sales orders.
Aer all purchased items have been received to inventory, you will process the sales order to completion. That is,
you will ship the items to the customer and prepare the invoice for the customer.

System Preparation
Before you start processing a sales order that includes items that must be purchased for sale, you should do the
following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
3. Sign in to the system as a purchasing manager by using the wiley username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.
6. On the Enable/Disable Features form, make sure that the Project-Specific Inventory feature is disabled.
7. On the Enable/Disable Features form, make sure that the Project-Specific Inventory feature is disabled.
8. On the Enable/Disable Features form, disable the Project-Specific Inventory feature.

Step 1: Creating a Sales Order

To create the sales order for GoodFood One Restaurant, do the following:
1. On the Sales Orders (SO301000) form, create an order with the following settings:
• Order Type: SO
• Customer: GOODFOOD
• Description: Website order #00782 (tropical fruits)
2. On the Details tab, add rows with the settings shown in the following table.

Branch Inventory ID Warehouse Quantity Unit Price

RETAIL DRAGONFR RETAIL 3 3

 Processing Purchases for Sale | 271

Branch Inventory ID Warehouse Quantity Unit Price

RETAIL TANGERINES RETAIL 2 2.09

Notice that the system displays warnings in the Quantity column in both lines indicating that the specified
quantity is not available in the selected warehouse.
3. On the form toolbar, click Save. The sales order is saved with the Open status.

Step 2: Marking the Items to be Purchased for Sale

To mark items for purchase in the sales order, on the Details tab of the Sales Orders (SO301000) form while you are
still viewing the order, do the following:
1. In the DRAGONFR line, select the Mark for PO check box, and make sure that Purchase to Order is selected in
the PO Source column.
2. In the TANGERINES line, select the Mark for PO check box, and make sure that Purchase to Order is selected
in the PO Source column.
3. On the form toolbar, click Save.

Step 3: Creating a Purchase Order That Is Linked to the Sales Order

To create a purchase order for the items that are marked for purchase, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu, click
Create Purchase Order.
2. On the Create Purchase Orders (PO505000) form, which opens, select the unlabeled check boxes in the two
lines with SO to Purchase specified as the Plan Type. (The SO to Purchase plan type indicates that this line is
a purchase request.)
3. In both of these lines, do the following:
a. In the Vendor column, select ALLFRUITS
b. In the Warehouse column, select RETAIL
4. On the form toolbar, click Process to process the purchase requests you have selected.
The system creates a purchase order for the ALLFRUITS vendor, and opens it on the Purchase Orders
(PO301000) form.
5. On the Details tab, click the DRAGONFR line, and on the table toolbar, click View SO Demand. The Demand
dialog box, which opens, shows the sales order to which this purchase order line is linked.
6. Click Close to close the dialog box.
7. On the Details tab, make sure that 2.75 is specified as the Unit Cost in the DRAGONFR line, and 1.75 is
specified as the Unit Cost in the TANGERINES line.
8. In the Summary area, type Purchase for website order #00782 in the Description box.
9. On the form toolbar, click Remove Hold.

Step 4: Processing the Purchase Order

To process the purchase order to completion, do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter PO
Receipt on the form toolbar.
 Processing Purchases for Sale | 272

2. On the Purchase Receipts (PO302000) form, which opens, review the details on the prepared purchase
receipt, and make sure that both purchase order lines have been added with the appropriate quantities.
3. In the Summary area, select the Create Bill check box to make the system generate the bill automatically on
release of the purchase receipt.
4. On the form toolbar, click Release to release the purchase receipt.
The system releases the purchase receipt, which is assigned the Released status.
5. On the Billing tab, review the only line in the table, which shows the generated bill, and make sure that the
bill has the Open status, reflecting that it has been released.
6. On the Other tab, click the IN Ref. Nbr. link, and review the generated inventory receipt on the Receipts
(IN301000) form, which opens in a pop-up window. Make sure that the inventory receipt has the Released
status.

Now the items are in stock and can be shipped to the GoodFood One Restaurant customer.

Step 5: Processing the Sales Order to Completion

To process to completion the sales order that you have created in this activity, do the following:
1. On the Inventory Allocation Details (IN402000) form, select TANGERINES as the Inventory ID and RETAIL as the
Warehouse.
2. On the Item Plans tab, review the only line in the table, which shows that 2 TANGERINES units are allocated
directly for the sales order for which you have processed the purchase.
3. Select DRAGONFR as the Inventory ID, and in the only table line, make sure that 3 DRAGONFR units are also
allocated for the sales order for which you purchased them.
4. In the table, double-click the line to open the sales order on the Sales Orders (SO301000) form.
5. On the Details tab, click the DRAGONFR line, and on the table toolbar, click PO Link. In the Purchasing
Details dialog box, which opens, select RETAIL as the Purchasing Warehouse and review the purchase
order to which this sales order line is linked.
6. Click Save to close the dialog box.
7. On the Details tab, click the TANGERINES line, and on the table toolbar, click Line Details.
8. In the Line Details dialog box, which is opened, review the allocation line, which shows that the ordered
items are allocated in the RETAIL warehouse.
9. Click OK to close the dialog box.
10.On the form toolbar of the Sales Orders form, click Create Shipment.
11.In the Specify Shipment Parameters dialog box, which opens, make sure that today's date is specified in
the Shipment Date box and the RETAIL warehouse is specified in the Warehouse ID box, and click OK. The
dialog box is closed. The system creates a shipment and opens it on the Shipments (SO302000) form.
12.On this form, review the details of the shipment, and make sure that both lines have been added with the
appropriate quantities.
13.On the form toolbar, click Confirm Shipment to confirm the shipment, and then click Prepare Invoice to
prepare the invoice for the customer.
14.On the Invoices (SO303000) form, which opens, review the details of the prepared invoice.
15.On the form toolbar, click Release to release the invoice.
16.Return to the Sales Orders form with the sales order for the GOODFOOD customer open, and notice that it
has the Completed status, as shown in the following screenshot.
 Processing Purchases for Sale | 273

Figure: Sales order processed to completion

Purchases for Sale: Mass-Processing of Documents

This topic explains how to process multiple documents related to purchases for sale, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Creating Purchase Orders

Purchase orders related to sales orders can be mass-generated for multiple sales orders at a time. To mass-process
sales order lines that have been marked for purchase, you open the Create Purchase Orders (PO505000) form, on
which you can create purchase orders based on the purchase requests (which are the lines with the SO to Purchase
plan type) that have been created for these sales order lines. On this form, you select the unlabeled check boxes
in the rows of the lines to be processed and click Process on the form toolbar to generate the purchase order or
orders of the Normal type.
When multiple purchase orders are generated from purchase requests, the system creates consolidated purchase
orders grouped by order type, vendor, vendor location, and warehouse; if the project accounting functionality is
in use, the purchase orders are also grouped by project. In each prepared purchase order, purchase order lines are
grouped by item, subitem, and date on which they are requested; if the project accounting functionality is in use,
the purchase order lines are also grouped by project, project task, and cost code.

Mass-Creating Shipments
Shipments can be mass-generated for sales orders. To generate shipments for multiple sales orders at a time, you
open the Process Orders (SO501000) form and select the Create Shipment action. Then you select the unlabeled
check boxes in the rows of the orders to be processed, and click Process on the form toolbar. The system prepares
shipment documents for the selected sales orders.

Mass-Creating SO Invoices
You can create multiple invoices on the Process Orders (SO501000) form by selecting the Prepare Invoice action,
selecting the unlabeled check box in the sales order lines to be processed, and clicking Process on the form toolbar
to generate the SO invoice or invoices.
 Processing Purchases for Sale | 274

Purchases for Sale: Related Reports, Inquiry Forms and Dialog Boxes

In the following sections, you can find details about the reports, inquiry forms, and dialog boxes you may want
to review to gather information about purchases for sale that have been processed or are being processed in the
system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Orders Pending Purchase

You can find purchase requests of the SO to Purchase type on the Create Purchase Orders (PO505000) form. On
the form, you can filter purchase requests by any of the following criteria: warehouse, vendor, order type, order
number, inventory identifier, item class, customer, product manager, and workgroup. For the selected list of
purchase requests, you can generate purchase orders for all the lines in the list, or you can select particular lines
(by selecting the unlabeled check boxes in the lines) and generate these purchase orders.

Reviewing Allocations for a Sales Order

On the Sales Orders (SO301000) form, you can track the stage of fulfillment for each line of a sales order by clicking
the line and then Line Details on the table toolbar of the Details tab. In the Line Details dialog box, which opens,
you can view an allocation that the system automatically performs to reserve the line item quantity required for the
sales order on the purchase receipt.
If a purchase order line that corresponds to a sales order is completed or canceled, the system adds a new
allocation line, which can be viewed in the Line Details dialog box. This line has the Mark for PO check box
cleared and indicates that the shipment should be prepared for the item quantity in this line. When the shipment is
confirmed for this line, the line is removed from the Line Details dialog box.

Reviewing the Demand for Purchase Orders

You can find the sales order that is linked to a particular line of a purchase order by clicking the purchase order
line on the Details tab of the Purchase Orders (PO301000) form, and then clicking View SO Demand on the table
toolbar. The Demand dialog box, which opens, lists all the sales orders that are linked to the selected line of the
purchase order.

Reviewing the Links Between Sales Order Lines and Purchase Order Lines
You can link a sales order line to an existing purchase order line, or find the purchase order that is linked to a
particular line of a sales order by clicking the sales order line on the Details tab of the Sales Orders (SO301000)
form, and then clicking PO Link on the table toolbar. The Purchasing Details dialog box, which opens, lists all the
purchase orders that are linked to the selected line of the sales order. To link a sales order line to a purchase order
line, you select the Selected check box next to need line in the table, and click Save.

Reviewing the Item Plans Related to Purchases for Sale

On the Inventory Allocation Details (IN402000) form, you can select an item in the Inventory ID box, and on the Item
Plans tab, review the quantity of the item that is currently listed in purchase orders. The SO to Purchase plan type
indicates that a sales order has items marked for purchasing. The Purchase for SO Prepared plan type indicates that
a purchase order was prepared for the sales-order with items marked for purchasing.
 Processing Purchases for Sale | 275

Printing a Purchase Order

To prepare a printable version of the purchase order that is being processed, you use the Purchase Order
(PO641000) report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print
the purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version
of the document on the Purchase Order report; then you can review the order and print it by clicking Print on the
report toolbar.

To Link a Sales Order to an Existing Purchase Order

To link an existing sales order with items marked for purchasing to an existing purchase order, you use the Sales
Orders (SO301000) form.

To Link a Sales Order to an Existing Purchase Order

1. Open the Sales Orders (SO301000) form.
2. In the Order Type box, select the order type.
3. In the Order Nbr. box, select the reference number of the order to be linked.
4. On the Details tab, for each line that is marked for purchasing, do the following:
a. Click the line, and on the table toolbar, click PO Link.
b. In the Purchasing Details dialog box, which opens, select Purchase to Order in the PO Source box.
c. In the Vendor box, select the vendor from which the items have to be purchased.
d. In the Purchase Warehouse box, specify the destination warehouse.
e. In the table of the dialog box, select the unlabeled check boxes in the row of a purchase order line to be
linked to the sales order line.
f. Click Save to link the orders and close the dialog box.
5. Save your changes to the sales order.

To Create a Purchase Order for Multiple Sales Orders

You can create purchase orders for multiple sales orders that have lines marked for purchasing at once by using the
Create Purchase Orders (PO505000) form, as described in this topic.

To Create a Purchase Order for Multiple Sales Orders

1. Open the Create Purchase Orders (PO505000) form.
2. If needed, change the Creation Date, which is the date that the system will insert for the generated
purchase order.
3. In the table, select the unlabeled check boxes next to the needed lines with the SO to Purchase type, and
make sure that each of the selected lines has the proper vendor specified.
4. Click Process on the form toolbar, or click Process All to generate purchase orders for all listed sales orders.
The system generates the purchase orders.
 Processing Purchases of Stock Items | 276

Processing Purchases of Stock Items

For most companies, the majority of purchase orders are purchases to inventory: the bills are generated aer
the ordered goods and services have been received from the vendors. The topics of this chapter describe how to
process purchase orders with stock items being received before the related AP bill is prepared for the vendor for the
purchased goods and services.

Purchases of Stock Items: General Information

In Acumatica ERP, you can process purchases of stock items: purchases in which the bills are generated aer the
ordered goods and services have been received into inventory from the vendors.

Learning Objectives
You will do the following:
• Create a purchase order with stock items
• Prepare a purchase receipt for an existing purchase order
• Release a purchase receipt
• Enter the accounts payable bill for the receipt
• Process the purchase order and the related inventory documents and accounts payable documents

Applicable Scenarios
You process a purchase order if you need to record a purchase of stock items with item quantities updated in
inventory and to prepare a bill for the purchased goods to the vendor of the goods. Your purchase process includes
entering a purchase order, processing the purchase receipt when the purchased items are received to inventory,
and preparing a bill to the vendor.

Process of a Purchase of Stock Items

A purchase process typically includes entering a purchase order, processing the purchase receipt when the
purchased items are received to inventory, and preparing a bill to the vendor. In general, the Purchase Orders
(PO301000) form is the starting point for creating a purchase order. In Acumatica ERP, for processing purchases of
inventory items, purchase orders of the Normal type are used.
In a new purchase order created on the Purchase Orders form, you should first select the vendor. Then on the
Details tab, you list the stock items to be purchased from the vendor. You can add stock items by clicking the
Add Items button on the table toolbar of the Details tab and selecting from only the vendor's items or from the
entire list of stock items. Once the purchased items have been received to inventory, you need to create a purchase
receipt (or multiple partial receipts). When a purchase receipt is released, the system automatically generates
a corresponding inventory receipt, with the date and posting period of the purchase receipt. On release of the
inventory receipt, the system updates the inventory on hand with the quantity and cost of the received goods
and generates a batch of GL transactions to update account balances in the general ledger. If all the lines in the
purchase order have been received in full, the system assigns the purchase order the Completed status. Then you
need to create a bill to increase the vendor's balance in the system with amount to be paid for received goods. If all
the lines in the purchase order have been billed in full, the system assigns the purchase order the Closed status. For
more information on the rules that affect line closing and completion, see Stock Item Lines in Purchase Orders.
 Processing Purchases of Stock Items | 277

Workflow of a Purchase of Stock Items

The following diagram represents the general workflow of the processing of a purchase order in Acumatica ERP, in
which a purchase receipt is processed before the bill is generated.
 Processing Purchases of Stock Items | 278

Purchases of Stock Items: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases of stock items, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
We recommend that before you initially process purchases of stock items, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Criteria to Check

Purchase Orders Preferences (PO101000) form Make sure that all necessary settings related to pur-
chase order management have been specified as de-
scribed in Configuration of Order Management: General
Information.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: General Information.

Stock Items (IN202500) form Make sure that all stock items have been configured as
described in Stock Item Creation: General Information.

Other Settings That Affect the Workflow

You can affect the workflow of processing purchases by specifying additional settings:
• To reduce input errors when users enter orders, set up the validation of order totals by selecting the For
Normal and Standard Orders check box in the Validate Total on Entry section of the Purchase Orders
Preferences (PO101000) form (General Settings tab). If this check box is selected, when a user creates a new
purchase order on the Purchase Orders (PO301000) form, to take the order off hold, the user must enter the
order total in the Control Total box aer verifying the order details.
• To cause an accounts payable bill to be created automatically on release of a purchase receipt by default,
select the Create Bill on Receipt Release check box on the Purchase Orders Preferences form. In this case,
when a user creates a purchase receipt on the Purchase Receipts (PO302000) form, the system automatically
selects the Create Bill check box. (The user can clear this check box for a particular bill.)
To cause the system to automatically release accounts payable bills generated on release of purchase
receipts, select the Release AP Documents Automatically check box on the Purchase Orders Preferences
form. For information on processing bills, see AP Bills: General Information.
• To cause purchase receipts to be created with the On Hold status (so that users can verify them before
processing them further), select the Hold Receipts on Entry check box on the Purchase Orders Preferences
form.
• To cause the system to automatically release inventory receipts generated on release of purchase receipts,
select the Release IN Documents Automatically check box on the Purchase Orders Preferences form.
• To cause the system to automatically post general ledger batches generated during processing purchase
documents, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.
 Processing Purchases of Stock Items | 279

Testing of Settings
To make sure that all settings are configured correctly, process a purchase order, as described in Purchases of Stock
Items: Process Activity.

Purchases of Stock Items: Process Activity

The following activity demonstrates how to prepare and process to completion a purchase order with items
received to inventory before the vendor is billed.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Video Tutorial
This video shows you the common process but may contain less detail than the activity has. If you want to repeat
the activity on your own or you are preparing to take the certification exam, we recommend that you follow the
instructions in the activity steps.
FEEDBACK

Story
Suppose that you are Regina Wiley, a purchasing manager in the SweetLife Fruits & Jams company. On January 30,
2023, you are purchasing the following fruits from the Glory Fruit Case vendor: 100 pounds of apples, 200 pounds of
oranges, and 50 pounds of lemons. The purchased fruits are to be delivered to the main office's warehouse. As the
purchasing manager, you need to enter and process a purchase order, process a purchase receipt, and create a bill
that should be paid to the vendor for the received fruits.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the GLORYFRUIT (Glory Fruit Case) vendor has been configured.
• On the Stock Items (IN202500) form, the APPLES, LEMONS, and ORANGES stock items have been created.

Process Overview
In the process of purchasing stock items, you create a purchase order on the Purchase Orders (PO301000) form
and add the purchased items to it. When the items have been received, on the Purchase Receipts (PO302000) form,
you create a purchase receipt for the ordered items. On release of the purchase receipt, the system automatically
generates an inventory receipt to reflect the receipt of the items in inventory. Then on the Bills and Adjustments
(AP301000) form, you create an accounts payable bill to the vendor.
 Processing Purchases of Stock Items | 280

System Preparation
Before you start creating and processing a purchase order to completion, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded and sign in to the system as purchasing
manager Regina Wiley by using the wiley username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Reviewing the Quantity of Items in the Warehouse

To review the quantity of items in the WHOLESALE warehouse, you should do the following:
1. Open the Inventory Valuation (IN615500) report form.
2. On the Report Parameters tab, specify the following settings:
a. Company/Branch: HEADOFFICE - SweetLife Head Office and Wholesale Center
b. Warehouse: WHOLESALE
c. Report Format: Summary
Leave other settings unchanged.
3. On the form toolbar of the report form, click Run Report. The print form of the report opens. Review the
report.
4. Memorize or write down the quantity of items with the following inventory IDs:
• APPLES
• LEMONS
• ORANGES
In Step 3, you will compare the original quantity of these items with the resulting quantity.

Step 2: Creating a Purchase Order

To create a purchase order, do the following:

To open the form for creating a new record, type the form ID in the Search box, and on the Search
form, point at the form title and click New right of the title.

1. On the Purchase Orders (PO301000) form, add a new record.

2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: GLORYFRUIT
• Date: 1/30/2023
• Promised On: 1/30/2023
• Description: Purchase of fruits
3. On the Details tab, on the table toolbar, click Add Row and specify the following settings in the added row:
 Processing Purchases of Stock Items | 281

• Branch: HEADOFFICE
• Inventory ID: APPLES
• Warehouse: WHOLESALE
• Order Qty.: 100
• Unit Cost: 2.29
4. On the table toolbar, click Add Row and specify the following settings in the second row:
• Branch: HEADOFFICE
• Inventory ID: LEMONS
• Warehouse: WHOLESALE
• Order Qty.: 50
• Unit Cost: 2.59
5. On the table toolbar, click Add Row and specify the following settings in the third row:
• Branch: HEADOFFICE
• Inventory ID: ORANGES
• Warehouse: WHOLESALE
• Order Qty.: 200
• Unit Cost: 1.85
6. On the form toolbar, click Save.
7. On the form toolbar, click Remove Hold. Now you can continue processing the purchase order, which has
the Open status.

Step 3: Processing the Purchase Receipt

To create a purchase receipt for the purchase order, do the following:
1. While you are still viewing the Purchase of fruits purchase order on the Purchase Orders (PO301000) form,
on the form toolbar, click Enter PO Receipt. The system prepares the purchase receipt for the selected
purchase order and opens it on the Purchase Receipts (PO302000) form.
2. On the form toolbar, click Save.
Review the details of the prepared purchase receipt. Make sure that the Create Bill check box is cleared in
the Summary area. (In the next step, you will prepare the bill manually.)
3. On the form toolbar, click Release. Wait for the system to complete the operation.
4. On the Other tab, click the IN Ref. Nbr. link. The inventory receipt opens on the Receipts (IN301000) form in
a pop-up window. Review the details of the generated inventory receipt. Make sure the inventory receipt has
the Released status. Close the inventory receipt.
5. Open the Inventory Valuation (IN615500) report form.
6. On the Report Parameters tab, specify the following settings:
• Company/Branch: HEADOFFICE - SweetLife Head Office and Wholesale Center
• Warehouse: WHOLESALE
• Report Format: Summary
Leave the default settings for the other parameters.
7. On the form toolbar of the report form, click Run Report. The print form of the report opens. Review the
report. Make sure that the report reflects the receipt (to the warehouse) of the purchased items and their
availability.
 Processing Purchases of Stock Items | 282

Step 4: Processing the AP Bill

To process the AP bill to the GLORYFRUIT vendor, do the following:
1. Open the purchase receipt that you have processed earlier in this activity on the Purchase Receipts
(PO302000) form.
2. On the form toolbar, click Enter AP Bill. The system generates an accounts payable bill to the vendor of the
goods and shows the created document on the Bills and Adjustments (AP301000) form.
3. On the form toolbar, click Save.
4. Click Remove Hold, which gives you the ability to release the bill.
5. Click Release.
6. Return to the purchase order to the GLORYFRUIT vendor on the Purchase Orders (PO301000) form, and
review its details. Notice that the order now has a status of Closed, as shown in the following screenshot.
On the PO History tab, notice that the information about the purchase receipt and accounts payable bill
that were prepared for the order is displayed. According to this information, the purchased items have been
received to inventory and billed in full, so the purchasing process is completed.

Figure: Purchase order processed to completion

Activity Recap
In this activity, we have illustrated how the purchasing manager has done the following:
1. Reviewed the remaining quantity of the specific items in the warehouse
2. Created a purchase order for the items
3. Created and processed a purchase receipt for the purchased items
4. Run an inventory valuation report to make sure that the purchased items have been received to the
warehouse
5. Created and processed an AP bill to the vendor that provides the goods

Purchases of Stock Items: Generated Transactions

To process a purchase of items, you create a purchase order and process a purchase receipt and an AP bill. On
release of purchase receipt, an inventory receipt transaction is generated and released. On release of the AP bill and
inventory receipt, the system generates GL transactions described in the following sections.
 Processing Purchases of Stock Items | 283

Transactions Generated on Inventory Receipt Release

When an inventory receipt generated from a purchase receipt is released, the system generates a batch of the
following transactions.

Account Source of Account Debit Credit

Inventory account Item Amount 0.00

PO Accrual account Item 0.00 Amount

You can view the reference number of the GL batch generated for a particular inventory receipt in the Batch Nbr.
box on the Financial tab of the Receipts (IN301000) form. You can click the link in this box to view the details of the
batch on the Journal Transactions (GL301000) form.

Transactions Generated on AP Bill Release

When an accounts payable bill prepared for a purchase order (or for purchase receipt) is released, the system
creates a batch of the following transactions.

Account Source of Account Debit Credit

Accounts Payable account Vendor 0.00 Amount

PO Accrual account Item Amount 0.00

You can view the reference number of the GL batch generated for a particular AP bill in the Batch Nbr. box on the
Financial tab of the Bills and Adjustments (AP301000) form. You can click the link in this box to view the details of
the batch on the Journal Transactions (GL301000) form.

Purchases of Stock Items: Linking Documents

The following sections describe how you can establish connection between purchase documents and related
finance documents.

Linking Accounts Payable Bills to Purchase Documents

When you process a purchase of stock items by using the purchase order or purchase receipt as a starting point,
the AP bills generated based on these documents are automatically linked to the related purchase documents.
However, in some organizations, AP bills could be imported from a third-party application, or bills received from
the vendors could be entered manually on the Bills and Adjustments (AP302000) form, thus they would contain
no reference to the purchase documents. To correctly track the order fulfillment and the relationships between
documents in the system, lines with stock items in independently created bills must be linked to purchase orders or
purchase receipts.
Stock and non-stock items may be listed in a bill. When you add a stock item to a bill, the system displays a
message that warns you that the line must be linked to a purchase receipt before the bill can be released. On
the Bills and Adjustments form, you must link each line of a bill with a stock item to a line of a released purchase
receipt. If the bill includes non-stock items, you also may link the lines with non-stock items to the lines of released
purchase receipts or open purchase orders, depending on the type of non-stock items.
 Processing Purchases of Stock Items | 284

Linking Purchase Receipts and Purchase Orders

When you receive purchases from a single vendor and create a new purchase receipt on the Purchase Receipts
(PO302000) form, you can add an entire purchase order, multiple purchase orders, or particular purchase order
lines to this receipt. The lines that can be added to a purchase receipt depend on the line types of these lines and
on particular system settings. Purchase receipts can be linked to only normal or drop-ship purchase orders; see
Blanket and Standard Purchase Orders for details about these and other purchase order types.

Purchases of Stock Items: Mass-Processing of Documents

The following sections explain how to mass-process purchase orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Releasing Purchase Receipts

You can release multiple purchase receipts at the same time by using the Release Purchase Receipts (PO501000)
form. On this form, you select the unlabeled check boxes in the rows to be processed, and click Process on the
form toolbar to release the selected documents.

Printing and Emailing Multiple Purchase Orders

If needed, you can print or email multiple purchase orders at the same time by using the Print/Email Purchase
Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you select the Print Purchase
Order or Email Purchase Order action, select the unlabeled check boxes for the rows to be processed, and click
Process on the form toolbar to process the selected documents.

Consolidating Purchase Orders or Lines into a Single Purchase Receipt

Instead of preparing an individual purchase receipt for each purchase order, you can add multiple purchase orders
of one vendor to a single purchase receipt; you can also add individual lines of one purchase order or multiple
purchase orders. To do this, you create a new purchase receipt of the Receipt type manually on the Purchase
Receipts (PO302000) form; you then click Add PO on the table toolbar of the Details tab and add the lines of
multiple purchase orders with the same vendor to the purchase receipt. If you click Add PO Line on the table
toolbar, you can add purchase receipt lines.

Consolidating Purchase Receipts or Lines into a Single Bill

Instead of preparing an individual accounts payable bill for each purchase receipt, you can add multiple purchase
receipts of one vendor to a single bill; you can also add individual lines of one purchase receipt or multiple
purchase receipts. To do this, you create a new accounts payable bill manually on the Bills and Adjustments
(AP301000) form and make sure that the Tax Settings option is selected in the Tax Calculation Mode box on the
Financial tab. The Tax Calculation Mode box is only available if the Net/Gross Entry Mode feature is enabled on the
Enable/Disable Features (CS100000) form. You then click Add PO Receipt on the table toolbar of the Details tab and
add the lines of multiple purchase receipts with the same vendor to the bill. If you click Add PO Receipt Line on the
table toolbar, you can add purchase receipt lines.

Purchases of Stock Items: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about the purchases of stock items that have been processed or are being processed in the system.
 Processing Purchases of Stock Items | 285

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Purchase Order Information

If you need to review all information related to a purchase order—including the order total, open quantities,
unbilled quantities and amounts, and related purchase receipts and accounts payable bills with their dates,
amounts, and current statuses—you first open the particular purchase order on the Purchase Orders (PO301000)
form. Then on the More menu, you click Purchase Order Receipt and Billing History to open the Purchase Order
Receipt and Billing History (PO643000) report for this purchase order.

Finding the Purchase Receipts Related to a Purchase Order

If you need to find a purchase receipt linked to a particular purchase order, you can open the purchase order on
the Purchase Orders (PO301010) form and review the PO History tab. The le table on this tab lists all the purchase
receipts that have been prepared for the order, and the table footer shows the summary information for all listed
documents. To review the details of a listed purchase receipt, you click its reference number in the Receipt Nbr.
column; the system opens the purchase receipt for review on the Purchase Receipts (PO302000) form.

Finding the Bills Related to a Purchase Order

If you need to find an accounts payable bill linked to a particular purchase order, you can open the purchase order
on the Purchase Orders (PO301000) form and review the PO History tab. The right table on this tab lists all the
accounts payable documents that have been prepared for the order, and the table footer shows the summary
information for all listed documents. To review the details of a listed bill, you click its reference number in the
Reference Nbr. column; the system opens the accounts payable bill for review on the Bills and Adjustments
(AP301000) form.

Reviewing the Unbilled Quantities of a Purchase Order

To check whether a purchase order has quantities of items and amounts that have not yet been billed, you can
review the Unbilled Quantity and Unbilled Amount boxes on the Other tab of the Purchase Orders (PO301000)
form.

Printing a Purchase Order

To prepare a printable version of the purchase order that is being processed, you use the Purchase Order
(PO641000) report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print
the purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version
of the document on the Purchase Order report; then you can review the order and print it by clicking Print on the
report toolbar.

To Add Purchase Orders to an Existing Purchase Receipt

On the Purchase Receipts (PO302000) form, you can add all lines of a purchase order or multiple purchase orders to
an existing purchase receipt in which the same vendor is specified.

To Add Purchase Orders to an Existing Purchase Receipt

1. Open the Purchase Receipts (PO302000) form.
 Processing Purchases of Stock Items | 286

2. Select the needed purchase receipt by its reference number.

3. On the table toolbar of the Details tab, click Add PO.
4. In the Add Purchase Order dialog box, which opens, select the unlabeled check boxes in the rows of the
purchase order or orders whose lines should be added to the purchase receipt.
5. Click Add & Close to add the purchase orders and close the dialog box.
6. On the Details tab, review the information in the added lines, and make any needed changes.
7. Optional: In the Control Qty. box, if it appears in the Summary area, enter the total quantity in all purchase
receipt lines.
8. Click Save to save the purchase receipt.

To Add Purchase Order Lines to an Existing Purchase Receipt

On the Purchase Receipts (PO302000) form, you can add any number of lines from a particular purchase order or
multiple purchase orders to an existing purchase receipt of the same vendor specified for the purchase order or
orders.

To Add a Purchase Order Line to an Existing Purchase Receipt

1. Open the Purchase Receipts (PO302000) form.
2. Select the needed purchase receipt by its reference number.
3. On the table toolbar of the Details tab, click Add PO Line. In the Add Purchase Order Line dialog box,
which opens, do one of the following:
• To add lines from one particular purchase order of the vendor: In the Order Nbr. box, select the reference
number of the particular purchase order whose line or lines you want to add. In the table, select the
unlabeled check box in the row of each purchase order line to be added to the purchase receipt. Click
Add & Close.
• To select lines from all available purchase order lines of the vendor: In the table, select the unlabeled
check box in the row of each purchase order line to be added to the purchase receipt. Click Add & Close.
4. On the Details tab, review the information in the added line or lines, and make any needed changes.
5. Optional: In the Control Qty. box on the Summary area, enter the total quantity in all purchase receipt lines.
6. On the form toolbar, click Save to save the purchase receipt.

To Link a Bill Line to a Purchase Receipt Line

In Acumatica ERP, you can link the lines of an existing bill (for example, one that has been imported from a third-
party soware product) to the lines of the corresponding purchase receipt. To link the lines of a bill to the lines of a
purchase receipt, you use the Bills and Adjustments (AP301000) form.

To Link a Line of an Accounts Payable Bill to a Line of a Purchase Receipt

1. Open the Bills and Adjustments (AP301000) form.
2. In the Summary area, select Bill in the Type box, and select the reference number of the needed bill in the
Reference Nbr. box.
3. On the Document Details tab, click the line to which a purchase receipt line is to be linked.
 Processing Purchases of Stock Items | 287

4. On the table toolbar, click Link Line.

The system opens the Link Line dialog box.
5. In the dialog box, select the Purchase Receipt option button. The dialog box displays the purchase receipt
lines with the same inventory ID used in the bill line that can be linked to the current line.
6. Select the unlabeled check box for the purchase receipt line to be linked to the bill.
7. Click Save to link the lines and close the dialog box.
8. On the form toolbar, click Save.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about linking lines of Accounts Payable bills to purchase receipt lines:
• To be able to link the lines of a bill to the lines of a corresponding purchase receipt, make sure that for the
bill the Tax Settings option is selected in the Tax Calculation Mode box on the Financial Details tab of the
Bills and Adjustments (AP301000) form.
• You can link a bill line to only one line of a purchase receipt. If you have received only a partial quantity of an
item, you can link the purchase receipt with the remaining quantity to another bill's line.
• Information about the related documents appears for each linked line of the bill on the Document Details
tab of the Bills and Adjustments form (in the PO Type, PO Number, PO Receipt Nbr., and PO Receipt Line
columns). While the bill is unreleased, you can cancel the established links and link the bill lines to other
documents if needed.

To Link a Bill Line to a Purchase Order Line

In Acumatica ERP, you can link the lines of an existing bill (for example, one that has been imported from a third-
party soware product) to the lines of corresponding purchase order. To link the lines of a bill to the lines of a
purchase order, you use the Bills and Adjustments (AP301000) form.

To Link a Line of an Accounts Payable Bill to a Line of a Purchase Order

1. Open the Bills and Adjustments (AP301000) form.
2. In the Summary area, select Bill in the Type box, and select the reference number of the bill in the
Reference Nbr. box.
3. On the Document Details tab, click the line to which a purchase order line is to be linked.
4. On the table toolbar, click Link Line.
The system opens the Link Line dialog box.
5. In the dialog box, select the Purchase Order option button. The dialog box displays the purchase order
lines with the same inventory ID that can be linked to the current line.
6. Select the unlabeled check box for the purchase order line to be linked to the bill.
7. Click Save to link the lines and close the dialog box.
8. On the form toolbar, click Save.
 Processing Purchases of Stock Items | 288

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about linking AP bill lines to purchase order lines:
• To be able to link the lines of a bill to the lines of a corresponding purchase order, make sure that for the bill,
the Tax Settings option is selected in the Tax Calculation Mode box on the Financial Details tab of the Bills
and Adjustments (AP301000) form.
• You can link bill lines to the lines of only purchase orders for which billing before receipt is allowed (that is,
purchase orders for which the Allows AP Bill Before Receipt check box is selected for the purchase order on
the Other tab of the Purchase Orders (PO301000) form).
• Information about the related documents appears for each linked line of the bill on the Document Details
tab of the Bills and Adjustments form (in the PO Type, PO Number, PO Receipt Nbr., and PO Receipt Line
columns). While the bill is unreleased, you can cancel the established links and link the bill lines to other
documents if needed.

To Manually Create an Accounts Payable Bill for a Purchase Receipt

In Acumatica ERP, you can create an AP bill and add to the bill particular purchase receipts, or individual purchase
receipt lines, of the same vendor specified in the bill. To create a bill for a purchase receipt, you use the Bills and
Adjustments (AP301000) form.

To Manually Create an Accounts Payable Bill for a Purchase Receipt

1. Open the Bills and Adjustments (AP301000) form.
2. On the form toolbar, click Add New Record.
3. In the Type box of the Summary area, select Bill.
4. In the Date box, enter the date of the bill.
5. In the Vendor Ref. box, enter the reference number of the vendor's purchase document that this bill is
based on. (This value may be required, based on your organization's settings.)
6. In the Vendor box, select the applicable vendor.
The system fills in the following boxes automatically with the default settings of the selected vendor:
Location, Terms, Due Date, and Cash Discount Date. Review these settings, and make any needed
changes.
7. In the Currency box, ensure that the document currency is correct. If it is not, select another currency.
8. To add an entire purchase receipt (or multiple receipts), do the following:
a. On the Document Details tab, click Add PO Receipt.
The system opens the Add PO Receipt dialog box, which displays the list of the purchase receipts of the
selected vendor.
b. In the table of the dialog box, select the unlabeled check boxes for the purchase receipts to be added to
the bill.
c. Click Add & Close to close the dialog box.
9. To add particular lines of a purchase receipt (or of multiple receipts), do the following:
a. On the Document Details tab, click Add PO Receipt Line.
 Processing Purchases of Stock Items | 289

The system opens the Add Receipt Line dialog box, which displays the list of the unbilled purchase
receipt lines of the selected vendor.
b. Select the unlabeled check boxes for the purchase receipt lines to be added to the bill.
c. Click Add & Close to close the dialog box.
10.In the table on the Document Details tab (where the lines of the selected purchase receipts or the selected
purchase receipt lines have been added), check the items' quantities and costs, and correct them, if needed.
11.On the form toolbar, click Save.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about adding purchase orders to AP bills:
• You can consolidate the lines of multiple purchase receipts of one vendor into one bill.
• Information about the related documents appears for each linked line of the bill on the Document Details
tab of the Bills and Adjustments (AP301000) form (in the PO Type, PO Number, PO Receipt Nbr., and PO
Receipt Line columns). Until the bill is released, you can cancel the established links and link the bill lines to
other documents if needed.

To Manually Create an Accounts Payable Bill for a Purchase Order

In Acumatica ERP, you can create an AP bill and add to this bill a particular purchase order or multiple purchase
orders of the same vendor specified in the bill. To create a bill for a purchase order, you use the Bills and
Adjustments (AP301000) form.

To Manually Create an Accounts Payable Bill for a Purchase Order

1. Open the Bills and Adjustments (AP301000) form.
2. On the form toolbar, click Add New Record.
3. In the Type box of the Summary area, select Bill.
4. In the Date box, enter the date of the bill.
5. In the Vendor Ref. box, enter the reference number of the vendor's purchase document that this bill is
based on. (This value may be required, based on your organization's settings.)
6. In the Vendor box, select the applicable vendor.
The system fills in the following boxes automatically with the default settings of the selected vendor:
Location, Terms, Due Date, and Cash Discount Date. Review these settings, and make any needed
changes.
7. In the Currency box, ensure that the document currency is correct. If it is not, select another currency.
8. On the Document Details tab, click Add PO.
The system opens the Add PO Order dialog box, which displays the list of the purchase orders of the
selected vendor.
9. In the table of the dialog box, select the unlabeled check boxes for the purchase orders to be added.
10.Click Add & Close to close the dialog box.
11.In the table on the Document Details tab (where the lines of the selected purchase orders have been
added), check the items' quantities and costs, and correct them, if needed.
 Processing Purchases of Stock Items | 290

12.On the form toolbar, click Save.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about adding purchase orders to AP bills:
• You can consolidate the lines of multiple purchase orders of one vendor into one bill.
• The system adds lines of a purchase order to the bill depending on the Allows AP Bill Before Receipt
setting specified for the purchase order on the Other tab of the Purchase Orders (PO301000) form. If the
check box is cleared, only unbilled lines with the Service line type are added to the bill. If the check box is
selected, all unbilled lines are added to the bill.
• Information about the related documents appears for each linked line of the bill on the Document Details
tab of the Bills and Adjustments (AP301000) form (in the PO Type, PO Number, PO Receipt Nbr., and PO
Receipt Line columns). Until the bill is released, you can cancel the established links and link the bill lines to
other documents if needed.
 Processing Purchases with Billing Before Receipt | 291

Processing Purchases with Billing Before Receipt

In some cases, a vendor may want your company to pay for purchased goods in advance. The topics of this chapter
describe how to process purchases in which the bills are received and need to be paid before the vendor ships the
ordered goods.

Purchases with Billing Before Receipt: General Information

In Acumatica ERP, you can process purchases in which the bills are received and need to be paid before the vendor
ships the ordered goods.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Create a purchase order with stock items
• Prepare the accounts payable bill for the purchase order
• Prepare and release purchase receipt and the related inventory documents

Applicable Scenarios
In your organization, if bills are received from some vendors and entered into the system before the purchased
goods arrive or if bills are imported from a third-party system, you can establish a workflow in which an accounts
payable bill can be processed before the ordered items have been received. In this case, the purchasing process
typically includes entering a purchase order, preparing a bill for the vendor, and then, when the purchased items
are received to inventory, processing the purchase receipt.

Purchasing Process with Billing Before Receipt

In general, the Purchase Orders (PO301000) form is the starting point for creating a purchase order. In Acumatica
ERP, purchase orders of the Normal type are used for the processing of purchases of inventory items with billing
before receipt.
In a new purchase order created on the Purchase Orders form, you first select the vendor. Then on the Details tab,
you list the stock items to be purchased from the vendor. You can add stock items by clicking the Add Items button
on the table toolbar of this tab and selecting from only the vendor's items or from the entire list of stock items.
Then you need to create a bill on the Bills and Adjustments (AP301000) form to increase the vendor's balance in
the system by the amount to be paid for the goods. You can release the prepared bill at any time—before or aer
the processing of the receipt of the ordered items. Once the purchased items have been received to inventory,
you create a purchase receipt (or multiple partial receipts) on the Purchase Receipts (PO302000) form. When a
purchase receipt is released, the system automatically generates a corresponding inventory receipt on the Receipts
(IN301000) form, with the date and posting period copied from the purchase receipt. On release of the inventory
receipt, the system updates the inventory on hand with the quantity and cost of the received goods, and generates
a batch of GL transactions to update account balances in the general ledger. If all the lines in the purchase order
have been received and billed in full, the system assigns the purchase order the Completed status. For more
information on the rules that affect line closing and completion, see Stock Item Lines in Purchase Orders, Non-Stock
Lines in Purchase Orders, and Service Lines in Purchase Orders.
 Processing Purchases with Billing Before Receipt | 292

Vendor Setting for Billing Before Receipt

You can create an AP bill before the corresponding purchase receipt for a purchase order in both of the following
cases:
• On the Vendors (AP303000) form, the Allow AP Bill Before Receipt check box is selected for the vendor
specified in the purchase order.
• On the Vendor Locations (AP303010) form, the Allow AP Bill Before Receipt check box is selected for the
vendor location selected in the purchase order.
When a purchase order is created on the Purchase Orders (PO301000) form and this vendor or vendor location is
selected, the state of this check box is copied to the check box of the same name on the Other tab of the form.

If the Allow AP Bill Before Receipt check box is selected for a purchase order, you can also use
the inventory purchase workflow in which the purchase receipt is processed and then the AP bill
is prepared; the check box merely determines whether it is permissible to create the AP bill before
the corresponding purchase receipt is created. For a description of the workflow with the receipt
processed before the related bill, see Purchases of Stock Items: General Information.

Workflow of a Purchase with Billing Before Receipt

The following diagram represents the general workflow of the processing of a purchase order in Acumatica ERP, in
which a bill is processed before the purchased items are received to inventory.
 Processing Purchases with Billing Before Receipt | 293

Purchases with Billing Before Receipt: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases of stock items with billing before receipt, and to understand (and change, if needed) the
settings that affect the processing workflow.
 Processing Purchases with Billing Before Receipt | 294

Implementation Checklist
We recommend that before you initially process purchases of stock items with billing before receipt, you make
sure the needed features have been enabled, settings have been specified, and entities have been created, as
summarized in the following checklist.

Form Criteria to Check Notes

Purchase Orders Preferences Make sure that all necessary set-  

(PO101000) form tings related to purchase order
management have been specified
as described in Configuration of Or-
der Management: Implementation
Activity.

Vendors (AP303000) form Make sure that all needed vendors The system copies the state of the
have been configured as described Allow AP Bill Before Receipt check
in Vendors: General Information and box from the vendor settings to
the Allow AP Bill Before Receipt is each purchase order that is created
selected on the Purchase Settings for this vendor. (You cannot change
tab for the applicable vendors. the state of this check box in indi-
vidual purchase orders.)

Stock Items (IN202500) form Make sure that all stock items have  
been configured as described in
Stock Item Creation: General Infor-
mation.

Other Settings That Affect the Workflow

You can affect the workflow of processing purchases by specifying the following additional settings:
• To reduce input errors when users enter orders, set up the validation of order totals by selecting the For
Normal and Standard Orders check box in the Validate Total on Entry section of the Purchase Orders
Preferences (PO101000) form (General Settings tab). If this check box is selected, when a user creates a new
purchase order on the Purchase Orders (PO301000) form, to take the order off hold, the user must enter the
order total in the Control Total box aer verifying the order details.
• To cause an accounts payable bill to be created automatically on release of a purchase receipt by default,
select the Create Bill on Receipt Release check box on the Purchase Orders Preferences form. In this case,
when a user creates a purchase receipt on the Purchase Receipts (PO302000) form, the system automatically
selects the Create Bill check box. (The user can clear this check box for a particular bill.)
• To cause the system to automatically release accounts payable bills generated on release of purchase
receipts, select the Release AP Documents Automatically check box on the Purchase Orders Preferences
form. For information on processing accounts payable bills, see AP Bills: General Information.
• To cause purchase receipts to be created with the On Hold status (so that users can verify them before
processing them further), select the Hold Receipts on Entry check box on the Purchase Orders Preferences
form.
• To cause the system to automatically release inventory receipts generated on release of purchase receipts,
select the Release IN Documents Automatically check box on the Purchase Orders Preferences form.
• To cause the system to automatically post general ledger batches generated during the processing
of purchase documents, select the Automatically Post on Release check box on the General Ledger
 Processing Purchases with Billing Before Receipt | 295

Preferences (GL102000) form. For information on processing general ledger transactions, see GL
Transactions: General Information.

Testing of Settings
To make sure that all settings are configured correctly, you can process a purchase order with billing before receipt,
as described in Purchases with Billing Before Receipt: Process Activity.

Purchases with Billing Before Receipt: Process Activity

In this activity, you will learn how to process a purchase of stock items if the accounts payable bill from the vendor
is received before the goods have been delivered.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, acting as purchasing manager Regina Wiley, order a large quantity of labeled paper bags and
jar labels for SweetLife’s needs. The Wingman Printing Company vendor, from which these goods were purchased,
sent a bill to SweetLife, which received the original paper bill before the goods were delivered to the warehouse of
the company's main office. You need to enter the purchase order, enter the accounts payable bill for the purchase
order, and later, when the goods arrive to the wholesale warehouse, create and process a purchase receipt related
to the purchase order.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been created. The
Allow AP Bill Before Receipt check box has been selected for the vendor on the Purchase Settings tab.
• On the Vendor Locations (AP303010), for the MAIN location of the PRINTICO vendor, the Allow AP Bill Before
Receipt check box has been selected on the Purchase Settings tab.
• On the Stock Items (IN202500) form, the PAPERBAG and LABELS stock items have been created.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
 Processing Purchases with Billing Before Receipt | 296

• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been created. The
Allow AP Bill Before Receipt check box has been selected for the vendor on the Purchase Settings tab.
• On the Vendor Locations (AP303010), for the MAIN location of the PRINTICO vendor, the Allow AP Bill Before
Receipt check box has been selected on the Purchase Settings tab.
• On the Stock Items (IN202500) form, the PAPERBAG and LABELS stock items have been created.

Process Overview
In this activity, to process a purchase order with billing before the items have been received, you will first create the
purchase order on the Purchase Orders (PO301000) form and add the purchased items to it. You will then create
an accounts payable bill for the vendor on the Bills and Adjustments (AP301000) form and release the bill. When the
ordered items are received, you will create a purchase receipt for them on the Purchase Receipts (PO302000) form.
On release of the purchase receipt, the system generates a corresponding inventory receipt to reflect the receipt of
the items to inventory, which you will review on the Receipts (IN301000) form.

System Preparation
Before you start processing a purchase order with billing before the items have been received, you should do the
following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
3. Sign in to the system as a purchasing manager by using the wiley username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating the Purchase Order

To create a purchase order, which includes labeled paper bags and jar labels, for the Wingman Printing Company,
do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: PRINTICO
• Description: Order of labels and paper bags
3. On the Details tab, add rows with the settings listed in the following table.

Branch Inventory ID Warehouse Order Qty. Unit Cost

HEADOFFICE LABELS WHOLESALE 40 7.49

HEADOFFICE PAPERBAG WHOLESALE 25 16.70

 Processing Purchases with Billing Before Receipt | 297

4. Review the Other tab, and notice that the Allow AP Bill Before Receipt check box is selected. This setting,
which was specified for the PRINTICO vendor, means that you can create the accounts payable bill for the
purchase order even though the purchase receipt has not yet been entered for the purchase order.
5. On the form toolbar, click Remove Hold. The system saves the purchase order.

Step 2: Processing the Accounts Payable Bill

To create an accounts payable bill for the purchase order, do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter AP Bill
on the More menu. The system generates an accounts payable bill (to which it copies the vendor of goods,
the details, and other relevant information) and opens the created document on the Bills and Adjustments
(AP301000) form.
2. Review the details of the created bill. In a production environment, you would make sure that the details of
the bill created in the system correspond to the details of the paper document that was received from the
vendor.
3. On the form toolbar, click Remove Hold.
4. Click Release.

Step 3: Processing the Purchase Receipt

To create the purchase receipt for the purchase order, do the following:
1. Return to the purchase order for PRINTICO on the Purchase Orders (PO301000) form, which still has the Open
status, and review the PO History tab. Notice that the details of the bill are shown in the right table.
2. On the form toolbar, click Enter PO Receipt. The system prepares the purchase receipt for the selected
purchase order, with all lines and other relevant settings copied, and opens it on the Purchase Receipts
(PO302000) form.
3. Make sure that the purchase receipt has the Balanced status, save the purchase receipt, and review its
details. Notice that on the Billing tab, the bill that you have created is listed.
4. In the Summary area, make sure that the Create Bill check box is cleared (because you have already created
a bill for the entire quantity).
5. On the form toolbar, click Release.
6. On the Other tab, click the IN Ref. Nbr. link, and review the details of the generated inventory receipt, which
the system opens on the Receipts (IN301000) form in a pop-up window. Make sure that the inventory receipt
has the Released status.
7. Return to the purchase receipt on the Purchase Receipts form, and on the Orders tab, review the
information about the related purchase order, and make sure it now has the Closed status, as shown in the
following screenshot.
 Processing Purchases with Billing Before Receipt | 298

Figure: The closed purchase order

Purchases with Billing Before Receipt: Mass Processing of Documents

The following sections explain how to mass-process purchase orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Releasing Purchase Receipts

You can release multiple purchase receipts at the same time by using the Release Purchase Receipts (PO501000)
form. On this form, you select the unlabeled check boxes in the rows to be processed, and click Process on the
form toolbar to release the selected documents.

Printing and Emailing Multiple Purchase Orders

If needed, you can print or email multiple purchase orders at the same time by using the Print/Email Purchase
Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you select the Print Purchase
Order or Email Purchase Order action, select the unlabeled check boxes for the rows to be processed, and click
Process on the form toolbar to process the selected documents.

Consolidating Purchase Orders or Lines into a Single Purchase Receipt

Instead of preparing an individual purchase receipt for each purchase order, you can add multiple purchase orders
of one vendor to a single purchase receipt; you can also add individual lines of one purchase order or multiple
purchase orders. To do this, you create a new purchase receipt of the Receipt type manually on the Purchase
Receipts (PO302000) form; you then click Add PO on the table toolbar of the Details tab and add the lines of
multiple purchase orders with the same vendor to the purchase receipt. If you click Add PO Line on the table
toolbar, you can add purchase receipt lines.

Consolidating Purchase Receipts or Lines into a Single Bill

Instead of preparing an individual accounts payable bill for each purchase receipt, you can add multiple purchase
receipts of one vendor to a single bill; you can also add individual lines of one purchase receipt or multiple
purchase receipts. To do this, you create a new accounts payable bill manually on the Bills and Adjustments
(AP301000) form and make sure that the Tax Settings option is selected in the Tax Calculation Mode box on the
Financial tab. The Tax Calculation Mode box is only available if the Net/Gross Entry Mode feature is enabled on the
Enable/Disable Features (CS100000) form. You then click Add PO Receipt on the table toolbar of the Details tab and
 Processing Purchases with Billing Before Receipt | 299

add the lines of multiple purchase receipts with the same vendor to the bill. If you click Add PO Receipt Line on the
table toolbar, you can add purchase receipt lines.

Purchases with Billing Before Receipt: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about the purchases of stock items that have been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Purchase Order Information

If you need to review all information related to a purchase order—including the order total, open quantities,
unbilled quantities and amounts, and related purchase receipts and accounts payable bills with their dates,
amounts, and current statuses—you first open the particular purchase order on the Purchase Orders (PO301000)
form. Then on the More menu, you click Purchase Order Receipt and Billing History to open the Purchase Order
Receipt and Billing History (PO643000) report for this purchase order.

Finding the Purchase Receipts Related to a Purchase Order

If you need to find a purchase receipt linked to a particular purchase order, you can open the purchase order on
the Purchase Orders (PO301010) form and review the PO History tab. The le table on this tab lists all the purchase
receipts that have been prepared for the order, and the table footer shows the summary information for all listed
documents. To review the details of a listed purchase receipt, you click its reference number in the Receipt Nbr.
column; the system opens the purchase receipt for review on the Purchase Receipts (PO302000) form.

Finding the Bills Related to a Purchase Order

If you need to find an accounts payable bill linked to a particular purchase order, you can open the purchase order
on the Purchase Orders (PO301000) form and review the PO History tab. The right table on this tab lists all the
accounts payable documents that have been prepared for the order, and the table footer shows the summary
information for all listed documents. To review the details of a listed bill, you click its reference number in the
Reference Nbr. column; the system opens the accounts payable bill for review on the Bills and Adjustments
(AP301000) form.

Reviewing the Unbilled Quantities of a Purchase Order

To check whether a purchase order has quantities of items and amounts that have not yet been billed, you can
review the Unbilled Quantity and Unbilled Amount boxes on the Other tab of the Purchase Orders (PO301000)
form.

Printing a Purchase Order

To prepare a printable version of the purchase order that is being processed, you use the Purchase Order
(PO641000) report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print
the purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version
of the document on the Purchase Order report; then you can review the order and print it by clicking Print on the
report toolbar.
 Processing Purchases of Non-Stock Items with Receipts | 300

Processing Purchases of Non-Stock Items with Receipts

If your company purchases items, including services, whose quantities will not be tracked in inventory, these items
can be defined as non-stock items in Acumatica ERP. You can process purchases of these items by using purchase
orders, which may have associated purchase receipts.
The topics of this chapter describe how to prepare and process purchase orders containing non-stock items and
services that have to be included in the corresponding purchase receipts.

In Acumatica ERP, a purchase order can contain stock items, non-stock items, or a mix of both types
of items. Each non-stock item included in a purchase order may or may not need to be included in a
purchase receipt, based on the item’s settings in the system.
For simplicity, this chapter will focus on purchase orders that contain only non-stock items (including
services) that must be included in the corresponding purchase receipts.

Purchases of Non-Stock Items and Services with Receipts: General Information

Non-stock items in Acumatica ERP, which are defined on the Non-Stock Items (IN202000) form during
implementation, are used to represent products that cannot be stocked in warehouses (such as services or
charges) or physical entities whose quantities you do not need to track. In Acumatica ERP, you can process
purchases of non-stock items and services with receipts.
The following sections explain how to process a purchase of non-stock items and services with receipt, and which
documents are prepared during the processing of the purchase.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Enter a purchase order for a purchase of non-stock items including services
• Prepare the purchase receipt for the purchase order
• Prepare an AP bill that corresponds to the purchase order

Applicable Scenarios
You process a purchase order for non-stock items (potentially including services) and process a purchase receipt
if you need to prepare a bill to pay the vendor for the purchased non-stock items. The standard purchase process
of non-stock items includes entering a purchase order, processing the purchase receipt when the purchased non-
stock items are received, and preparing a bill to the vendor.

Purchases of services are usually processed without purchase receipts also being processed in the
system. You might want to process a purchase of a service with a corresponding purchase receipt if
you want the receipt to serve as proof that the work was finished. If the service is paid by the hour,
the receipt is also needed to track the actual number of hours, which may differ from the expected
number of hours in the purchase order.
 Processing Purchases of Non-Stock Items with Receipts | 301

Purchase of Non-Stock Items (Including Services) with a Corresponding Receipt

In Acumatica ERP, you create a purchase order by using the Purchase Orders (PO301000) form. You use a purchase
order of the Normal type for processing a standard purchase of non-stock items (including services).
When you create a new purchase order, you first select the vendor and the Normal type in the Summary area. Then
on the Details tab, you add lines with the non-stock items, including services, to be purchased from the vendor.
For this scenario, once the purchased items have been received, you need to create a purchase receipt on the
Purchase Receipts (PO302000) form.

Then you need to create an AP bill to increase the vendor's balance in the system with the amount to be paid
for the received items. You can review the AP bill on the Bills and Adjustments (AP301000) form. If all the lines in
the purchase order have been billed in full, the system assigns the purchase order the Closed status. For more
information on the rules that affect line closing and completion, see Non-Stock Lines in Purchase Orders.

Workflow of a Purchase of Non-Stock Items with Receipt

When you process a purchase of non-stock items (including services) with a purchase receipt, the typical
processing of a purchase order involves the steps and generated documents shown in the following diagram.
 Processing Purchases of Non-Stock Items with Receipts | 302

Purchases of Non-Stock Items and Services with Receipts: Implementation

Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases of non-stock items (including services) with purchase receipts, and to understand (and
change, if needed) the settings that affect the processing workflow.
 Processing Purchases of Non-Stock Items with Receipts | 303

Implementation Checklist
We recommend that before you initially process purchases of non-stock items which may include services, you
make sure the needed settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Criteria to Check

Purchase Orders Preferences (PO101000) form • Make sure that all necessary settings related to pur-
chase order management have been specified as
described in Order Management Basic Configuration:
General Information.
• Make sure that the Process Service lines from
Normal Purchase Orders via Purchase Receipts
check box (in the Other section of the General tab)
is selected.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: General Information.

Non-Stock Items (IN202000) form Make sure that all non-stock items have been config-
ured as described in Creating Non-Stock Items: Imple-
mentation Activity.

Also, make sure that the Require Receipt check box

(in the Item Defaults section of the General tab) is se-
lected in the settings of each non-stock item for which
a purchase receipt will be processed when the item is
purchased.

Enable/Disable Features (CS100000) Make sure that the Inventory feature is enabled to be
able to create purchase receipts.

Other Settings That Affect the Workflow

You can affect the workflow of processing purchases by specifying additional settings:
• To cause an accounts payable bill to be created automatically on release of a purchase receipt by default,
select the Create Bill on Receipt Release check box on the Purchase Orders Preferences form (in the Other
section of the General tab). In this case, when a user creates a purchase receipt on the Purchase Receipts
(PO302000) form, the system automatically selects the Create Bill check box in the Summary area. (The
user can clear this check box for a particular receipt, if needed.)
• To cause the system to automatically release accounts payable bills that are generated on release of
purchase receipts, select the Release AP Documents Automatically check box on the Purchase Orders
Preferences form. For information on processing bills, see AP Bills: General Information.
• To cause purchase receipts to be created with the On Hold status (so that users can verify them before
processing them further), select the Hold Receipts on Entry check box on the Purchase Orders Preferences
form (in the Other section of the General tab).
• To cause the system to automatically release inventory receipts generated on release of purchase receipts,
select the Release IN Documents Automatically check box on the Purchase Orders Preferences form (in the
Other section of the General tab).
• To cause the system to automatically post general ledger batches generated during processing purchase
documents, select the Automatically Post on Release check box in the Posting Settings section of the
 Processing Purchases of Non-Stock Items with Receipts | 304

General Ledger Preferences (GL102000) form. For information on processing general ledger batches, see GL
Transactions: General Information.

Testing of Settings
To make sure that all settings have been configured correctly, process a purchase order, as described in Purchases
of Non-Stock Items and Services with Receipts: To Process a Purchase of Non-Stock Items and Purchases of Non-
Stock Items and Services with Receipts: To Process a Purchase of Services.

Purchases of Non-Stock Items and Services with Receipts: To Process a Purchase of

Non-Stock Items

The following activity will walk you through the process of preparing and processing a purchase order for non-stock
items that are required to be included in a purchase receipt. This activity involves non-stock items that are not
services.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Store gives a free magnet with a SweetLife advertisement to every customer who buys
goods in the retail shop. Further suppose that today one of the managers has reported that the supply of magnets
is almost depleted.
As a purchasing manager, you need to enter and process a purchase order for the Wingman Printing Company,
from which SweetLife buys these magnets. You also need to process the corresponding purchase receipt and AP
bill.

Configuration Overview
For the purposes of this activity, the following prerequisite actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been defined.
• On the Non-Stock Items (IN202000) form, the MAGNETS (A box of magnets with company advertisement,
50pcs) non-stock item has been defined, and the Require Receipt check box has been selected for this item
on the General tab. This indicates that when this item is purchased, it needs to be included in a purchase
receipt.

Configuration Overview
For the purposes of this activity, the following prerequisite actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been defined.
• On the Non-Stock Items (IN202000) form, the MAGNETS (A box of magnets with company advertisement,
50pcs) non-stock item has been defined, and the Require Receipt check box has been selected for this item
on the General tab. This indicates that when this item is purchased, it needs to be included in a purchase
receipt.
 Processing Purchases of Non-Stock Items with Receipts | 305

Process Overview
In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the magnets to it.
When the magnets have been received, on the Purchase Receipts (PO302000) form, you will then create a purchase
receipt for them. On release of the purchase receipt, the system automatically generates an inventory receipt to
create a GL batch. Then on the Bills and Adjustments (AP301000) form, you will create an AP bill to pay the vendor.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley login and the 123 password.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley login and the 123 password.
3. Sign in to the system as a sales and purchasing manager by using the wiley username and the provided
password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.

Step 1: Creating a Purchase Order

To create a purchase order for the magnets, do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: PRINTICO
• Description: Purchase of magnets
3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Branch: RETAIL
• Inventory ID: MAGNETS
• Warehouse: RETAIL
• Order Qty.: 20
• Unit Cost: 100
4. On the form toolbar, click Remove Hold, and notice that the purchase order is assigned the Open status.

Step 2: Processing the Purchase Receipt

Create the purchase receipt for the purchase order as follows:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the form toolbar,
click Enter PO Receipt. The system prepares the purchase receipt for the selected purchase order and
opens it on the Purchase Receipts (PO302000) form.
2. On the form toolbar, click Save.
 Processing Purchases of Non-Stock Items with Receipts | 306

3. Review the details of the prepared purchase receipt. Make sure that the Create Bill check box is cleared in
the Summary area. (In the next step, you will prepare the bill manually.)
4. On the form toolbar, click Release.
5. On the Other tab, click the IN Ref. Nbr. link, and review the details of the generated inventory receipt, which
the system opens on the Receipts (IN301000) form. Make sure the inventory receipt has the Released status.

Step 3: Processing the AP Bill

Do the following to process the AP bill associated with the purchase order and purchase receipt:
1. Return to the purchase receipt that you have processed earlier in this activity on the Purchase Receipts
(PO302000) form, and on the form toolbar, click Enter AP Bill. The system generates an AP bill for the
vendor of the goods and shows the created document on the Bills and Adjustments (AP301000) form.
2. On the form toolbar, click Remove Hold, and then click Release to release the bill.
3. Return to the purchase order for PRINTICO on the Purchase Orders (PO301000) form, and review its settings.
Notice that the order now has a status of Closed, as shown in the following screenshot.
On the PO History tab (also shown in the screenshot), notice that the le pane lists the corresponding
purchase receipt, and the right pane lists the AP bill that was prepared for the order. The inclusion of these
documents on the tab indicates that the purchased magnets have been received and billed in full, so the
purchasing process is completed.

Figure: The corresponding purchase receipt and AP bill for the closed purchase order

Purchases of Non-Stock Items and Services with Receipts: To Process a Purchase of

Services

The following activity will walk you through the process of preparing and processing a purchase order for non-stock
items that are required to be included a purchase receipt. This activity involves non-stock items that are services.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Processing Purchases of Non-Stock Items with Receipts | 307

Story
Suppose that a manager has reported that a computer in the SweetLife Store doesn't work. Your system
administrator has contacted the company that provides computer services, Compulink and Co., and the company
has sent a service technician to repair the computer.
Acting as a purchasing manager, you will process the relevant documents in the system. Because Compulink and
Co. charges for repair services by the hour, you will prepare the purchase order aer the technician finishes the job.
You will also process a purchase receipt for this job to document that the job was completed, and the computer
works now. You will then process the corresponding AP bill.

Configuration Overview
For the purposes of this lesson, the following prerequisite actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
• On the Vendors (AP303000) form, the COMPULINK (Compulink and Co.) vendor has been configured.
• On the Non-Stock Items (IN202000) form, the MAINTENANCE (Repair of hardware) non-stock item has been
defined.

Process Overview
In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the purchased
service to it. On the Purchase Receipts (PO302000) form, you will then create a purchase receipt for the ordered
items. On release of the purchase receipt, the system automatically generates an inventory receipt to create a GL
batch. Then on the Bills and Adjustments (AP301000) form, you create an AP bill to pay the vendor.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley login and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.
4. On the Purchase Orders Preferences (PO101000) form, select the Process Service lines from Normal
Purchase Orders via Purchase Receipts check box so that the system allows the processing of a service
line that will be included in a corresponding purchase receipt.

Step 1: Creating a Purchase Order

To create a purchase order for the computer repair service, do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: COMPULINK
• Description: Repair of a computer in the shop
 Processing Purchases of Non-Stock Items with Receipts | 308

3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Branch: RETAIL
• Inventory ID: MAINTENANCE
• Warehouse: RETAIL
• Order Qty.: 3
This indicates that the repair service is going to take three hours to complete; each unit represents one
hour of work.
• Unit Cost: 20
4. On the form toolbar, click Remove Hold, and notice that the purchase order has the Open status.

Step 2: Processing the Purchase Receipt

Create the purchase receipt for the purchase order as follows:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the form toolbar,
click Enter PO Receipt. The system prepares the purchase receipt for the selected purchase order and
opens it on the Purchase Receipts (PO302000) form.
2. On the form toolbar, click Save.
3. Review the details of the prepared purchase receipt. Make sure that the Create Bill check box is cleared in
the Summary area. (In the next step, you will prepare the bill manually.)
4. On the form toolbar, click Release.

Step 3: Processing the AP Bill

Do the following to process the AP bill associated with the purchase order:
1. In the purchase receipt that you have processed earlier in this activity on the Purchase Receipts (PO302000)
form, on the form toolbar, click Enter AP Bill. The system generates an AP bill for the vendor of the goods
and shows the created document on the Bills and Adjustments (AP301000) form.
2. On the form toolbar, click Remove Hold, and then click Release to release the bill.
3. Return to the purchase order for COMPULINK on the Purchase Orders form, and review its settings. Notice
that the order now has a status of Closed, as shown in the following screenshot.
On the PO History tab (also shown in the screenshot), notice that the le pane lists the corresponding
purchase receipt, and the right pane lists the AP bill that was prepared for the order. The inclusion of these
documents on the tab indicates that the purchased service has been received and billed in full, so the
purchasing process is completed.

Figure: The corresponding purchase receipt and AP bill for the closed purchase order
 Processing Purchases of Non-Stock Items with Receipts | 309

Purchases of Non-Stock Items and Services with Receipts: Generated Transactions

To process a purchase of non-stock items and services for which a receipt is required, you create an AP bill and a
receipt. On release of these documents, the system generates GL transactions described in the following sections.

Transaction Generated on AP Bill Release

When an AP bill prepared for a purchase order (or for purchase receipt) is released, the system creates a batch of
the following entries.

Account Source of Account Debit Credit

Accounts Payable account Vendor 0.00 Amount

PO Accrual account Item Amount 0.00

You can view the reference number of the GL batch generated for a particular AP bill in the Batch Nbr. box on the
Financial tab of the Bills and Adjustments (AP301000) form. You can click the link in this box to view the details of
the batch on the Journal Transactions (GL301000) form.

Transaction Generated on Release of a Purchase Receipt

When a purchase receipt for the purchase order is released, the system creates a batch of the following entries.

Account Source of Account Debit Credit

Expense account Vendor Amount 0.00

Inventory Purchase Accrual ac- Item 0.00 Amount

count

You can view the reference number of the GL batch generated for a particular receipt in the Batch Nbr. box on the
Financial tab of the Receipts (IN301000) form. You can click the link in this box to view the details of the batch on
the Journal Transactions (GL301000) form.

Purchases of Non-Stock Items and Services with Receipts: Related Reports and
Forms

In the following sections, you can find details about ways to gather information about the purchases of non-stock
items or services that have been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.
 Processing Purchases of Non-Stock Items with Receipts | 310

Reviewing Purchase Order Information

If you need to review all information related to a purchase order—including the order total, open quantities,
unbilled quantities and amounts, and related purchase receipts and accounts payable bills with their dates,
amounts, and current statuses—you first open the particular purchase order on the Purchase Orders (PO301010)
form. Then on the More menu, you click Purchase Order Receipt and Billing History to open the Purchase Order
Receipt and Billing History (PO643000) report for this purchase order.

Finding the Purchase Receipts Related to a Purchase Order

If you need to find a purchase receipt linked to a particular purchase order, you can open the purchase order on
the Purchase Orders (PO301010) form and review the PO History tab. The le table on this tab lists all the purchase
receipts that have been prepared for the order, and the table footer shows the summary information for all listed
documents. To review the details of any receipt, you click its reference number in the Receipt Nbr. column; the
system opens the purchase receipt for review on the Purchase Receipts (PO302000) form.

Finding the Bills Related to a Purchase Order

If you need to find an AP bill linked to a particular purchase order, you can open the purchase order on the
Purchase Orders (PO301000) form and review the PO History tab. The right table on this tab lists all the AP
documents that have been prepared for the order, and the table footer shows the summary information for all
listed documents. To review the details any listed bill, you click its reference number in the Reference Nbr. column;
the system opens the AP bill for review on the Bills and Adjustments (AP302000) form.

Reviewing the Unbilled Quantities of a Purchase Order

To check whether a purchase order has quantities of items and amounts that have not yet been billed, you can
review the Unbilled Quantity and Unbilled Amount boxes on the Other tab of the Purchase Orders (PO301000)
form.

Printing a Purchase Order

To prepare a printable version of the purchase order that is being processed, you use the Purchase Order
(PO641000) report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print
the purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version
of the document on the Purchase Order report; then you can review the order and print it by clicking Print on the
report toolbar.

Purchases of Non-Stock Items and Services with Receipts: Mass-Processing of

Documents

The following sections explain how to mass-process purchase orders and related documents, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Releasing Purchase Receipts

You can release multiple purchase receipts at the same time by using the Release Purchase Receipts (PO501000)
form. On this form, you select the unlabeled check boxes in the rows to be processed, and click Process on the
form toolbar to release the selected documents.
 Processing Purchases of Non-Stock Items with Receipts | 311

Printing and Emailing Multiple Purchase Orders

If needed, you can print or email multiple purchase orders at the same time by using the Print/Email Purchase
Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you select the Print Purchase
Order or Email Purchase Order action, select the unlabeled check boxes for the rows to be processed, and click
Process on the form toolbar to process the selected documents.

Consolidating Purchase Orders or Lines into a Single Purchase Receipt

Instead of preparing an individual purchase receipt for each purchase order, you can add multiple purchase orders
of one vendor to a single purchase receipt; you can also add individual lines of one purchase order or multiple
purchase orders. To do this, you create a new purchase receipt of the Receipt type manually on the Purchase
Receipts (PO302000) form; you then click Add PO on the table toolbar of the Details tab and add the lines of
multiple purchase orders with the same vendor to the purchase receipt. If you click Add PO Line on the table
toolbar, you can add purchase receipt lines.

Consolidating Purchase Receipts or Lines into a Single Bill

Instead of preparing an individual accounts payable bill for each purchase receipt, you can add multiple purchase
receipts of one vendor to a single bill; you can also add individual lines of one purchase receipt or multiple
purchase receipts. To do this, you create a new accounts payable bill manually on the Bills and Adjustments
(AP301000) form and make sure that the Tax Settings option is selected in the Tax Calculation Mode box on the
Financial tab. You then click Add PO Receipt on the table toolbar of the Details tab and add the lines of multiple
purchase receipts with the same vendor to the bill. If you click Add PO Receipt Line on the table toolbar, you can
add purchase receipt lines.
 Processing Purchases of Services Without Receipts | 312

Processing Purchases of Services Without Receipts

If your company buys services, these services can be defined as non-stock items in Acumatica ERP. You can process
purchases of services and other items by using purchase orders whose items may or may not need to be included in
purchase receipts.
The topics of this chapter describe how to prepare and process purchase orders containing services that do not
have to be included in corresponding purchase receipts.

In Acumatica ERP, a purchase order can contain stock items, non-stock items (including services), or
a mix of both types of items. Also, each non-stock item included in a purchase order may or may not
need to be included in a purchase receipt, based on the item’s settings in the system.
For simplicity, this chapter will focus primarily on purchase orders that contain non-stock items
that are services. To illustrate a more typical purchasing example, the chapter includes Purchases
of Services Without Receipts: Process Activity, in which the purchase order includes a purchase of a
physical item and a service not requiring a receipt.

Purchases of Services Without Receipts: General Information

Non-stock items in Acumatica ERP, which are defined on the Non-Stock Items (IN202000) form, are used to
represent products that cannot be stocked in warehouses (such as services or charges) or physical entities
whose quantities you do not need to track. If a non-stock item is included in a purchase order, the item’s settings
determine whether the item must be included in a corresponding purchase receipt.
The following sections explain how to process a purchase of services that will not be included in corresponding
purchase receipts, and which documents are prepared during the processing of the purchase.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will do the following:
• Enter a purchase order for a purchase of a service that does not need to be included in the applicable
purchase receipt
• Prepare an AP bill that corresponds to the purchase order

Applicable Scenarios
When you need to purchase services from a vendor, you usually process a purchase order without processing a
corresponding receipt. In this case, the purchasing process includes entering a purchase order and preparing a bill
to pay the vendor.

Purchase of Services Without a Corresponding Receipt

In Acumatica ERP, you create a purchase order by using the Purchase Orders (PO301000) form. You use a purchase
order of the Normal type for processing a standard purchase of services.
When you create a new purchase order, you first select the Normal type and the vendor in the Summary area. Then
on the Details tab, you add lines with items and services (including the services that do not need to be included in
a purchase receipt) to be purchased from the vendor.
 Processing Purchases of Services Without Receipts | 313

Once the purchased services have been provided, you, on the Bills and Adjustments (AP301000) form, need to create
an AP bill to increase the vendor's balance in the system with amount to be paid for the received services.

Workflow of a Purchase of Services Without a Purchase Receipt

When you process a purchase of services without a purchase receipt, the typical processing of a purchase order
involves the steps and generated documents shown in the following diagram.

Purchases of Services Without Receipts: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases of services that will not be included in a purchase receipt, and to understand (and change,
if needed) the settings that affect the processing workflow.

Implementation Checklist
We recommend that before you initially process purchases of services without receipt, you make sure the needed
settings have been specified, and entities have been created, as summarized in the following checklist.
 Processing Purchases of Services Without Receipts | 314

Form Criteria to Check

Purchase Orders Preferences (PO101000) form • Make sure that all necessary settings related to pur-
chase order management have been specified as
described in Order Management Basic Configuration:
General Information.
• Make sure that the Process Service lines from
Normal Purchase Orders via Purchase Receipts
check box (in the Other section of the General tab)
is cleared.
Make sure that all necessary settings related to pur-
chase order management have been specified as de-
scribed in Order Management Basic Configuration: Gen-
eral Information.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: General Information.

Non-Stock Items (IN202000) form Make sure that all non-stock items to be purchased
have been configured, as described in Creating Non-
Stock Items: Implementation Activity.

Make sure that all non-stock items to be purchased

have been configured, as described in Creating Non-
Stock Items: Implementation Activity.

For each non-stock item that does not need to be in-

cluded in a purchase receipt when the item is pur-
chased, make sure that the Require Receipt check
box (in the Item Defaults section of the General tab) is
cleared.

Other Settings That Affect the Workflow

You can affect the workflow of processing purchases of services without receipt by selecting the Automatically
Post on Release check box on the General Ledger Preferences (GL102000) form to cause the system to
automatically post GL batches generated during processing purchase documents. For information on processing
GL batches, see GL Transactions: General Information.

Testing of Settings
To make sure that all settings have been configured correctly, process a purchase order, as described in Purchases
of Services Without Receipts: Process Activity.

Purchases of Services Without Receipts: Process Activity

The following activity will walk you through the process of preparing and processing a purchase order that includes
a line for a service that does not need to be included in a purchase receipt when it is purchased.
For simplicity, this chapter focuses on purchases of only services that do not require corresponding purchase
receipts. However, this activity demonstrates a purchase of both a service that does not need to be included in a
purchase receipt and a stock item that does need to be included in a purchase receipt.
 Processing Purchases of Services Without Receipts | 315

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, as a purchasing manager for SweetLife Fruit & Jams, urgently need to buy some jars for packing
SweetLife’s produced jam, which is sold in the retail store. SweetLife buys these jars (which are tracked as stock
items in the system) from Jar Co., which offers free delivery of the jars.
You order the jars, but you will not be able to use Jar Co.'s regular delivery service because its soonest free delivery
is in three days. Because you are in urgent need of the jars, you agree to pay Jar Co. an extra service fee to arrange
for delivery by a third party, which you have defined in the system as a service that does not need to be included in
a purchase receipt.
Thus, you need to process a purchase order for Jar Co. that includes both the jars (at their normal price) and the
expedited delivery service. You also need to process the corresponding purchase receipt (which includes only the
jars, because purchased stock items are always included in a purchase receipt) and AP bill (which includes the jars
and the expedited delivery service).

Configuration Overview
For the purposes of this activity, the following prerequisite actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
• On the Vendors (AP303000) form, the JARCO (Jar Co.) vendor has been defined.
• On the Non-Stock Items (IN202000) form, the URGDELIVERY (One-time delivery service) non-stock item has
been defined, and the Require Receipt check box has been cleared for this item on the General tab. This
indicates that when this item is purchased, it does not need to be included in a purchase receipt.
• On the Stock Items (IN202500) form, the JAR96 (Glass jar 96 oz., 24 pcs) stock item has been defined. Because
stock items are by definition items whose movements are tracked in inventory, when they are purchased,
they must be included in the purchase receipt corresponding to the purchase order.

For details about the process of purchasing stock items, see Purchases of Stock Items: Process
Activity.

Configuration Overview
For the purposes of this activity, the following prerequisite actions have been performed in the system:
• On the Enable/Disable Features (CS100000) form, the Inventory feature has been enabled.
• On the Vendors (AP303000) form, the JARCO (Jar Co.) vendor has been defined.
• On the Non-Stock Items (IN202000) form, the URGDELIVERY (One-time delivery service) non-stock item has
been defined, and the Require Receipt check box has been cleared for this item on the General tab. This
indicates that when this item is purchased, it does not need to be included in a purchase receipt.
• On the Stock Items (IN202500) form, the JAR96 (Glass jar 96 oz., 24 pcs) stock item has been defined. Because
stock items are by definition items whose movements are tracked in inventory, when they are purchased,
they must be included in the purchase receipt corresponding to the purchase order.

For details about the process of purchasing stock items, see Purchases of Stock Items: Process
Activity.
 Processing Purchases of Services Without Receipts | 316

Process Overview
In this activity, you will create a purchase order on the Purchase Orders (PO301000) form and add the purchased
expedited delivery service and jars to it. Although the service does not need to be included in a purchase receipt,
because the jars are stock items, you will process a purchase receipt for them on the Purchase Receipts (PO302000)
form. Then on the Bills and Adjustments (AP301000) form, you will create an AP bill to pay the vendor.

System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley login and the 123 password.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a sales and purchasing manager, use the wiley login and the 123 password.
3. Sign in to the system as a sales and purchasing manager by using the wiley username and the provided
password.
4. On the Purchase Orders Preferences (PO101000) form, make sure that the Process Service lines from
Normal Purchase Orders via Purchase Receipts check box is cleared so that the system does not include
service lines in purchase receipts.
5. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
6. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.

Step 1: Creating a Purchase Order

To create a purchase order that includes the jars and the expedited delivery service, do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: JARCO
• Description: Purchase of jars
3. On the Details tab, for each of the rows whose settings are listed below, click Add Row on the table toolbar,
and specify the listed settings in the row.

Branch Inventory ID Warehouse Order Qty. Unit Cost

RETAIL JAR96 RETAIL 5 30

RETAIL URGDELIVERY   1 20

4. On the form toolbar, click Remove Hold, and notice that the purchase order is assigned the Open status.

Step 2: Processing the Purchase Receipt for the Jars

Although the URGDELIVERY non-stock item does not need to be included in a purchase receipt, the purchase order
also consists of the JAR96 stock item. When this item is purchased, it needs to be included in the corresponding
 Processing Purchases of Services Without Receipts | 317

purchase receipt, because the movements of all stock items are carefully tracked in inventory. Thus, you still need
to create a purchase receipt.
Create the purchase receipt for the purchase order as follows:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, click Enter PO
Receipt on the form toolbar. The system prepares the purchase receipt for the selected purchase order and
opens it on the Purchase Receipts (PO302000) form.
2. Review the purchase receipt.
Notice that the line with the URGDELIVERY service, which had been included in the purchase order, is absent
in the purchase receipt. This is because the Require Receipt check box is cleared for the non-stock item on
the Non-Stock Items (IN202000) form.
3. On the form toolbar, click Save.
4. Review the details of the prepared purchase receipt. Notice that the Create Bill check box is cleared in the
Summary area. (You will create the bill manually in the next step.)
5. On the form toolbar, click Release.

Step 3: Processing the AP Bill

Do the following to process the AP bill related to the purchase order:
1. Return to the purchase order that you have processed earlier in this activity on the Purchase Orders
(PO301000) form, and click Enter AP Bill on the More menu.
The system generates an AP bill for the vendor of the goods and shows the created document on the Bills
and Adjustments (AP301000) form.
2. In the Description box, enter Purchase of jars with expedited delivery.
3. On the form toolbar, click Remove Hold, and then click Release to release the bill.
4. Return to the purchase order for JARCO on the Purchase Orders form, and review its settings. Notice that the
order now has a status of Closed, as shown in the screenshot below.
5. On the PO History tab, notice the following:
• The le pane lists the purchase receipt, which includes only the received stock item from this purchase
order.
• The right pane lists the AP bill that you prepared for the purchase order. It includes the received stock
item and a service item.
The inclusion of these documents on the tab indicates that the purchased jars have been received and the
jars and the delivery have been billed in full, so the purchasing process is completed.
 Processing Purchases of Services Without Receipts | 318

Figure: The corresponding purchase receipt and AP bill for the closed purchase order

Purchases of Services Without Receipts: Generated Transactions

To process a purchase of services without receipt, you create an AP bill. On release of the AP bill, the system
generates GL transactions described in the following section.

Transaction Generated on AP Bill Release

When an AP bill prepared for a purchase order is released, the system creates a batch of the following entries.

Account Source of Account Debit Credit

Accounts Payable account Vendor 0.00 Amount

PO Accrual account Item Amount 0.00

You can view the reference number of the GL batch generated for a particular AP bill in the Batch Nbr. box on the
Financial tab of the Bills and Adjustments (AP301000) form. You can click the link in this box to view the details of
the batch on the Journal Transactions (GL301000) form.

Purchases of Services Without Receipts: Related Reports and Forms

In the following sections, you can find details about ways to gather information about the purchases of services
that have been processed or are being processed in the system.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Purchase Order Information

If you need to review all information related to a purchase order—including the order total, open quantities,
unbilled quantities and amounts, and related purchase receipts and accounts payable bills with their dates,
amounts, and current statuses—you first open the particular purchase order on the Purchase Orders (PO301010)
 Processing Purchases of Services Without Receipts | 319

form. Then on the More menu, you click Purchase Order Receipt and Billing History to open the Purchase Order
Receipt and Billing History (PO643000) report for this purchase order.

Finding the Bills Related to a Purchase Order

If you need to find an AP bill linked to a particular purchase order, you can open the purchase order on the
Purchase Orders (PO301000) form and review the PO History tab. The right table on this tab lists all the AP
documents that have been prepared for the order, and the table footer shows the summary information for all
listed documents. To review any listed bill, you click its reference number in the Reference Nbr. column; the system
opens the AP bill for review on the Bills and Adjustments (AP302000) form.

Reviewing the Unbilled Quantities of a Purchase Order

To check whether a purchase order has quantities of items and amounts that have not yet been billed, you can
review the Unbilled Quantity and Unbilled Amount boxes on the Other tab of the Purchase Orders (PO301000)
form.

Printing a Purchase Order

To prepare a printable version of the purchase order that is being processed, you use the Purchase Order
(PO641000) report. While you are viewing a purchase order on the Purchase Orders (PO301000) form, you can print
the purchase order by clicking Print Purchase Order on the More menu. The system opens the printable version
of the document on the Purchase Order report; then you can review the order and print it by clicking Print on the
report toolbar.

Purchases of Services Without Receipts: Mass-Processing of Documents

The following sections explain how to mass-process purchase orders, and how the system generates, changes, or
works with documents as a result of the mass processing.

Printing and Emailing Multiple Purchase Orders

If needed, you can print or email multiple purchase orders at the same time by using the Print/Email Purchase
Orders (PO503000) form. To do this for multiple purchase orders simultaneously, you select the Print Purchase
Order or Email Purchase Order action, select the unlabeled check boxes for the rows to be processed, and click
Process on the form toolbar to process the selected documents.
 Processing Direct Sales | 320

Processing Direct Sales

This chapter describes how you can process a direct sale through the point-of-sale (POS) system without
processing the related shipment and sales order or with a link to related sales order.

Direct Sales: General Information

A point-of-sale (POS) system is an electronic system that is used to record the sales, payment, and return
transactions of a retail store. The POS system can be operated by a cashier or can be a self-service terminal where
customers perform all operations. Your organization can integrate Acumatica ERP with an external POS system for
simplified processing of direct sales if the Advanced SO Invoices feature is enabled on the Enable/Disable Features
(CS100000) form.
With a direct sale, a customer purchases and immediately procures goods and services in the retail store. These
purchased items may or may not be linked to a sales order that the customer has placed previously. In the POS
system, a direct sale is processed through the creation of an SO invoice on the Invoices (SO303000) form. The
processing of the SO invoice records the sale and updates inventory without a sales order and a shipment being
processed.

Learning Objectives
In this chapter, you will do the following:
• Create an SO invoice for a direct sale
• Add to the SO invoice a sale line not linked to a previously prepared sales order
• Add to the SO invoice a line with a link to a previously prepared sales order
• Process the direct sale to completion

Applicable Scenarios
You may need to create and process an SO invoice in the following cases:
• A customer comes to the retail store, purchases goods, and directly procures the items, so that you need to
process a direct sale through the POS system. In this case, you create and process only the SO invoice; there
is no need to process a related shipment or sales order.
• A customer picks up all or a part of items included in a sales order that has been added to the system based
on a phone or online sale. In this case, you need to process a direct sale through the POS system by linking
the SO invoice you create to the related sales order.

Direct Sale Process

To process a direct sale, you create an SO invoice of the Invoice type on the Invoices (SO303000) form. To the SO
invoice, you add a line for each item included in the sale, and specify the quantity of items to be sold. For serialized
items, you should add a separate invoice line with this item and a quantity of 1 for each serial number.
To release the SO invoice, you click Release on the More menu. This causes the system to automatically generate
a batch of general ledger transactions, as well as an inventory issue for the stock items. For sales lines in the SO
invoice, the system adds to the inventory issue lines with the Invoice transaction type. Also, when you release the
SO invoice, the related AR invoice becomes available for review and further processing on the Invoices and Memos
(AR301000) form. On release of the generated inventory issue, a batch of GL transactions is generated.
 Processing Direct Sales | 321

Workflow of a Direct Sale

For an SO invoice created for processing a direct sale, the typical processing involves the actions and generated
documents shown in the following diagram.

Direct Sales: Direct Sale with a Link to the Related Sales Order

The customer may want to pick up in the retail store all or a part of items included in a sales order that has been
added to the system based on a phone or online sale. In this case, you need to process a direct sale through the
POS system with a link to the related sales order to record in the system that some of the items from the order have
been taken by the customer.
To process a direct sale, you create an SO invoice on the Invoices (SO303000) form. If the customer is picking up
items as recorded in a sales order that has already been added to the system, you can add a sales line in a direct
sale document that you create on the Invoices form with a link to this sales order.

Linking a Direct Sale Line to a Sales Order

To add a line (or multiple lines) linked to a sales order, you click the Add SO Line button on the table toolbar of
the Details tab of the Invoices (SO303000) form. In the dialog box that opens, you select the line or lines of one
or multiple open sales orders to be added to the SO invoice. The details of the added line or lines are filled in
automatically by the system and are not available for editing. The reference number of the sales order to which a
line is linked is shown in the Order Nbr. column of the line.
 Processing Direct Sales | 322

If a line of the SO invoice is linked to an open line of a sales order, on release of the SO invoice, on the Sales Orders
(SO301000) form, the system updates the shipped quantity of the sales order line by the quantity specified in the
invoice line. (Thus, the released SO invoice functions as a shipment does for the linked sales order line.) Also, on the
Shipments tab of this form, the system inserts the reference number of the SO invoice in the Shipment Nbr. box.

Direct Sales: Implementation Checklist

The following sections provide details that you can use to ensure that the system is configured properly for
processing direct sales, and to understand (and change, if needed) the settings that affect the processing workflow.

Implementation Checklist
Before you begin processing direct sales, you should make sure the needed features have been enabled, settings
have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Advanced SO Invoices feature has
been enabled.

Sales Orders Preferences (SO101000) form Make sure that all necessary settings related to or-
der management have been specified, as described in
Configuration of Order Management: Implementation Ac-
tivity.

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity.

Stock Items (IN202500) form Make sure that all stock items are defined in the sys-
tem, as described in Stock Item Creation: Implementa-
tion Activity.

Other Settings that Affect the Workflow

You can affect the workflow of processing direct sales by specifying additional settings as follows:
• To cause inventory issues generated on release of SO invoices be released automatically, select the
Automatically Release IN Documents check box on the Sales Orders Preferences (SO101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a direct sale for testing
purposes, as described in Direct Sales: Process Activity.
 Processing Direct Sales | 323

Direct Sales: Process Activity

In this activity, you will learn how to process a direct sale through a point-of-sale (POS) terminal, and how to link an
existing sales order to the direct sale.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that on January 29, 2023, an individual customer (that is, a customer purchasing items for personal
use rather than for a company) ordered five small jars of apple jam and 15 pounds of oranges on the company’s
website, and selected the option to pick up the jars and pay for them in the SweetLife retail store. When the
customer submitted the order on the website, a sales order was created in Acumatica ERP.
Then on January 30, 2023, the customer comes to SweetLife store and picks up ordered apple jam (five small jars)
from the store shelves; the customer also picks up one small jar of orange jam (which was not in the online sales
order). For the remainder of the website order, the customer asks to have the items shipped to the customer's
address. The sales manager of the SweetLife store needs to scan the goods that the customer has picked up, enter
them by using the POS terminal, and collect a payment from the customer. Aer the customer pays for the picked
goods, sales manager Regina Wiley needs to give him a receipt. You will act as the sales manager in performing the
needed actions in the system.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• Advanced sales order invoices, which provides support for direct sales and returns and integration with
POS systems
• In the SweetLife store, the integration between the store’s POS system and Acumatica ERP has been
configured to work as follows:
• When a sales manager processes a sale through the POS system, the POS system creates two documents
in Acumatica ERP by using the API: a sales order invoice on the Invoices (SO303000) form with all the
lines from the receipt given to the customer, and a released payment on the Payments and Applications
(AR302000) form that is linked to the sales order invoice.
• If any lines of a direct sale relate to an existing sales order, the POS operator selects the needed lines
directly via the POS terminal when processing a sale.

In this activity, to simulate the POS functionality that occurs in a production system, you
will link lines of an existing sales order to lines of the sales order invoice.

• When the sales manager releases the sales order invoice, Acumatica ERP creates an inventory issue that
decreases the quantities of items in inventory by the quantity of the sold items.
 Processing Direct Sales | 324

• On the Customers (AR303000) form, the RETSALE (Individual Retail Customer) customer has been defined.
This is the customer account used to represent any individual customer making a retail purchase in the
store.
• On the Stock Items (IN202500) form, the APJAM08 and ORJAM08 stock items have been created.

Process Overview
In this activity, to process a direct sale with a link to a sales order, you will create a payment on the Payments and
Applications (AR302000) form that will later be applied to an SO invoice used to record the direct sale. Then you will
create this SO invoice on the Invoices (SO303000) form. You will add the appropriate lines to the SO invoice. Then
you will apply the payment to the SO invoice and release the SO invoice.

System Preparation
Before you start processing a direct sale with a link to a sales order, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as sales manager Regina
Wiley by using the wiley username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as sales manager Regina
Wiley by using the wiley username and the 123 password.
3. Sign in to the Ord2Cash tenant as a sales manager by using the wiley username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. Click the Company and Branch Selection menu to view the list of branches that you have access to, and then
click SweetLife Store.

Step 1: Preparing a Payment

To prepare a payment document that represents the customer's payment for the direct sale, do the following:
1. On the Payments and Applications (AR302000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Payment
• Customer: RETSALE
• Payment Method: CASH
• Cash Account: 10100ST
• Application Date: 1/30/2023 (inserted by default)
• Application Period: 01-2023 (inserted by default)
• Description: Payment for retail sale
• Payment Amount: 26.34
3. On the form toolbar, click Remove Hold.
4. Click Release.

Alternatively, you can enter an SO invoice prior to entering a payment.

You have created and released the payment.

 Processing Direct Sales | 325

Step 2: Entering an SO Invoice

To enter an SO invoice to record the direct sale, do the following:
1. On the Invoices (SO303000) form, add a new record.
2. In the Summary area specify the following settings:
• Type: Invoice
• Customer: RETSALE
• Date: 1/30/2023 (inserted by default)
• Post Period: 01-2023 (inserted by default)
• Description: Retail sale, website order #00687 partial
3. On the Details tab, add a row for the jar of orange jam the customer picks up in the retail store, and specify
the following settings:
• Branch: RETAIL
• Inventory ID: ORJAM08
• Warehouse: RETAIL
• Quantity: 1
• Unit Price: 3.44
4. To add a line for the jars of apple jam in the already-entered sales order, on the table toolbar of the Details
tab, click Add SO Line.
5. In the Add SO Line dialog box, which opens, select the unlabeled check box in the line with APJAM08 item,
and click Add & Close.
The system adds the line to the SO invoice with a link to the sales order on which the item was added.
Notice that in the Order Type and Order Nbr. columns in this line, the system has inserted the type of the
related sales order and the link to the order. In the invoice line that you have added, these columns are
empty thus indicating that this line is not related to a sales order.
6. On the form toolbar, click Remove Hold; the invoice now has the Balanced status.
7. On the form toolbar, click Save.

Step 3: Applying the Payment to the SO Invoice

To apply the payment to the SO invoice, do the following:
1. While you are still viewing the invoice on the Invoices (SO303000) form, on the table toolbar of the
Applications tab, click Load Documents. The system adds a line with the payment that you have created in
Step 1 of this activity.
2. In the Amount Paid column, specify 26.34 (which is the payment amount to be applied to the invoice).
3. On the form toolbar, click Save.

Step 4: Releasing the SO Invoice

To release the SO invoice, do the following:
1. While you are still viewing the SO invoice on the Invoices (SO303000) form, click Release on the form
toolbar. Notice that the invoice now has the Closed status.
2. On the Details tab, in either of the invoice lines, click the link in the Inventory Ref. Nbr. column.
 Processing Direct Sales | 326

The system opens the Issues (IN302000) form in a pop-up window with the inventory issue that was
generated on release of the SO invoice.
3. On this form, review the details of the inventory issue, and make sure that it includes both invoice lines, and
it has a status of Released.
4. Return to the Invoices (SO303000) form with the SO invoice that you have processed, and on the Details tab,
click the Order Nbr. link in the APJAM08 line to open the related sales order.
5. On the Sales Orders (SO301000) form, which opens in a pop-up window, review its details. On the Details
tab, in the APJAM08 line, notice that Qty. on Shipments is 5 and the Open Qty. is 0, which means that the
line was shipped in full.
6. Review the Shipments tab. The processed sales order invoice acts as a shipment for the related SO line with
APJAM08 item (see the following screenshot): On release of the SO invoice, the inventory issue that records
the issue of the items from inventory has been generated and released. The sales order retains a status of
Open; the sales manager can process a shipment for the rest of the items to the customer's location.

Figure: Partial shipment of the sales order via the sales order invoice

Direct Sales: Generated Transactions

To be able to process a direct sale of stock items, you create and process an SO invoice. The following sections
describe the GL transactions generated during the complete processing of an SO invoice with a sale line.

Transaction Generated for an SO Invoice

When you create and release an SO invoice with one sale line (that is, a line with a positive amount), the system
generates the following general ledger transactions.

Account Source of Account Debit Credit

Accounts Receivable account Customer Amount 0.00

Sales account Item 0.00 Amount

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.
 Processing Direct Sales | 327

Transaction Generated for an Inventory Issue

On release of the SO invoice, the system generates an inventory issue transaction with sales lines of the Invoice
transaction type. When an inventory issue with one line of the Invoice type is released, the system generates the
following general ledger transactions.

Account Source of Account Debit Credit

Inventory account Item 0.00 Amount

GOGS account Item Amount 0.00

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Issues
(IN302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.
 Processing Direct Returns | 328

Processing Direct Returns

This chapter describes how you can process a direct return through the point-of-sale (POS) system. For the direct
return, you can specify a link to the original SO invoice.

Direct Returns: General Information

A point-of-sale (POS) system is an electronic system that is used to record the sales, payment, and return
transactions of a retail store. The POS system can be operated by a cashier or can be a self-service terminal where
customers perform all operations. Your organization can integrate Acumatica ERP with an external POS system for
simplified processing of direct returns if the Advanced SO Invoices feature is enabled on the Enable/Disable Features
(CS100000) form.
With a direct return, a customer returns stock items directly to the retail store rather than shipping them. In the POS
system, a direct return is processed through the creation of an SO credit memo—a sales-related document of the
Credit Memo type created on the Invoices (SO303000) form.

Learning Objectives
In this chapter, you will do the following:
• Create an SO credit memo for a direct return
• Add to the SO credit memo a return line with a link to an original sales document
• Add to the SO credit memo a replacement line
• Process the direct return to completion

Applicable Scenarios
You may need to create and process a direct return in the following cases:
• A customer returns goods directly at the store. In this case, you process an SO credit memo in the system.
• A customer returns goods directly at the store and requests the replacement of returned items. In this case,
you process either an SO credit memo or an SO invoice, and the document includes both return lines and
replacement (sales) lines.

Direct Return Process

You use the Invoices (SO303000) form to enter an SO credit memo, and you add a line for each returned or replaced
item. To add a line (or multiple lines) with a link to related SO invoice, you click Add Return Line on the table
toolbar of the Details tab. In the dialog box that opens, you select the invoice line or lines to be added as return
lines to the document you are creating. In the added line, you can correct the quantity to be returned if partial
return of the item quantity is requested (for example, if four units of the item were purchased and the customer is
returning only two). For serialized items, you should add a separate line with this item and a quantity of 1 for each
serial number.
To release the SO credit memo, you click Release on the More menu. This causes the system to automatically
generate a batch of general ledger transactions, as well as an inventory issue for the stock items. For return lines,
the system adds lines with the Credit Memo transaction type to the inventory issue. On release of the generated
inventory issue, the items are received to inventory, and a batch of GL transactions is generated.
Also, when you release the SO credit memo, the related AR credit memo becomes available for review and further
processing on the Invoices and Memos (AR301000) form.
 Processing Direct Returns | 329

Workflow of a Direct Return

For an SO credit memo created for processing a direct return, the typical processing involves the actions and
generated documents shown in the following diagram.

Direct Returns: Direct Return with Replacement

If a customer returns stock items directly to the retail store and requests for the exact replacement of these items,
you can process both return and replacement in a single document.

Processing Direct Return with Replacement

To process a direct return with replacement, you create sales order invoice or credit memo on the Invoices
(SO303000) form, and add to the document the lines with items to be returned and the lines with items for
replacement.
In the created document, return and replacement lines will have different signs. In an SO credit memo, return
lines have quantities with positive sign, and replacement lines have quantities with negative sign. In a sales order
invoice, return lines have quantities with negative sign, and replacement lines have quantities with positive sign.
You must select the type of the document for processing a direct return for replacement so that the total balance of
the document will be equal to zero or above zero.
When the sales order invoice or credit memo is released, the system generates an inventory issue transaction to
update the item information in inventory. The inventory operation is specified on the line level in the generated
inventory transaction, in the inventory issue. For a replacement line, an inventory issue line with the Invoice type
 Processing Direct Returns | 330

is generated to issue the replacement item from inventory. For a return line, an inventory issue line with the Credit
Memo type is generated to return an item to inventory.
Also, on release of the sales order invoice or credit memo, the related AR invoice or AR credit memo, respectively,
becomes available for review and further processing on the Invoices and Memos (AR301000) form.

Direct Returns: Implementation Checklist

The following sections provide details that you can use to ensure that the system is configured properly for
processing direct returns, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
Before you begin processing direct returns, you should make sure the needed features have been enabled, settings
have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Advanced SO Invoices feature has
been enabled.

Sales Orders Preferences (SO101000) form Make sure that all necessary settings related to or-
der management have been specified, as described in
Configuration of Order Management: Implementation Ac-
tivity.

Customers (AR303000) form Make sure that all needed customers have been de-
fined in the system, as described in Customers: Imple-
mentation Activity.

Stock Items (IN202500) form Make sure that all stock items have been defined in the
system, as described in Stock Item Creation: Implemen-
tation Activity.

Other Settings that Affect the Workflow

You can affect the workflow of processing direct returns by specifying additional settings as follows:
• To cause inventory issues to be automatically generated and released on release of SO credit memos, select
the Automatically Release IN Documents check box on the Sales Orders Preferences (SO101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a direct return for testing
purposes, as described in Direct Returns: Process Activity.
 Processing Direct Returns | 331

Direct Returns: Process Activity

In this activity, you will learn how to process a direct return of stock items through a point-of-sale (POS) terminal,
and how to process a replacement of the returned items.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that on January 30, 2023, an employee of the small retail customer FourStar Coffee & Sweets Shop came
to the SweetLife store and asked for an exact replacement of a large jar of apple jam that is leaking. This jar is one
of ten jars that were bought two days ago, on January 28, 2023.
Acting as the sales manager of the SweetLife company, you need to process the return of the jar and the sale of the
new jar by using the POS terminal. The previous sale, dated January 28, 2023, was recorded through the sales order
invoice (created automatically through the integration of the POS system and Acumatica ERP), which was paid in
full and now has the Closed status. You need to replace the inventory item with the same item at the same price, so
that no payment needs to be processed.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• Advanced sales order invoices, which provides support for direct sales and returns and integration with
POS systems
• In the SweetLife store, the integration between the store’s POS system and Acumatica ERP has been
configured to work as follows:
• When the sales manager processes a return through the POS system, the POS system creates an SO
credit memo with the item or items being returned on the Invoices (SO303000) form.
• If any lines of a direct return relate to an existing sales order, the POS operator selects the needed order
directly via the terminal when processing a return.

In this activity, to simulate the POS functionality that occurs in a production system, you
will add a return line with a link to the original sales order invoice.

• To process a replacement, the sales manager adds to this SO credit memo a line with the same inventory
item or items and a quantity with the opposite sign.
• When the sales manager releases the SO credit memo, Acumatica ERP creates an inventory issue that
includes two lines with different operation types: one line adds the returned item or items to inventory,
and another line issues the replacement item or items from inventory.
• On the Customers (AR303000) form, the COFFEESHOP customer has been created.
• On the Stock Items (IN202500) form, the APJAM96 stock item has been created.
 Processing Direct Returns | 332

• On the Invoices (SO303000) form, the sales order invoice for which you will process a return has been
entered into the system.

Process Overview
In this activity, to handle a direct return, you will create an SO credit memo on the Invoices (SO303000) form. You
will add the appropriate lines to the SO credit memo, some of which are linked to the original sales order and some
of which are for replacement items and have a negative quantity. Then you will release the invoice to process both
the receipt of returned items to inventory and the issue of replacement items from inventory.

System Preparation
Before you start replacing the inventory item with the same item at the same price, do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as sales manager Joseph
Becher by using the becher username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
Before you start replacing the inventory item with the same item at the same price, in the info area, in the upper-
right corner of the top pane of the Acumatica ERP screen, make sure that the business date in your system is set
to 1/30/2023. If a different date is displayed, click the Business Date menu button, and select 1/30/2023 on the
calendar. For simplicity, in this activity, you will create and process all documents in the system on this business
date.

System Preparation
Before you start replacing the inventory item with the same item at the same price, do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as sales manager Joseph
Becher by using the becher username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Entering a Credit Memo

To enter an SO credit memo, do the following:
1. On the Invoices (SO303000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Credit Memo
• Customer: COFFEESHOP
• Date: 1/30/2023
• Post Period: 01-2023
• Description: Replacement of the leaking jar
 Processing Direct Returns | 333

3. On the form toolbar, click Remove Hold. Notice that the credit memo has the Balanced status.

Step 2: Adding the Return Line

To add a line with the item to be returned, do the following:
1. While you are still viewing the SO credit memo on the Invoices (SO303000) form, on the table toolbar of the
Details tab, click Add Return Line.
2. In the Add Return Line dialog box, which opens, select the unlabeled check box in the line dated 1/28/2023
with the APJAM96 item, and click Add & Close. The system adds the return line to the credit memo and
closes the dialog box.
3. In the line added to the credit memo, change the Quantity to 1 (because only one of the jars is being
returned). In the Orig. Inv. Nbr. column in the line, notice that the system has inserted the reference
number of the original invoice for which the return is being performed.
4. On the form toolbar, click Save.

Step 3: Adding the Replacement Line

To add the line with the replacement item the SO credit memo, do the following:
1. While you are still viewing the credit memo on the Invoices (SO303000) form, on the Details tab, add one
more line (for the replacement item) with the following settings:
• Inventory ID: APJAM96
• Warehouse: RETAIL
• Quantity: -1
The quantity is negative because the item is to be issued from inventory.
• Unit Price: 45.15 (the same as in the line with the item being returned)
2. On the form toolbar, click Save.

Step 4: Releasing the Credit Memo

To release the credit memo, do the following:
1. While you are still viewing the credit memo on the Invoices (SO303000) form, on the form toolbar, click
Release.
Notice that the status of the credit memo is now Closed. On release of the credit memo, the returned item
has been received to inventory, and the replacement item has been issued from inventory. Because the
price of the returned item was the same as the price of the replacement item, the credit memo total is 0.00;
thus, no payment needs to be processed.
2. On the Details tab, in either of the lines, click the link in the Inventory Ref. Nbr. column. On the Issues
(IN302000) form, the system opens the inventory issue that was generated on release of the credit memo.
3. On this form, review the details of the inventory issue, and make sure the inventory issue has the Released
status, as shown in the following screenshot. Notice that the line with the returned item has the Credit Memo
transaction type, while the line with the replacement item has the Invoice transaction type.
 Processing Direct Returns | 334

Figure: Inventory document generated for processing the direct return

Direct Returns: Generated Transactions

To be able to process a direct return of stock items, you create and process an SO credit memo. The following
sections describe the GL transactions generated during the complete processing of an SO credit memo with a
return line.

Transactions Generated for an SO Credit Memo

When you create and release an SO credit memo with one return line (that is, a line with a positive amount), the
system generates the following general ledger transactions.

Account Source of Account Debit Credit

Accounts Receivable Customer 0.00 Amount

account

Sales account Item Amount 0.00

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices
(SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Transactions Generated for an Inventory Issue

On release of the SO credit memo, the system generates an inventory issue transaction with return lines of the
Credit Memo transaction type. When an inventory issue with one line of the Credit Memo type is released, the
system generates the following general ledger transactions.

Account Source of Account Debit Credit

Inventory account Item Amount 0.00

GOGS account Item 0.00 Amount

 Processing Direct Returns | 335

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Issues
(IN302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.
 Processing Prepayments for Purchase Orders | 336

Processing Prepayments for Purchase Orders

If a vendor requires your company to pay a part of the order amount in advance, you can process a prepayment for
the purchase order, which will later be applied to the corresponding AP bill. The topics of this chapter explain how
you can prepare and process prepayments of purchase orders.

Prepayments for Purchase Orders: General Information

Different vendors have different conditions for supplying goods and services. A vendor may request that your
company pay a part of the order amount in advance before those goods or services are provided. To support
this process in Acumatica ERP, you can process a prepayment for the purchase order; this prepayment is later
automatically applied to the AP bill prepared for the vendor of goods or services.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will learn how to do the following:
• Configure the default prepayment amount for a vendor
• Create a prepayment request for a purchase order
• Create a prepayment from a prepayment request
• Apply a prepayment to an accounts payable bill created for a purchase order
• Process a single prepayment for multiple purchase orders
• Process multiple prepayments for a purchase order

Applicable Scenarios
You may want to create and process a prepayment in the following cases:
• You are processing a new purchase order for the vendor that requires a partial payment in advance before
the ordered items will be sent.
• You have corrected the details of an existing purchase order that was already prepaid, so that an extra
prepayment amount needs to be processed.

Prepayments for Purchase Orders

To process a prepayment in the system, you have to first create and release the prepayment request, which denotes
the vendor's request for prepayment in the system. A prepayment request is not a financial document; it is an
internal document that can be approved (if required in your system) before the prepayment is actually paid to the
vendor.
In general, the Purchase Orders (PO301000) form is the starting point for creating a prepayment request for a
particular purchase order. You can create prepayment requests for purchase orders of the Normal and Drop-Ship
types.
On the More menu of the Purchase Orders form, you click Create Prepayment Request. On the Bills and
Adjustments (AP301000) form, which opens, you specify the quantity and extended cost in each of the prepayment
request lines. The total amount of prepayments prepared for a purchase order cannot exceed the total amount of
the purchase order. Aer you have specified the details, you release the prepayment request. A prepayment request
generates no general ledger transactions and does not change the vendor balance.
 Processing Prepayments for Purchase Orders | 337

If approval is required in your system, the prepayment request must be approved on the Approve
Bills for Payment (AP502000) form before it can be paid. For details on approval configuration, see
Managing Assignment and Approval Maps.

To create a prepayment document from a prepayment request, you need to pay the prepayment. A prepayment
request is always paid in the full amount; you cannot pay it partially. To pay the prepayment, you prepare an
accounts payable check on the Checks and Payments (AP302000) form, apply it to the prepayment request, and
release the check along with the application; depending on the system settings, processing a check may require
you to print it before releasing it. Aer you apply the AP check to prepayment request, the system changes the
status of this check to Closed and changes the status of the original prepayment to Open. Also, a document with the
Prepayment type and the same reference number as that of the original prepayment request becomes available on
the Checks and Payments form. Then you can apply this prepayment to bills and credit adjustments prepared for
the vendor of the goods.
Once the purchased items have been received to inventory, you create a purchase receipt on the Purchase
Receipts (PO302000) form and an accounts payable bill on the Bills and Adjustments form. (Depending on the
vendor's settings, you may need to process the bill before the receipt or the receipt before the bill.) The prepared
prepayment document is automatically applied to the accounts payable bill; on release of the AP bill, the
prepayment is applied to the bill. On release of the prepayment application to the bill, a batch of general ledger
transactions is posted. The open balance of the bill is decreased by the balance of the applied prepayment.

Workflow of Purchase with Prepayment

The following diagram illustrates the workflow of processing a purchase with prepayment.
Processing Prepayments for Purchase Orders | 338
 Processing Prepayments for Purchase Orders | 339

Prepayments for Purchase Orders: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of prepayments for purchases of stock items, and to understand (and change, if needed) the settings
that affect the processing workflow.

Implementation Checklist
We recommend that before you initially process prepayments for purchase orders, you make sure the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in the
following checklist.

Form Criteria to Check

Purchase Orders Preferences (PO101000) form Make sure that all necessary settings related to pur-
chase order management have been specified as de-
scribed in Configuration of Order Management: Imple-
mentation Activity.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured as described in Vendors: General Information.

Vendor Settings Checklist

Make sure that all needed vendors have been configured as described in Vendors: General Information. For a
vendor, on the Vendors (AP303000) form, you can specify the following settings, which affects the processing of
prepayments.

Tab Criteria to Check Notes

GL Accounts Specify the prepayment account in If you do not specify a separate ac-
the Prepayment Account box. count for prepayments, the vendor
prepayments will be debited to the
vendor AP account.

Payment Settings Specify the default prepayment  

percent in the Prepayment Per-
cent box.

To learn how to configure the settings, you can complete Prepayments for Purchase Orders: Implementation Activity.

Other Settings That Affect the Workflow

You can affect the workflow of processing purchases with prepayments by specifying additional settings as follows:
• To reduce input errors when users enter orders, set up the validation of order totals by selecting the For
Normal and Standard Orders check box in the Validate Total on Entry section of the Purchase Orders
Preferences (PO101000) form (General Settings tab). If this check box is selected, when a user creates a new
purchase order on the Purchase Orders (PO301000) form, to take the order off hold, the user must enter the
order total in the Control Total box aer verifying the order details.
 Processing Prepayments for Purchase Orders | 340

• To cause an accounts payable bill to be created automatically on release of a purchase receipt by default,
select the Create Bill on Receipt Release check box on the Purchase Orders Preferences form. In this case,
when a user creates a purchase receipt on the Purchase Receipts (PO302000) form, the system automatically
selects the Create Bill check box. (The user can clear this check box for a particular bill.)
• To cause the system to automatically release accounts payable bills that are generated on release of
purchase receipts, select the Release AP Documents Automatically check box on the Purchase Orders
Preferences form. For information on processing bills, see AP Bills: General Information.
• To cause purchase receipts to be created with the On Hold status (so that users can verify them before
processing them further), select the Hold Receipts on Entry check box on the Purchase Orders Preferences
form.
• To cause the system to automatically release inventory receipts generated on release of purchase receipts,
select the Release IN Documents Automatically check box on the Purchase Orders Preferences form.
• To cause the system to automatically post general ledger batches generated during processing purchase
documents, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Testing of Settings
To make sure that all settings are configured correctly, you can process a prepayment for a purchase order, as
described in Prepayments for Purchase Orders: To Process a Prepayment.

Prepayments for Purchase Orders: Calculation of the Prepayment Amount

In some cases, you need to prepay a percent of the cost of a purchase order before the vendor produces, ships,
or delivers the goods to your company. While you are working with the purchase order on the Purchase Orders
(PO301000) form, you can click Create Prepayment Request on the More menu. The system opens the Bills and
Adjustments (AP301000) form with a new prepayment request linked to the purchase order, with the lines of the
purchase order copied to the Details tab and the prepayment amount inserted in each prepayment request line.
To simplify the creation of prepayment requests for purchase orders, you can define a standard percentage of the
prepayment amount for the applicable system objects (those that correspond to a particular requirement for a
prepayment); these default percentages can be used in the appropriate situations for calculating the prepayment
amount in prepayment request lines. You can specify a default prepayment percent for the following system
objects:
• A particular purchase order: On the Vendor Info tab of the Purchase Orders (PO301000) form, specify this
percent in the Prepayment Percent box.
• A stock item purchased by a specific vendor: On the Vendors tab of the Stock Items (IN202500) form, in a
row with this vendor selected, specify this percent in the Prepayment Percent column.
• A non-stock item purchased by a specific vendor: On the Vendors tab of the Non-Stock Items (IN202000)
form, in a row with this vendor selected, specify this percent in the Prepayment Percent column.
• A particular vendor: Specify this percent in the Prepayment Percent box on the Payment tab of the
Vendors (AP303000) form.
For each line of the prepayment request, the system calculates the value in the Prepayment Amount column by
using the value in the Prepayment Percent column. The system checks related system settings in the following
order and uses the first source value it finds:
1. If a default prepayment percent is specified in the settings of a purchase order for which the prepayment
request is prepared, the system inserts this percentage for the line (regardless of the applicable vendor and
item settings).
 Processing Prepayments for Purchase Orders | 341

2. If a default prepayment percent is specified in the settings of the stock item or non-stock item selected in
the line, the system inserts this percentage for this line (regardless of the applicable vendor settings).
3. If a default prepayment percent is specified for the vendor selected for this prepayment, the system inserts
this percentage for this line.

If a default prepayment percent is not specified for any of these system settings, the system inserts 100 as the
default value, which indicates that the full amount of the purchase order line should be inserted in the related line
of a prepayment request.
You can manually override the default prepayment percent that the system has inserted into any line to change the
prepayment amount; also, you can delete any of the lines copied from the original purchase order to exclude them
from prepayment.

Prepayments for Purchase Orders: Implementation Activity

In the following implementation activity, you will learn how to specify a default prepayment percentage for a
particular vendor and stock item.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife buys paper bags with personalized labels from the Wingman Printing Company vendor
The vendor notifies the SweetLife company that future orders will need to be partially paid in advance before the
vendor starts to manufacture the goods for the order. The vendor requests that your company pay 15% of any
order in advance, and for paper bags, the vendor instead requests a prepayment of 25%. Acting as implementation
manager Kimberly Gibbs, you need to configure the vendor so that the prepayment amount will be automatically
filled in for each newly created prepayment.

System Preparation
Before you start making changes to the settings of the vendor and stock item, you should launch the Acumatica
ERP website with the U100 dataset preloaded, and sign in as implementation manager Kimberly Gibbs by using the
gibbs username and the 123 password.
Before you start making changes to the settings of the vendor and stock item, you should launch the Acumatica
ERP website with the U100 dataset preloaded, and sign in as implementation manager Kimberly Gibbs by using the
gibbs username and the 123 password.
Before you start making changes to the settings of the vendor and stock item, you should sign in to the system as
an implementation manager by using the gibbs username and the provided password.

Step 1: Editing the Vendor Account

To update the vendor account with the prepayment percent, do the following:
1. On the Vendors (AP303000) form, open the PRINTICO vendor.
2. On the Payment tab, specify 15 in the Prepayment Percent box.
3. On the GL Accounts tab, make sure that 13200 (Deposit to Vendor) is selected in the Prepayment Account
box.
 Processing Prepayments for Purchase Orders | 342

4. On the form toolbar, click Save.

Step 2: Editing the Stock Item Settings

To specify the prepayment percent of the PAPERBAG stock item when it is included in a purchase order for the
PRINTICO vendor, do the following:
1. On the Stock Items (IN202500) form, open the PAPERBAG item.
2. On the Vendors tab, in the row with PRINTICO in the Vendor ID column, do the following:
• Make sure that the check box in the Active column is selected.
• In the Prepayment Percent column, type 25.
3. On the form toolbar, click Save.

You have specified the default prepayment settings for the PRINTICO vendor and item-specific prepayment settings
for the PAPERBAG stock item.

Step 2: Editing the Stock Item Settings

To specify the prepayment percent of the PAPERBAG stock item when it is included in a purchase order for the
PRINTICO vendor, do the following:
1. On the Stock Items (IN202500) form, open the PAPERBAG item.
2. On the Vendors tab, click Add Row and specify the following settings for the added row:
• Active: Selected
• Vendor ID: PRINTICO
• Prepayment Percent: 25
3. On the form toolbar, click Save.

You have specified the default prepayment settings for the PRINTICO vendor and item-specific prepayment settings
for the PAPERBAG stock item.

Step 2: Editing the Stock Item Settings

To specify the prepayment percent of the PAPERBAG stock item when it is included in a purchase order for the
PRINTICO vendor, do the following:
1. On the Stock Items (IN202500) form, open the PAPERBAG item.
2. On the Vendors tab, in the row with PRINTICO in the Vendor ID column, do the following:
• Make sure that the check box in the Active column is selected.
• In the Prepayment Percent column, type 25.
3. On the form toolbar, click Save.

You have specified the default prepayment settings for the PRINTICO vendor and item-specific prepayment settings
for the PAPERBAG stock item.

Prepayments for Purchase Orders: Generated Transactions

To process a prepayment for a purchase order, you create a prepayment request and pay it with a check. Then
you apply a prepayment document to an AP bill. During these processes, the system generates GL transactions
described in the following sections.
 Processing Prepayments for Purchase Orders | 343

Transaction Generated on Applying AP Check to Prepayment Request

When the check that has been applied to a prepayment request is released, the system generates a batch of the
following transactions.

Account Source of Account Debit Credit

Cash account Vendor 0.00 Prepayment Amount

Prepayment account, if spec- Vendor Prepayment Amount 0.00

ified, or Accounts Payable ac-
count otherwise

You can view the reference number of the GL batch generated for a particular AP check application on the Financial
tab of the Checks and Payments (AP302000) form. You can click the link in this box to view the details of the batch
on the Journal Transactions (GL301000) form.

Transaction Generated on Applying Prepayment to AP Bill

When a prepayment application to the accounts payable bill is released, the system creates a batch of the following
transactions.

Account Source of Account Debit Credit

Prepayment account, if spec- Vendor 0.00 Prepayment Amount

ified, or Accounts Payable ac-
count otherwise

Accounts Payable account Vendor Prepayment Amount 0.00

You can view the reference number of the GL batch generated for application of prepayment to particular bill in the
Batch Number box on the Application History tab of the Checks and Payments (AP302000) form. You can click the
link in this box to view the details of the batch on the Journal Transactions (GL301000) form.
For the list of transactions that are generated during the processing of a purchase, see Purchases of Stock Items:
Generated Transactions.

Prepayments for Purchase Orders: To Process a Prepayment

The following activity will walk you through the process of creating a prepayment request for a purchase order,
making a payment based on the prepayment request, and applying the prepayment to an AP bill.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Processing Prepayments for Purchase Orders | 344

Story
Suppose that the SweetLife Fruits & Jams company has ordered a large quantity of labeled paper bags for
SweetLife’s needs. The Wingman Printing Company vendor has requested an advance payment in the amount of
$500.
Acting as purchasing manager Regina Wiley, you have to enter the purchase order and record a request for a
prepayment. You then need to make a payment by check for the prepayment request, process the purchase order
to completion, and make sure that the prepayment was applied to the bill created for the purchase order.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been configured.
The Allow AP Bill Before Receipt check box has been selected for the vendor on the Purchase Settings tab
(which means that for this vendor, accounts payable bills can be processed before purchase receipts).
• On the Stock Items (IN202500) form, the PAPERBAG stock item have been configured.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been configured.
The Allow AP Bill Before Receipt check box has been selected for the vendor on the Purchase Settings tab
(which means that for this vendor, accounts payable bills can be processed before purchase receipts).
• On the Stock Items (IN202500) form, the PAPERBAG stock item have been configured.

Process Overview
In this activity, you will start with creating a purchase order on the Purchase Orders (PO301000) form and adding
the purchased items to it. Then you will create a prepayment request by clicking Create Prepayment Request on
the More menu; on the Bills and Adjustments (AP301000) form, you will specify the prepayment amount for each line
copied from the purchase order. To create a prepayment document from the prepayment request, you will pay the
prepayment by clicking Pay Bill/Apply Adjustment on the More menu of the Bills and Adjustments form; you will
review the prepared check on the Checks and Payments (AP302000) form. Then you will print the check and release
the payment.
To complete the processing of the purchase order, you will create a purchase receipt for the ordered items on
the Purchase Receipts (PO302000) form and an accounts payable bill to the vendor on the Bills and Adjustments
(AP301000) form. On release of the AP bill, the system automatically applies the prepayment to the bill and updates
the vendor's balance.
 Processing Prepayments for Purchase Orders | 345

System Preparation
Before you start processing a prepayment, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
3. Sign in to the system as a purchasing manager by using the wiley username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating the Purchase Order

To create the purchase order, do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: PRINTICO
• Description: Purchase of paper bags with company labels
3. On the Details tab, add a row with the following settings:
• Branch: HEADOFFICE
• Inventory ID: PAPERBAG
• Warehouse: WHOLESALE
• Order Qty.: 250
• Unit Cost: 16.70
4. On the form toolbar, click Remove Hold to save the purchase order and prepare for further processing.

Step 2: Creating a Prepayment Request

To prepare a prepayment request for the purchase order, do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the More menu,
click Create Prepayment Request.
2. On the Bills and Adjustments (AP301000) form, which opens, in the only line of the prepared prepayment
request, specify the following settings:
• Ext. Cost: 2000
• Prepayment Percent: 25
• Account: 81000
3. Make sure that the calculated Prepayment Amount is 500 in the prepayment request line.
4. On the form toolbar, click Remove Hold.
5. Click Release on the form toolbar to release the prepayment request.
 Processing Prepayments for Purchase Orders | 346

You have created a prepayment request to make the prepayment to the vendor.

Step 3: Creating a Check to Pay for the Prepayment Request

To prepare an AP check to pay the vendor in the prepayment amount, do the following:
1. While you are still viewing the prepayment request on the Bills and Adjustments (AP301000) form, on the
form toolbar, click Pay/Apply.
2. On the Checks and Payments (AP302000) form, which opens, review the check and verify that it has the
following settings in the Summary area:
• Type: Check
• Vendor: PRINTICO
• Payment Method: CHECK
• Cash Account: 10200WH
• Payment Amount: 500
3. Change Description to Prepayments for paper bags with company labels.
4. On the Documents to Apply tab, make sure that the following settings are specified in the only row:
• Document Type: Prepayment
• Reference Nbr.: The reference number of the document you created in Step 2
• Amount Paid: 500
5. On the form toolbar, click Remove Hold.
6. Click Save. The check is assigned the Pending Print status, which means that it requires printing before it
can be released.

Step 4: Processing the Check

To apply the check to prepayment request, do the following:
1. While you are still viewing the check on the Checks and Payments (AP302000) form, on the form toolbar,
click Print/Process.
2. On the Process Payments / Print Checks (AP505000) form, which opens, notice that the system has added a
row with the check and selected the unlabeled check box for it. On the form toolbar, click Process.
A new browser tab opens showing a printable version of the selected check.
3. Review the printable version of the check.

In a production system, you would click Print on the form toolbar to print the check.

Close the browser tab.

4. On the Release Payments (AP505200) form, which opens, click Process. The Processing dialog box opens,
showing the progress and, as soon as the processing has completed, the results.
5. Click Close to close the dialog box and return to the form.

You have created a check and applied it to the prepayment request you created earlier. Now the prepayment is
ready to be applied to the vendor's bill.

Step 5: Processing the Accounts Payable Bill with the Prepayment

To create an accounts payable bill for the purchase order, do the following:
 Processing Prepayments for Purchase Orders | 347

1. On the Purchase Orders (PO301000) form, open the purchase order that you created in Step 1.
2. On the More menu, click Enter AP Bill. The system creates an accounts payable bill for the vendor of the
goods and opens the created document on the Bills and Adjustments (AP301000) form.
3. Review the details of the prepared bill.

In a production environment, you would make sure that the details of the bill created in the
system correspond to the details of the document that was received from the vendor.

4. On the Applications tab, make sure that the line with the prepayment has been automatically added to the
table and that 500 has been specified in the Amount Paid column.
5. On the form toolbar, click Remove Hold, and then click Release to release the bill. Make sure that the bill
now has the Open status and that the bill's open balance has been decreased by the prepaid amount (see
the following screenshot).

Figure: Prepayment applied to the bill prepared for the purchase order

You have applied the prepayment that you made for the vendor to the vendor's bill and released the application.

Step 6: Processing the Purchase Receipt

Now you need to complete the processing of the purchase order. To create the purchase receipt for the purchase
order, do the following:
1. Return to the purchase order to PRINTICO on the Purchase Orders (PO301000) form, which still has the Open
status, and review the Prepayments tab. Notice that the prepayment is now closed and that the full amount
of the prepayment was applied to the order and is shown in the Applied to Order column.
2. On the form toolbar, click Enter PO Receipt. The system prepares the purchase receipt for the selected
purchase order and opens it on the Purchase Receipts (PO302000) form.
3. In the Summary area, make sure the Create Bill check box is cleared because you have already prepared a
bill for the entire quantity.
4. On the form toolbar, click Release.
5. On the Orders tab, make sure that the related purchase order now has the Closed status.
 Processing Prepayments for Purchase Orders | 348

Prepayments for Purchase Orders: To Process Multiple Prepayments for a Purchase

Order

The following activity will walk you through the process of preparing multiple prepayments for a single purchase
order, and applying these prepayments to an AP bill prepared for the vendor.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that on January 30, 2023, the SweetLife Fruits & Jams company has ordered a large quantity of labeled
paper bags for SweetLife’s needs. The Wingman Printing Company vendor has requested an advance payment in
the amount of $500. Suppose that on February 7, 2023, the vendor notifies you that an additional prepayment in
the amount of $200 is needed for the order. Also suppose that the first prepayment request has not been paid yet.
Acting as Regina Wiley, a purchasing manager in SweetLife, you have to enter the purchase order and record the
prepayment request. Then you need to create the second prepayment for the same purchase order, and pay both
prepayment requests with the same check. Finally, you need to process the order to completion and make sure
that both prepayments have been applied to the AP bill that you prepare for the purchase order.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been created. The
Allow AP Bill Before Receipt check box has been selected for the vendor on the Purchase Settings tab
(which means that for this vendor, accounts payable bills can be processed before purchase receipts).
• On the Stock Items (IN202500) form, the PAPERBAG stock item have been configured.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the PRINTICO (Wingman Printing Company) vendor has been created. The
Allow AP Bill Before Receipt check box has been selected for the vendor on the Purchase Settings tab
(which means that for this vendor, accounts payable bills can be processed before purchase receipts).
• On the Stock Items (IN202500) form, the PAPERBAG stock item have been configured.
 Processing Prepayments for Purchase Orders | 349

Process Overview
In this activity, to process a purchase order when multiple prepayments are required, you will start with creating
a purchase order on the Purchase Orders (PO301000) form and adding the purchased items to it. Then you will
create the first prepayment request by clicking Create Prepayment Request on the More menu; on the Bills and
Adjustments (AP301000) form, you will specify the prepayment amount for each line copied from the purchase
order. Then you will create a subsequent prepayment request, and release both prepayment requests on the
Release AP Documents (AP501000) form.

Then you will pay two prepayment requests with a single AP check; you will do this by clicking Pay Bill/Apply
Adjustment on the More menu of the Bills and Adjustments form while viewing one of the prepayment requests,
and adding the second prepayment request to the check on the Checks and Payments (AP302000) form. Then you
will print the check, and release the check and its application to two prepayment requests.
To complete the processing of the purchase order, you will create a purchase receipt for the ordered items on
the Purchase Receipts (PO302000) form, and an accounts payable bill to the vendor on the Bills and Adjustments
(AP301000) form. On release of the AP bill, the system will automatically apply the prepayments to the bill and
update the vendor's balance.

System Preparation
Before you start processing a purchase order when multiple prepayments are required, you should do the
following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
3. Sign in to the system as a purchasing manager by using the wiley username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.
6. On the Enable/Disable Features (CS100000) form, disable the Construction feature.

Step 1: Creating the Purchase Order

To create the purchase order to the PRINTICO vendor, do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: PRINTICO
• Date: 1/30/2023
• Promised On: 1/30/2023
• Description: Order of paper bags with company labels
3. On the Details tab, add a row with the following settings:
• Branch: HEADOFFICE
• Inventory ID: PAPERBAG
 Processing Prepayments for Purchase Orders | 350

• Warehouse: WHOLESALE
• Order Qty.: 250
• Unit Cost: 16.70
4. On the form toolbar, click Remove Hold to save the purchase order and prepare for further processing.

Step 2: Creating Prepayment Requests

To prepare the two prepayment requests for the purchase order, do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the More menu,
click Create Prepayment Request.
2. On the Bills and Adjustments (AP301000) form, which opens, in the only line of the prepared prepayment
request, specify the following settings:
• Ext. Cost: 2000
• Account: 81000
3. Make sure that the calculated Prepayment Amount is 500 in the prepayment request line.
4. On the form toolbar, click Remove Hold.
5. On the form toolbar, click Release to release the prepayment request.
6. Close the prepayment request and return to the purchase order on the Purchase Orders form.
7. On this form, review the Prepayments tab. The line with the prepared prepayment request in the amount of
$500 is shown in the table.
8. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 2/7/2023 from the calendar to change the business date.
9. On the More menu, click Create Prepayment Request.
10.On the Bills and Adjustments form, which opens, in the only line of the prepared prepayment request, specify
the following settings:
• Ext. Cost: 800
• Account: 81000
11.Make sure that the calculated Prepayment Amount is 200 in the prepayment request line.
12.On the form toolbar, click Remove Hold.
13.On the form toolbar, click Release to release the prepayment request.

Step 3: Creating a Check to Pay for the Prepayment Requests

To prepare an AP check for both prepayment requests, do the following:
1. On the Bills and Adjustments (AP301000) form, open the $500 prepayment request that you have prepared
for the purchase order.
2. On the form toolbar, click Pay/Apply.
3. On the Checks and Payments (AP302000) form, which opens, review the check and verify that it has the
following settings in the Summary area:
• Type: Check
• Vendor: PRINTICO
• Payment Method: CHECK
• Cash Account: 10200WH
• Application Date: 2/7/2023
 Processing Prepayments for Purchase Orders | 351

• Application Period: 02-2023

4. Change Description to Prepayments for paper bags with company labels.
5. Change the value of the Payment Amount box in the Summary area to 700. Notice that in the Unapplied
Balance box, the value changes to 200.
6. On the Documents to Apply tab, verify the details of the row with the following settings:
• Document Type: Prepayment
• Reference Nbr.: The reference number of the $500 prepayment you created in Step 2
• Amount Paid: 500
7. On the table toolbar, click Add Row. In the new row, do the following:
a. In the Document Type column, select Prepayment.
b. In the Reference Nbr. column, select the reference number of the $200 prepayment you created in Step
2.
8. On the form toolbar, click Remove Hold. The check is assigned the Pending Print status, which means that
the check needs to be printed before it can be released.

Step 4: Processing the Check

To apply the check to the prepayment requests, do the following:
1. While you are still viewing the check on the Checks and Payments (AP302000) form, on the form toolbar,
click Print/Process.
2. On the Process Payments / Print Checks (AP505000) form, which opens, notice that the system has added a
line with the check and selected the unlabeled check box for it.
3. On the form toolbar, click Process.
A new browser tab has opens showing a printable version of the selected check.
4. Review the printable version of the printed check.

In a production system, you would click Print on the form toolbar to print the check.

Close the browser tab.

5. On the Release Payments (AP505200) form, which is opened, click Process to process the line for which the
unlabeled check box was selected automatically. The Processing dialog box opens. Wait for the system to
complete the operation. Click Close to close the dialog box.

You have created a check and applied it to the prepayment requests that you created earlier. Now the prepayment
is ready to be applied to the vendor's bill.

Step 5: Processing the Accounts Payable Bill with the Prepayments

To create an accounts payable bill for the purchase order, do the following:
1. On the Purchase Orders (PO301000) form, open the purchase order that you have created earlier in this
activity.
2. On the Other tab, review the amount in the Unpaid Amount box: It is the order total minus the prepaid
amount.
3. On the More menu, click Enter AP Bill. The system generates an accounts payable bill for the vendor of the
goods and opens the bill on the Bills and Adjustments (AP301000) form.
 Processing Prepayments for Purchase Orders | 352

4. On the Applications tab, make sure that two lines with the prepayments have been automatically added to
the table. Make sure that in each line, the Amount Paid equal to prepayment balance is specified ($500 and
$200, respectively).
5. On the form toolbar, click Remove Hold, and then click Release to release the bill. Make sure that the bill
now has the Open status, and that the bill's open balance has been decreased by the prepaid amount (see
the following screenshot).

Figure: Prepayments applied to the bill prepared for the purchase order

You have applied the prepayments you made for the vendor to the vendor's bill and released the application.

Step 6: Processing the Purchase Receipt

Now you need to complete the processing of the purchase order. To create the purchase receipt for the purchase
order, do the following:
1. Return to the purchase order to PRINTICO on the Purchase Orders (PO301000) form, which still has the
Open status, and open the Prepayments tab. Notice that the prepayments are now closed and that the full
amount of the prepayments has been applied to the order (as the Applied to Order column displays).
2. On the form toolbar, click Enter PO Receipt. The system prepares the purchase receipt for the selected
purchase order and opens it on the Purchase Receipts (PO302000) form. In the Summary area, make sure
the Create Bill check box is cleared (because you have already prepared a bill for the entire quantity).
3. On the form toolbar, click Save.
4. Click Release.
5. On the Orders tab, make sure that the related purchase order now has the Closed status.

Prepayments for Purchase Orders: Canceling Prepayments

The following sections explains how you can cancel prepayments in the system if you have applied a prepayment
to the wrong purchase order, or if the prepaid amount was incorrect.

Voiding a Prepayment Request

To cancel a prepayment request that was prepared for a purchase order if a check was not prepared for the
prepayment request yet, open the prepayment request on the Bills and Adjustments (AP301000) form, and on the
More menu, click Void Prepayment. The system changes the status of the prepayment request to Voided.
 Processing Prepayments for Purchase Orders | 353

If an AP check was prepared for a prepayment request, but the check has not yet been printed, you cannot void
the prepayment request. You can, however, remove the line with this prepayment request from the Documents to
Apply tab of the Checks and Payments (AP302000) form, or process the AP check to completion and then void it.
To cancel the application to a purchase order of a prepayment request paid with an AP check, you must void the
AP check, and the prepayment will be voided automatically. (The prepayment itself cannot be voided until the
check is voided.) To void the check, open it on the Checks and Payments form, and on the form toolbar, click Void.
The system prepares the document with the Voided Check type and opens this document on the same form; the
line with the prepayment is added on the Documents to Apply tab. Aer you release the voided check and its
application, the system assigns the Voided status to the AP check and to the prepayment request.

Canceling the Application of a Prepayment to a Purchase Order

If a prepayment document was created manually on the Checks and Payments (AP302000) form, and the
application of a prepayment to a purchase order has not been released yet, you can select the Hold check box
to assign the prepayment the Reserved status; you then delete the line with a purchase order from the Orders to
Apply tab.
If the application of a prepayment to a purchase order has been released, you cannot delete the purchase order
from the Orders to Apply tab; to cancel the application, you have to void the prepayment by clicking Void on
the form toolbar of the Checks and Payments form. The system creates a document of the Voided Check type; on
release of this check, the prepayment is assigned the Voided status.

Reversing a Prepayment Application to a Bill

If the application of a prepayment document to an AP bill was released, you can reverse it to cancel the application.
To do this, on the Application History tab of the Checks and Payments (AP302000) form, click the row of the bill
whose application you want to reverse, and then click Reverse Application on the table toolbar. The system adds
a reversing row with the opposite amount on the Documents to Apply tab. Aer you release the application of
the reversing entry, the prepayment becomes unapplied to the bill, and system increases the prepayment balance
by the amount that has been unapplied. Then you can apply this prepayment to another document, or void it, if
needed.

Prepayments for Purchase Orders: Linking Documents

The following sections describe how you can establish connections between existing prepayments and related
finance and purchase documents.

Linking a Prepayment to Bills and Prepayment Requests

When you enter a vendor prepayment as a document of the Prepayment type on the Checks and Payments
(AP302000) form, you can add the finance documents to which the prepayment will be applied on release to the
Documents to Apply tab. You can add accounts payable bills, credit adjustments, and prepayment requests.
Prepayment requests are added only manually. To add accounts payable bills and credit adjustments, you can click
Load Documents on the table toolbar, so that the system will find the needed documents and add them to the
table.

A prepayment request is always paid in the full amount; you cannot pay it partially.

Linking Prepayment to Purchase Orders and Related Bills

According to the business processes established in your company, you may need to reserve a prepayment for a
purchase order for which the related accounts payable bill has not yet been received.
 Processing Prepayments for Purchase Orders | 354

When you enter a vendor prepayment as a document of the Prepayment type on the Checks and Payments
(AP302000) form, you can add the purchase order to which the prepayment will be reserved on the Orders to
Apply tab. You can add documents manually, or you can click Load Orders on the table toolbar and specify filtering
conditions in the Load Orders dialog box; the system will find the needed documents and add them to the table.
Aer the prepayment and prepayment application are released, the Applied to Order column on the Orders to
Apply tab of the Checks and Payments form shows the amount that was prepaid for the purchase order. When an
accounts payable bill is prepared for the purchase order and released, the prepaid amount is applied to the bill
balance; this amount is shown in the Transferred to Bill column on the Orders to Apply tab.

Linking Accounts Payable Bills to Prepaid Purchase Orders

You can create an AP bill manually on the Bills and Adjustments (AP301000) form, and add to this bill the lines of any
number of purchase documents of the vendor that is specified in the bill. If any of the added purchase documents
has any linked prepayments, these prepayments appear on the Applications tab and on release of the bill are
applied automatically to the bill. You can add the lines of purchase documents to a bill in the following ways:
• By clicking the Add PO Receipt or Add PO button on the table toolbar of the Details tab, and selecting the
documents to be added in the Add PO Receipt or Add PO dialog box, which opens. The system adds all lines
of the selected document or documents to the Details tab, and automatically specifies the Amount Paid for
each applicable prepayment on the Applications tab.
• By clicking the Add PO Receipt Line or Add PO Line button on the table toolbar of the Details tab, and
selecting the particular lines to be added in the Add Receipt Line or Add PO Line dialog box, which opens.
The system adds the selected lines to the Details tab. In this case, the prepayment amount is not suggested
by the system; you need to manually specify the Amount Paid for each applicable prepayment on the
Applications tab.

Prepayments for Purchase Orders: Related Reports and Inquiries

This topic describes the reports, inquiries, and forms you may review to gather information about prepayments
and their balances.

If you do not see a report or inquiry, this could mean that you have signed in to the system with a user
account that does not have access rights to the particular form. Sign in as the admin user, or contact
your system administrator.

Reviewing Prepayment Balances

You use the Vendor Summary (AP401000) form to review the total prepayment balance of all vendors. The table of
this form shows the prepayment balances of the listed vendors.

Reviewing a Vendor's Prepayments

You use the Vendor Details (AP402000) form to review the prepayments and the prepayment balance of a particular
vendor.

Reviewing All Prepayments

You run the AP Balance by GL Account (AP632000) report to view all prepayments collected on the prepayment
account. To review the balance of the prepayment account, you select Account Summary in the Report Format box
on the Report Parameters tab of the report form.
 Purchases with Direct Purchase Receipts | 355

Purchases with Direct Purchase Receipts

In Acumatica ERP, you can process direct purchase receipts that do not have corresponding purchase orders.
The following diagram represents the general workflow of processing a direct purchase receipt.

The remaining sections of this topic describe in detail the processing steps shown in the diagram.

1. Enter the Purchase Receipt

You create a new purchase receipt on the Purchase Receipts (PO302000) form and assign it the Receipt type. On
the purchase receipt, you can list the stock and non-stock items received from the particular vendor. The reference
number for a new purchase receipt is generated in accordance with the numbering sequence specified on the
Purchase Orders Preferences (PO101000) form. If the purchase receipt is created with the On Hold status, you
should click Remove Hold on the form toolbar when you are ready to process the receipt further.
 Purchases with Direct Purchase Receipts | 356

2. Release the Purchase Receipt

To release the purchase receipt, while you are viewing it on the Purchase Receipts (PO302000) form, you click
Release on the form toolbar. Alternatively, you can release multiple purchase receipts at the same time by using
the Release Purchase Receipts (PO501000) form.
When the purchase receipt is released, the system automatically generates a corresponding inventory receipt, with
the date and posting period of the purchase receipt, to add the received items to inventory. You can review the
generated inventory receipt on the Receipts (IN301000) form.

3. Prepare the Accounts Payable Bill

If the Create Bill check box is selected for the purchase receipt on the Purchase Receipts (PO302000) form, when
you release the purchase receipt, the system generates an accounts payable bill to the vendor automatically.
Otherwise, you need to prepare the bill manually from the related purchase receipt on the Purchase Receipts form
by clicking Enter AP Bill on the form toolbar.
You can view the generated AP bill on the Bills and Adjustments (AP301000) form. For more information on the
processing of AP bills, see Processing AP Bills and Paying AP Bills.

4. Release the Inventory Receipt

The generated inventory receipt is released automatically if the Release IN Documents Automatically check box is
selected on the Purchase Orders Preferences (PO101000) form. If this check box is cleared, you have to release the
inventory receipt manually by clicking Release on the form toolbar of the Receipts (IN301000) form. On release of
the inventory receipt, a batch of GL transactions is generated.
You can release the receipt before or aer you prepare the AP bill.
Related Links
• Changing the Processing of Purchase Documents
• Managing Lines in Purchase Documents
 Processing Purchase Returns at the Original Cost | 357

Processing Purchase Returns at the Original Cost

In some cases, you may need to return purchased items to the vendor. You can issue the returned items from
inventory at the original item cost. This chapter describes how you can create and process purchase returns of
stock items at the items' original cost.

Purchase Returns at the Original Cost: General Information

In Acumatica ERP, you can create and process purchase returns if any purchased items need to be returned to the
vendor for some reason.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Create a purchase return document
• Specify the items to be returned and define at which cost the items will be issued from inventory
• Process the purchase return and the related inventory and accounts payable documents

Applicable Scenarios
In most cases, the purchasing process is completed when your company receives the goods and the corresponding
accounts payable bill is released to adjust your outstanding balance with the vendor. In some cases, however,
items are delivered in an unsatisfactory condition or shipped by mistake and should be returned to the vendor
for replacement or reimbursement. A purchase return can also occur when services were not rendered or were
provided partially, and your company should be reimbursed.
A purchase return process includes the creation of a purchase return document, the specification of the returned
items and their quantities, the issuing of the returned item from inventory, and the adjustment to the outstanding
vendor balance in the system in the returned amount.

Creation of a Purchase Return

A purchase return is a purchase receipt of the Return type created on the Purchase Receipts (PO302000) form that
includes a line for each stock or non-stock item being returned. You can create a purchase return from scratch on
this form or by first opening the corresponding purchase receipt on this form.
To create a purchase return manually on the Purchase Receipts form, you specify the needed settings in the
Summary area of the form. Then on the Details tab, you add any number of purchase receipts or purchase receipt
lines to it by clicking Add PR or Add PR Line, respectively, on the table toolbar.
To create a purchase return by using the purchase receipt as a starting point, you open the purchase receipt on the
Purchase Receipts form, select the unlabeled check boxes on the Details tab in the lines of the purchase receipt
with the items to be returned, and click Return on the form toolbar. The system copies the relevant information,
including the lines you selected, from the purchase receipt to a new purchase return on the same form.
Regardless of how you have created the purchase return, in each copied line on the Details tab, you specify the
quantity of items to be returned in the Receipt Qty. column and a reason code of the Vendor Return usage type in
the Reason Code column. By default, the system inserts the reason code that is specified in the PO Return Reason
Code box on the Purchase Orders Preferences (PO101000) form.
 Processing Purchase Returns at the Original Cost | 358

For each item on the Details tab of the Purchase Receipts form, you must specify the warehouse (and warehouse
location, if applicable) from which the items will be issued to be sent back to the vendor. For stock items with lot or
serial numbers, you have to click Allocations on the table toolbar of the Details tab and specify the particular lot or
serial numbers for the units being returned.
On the Details tab of the Purchase Receipts form, lines of the purchase return are linked to lines of a purchase
order if the PO Order Type and PO Order Nbr. columns are filled in. These settings are copied from the associated
purchase receipt. For purchase receipt lines that are linked to a purchase order, you can select the Open PO Line
check box on the Details tab to specify that the system should change the status of the related purchase order to
Open when the purchase return is released. You do this if you expect to receive replacement items for the order
from the vendor and thus want to open the purchase order again. If the Open PO Line check box is cleared, the
related purchase order remains closed.
Aer you have specified the settings of the returned items on the Details tab of the Purchase Receipts form, you
define the cost at which the items will be issued from inventory by selecting one of the options in the Cost of
Inventory Return From box of the Summary area. If the Original Cost from Receipt option is selected, the items are
issued from inventory at exactly the cost at which the items were purchased. If the Cost by Issue Strategy option is
selected, the items are issued at the cost calculated by the system according to the items' valuation methods. If the
Manual Cost Input option is selected, you can enter the cost manually.

Processing of a Purchase Return

Aer you have created a purchase return on the Details tab of the Purchase Receipts (PO302000) form, you need
to process the issuing of items from inventory and adjust the vendor's balance in the system for the amount of the
returned items.
On release of the purchase return, the corresponding inventory issue is generated automatically and can be viewed
on the Issues (IN302000) form. On release of this issue, the quantities of each of the returned items are deducted
from the item quantities available at the warehouse specified in the Warehouse column of the Details tab of the
Purchase Receipts form.

If the purchase receipt for which the return was created is linked to a line of a purchase order, then on the Details
tab of the Purchase Orders (PO301000) form for the purchase order, the applicable values in the Qty. On Receipts
column are decreased by the quantity of the listed item that is returned.
Also, on release of the purchase return, an accounts payable debit adjustment is generated automatically if the
Create Bill check box is selected in the Summary area of the purchase return on the Purchase Receipts form. The
generated debit adjustment can be viewed on the Bills and Adjustments (AP301000) form.
The further processing of a purchase return depends on the agreement between your company and the vendor. You
can complete the processing of the return by processing a vendor refund or by receiving replacement items for the
original purchase order.

Workflow of a Purchase Return

For purchase return documents, the typical processing involves the actions and generated documents shown in the
following diagram.
 Processing Purchase Returns at the Original Cost | 359

Purchase Returns at the Original Cost: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchase returns at the original cost, and to understand (and change, if needed) the settings that
affect the processing workflow.
 Processing Purchase Returns at the Original Cost | 360

Implementation Checklist
Before you begin processing purchase returns at the original cost, you should make sure the needed settings have
been specified, as summarized in the following checklist.

Form Criteria to Check Notes

  Make sure that the basic invento-  

ry and order management prefer-
ences are configured, as described
in Configuration of Order Manage-
ment: General Information.

Purchase Orders Preferences Make sure the Process Return with By default, the system copies the
(PO101000) form Original Cost check box is select- state of this check box to each pur-
ed. chase return that is created. (You
can change the way to specify the
cost in an individual purchase re-
turn by selecting the Cost by Is-
sue Strategy or Manual Cost Input
options on the Purchase Receipts
(PO302000) form.).)

Settings that Affect the Workflow

You can affect the workflow of processing purchase returns at the original cost by specifying additional settings as
follows:
• To automatically create debit adjustments on release of purchase returns, select the Create Bill check box
on the Purchase Orders Preferences (PO101000) form. By default, the state of this check box is copied to
each purchase return that is created. If the check box is cleared in a purchase return document, you can
select it before releasing a purchase return.
• To set up the system to automatically release debit adjustments that are generated, select the Release AP
Documents Automatically check box on the Purchase Orders Preferences form.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a purchase return at the
original cost, as described in the Purchase Returns at the Original CostPurchase ReturnsPurchase Returns at the
Original CostPurchase Returns at the Original Cost: Process ActivityProcess ActivityProcess ActivityTo Process a
Return at the Original Cost.

Purchase Returns at the Original CostPurchase ReturnsPurchase Returns at

the Original CostPurchase Returns at the Original Cost: Process ActivityProcess
ActivityProcess ActivityTo Process a Return at the Original Cost

The following activity will walk you through the process of returning of stock items from your company's inventory
to the vendor at the items' original cost.
 Processing Purchase Returns at the Original Cost | 361

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Video Tutorial
This video shows you the common process but may contain less detail than the activity has. If you want to repeat
the activity on your own or you are preparing to take the certification exam, we recommend that you follow the
instructions in the activity steps.
FEEDBACK

Story
Suppose that you are Regina Wiley, a purchasing manager in the SweetLife Fruits & Jams company. On January
30, 2023, you have noticed that three packs of paper that were purchased and delivered on January 29, 2023 have
been damaged during shipping. You have decided to return these packs to the Spectra Stationery Office vendor
without requesting a replacement. You, acting as the purchasing manager, need to create and process a purchase
return of the damaged items at the items' original cost.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the STATOFFICE (Spectra Stationery Office) vendor has been defined.
• On the Stock Items (IN202500) form, the PAPER, PEN, and PENCIL stock items have been created.
• On the Purchase Orders Preferences (PO101000) form, the Process Return with Original Cost check box
has been selected. The state of this check box is copied by default to each purchase return that is created;
when the check box is selected, the system processes the return of items at the cost specified in the original
receipt.
• On the Purchase Receipts (PO302000) form, a purchase receipt for the STATOFFICE vendor has been created.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the STATOFFICE (Spectra Stationery Office) vendor has been defined.
• On the Stock Items (IN202500) form, the PAPER, PEN, and PENCIL stock items have been created.
• On the Purchase Orders Preferences (PO101000) form, the Process Return with Original Cost check box
has been selected. The state of this check box is copied by default to each purchase return that is created;
when the check box is selected, the system processes the return of items at the cost specified in the original
receipt.
 Processing Purchase Returns at the Original Cost | 362

• On the Purchase Receipts (PO302000) form, a purchase receipt for the STATOFFICE vendor has been created.

Process Overview
A purchase return document, which represents a vendor return in the system, is prepared based on the applicable
purchase receipt. In this activity, to create a purchase return, you will open the purchase receipt on the Purchase
Receipts (PO302000) form, and on the Details tab, you will select the lines of all items that need to be returned.
Then on the form toolbar, you will click Return; on the same form, the system will copy the relevant information to
a new document of the Return type that includes the lines selected for return.
Before you process the prepared purchase return further, on the Details tab of the Purchase Receipts form, you can
correct the quantities to be returned (if you need to return only part of the purchased items) and the reason code
for the line (if it is different than the default reason code inserted by the system). In the Summary area, you will
specify that the items should be issued from inventory at the cost at which they were purchased by selecting the
Original Cost from Receipt option in the Cost of Inventory Return From box. You will then release the purchase
return and review the related documents to make sure the return has been processed fully in the system.

System Preparation
Before you start processing a purchase return document, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in to the system as
purchasing manager Regina Wiley by using the wiley username and the 123 password.
2. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in to the system as
purchasing manager Regina Wiley by using the wiley username and the 123 password.
3. Sign in to the system as a purchasing manager by using the wiley username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating a Purchase Return from the Related Purchase Receipt

To create a purchase return from the purchase receipt, do the following:
1. On the Purchase Receipts (PO302000) form, open the purchase receipt from the STATOFFICE vendor and
dated 1/29/2023.
2. On the Details tab, select the unlabeled check box in the line of the purchase receipt with the PAPER item.
3. On the form toolbar, click Return to create a purchase return that corresponds to the purchase receipt
and includes the selected line. The system opens the purchase receipt on the Purchase Receipts form. The
document has the Return type that corresponds to the purchase receipt.
4. On the form toolbar, click Save.

Step 2: Specifying the Settings of the Purchase Return

To specify settings of the return document, do the following:
1. While you are still viewing the purchase return on the Purchase Receipts (PO302000) form, in the Summary
area, make sure that 1/30/2023 is specified as the Date.
 Processing Purchase Returns at the Original Cost | 363

2. In the Cost of Inventory Return From box, make sure that the Original Cost from Receipt option is selected.
With this option selected, the items will be issued from inventory at exactly the same cost at which they
were purchased.
3. Select the Create Bill check box so that the system generates a debit adjustment automatically on release
of the purchase return.
4. In the only return line on the Details tab, change the Receipt Qty. to 3 (which is the quantity of items to be
returned).
5. In the line, clear the Open PO Line check box to indicate that no replacement is needed for the returned
items.
6. On the form toolbar, click Save.

The purchase return has the Balanced status and can thus be released.

Step 3: Releasing the Purchase Return

To release the purchase return and to review how the return of items is processed in the system, do the following:
1. While you are still viewing the purchase return on the Purchase Receipts (PO302000) form, click Release on
the form toolbar. Wait for the system to complete the operation.
2. On the Billing tab, review the information about the debit adjustment that was prepared, and make sure
that it now has a status of Open (indicating that it was released).
3. On the Other tab, click the IN Ref. Nbr. link, and review the inventory issue, which opens on the Issues
(IN302000) form in a pop-up window. Make sure that the issue has the Released status.
4. Close the Issues form.
5. On the Purchase Orders (PO301000) form, open the purchase order to STATOFFICE for which the return was
processed.
6. On the Details tab, in the Qty. on Receipts column, notice that the received quantity in the PAPER line has
been decreased by the returned quantity and is now 17.
7. On the PO History tab, review the documents related to the purchase order, as shown in the following
screenshot. The le table shows the purchase receipt and purchase return; the right table shows the bill
and the debit adjustment. In the line with the debit adjustment, notice the zero purchase price variance
amount in the PPV Amt. column, which means that the items were returned at the cost at which they were
purchased.
 Processing Purchase Returns at the Original Cost | 364

Figure: Documents related to the purchase order

You have processed the return to the vendor without requesting a replacement.

Activity Recap
In this activity, we have illustrated how the purchasing manager has done the following:
1. Created a purchase return from the purchase receipt that was created on receipt of the items to be returned
2. Specified the settings of the purchase return
3. Released the purchase return and reviewed the changes in the original purchase order

Purchase Returns at the Original Cost: Generated Transactions

The costs of items purchased from vendors may change over time, so the correct costs must be reflected on the
purchase return document. To specify that items to be returned should be issued from inventory at exactly the
same cost at which the items were purchased, you need to select the Original Cost from Receipt option in the Cost
of Inventory Return From box in the Summary area of the purchase return document on the Purchase Receipts
(PO302000) form.
On release of the purchase return, the system prepares an inventory issue document to update inventory, which
you can review on the Issues (IN302000) form, and a debit adjustment to decrease the vendor balance in the
system, which you can review on the Bills and Adjustments (AP301000) form.

Rules of Original Cost Calculation

In the general ledger transactions that are posted during the processing of a purchase return, the posted amount is
the original cost of the item multiplied by the returned quantity.
The original cost for stock items is defined depending on the valuation method specified for each item in the
Valuation Method box on the General tab of the Stock Items (IN202500) form:
• For items with the FIFO valuation method, the system uses the average cost of the cost layer that
corresponds to the purchase receipt for which the return is processed.
 Processing Purchase Returns at the Original Cost | 365

• For items with the average, specific, and standard valuation methods, the system uses the cost specified in
the line of the original inventory receipt or purchase receipt.
For any of the valuation methods, the cost adjustments, such as landed costs or purchase price variance, are
not included in the original cost. For more information on how the system calculates items' costs depending on
valuation methods, see Item Costs and Valuation Methods.

Transaction Generated for a Return of Stock Items

Once the purchase return of a stock item at original cost is released on the Purchase Receipts (PO302000) form, the
system automatically generates a corresponding inventory issue and releases it immediately; when the inventory
issue is released, the availability data for the stock item or items in inventory is updated. For each line with a stock
item being returned, the following general ledger transactions are generated on release of the corresponding
inventory issue.

Account Source of Account Debit Credit

PO Accrual account Original purchase or- Amount = Original Cost * Qty. 0.0
der line

Inventory account Posting class 0.0 Amount

The processing of a purchase return also includes the processing of the debit adjustment that is generated when
the purchase return is released. On release of the debit adjustment, the following general ledger transactions are
generated for each line with a stock item being returned.

Account Source of Account Debit Credit

Accounts Payable ac- Vendor Amount = Original Cost * Qty. 0.0

count

PO Accrual account Original purchase or- 0.0 Amount

der line

Transaction Generated for a Return of Non-Stock Items

On the Purchase Receipts (PO302000) form, you can process a purchase return of non-stock items requiring receipt
(lines with the Non-Stock line type specified on the Details tab). Purchase return lines of this type are added to the
inventory issue generated on the release of the purchase return. For a line with a non-stock item, the following
general ledger transactions are generated on release of the inventory issue corresponding to the purchase return.

Account Source of Account Debit Credit

PO Accrual account Original purchase or- Amount = Original Cost * Qty. 0.0
der line

Expense account Purchase return line 0.0 Amount

On release of the debit adjustment that is generated when the purchase return is released, the following general
ledger transaction is generated.
 Processing Purchase Returns at the Original Cost | 366

Account Source of Account Debit Credit

Accounts Payable ac- Vendor Amount = Original Cost * Qty. 0.0

count

PO Accrual account Original purchase or- 0.0 Amount

der line
 Processing Purchase Returns at the Calculated Cost | 367

Processing Purchase Returns at the Calculated Cost

In some cases, you may need to return purchased items to the vendor. You can issue the returned items from
inventory at a cost calculated by the system. This chapter describes how you can create and process purchase
returns of stock items at item costs that are calculated by the system.

Purchase Returns at the Calculated Cost: General Information

In Acumatica ERP, you can create and process purchase returns if any purchased items need to be returned to the
vendor for some reason.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Create a purchase return document
• Specify the items to be returned and define at which cost the items will be issued from inventory
• Process the purchase return and the related inventory and accounts payable documents

Applicable Scenarios
In most cases, the purchasing process is completed when your company receives the goods and the corresponding
accounts payable bill is released to adjust your outstanding balance with the vendor. In some cases, however,
items are delivered in an unsatisfactory condition or shipped by mistake and should be returned to the vendor
for replacement or reimbursement. A purchase return can also occur when services were not rendered or were
provided partially, and your company should be reimbursed.
A purchase return process includes the creation of a purchase return document, the specification of the returned
items and their quantities, the issuing of the returned item from inventory, and the adjustment to the outstanding
vendor balance in the system in the returned amount.

Creation of a Purchase Return

A purchase return is a purchase receipt of the Return type created on the Purchase Receipts (PO302000) form that
includes a line for each stock or non-stock item being returned. You can create a purchase return from scratch on
this form or by first opening the corresponding purchase receipt on this form.
To create a purchase return manually on the Purchase Receipts form, you specify the needed settings in the
Summary area of the form. Then on the Details tab, you add any number of purchase receipts or purchase receipt
lines to it by clicking Add PR or Add PR Line, respectively, on the table toolbar.
To create a purchase return by using the purchase receipt as a starting point, you open the purchase receipt on the
Purchase Receipts form, select the unlabeled check boxes on the Details tab in the lines of the purchase receipt
with the items to be returned, and click Return on the form toolbar. The system copies the relevant information,
including the lines you selected, from the purchase receipt to a new purchase return on the same form.
Regardless of how you have created the purchase return, in each copied line on the Details tab, you specify the
quantity of items to be returned in the Receipt Qty. column and a reason code of the Vendor Return usage type in
the Reason Code column. By default, the system inserts the reason code that is specified in the PO Return Reason
Code box on the Purchase Orders Preferences (PO101000) form.
 Processing Purchase Returns at the Calculated Cost | 368

For each item on the Details tab of the Purchase Receipts form, you must specify the warehouse (and warehouse
location, if applicable) from which the items will be issued to be sent back to the vendor. For stock items with lot or
serial numbers, you have to click Allocations on the table toolbar of the Details tab and specify the particular lot or
serial numbers for the units being returned.
On the Details tab of the Purchase Receipts form, lines of the purchase return are linked to lines of a purchase
order if the PO Order Type and PO Order Nbr. columns are filled in. These settings are copied from the associated
purchase receipt. For purchase receipt lines that are linked to a purchase order, you can select the Open PO Line
check box on the Details tab to specify that the system should change the status of the related purchase order to
Open when the purchase return is released. You do this if you expect to receive replacement items for the order
from the vendor and thus want to open the purchase order again. If the Open PO Line check box is cleared, the
related purchase order remains closed.
Aer you have specified the settings of the returned items on the Details tab of the Purchase Receipts form, you
define the cost at which the items will be issued from inventory by selecting one of the options in the Cost of
Inventory Return From box of the Summary area. If the Original Cost from Receipt option is selected, the items are
issued from inventory at exactly the cost at which the items were purchased. If the Cost by Issue Strategy option is
selected, the items are issued at the cost calculated by the system according to the items' valuation methods. If the
Manual Cost Input option is selected, you can enter the cost manually.

Processing of a Purchase Return

Aer you have created a purchase return on the Details tab of the Purchase Receipts (PO302000) form, you need
to process the issuing of items from inventory and adjust the vendor's balance in the system for the amount of the
returned items.
On release of the purchase return, the corresponding inventory issue is generated automatically and can be viewed
on the Issues (IN302000) form. On release of this issue, the quantities of each of the returned items are deducted
from the item quantities available at the warehouse specified in the Warehouse column of the Details tab of the
Purchase Receipts form.

If the purchase receipt for which the return was created is linked to a line of a purchase order, then on the Details
tab of the Purchase Orders (PO301000) form for the purchase order, the applicable values in the Qty. On Receipts
column are decreased by the quantity of the listed item that is returned.
Also, on release of the purchase return, an accounts payable debit adjustment is generated automatically if the
Create Bill check box is selected in the Summary area of the purchase return on the Purchase Receipts form. The
generated debit adjustment can be viewed on the Bills and Adjustments (AP301000) form.
The further processing of a purchase return depends on the agreement between your company and the vendor. You
can complete the processing of the return by processing a vendor refund or by receiving replacement items for the
original purchase order.

Workflow of a Purchase Return

For purchase return documents, the typical processing involves the actions and generated documents shown in the
following diagram.
 Processing Purchase Returns at the Calculated Cost | 369

Purchase Returns at the Calculated Cost: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchase returns at the cost calculated by the system, and to understand (and change, if needed) the
settings that affect the processing workflow.
 Processing Purchase Returns at the Calculated Cost | 370

Implementation Checklist
Before you begin processing returns at the calculated cost, you should make sure the needed settings have been
specified, as summarized in the following checklist.

Form Criteria to Check Notes

  Make sure that the basic invento-  

ry and order management prefer-
ences are configured, as described
in Configuration of Order Manage-
ment: General Information.

Purchase Orders Preferences Make sure that the Process Return By default, the system copies the
(PO101000) form with Original Cost check box is state of this check box to each pur-
cleared. chase return that is created. (You
can change the way to specify the
cost in an individual purchase re-
turn by selecting the Cost by Issue
Strategy or Manual Cost Input op-
tions in the Cost of Inventory Re-
turn From box on the Purchase Re-
ceipts (PO302000) form.)

Settings that Affect the Workflow

You can affect the workflow of processing purchase returns at the system-calculated cost by specifying additional
settings as follows:
• To cause debit adjustments to be automatically created on release of purchase returns, select the Create
Bill check box on the Purchase Orders Preferences (PO101000) form. By default, the state of this check box
is copied to each purchase return that is created. If the check box is cleared in a purchase return document,
you can select it before releasing a purchase return.
• To set up the system to automatically release debit adjustments that are generated, select the Release AP
Documents Automatically check box on the Purchase Orders Preferences form.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process a purchase return at the
system-calculated cost, as described in the Purchase Returns at the Calculated CostPurchase ReturnsPurchase
Returns at the Calculated Cost: Process ActivityTo Process a Return at the Calculated CostProcess Activity.

Purchase Returns at the Calculated CostPurchase ReturnsPurchase Returns at the

Calculated Cost: Process ActivityTo Process a Return at the Calculated CostProcess
Activity

In this activity, you will learn how to process a return of stock items from your company's inventory to the vendor,
with the system calculating the items' cost.
 Processing Purchase Returns at the Calculated Cost | 371

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that on January 30, 2023 you, acting as purchasing manager at the SweetLife Fruits & Jams company
Regina Wiley, notice that three packs of paper that were purchased and delivered on January 29, 2023 have been
damaged during shipping. You have decided to return these packs to the Spectra Stationery Office vendor without
requesting a replacement. You need to create and process a purchase return of the damaged items at the cost
calculated by the system.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management, which provides the standard functionality of inventory and order
management
• Inventory, which gives you the ability to maintain stock items using forms related to the inventory
functionality and to create and process sales and purchase documents that include stock items
• On the Vendors (AP303000) form, the STATOFFICE vendor has been created.
• On the Stock Items (IN202500) form, the PAPER stock item have been created.
• On the Purchase Orders (PO301000) form, the purchase order has been created with stationary items
ordered from the STATOFFICE vendor and, on the Purchase Receipts (PO302000) form, the related purchase
receipt has been created and released.

Process Overview
A purchase return document, which represents a vendor return in the system, is prepared based on the applicable
purchase receipt. In this activity, to create a purchase return, you will open the purchase receipt on the Purchase
Receipts (PO302000) form, and on the Details tab, you will select (by selecting the unlabeled check boxes) the lines
of all items to be returned. Then on the form toolbar, you will click Return; on the same form, the system copies the
relevant information to a new document of the Return type that includes the lines selected for return.
Before you process the prepared purchase return further, on the Details tab of the Purchase Receipts form, you
will correct the quantities to be returned. In the Summary area, you will specify that the items should be issued
from inventory at the cost calculated by the system by selecting the Cost by Issue Strategy option in the Cost of
Inventory Return From box. You will then release the purchase return and review the related documents to make
sure the return has been processed fully in the system.

System Preparation
Before you start preparing a purchase return, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded, and sign in as purchasing manager
Regina Wiley by using the wiley username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
 Processing Purchase Returns at the Calculated Cost | 372

3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating a Purchase Return from the Related Purchase Receipt

The easiest way to create a purchase return is to start from the purchase receipt in which you received the items to
be returned. To create the purchase return from the purchase receipt, do the following:
1. On the Purchase Receipts (PO302000) form, open the purchase receipt to STATOFFICE dated 1/29/2023.
2. On the Details tab of the Purchase Receipts form, which opens, select the unlabeled check box in the line of
the purchase receipt with the PAPER item.
3. On the form toolbar, click Return to create a purchase return that corresponds to the purchase receipt
and includes the selected line. The system creates a document with the Return type and with appropriate
settings copied from the purchase receipt, and opens it on the same form.

Step 2: Specifying the Settings of the Return

To define the specific settings of the return document, do the following:
1. While you are still viewing the purchase return that was created on the Purchase Receipts (PO302000) form,
in the Summary area, make sure that 1/30/2023 is specified as the Date.
2. In the Cost of Inventory Return From box, select the Cost by Issue Strategy option . With this option
selected, the items will be issued from inventory at the cost calculated by the system.
3. Select the Create Bill check box to make the system generate a debit adjustment automatically on release
of the purchase return.
4. In the only return line on the Details tab, change the Receipt Qty. to 3 (which is the quantity of items to be
returned).
5. In the line, clear the Open PO Line check box to indicate that no replacement is needed for returned items.
6. On the form toolbar, click Save to save the purchase return, which has the Balanced status and can thus be
released.

Step 3: Releasing the Purchase Return

To release the purchase return and to review how the return of items is processed in the system, do the following:
1. While you are still viewing the purchase return on the Purchase Receipts (PO302000) form, click Release on
the form toolbar.
2. On the Billing tab, review the information about the debit adjustment that was prepared, and make sure
that it now has the Open status (reflecting that it was released).
3. On the Other tab, click the IN Ref. Nbr. link, and review the inventory issue, which is opened on the Issues
(IN302000) form. Make sure the issue has the Released status.
4. On the Orders tab, click the link in the Order Nbr. column. The system opens the purchase order for which
the return was processed on the Purchase Orders (PO301000) form in a pop-up window.
5. On the Details tab, in the Qty. on Receipts column, notice that the received quantity in the PAPER line has
been decreased by the returned quantity and is now 17.
6. On the Details tab, in the Qty. on Receipts column, notice that the received quantity in the PAPER line has
been decreased by the returned quantity and is now 17.
7. On the Details tab, in the Qty. on Receipts column, notice that the received quantity in the PAPER line has
been decreased by the returned quantity and is now 14.
 Processing Purchase Returns at the Calculated Cost | 373

8. On the PO History tab, review the documents related to the purchase order, as shown in the following
screenshot. The le table shows the purchase receipt and purchase return; the right table shows the bill
and the debit adjustment. In the line with the debit adjustment, notice the nonzero purchase price variance
amount in the PPV Amount column, which shows the difference between the amounts at which the items
were purchased and at which the items were returned.

Figure: Documents related to the purchase order

Figure: Documents related to the purchase order

Purchase Returns at the Calculated Cost: Generated Transactions

The costs of items purchased from vendors may change over time, so the correct costs must be reflected on the
purchase return document. To specify that items to be returned should be issued from inventory at the cost
calculated by the system according to the items' valuation methods, you need to select the Cost by Issue Strategy
option in the Cost of Inventory Return From box in the Summary area of the purchase return document on the
Purchase Receipts (PO302000) form.

On release of the purchase return, the system prepares an inventory issue document to update inventory, which
you can review on the Issues (IN302000) form, and a debit adjustment to decrease the vendor balance in the
system, which you can review on the Bills and Adjustments (AP301000) form. If the calculated cost at the time of the
return differs from the cost at which the items were purchased, the purchase price variance difference is posted to
general ledger.

Rules of Cost Calculation

In the general ledger transactions that are posted during the processing of a purchase return, posted amount is the
calculated unit cost of the item multiplied by the returned quantity (which is specified in the Receipt Qty. column
of the purchase return line on the Purchase Receipts (PO302000) form). The cost is calculated according to the issue
 Processing Purchase Returns at the Calculated Cost | 374

rules of the item's valuation method specified for the item in the Valuation Method box on the General tab of the
Stock Items (IN202500) form. (For instance, for items with Average as the valuation method, it is the current unit
cost calculated at the moment of release of the issue that corresponds to the vendor return. For items with the
Specific valuation method, the return cost is calculated as the accumulated quantity of items in the warehouse
divided by the accumulated cost.)

Transactions Generated for a Return of Stock Items

Once the purchase return of a stock item at calculated cost is released on the Purchase Receipts (PO302000)
form, the system automatically generates a corresponding inventory issue and releases it immediately; when the
inventory issue is released, the availability data for the included stock items in inventory is updated. For each
line with a stock item being returned, the following general ledger transactions are generated on release of the
corresponding inventory issue.

Account Source of Account Debit Credit

PO Accrual account Original purchase or- Amount = Calculated Cost * Qty. 0.0
der line

Inventory account Posting class 0.0 Amount

The processing of a purchase return also includes the processing of the debit adjustment that is generated when
the purchase return is released. On release of the debit adjustment, the following general ledger transactions are
generated for each line with a stock item being returned.

Account Source of Account Debit Credit

Accounts Payable ac- Vendor Amount = Calculated Cost * Qty. 0.0

count

PO Accrual account Original purchase or- 0.0 Amount

der line

Transactions Generated for a Return of Non-Stock Items

On the Purchase Receipts (PO302000) form, you can process purchase return of non-stock items requiring receipt
(lines with the Non-Stock line type specified on the Details tab). Purchase return lines of this type are added to the
inventory issue generated on the release of the purchase return. For a line with a non-stock item, the following
general ledger transactions are generated on release of the inventory issue that corresponds to the purchase
return.

Account Source of Account Debit Credit

PO Accrual account Original purchase or- Amount = Calculated Cost * Qty. 0.0
der line

Expense account Posting class 0.0 Amount

On release of the debit adjustment that is generated when the purchase return is released, the following general
ledger transactions are generated.
 Processing Purchase Returns at the Calculated Cost | 375

Account Source of Account Debit Credit

Accounts Payable ac- Vendor Amount = Calculated Cost * Qty. 0.0

count

PO Accrual account Original purchase or- 0.0 Amount

der line

Record of the Purchase Price Variance

For stock items included in a purchase return on the Purchase Receipts (PO302000) form, the system records any
PO accrual difference to the Purchase Price Variance account defined in the posting class of the stock item.
For non-stock items included in a purchase return on the Purchase Receipts form, the system records any PO
accrual difference based on the Allocation Mode selected on the Purchase Orders Preferences (PO101000) form as
follows:
• If Purchase Price Variance Account is selected, the system posts the PO accrual difference to the Purchase
Price Variance account specified in the posting class of the item on the Posting Classes (IN206000) form.
• If Inventory Account is selected, the system posts the PO accrual difference to the Expense account specified
in the purchase return line.
 Allocating Landed Costs | 376

Allocating Landed Costs

In Acumatica ERP, you can design and maintain the landed cost codes to be used to account for various types of
additional costs that your company incurs when purchased goods are being shipped to your company warehouses,
or when a transfer of certain stock is performed between warehouses via an external carrier. Landed cost amounts
may depend on specific items or on items' weight or volume.
This chapter describes how you can configure and process landed cost documents in Acumatica ERP, and how the
cost of inventory items is updated on release of the landed cost documents.

In This Chapter
• Processing Landed Cost Documents
• Adjusting the Landed Cost Variance
• Adding Landed Costs to Items' Costs
• To Create a Landed Cost Document
• To Add Landed Costs to a Bill
• To Link a Bill Line to Landed Cost Document

Configuration of Landed Cost Codes

The total cost of goods purchased generally includes the purchase price and additional charges, such as freight or
other shipping costs and insurance; for an international shipment, it may also include customs duties and other
taxes. All these charges, oen referred to as landed costs, affect the total product cost. Landed costs are the costs
incurred, beyond the purchase price the vendor charges for the goods, in the process of bringing the goods to one
of your company's warehouses.
To accurately calculate the total product cost, you must consider all landed costs. By accurately analyzing total
product cost statistics, your company can assign the most appropriate prices to the products you sell.

Landed Cost Code Definition

In Acumatica ERP, landed cost codes are used to capture various types of landed costs. For each type of landed
costs your company may encounter, create a landed cost code to be used to enter and process that type of landed
costs.
Most landed costs are not fixed amounts associated with a specific inventory item. Landed costs may be fees, such
as for shipping and handling, whose amount depends on the weight, volume, or quantity of items. Accordingly,
you need to define how to allocate the incurred amounts among all items in the receipt. The landed cost amounts
are ultimately paid to a carrier or customs office—the landed cost vendor—rather than to the vendor that sells the
goods.
In Acumatica ERP, you create and maintain landed cost codes by using the Landed Cost Codes (PO202000) form.
For each code, you specify the following information:
• The type of landed cost
• The method of allocating landed cost amounts among the lines of the documents added to landed cost
document
• The reason code to be used in the inventory adjustment that is generated on release of a landed cost
document
• The accounts and subaccounts used to accrue landed cost amounts and landed cost variance
• The tax category (if the landed costs are subject to taxes)
 Allocating Landed Costs | 377

A landed cost code is not associated with any specific currency, so if multicurrency support has been enabled in the
system, landed costs are considered as specified in the currency of the document.

Landed Cost Allocation Method

The allocation method of a landed cost defines how the landed cost is distributed among lines of the documents
specified in the landed cost document. When you are creating a landed cost code for specific type of landed cost,
you can select one of the following allocation methods:
• By Quantity: The landed cost amount is distributed among the document lines in proportion to their
quantities. This adds a greater percentage of the landed cost to the goods purchased in the largest
quantities. If units of measure (UOMs) other than the base UOMs are specified for items, item quantities are
calculated with respect to the base UOMs.

Use this option for only documents that include similar items with the same base UOM or
similar base UOMs. Do not use this option for documents that include disparate items with
base units that cannot be compared, such as pallets and tons, or meters and pounds.

• By Cost: The landed cost amount is distributed among the document lines in proportion to their extended
cost. The extended cost is calculated based on the item's valuation method. This adds a greater percentage
of the landed cost amount to more expensive goods.
• By Weight: The landed cost amount is distributed among the inventory items proportionally to their
weights. This adds a greater percentage of the landed cost to the goods that weigh the most. The weight of
the base unit of the inventory item is specified on the Packaging tab of the Stock Items (IN202500) form.
• By Volume: The landed cost amount is distributed among the applicable items proportionally to their
volumes. This adds a greater percentage of the landed cost to goods with more bulk. The volume of the base
unit of the inventory item is specified on the Packaging tab of the Stock Items form.
When you add purchase receipts (or transfer receipts) to a landed cost document, the system automatically
allocates the landed cost amounts between the added document lines. The system uses the allocation method to
calculate the landed cost amount to be added to the cost of a particular inventory item listed on the adjustment.
The system also recalculates the allocated amounts on any changes in the landed cost amounts or document lines
to which these amounts are allocated.
On release of the landed cost document, the system generates an inventory adjustment for the inventory items
listed in the landed cost document to adjust the items' costs.
Related Links
• Allocating Landed Costs
• Landed Cost Codes

Processing Landed Cost Documents

With Acumatica ERP, your company can track the landed costs incurred for purchased or transferred stock items, to
accurately calculate the total costs of the items. Landed costs in Acumatica ERP are processed through landed cost
documents. In a landed cost document, you specify the landed cost amounts, and the purchase receipts or transfer
receipts, to which these landed cost amounts should be allocated.

General Workflow and Related Documents

You can add to a single landed cost document either purchase receipts or transfer receipts (but not both types).
The type of the added receipts does not affect the landed cost document workflow. The diagram below shows the
processing steps for landed cost documents.
 Allocating Landed Costs | 378

The following sections describe in detail the processing steps shown in the diagram.

1. Enter the Landed Cost Document

You create a new landed cost document on the Landed Costs (PO303000) form. The reference number for the new
landed cost document is generated in accordance with the numbering sequence specified on the Purchase Orders
 Allocating Landed Costs | 379

Preferences (PO101000) form. If the landed cost document is created with the On Hold status, you should click
Remove Hold on the form toolbar for the document before releasing it.

2. Add Receipt Lines to which Landed Costs Will Be Allocated

You add the documents or particular document lines for which the landed costs were incurred by clicking Add
PO Receipt or Add PO Receipt Line on the Details tab of the Landed Costs (PO303000) form. You then select the
unlabeled check boxes in the rows of the needed lines in the dialog box that opens, and click Add&Close to add the
selected lines. You can add the lines of either purchase receipts or transfer receipts to a landed cost document.

3. Specify Landed Cost Codes and Amounts

You add the landed costs to be allocated between the added receipt lines by adding the landed cost code and
specifying the amount to be allocated on the Landed Costs tab of the Landed Costs (PO303000) form.

4. Release the Landed Cost Document

To release the prepared landed cost document, you click Release on the form toolbar of the Landed Costs
(PO303000) form. Alternatively, you can release multiple landed cost documents at the same time by using the
Release Landed Costs (PO506000) form.

When the landed cost document is released, the system automatically generates a corresponding inventory
adjustment (one for each landed cost code) to update the cost of items in inventory. You can view the generated
inventory adjustment on the Adjustments (IN301000) form.

5. Release the Inventory Adjustment

The generated inventory adjustment is released automatically if the Release LC IN Adjustments Automatically
check box is selected on the Purchase Orders Preferences (PO101000) form. If this check box is cleared, you have to
release the inventory adjustment manually by clicking Release on the form toolbar of the Adjustments (IN301000)
form.
On release of the inventory adjustment, a batch of GL transactions is generated. The costs of inventory items are
updated according to the items' valuation methods, as described in the Adding Landed Costs to Items' Costs.

6. Prepare the Accounts Payable Bill

If the Create Bill check box is selected in the landed cost document on the Landed Costs (PO303000) form, when
you release the landed cost document, the system generates an AP bill to the landed cost vendor automatically.
Otherwise, you need to prepare the bill from the purchase receipt by clicking Enter AP Bill on the More menu
of the Purchase Receipts (PO302000) form. Alternatively, you can create a new AP bill manually on the Bills
and Adjustments (AP301000) form and add or link the lines of the landed cost document to the bill. For more
information on the processing of AP bills, see Processing AP Bills.
If the exact amount of the landed costs has changed, in the generated AP bill, you can manually adjust the amount
of the landed costs. Any difference will be posted to dedicated accounts, as described in the Adjusting the Landed
Cost Variance.

Related Links
• Configuration of Landed Cost Codes
 Allocating Landed Costs | 380

Adjusting the Landed Cost Variance

Some landed costs, such as freight, are typically known when the goods are received. Other types of landed costs
may become known later, when a bill from the service provider is received. When you need to enter the landed
costs of a specific type in a landed cost document, if the exact amount of the landed costs is not known yet, you
can enter the estimated amount for the appropriate landed cost code in the landed cost document on the Landed
Costs tab of the Landed Costs (PO303000) tab.
Later, when the exact amount becomes known, you can manually adjust the amount of the landed costs in the
accounts payable bill generated for the landed cost document, and release the bill. The difference between the
estimated amount and the adjusted amount is automatically added to the Landed Cost Variance account specified
on the Landed Cost Codes (PO202000) form for the landed cost used on the original receipt.
The following accounts are involved in the GL transactions that are generated on release of the AP bill to the landed
cost vendor:
• Accounts Payable account of the landed cost vendor
• Landed Cost Accrual account of the landed cost code
• Landed Cost Variance account of the landed cost code
On release of the AP bill to the landed cost vendor, if the landed cost amount specified in the landed cost document
hasn't been changed, the following general ledger transactions are posted:
• Accounts Payable account: Cr, landed cost amount
• Landed Cost Accrual account: Dr, landed cost amount
On release of the AP bill to landed cost vendor, if the landed cost amount has been changed in the bill, the following
general ledger transactions are posted:
• Accounts Payable account: Cr, bill amount
• Landed Cost Accrual account: Cr, correction amount
• Landed Cost Variance account of the landed cost code: Dr, correction amount
• Landed Cost Accrual account: Dr, bill amount
For information on how the system allocates the landed cost variance for landed costs added to items' cost, see
Adding Landed Costs to Items' Costs.

Related Links
• Processing Landed Cost Documents

Adding Landed Costs to Items' Costs

On release of the landed cost document, the system generates the inventory adjustment that updates the items'
cost in inventory according to the allocated landed cost amounts and the valuation method of these items. The
following sections describe how the system updates costs for the items of purchase receipts and transfer receipts.

Cost Updating When Landed Costs Are Allocated to Purchase Receipts

Upon release, an inventory adjustment updates the inventory costs of items differently depending on the valuation
method of the item:
• For inventory items with the FIFO valuation method, the cost on the particular cost layer (created by the
purchase receipt) is updated as follows:
 Allocating Landed Costs | 381

• If the layer still has the original quantity, the cost of all items on the layer is updated, and the landed cost
amount from the Landed Cost Accrual account is transferred to the Inventory account assigned to the
item.
• If the current quantity on the layer is less than the original quantity, the landed cost amount is moved
from the Landed Cost Accrual account to update the Landed Cost Variance account of the stock item
and the Inventory account in proportion with the issued from the warehouse and remaining quantities,
respectively. (If you need to adjust the sales account on release of the inventory adjustment, you can use
the same account for the COGS account and the Landed Cost Variance account.)
• For items with the Average valuation method, the landed cost amount from the Landed Cost Accrual
account is transferred to the Inventory account assigned to the item and updates the average cost of the
unit.

At the moment of inventory adjustment release, if some of the units listed on the purchase
receipt were issued from the warehouse, the landed cost amount updates both the Landed
Cost Variance account of the stock item and the Inventory account of the stock item
proportionally to the issued and remaining quantities (as on the original purchase receipt),
respectively.

• For items with the Specific valuation method, the landed cost amount from the Landed Cost Accrual account
is transferred to the Inventory account assigned to the item and updates the cost of the unit.

At the moment of inventory adjustment release, if some of the lot/serial items listed on the
purchase receipt were issued from the warehouse, the landed cost amount updates both the
Landed Cost Variance account and the Inventory account of the lot/serial item proportionally
to the issued and remaining items (as on the original purchase receipt), respectively.

• For items with the Standard Cost valuation method, the amount from the Landed Cost Accrual account is
moved to the Landed Cost Variance account of the stock item.

Cost Updating When Landed Costs Are Allocated to Transfer Receipts

Upon release, an inventory adjustment updates the inventory costs of items differently depending on the valuation
method of the item as follows:
• For items with the Standard cost valuation method, the landed cost amount is moved from the Landed Cost
Accrual account to the Standard Cost Variance account. The following transactions are generated:
• Standard Cost Accrual account: Cr, landed cost amount
• COGS account: Dr, landed cost amount
• For items with the Average cost valuation method, the landed cost amount moved from the Landed Cost
Accrual account to the Inventory account (determined by the posting class of the item) updates the average
cost of the unit. The following transactions are generated:
• Landed Cost Accrual account: Cr, landed cost amount
• Inventory account: Dr, landed cost amount

At the moment of the release of the inventory adjustment, if some of the units (listed on the
transfer receipt) were issued from the warehouse, the landed cost amount updates both the
Landed Cost Variance account and the Inventory account of the item proportionally to the
issued and remaining quantities (as specified on the original transfer receipt), respectively.

• For items with the Specific cost valuation method, the landed cost amount moved from the Landed Cost
Accrual account to the Inventory account (determined by the posting class of the item) updates the cost of
the unit. The following transactions are generated:
• Landed Cost Accrual account: Cr, landed cost amount
 Allocating Landed Costs | 382

• Inventory account: Dr, landed cost amount

At the moment of the release of the inventory adjustment, if some of the units (listed on the
transfer receipt) were issued from the warehouse, the landed cost amount updates both the
Landed Cost Variance account and the Inventory account of the lot/serial item proportionally
to the issued and remaining items (as specified on the original transfer receipt), respectively.

• For inventory items with the FIFO valuation method, the system creates a new cost layer based on the
transfer receipt (this layer has the date and the quantity from the transfer receipt) and the amounts moved
between accounts vary as follows, based on the quantity of the layer:
• If the layer still has the original quantity, the cost of all items in the layer is updated, and the landed cost
amount from the Landed Cost Accrual account is transferred to the Inventory account assigned to the
item.
• If the current quantity in the layer is less than the original quantity on the receipt, the landed cost
amount is moved from the Landed Cost Accrual account to update the Landed Cost Variance account
and the Inventory account in proportion to the sold and unsold quantities, respectively.

An Example of Cost Updating for a Transferred FIFO Item

If a stock item with the FIFO valuation method was transferred from one warehouse to another, a new cost layer for
the transferred quantity is created with the date of the transfer receipt.
The history of receipts in the table below illustrates how the landed costs update the cost of the transferred item
with the FIFO valuation method.

N Tran. Type Date Ref. Nbr. Qty. Warehouse Unit Cost Comment

1 Receipt Febru- RCP001 5 WHL1 300 A new cost layer for 5 units
ary 01 was created with the date
February 1.

2 Receipt Febru- RCP001 7 WHL2 450 A new cost layer for 7 units
ary 01 was created with the date
February 1.

3 Transfer from Febru- TRAN001 -3 WHL1 300 The cost layer was updated.
warehouse ary 08
WHL1

4 Transfer re- Febru- TRREC01 3 WHL2 (3 * 300 + A new cost layer for 3 units
ceipt at ware- ary 09 240) / 3= was created with the date
house WHL2 380 February 9.
Landed cost
amount
added: 240

If the item is moved within the same warehouse from a location with the Cost Separately check box
selected on the Warehouses (IN204000) form to a location with the Cost Separately check box cleared
(or if the reverse is true), a new cost layer is created too; however, it has the date of the original
receipt. In the above example, if a transfer was performed between the L1 and L2 locations (which
have different cost settings) of the same warehouse, the cost layer mentioned in Row 4 would have
the date February 1.
 Allocating Landed Costs | 383

To Create a Landed Cost Document

To allocate landed costs among items of either purchase receipts or transfer receipts, you create a landed cost
document on the Landed Costs (PO303000) form.

To Create a Purchase Order

1. Open the Landed Costs (PO303000) form.
2. Select the landed cost vendor in the Vendor box.
3. Check the location of the vendor, and change it if needed.
4. Optional: In the Currency box, heck the currency and the currency exchange rate; change these, if needed.
5. Check the date of the purchase order, and change it if needed.
6. Optional: In the Vendor Ref. box, specify the reference number of the vendor's original document. (This
value may be required, based on your organization's settings.)
7. Optional: Select the Create Bill box, if you want the system to generate the Accounts Payable bill
automatically on release of the landed cost document.
8. Specify a short description of the landed cost document.
9. To add all lines of documents to which the landed costs should be allocated, on the table toolbar of the
Details tab, click Add PO Receipt, and do the following in the Add Receipt dialog box, which opens:
a. In the Type box, select Receipt to display purchase receipts in the table, or Transfer Receipt to display
transfer receipts.
b. Select the unlabeled check boxes in the rows with the receipts whose lines should be added.
c. Click Add & Close to add the lines of the receipts and close the dialog box.
10.To add the particular lines of either purchase receipts or transfer receipts to which the landed costs should
be allocated, on the table toolbar of the Details tab, click Add PO Receipt Line, and do the following in the
Add Receipt Line dialog box, which opens:
a. In the Type box, if it is available, select Receipt to display purchase receipts in the table, or Transfer
Receipt to display transfer receipts.
b. Select the unlabeled check boxes in the rows with the receipt lines to be added.
c. Click Add & Close to add the selected receipt lines and close the dialog box.
11.On the Details tab, review the information in the added lines, and make changes to weight and volume in
lines, if needed.
12.On the Landed Costs tab, for each landed cost amount that you want to allocate to the added receipt lines,
click Add Row on the table toolbar, and do the following:
a. In the Branch column, ensure that the system has specified the correct branch.
b. In the Landed Cost Code column, select the landed cost code.
c. In the Amount column, specify the landed cost amount to be allocated.
d. Optional: In the Tax Category box, change the appropriate tax category if the landed cost amounts are
subject to taxes.
e. Optional: In the Inventory ID box, select a particular item if the landed cost amount should be allocated
to only lines with this particular item ID.
f. Click Save on the form toolbar.
13.On the form toolbar, click Remove Hold.
 Allocating Landed Costs | 384

14.On the form toolbar, click Save.

To Add Landed Costs to a Bill

To add line or lines of a landed cost document to an Accounts Payable bill to a landed cost vendor, you use the Bills
and Adjustments (AP301000) form.

To Add a Landed Cost Line to Bill

1. Open the Bills and Adjustments (AP301000) form.
2. In the Type box, select Bill, and select the needed bill by its reference number.
3. On the table toolbar of the Document Details tab, click Add LC. In the Add LC dialog box, which opens, do
the following:
a. Optional: Filter the lines in the table by selecting any of the following: the particular landed cost
document in the LC Nbr. box, the particular receipt in the Receipt Nbr. box, or the particular landed cost
code in the LC Code box.
b. In the table, select the unlabeled check boxes in the line or lines with the landed costs to be added to the
bill.
c. Click Add & Close to close the dialog box and add the selected lines.
4. On the Document Details tab, review the added lines, and correct their Ext. Cost, if needed.
5. On the form toolbar, click Save to save your changes.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about adding landed costs to a bill:
• The Add LC dialog box shows the lines of released landed cost documents for which the AP bill wasn't
created on release.
• If you correct the landed cost amount in the bill, the occurred difference between the estimated amount in
the landed cost document and corrected amount billed to landed cost vendor is posted to the Landed Cost
Variance account. For details, see Adjusting the Landed Cost Variance.

To Link a Bill Line to Landed Cost Document

To link a particular line of an existing Accounts Payable bill to a line of landed cost document, you use the Bills and
Adjustments (AP301000) form.

To Link an Accounts Payable Bill to Landed Cost Document

1. Open the Bills and Adjustments (AP301000) form.
2. In the Type box, select Bill, and select the needed bill by its reference number.
3. On the table toolbar of the Document Details tab, click a line with an empty inventory ID to which a landed
cost should be linked, and click Link Line on the table toolbar. In the Link Line dialog box, which opens
 Allocating Landed Costs | 385

with the Landed Cost mode selected, select the unlabeled check box next to the landed cost line to be
linked.
4. Click Add & Close to close the dialog box and link the selected line.
5. Optional: Correct the Ext. Cost of the bill line, if needed.
6. Click Save to save your changes.

Notes About the Procedure

The notes in this section describe the nuances of the UI elements available on the form, such as when an element is
required and when it is not, and when the system fills in settings by default. This section can include other notes.
Note the following about adding landed costs to a bill:
• You can link a landed costs line to a line with empty Inventory ID only. Once you have linked a landed cost
line, the description of a bill line changes to the description of the linked landed cost.
• Each bill line can be linked to only one landed cost line.
• The Link Line dialog box shows the lines of released landed cost documents for which the Accounts Payable
bill wasn't created on release.
• If the amount in the bill line differs from the amount in the landed cost line that you linked, the occurred
difference is posted to the Landed Cost Variance account. For details, see Adjusting the Landed Cost
Variance.
 Allocating the Purchase Price Variance | 386

Allocating the Purchase Price Variance

The purchase price variance (PPV) amount is the difference between an item's actual unit cost on a purchase
receipt (calculated as the item extended cost divided by its quantity) and its actual unit cost on a bill (calculated as
the extended cost divided by the quantity on the bill) multiplied by the quantity of the item on the bill.

In Acumatica ERP, on purchase orders, purchase receipts, inventory receipts, and bills, the purchase
prices of items are referred to as costs.

The difference may occur for various reasons, such as exchange rate fluctuations or unplanned changes in the
vendor price or delivery costs. Different businesses may use different approaches when accounting for the
purchase price variance amounts. This topic describes the options available in Acumatica ERP for the allocation of
the purchase price variance amounts for stock items.

PPV Calculation
Generally, actual vendor prices and discounts change frequently, so when you enter a purchase receipt on the
Purchase Receipts (PO302000) form and specify an item by its inventory ID, the exact vendor price and applicable
discounts are not known. Even if the unit cost appears automatically in the Unit Cost column, you can manually
enter only the item quantity and the extended cost (which may include the vendor's current promotional price and
discount for the specified quantity not yet configured in the system); the extended cost will not be recalculated
based on the unit cost. For the PPV calculation, the system will use the actual unit cost (calculated as the extended
amount per unit), not the unit cost that is available in the system and was inserted automatically.
When you enter a related bill by using the Bills and Adjustments (AP301000) form, you know the prices and any
additional costs, and you can reflect them on the bill. On release of a bill that is linked to the purchase receipt, the
system calculates the purchase price variance amount for each line item as follows:
• Calculates the unit's actual cost on the purchase receipt as the extended cost on the purchase receipt
divided by the quantity
• Calculates the unit's actual cost on the bill as the extended cost on the bill divided by the quantity on the bill
• Subtracts the unit's actual cost on the bill from the unit's actual cost on the receipt
• Multiplies the difference by the quantity on the bill
For example, suppose that the following documents (a purchase receipt and the AP bill linked to the receipt) were
entered into the system.

Table: Receipt Details

Item Quantity Extended Cost

New Item 1 20 4500

New Item 2 30 9000

Table: Bill Details

Item Quantity Extended Cost

New Item 1 10 2000

New Item 2 30 9900

The PPV amounts are calculated as follows:

 Allocating the Purchase Price Variance | 387

Table: PPV Calculation

Item Quantity PPV

New Item 1 10 250

New Item2 30 –900

The ways the calculated PPV amounts can be allocated depend on the item valuation method and the selected
allocation mode, as described in the following sections.

PPV Allocation for Exchange Rate Changes

By default, in a purchase receipt, the system inserts the currency rate that is current on the purchase receipt date. If
needed, you can override the default currency rate if all of the following are true:
• The Multicurrency Accounting feature is enabled on the Enable/Disable Features (CS100000) form.
• The Allow Changing Currency Rate on Receipt check box is selected on the Purchase Orders Preferences
(PO101000) form.
• The Enable Rate Override check box is selected on the Vendors (AP303000) form for the vendor specified in
the purchase receipt.
The system will use the new exchange rate for calculating the unit cost of the items in the inventory receipt that it
creates on release of the current purchase receipt.
On release of an AP bill that is linked to this purchase receipt, the system calculates the purchase price variance
amount for each line item as follows:
• Calculates the unit's actual cost on the purchase receipt based on the exchange rate of the purchase receipt
• Calculates the unit's actual cost on the bill based on the exchange rate of the bill
• Subtracts the unit's actual cost on the bill from the unit's actual cost on the receipt
• Multiplies the difference by the quantity on the bill

PPV Allocation for Items with Standard Costs

For stock items with Standard assigned as the cost valuation method on the Stock Items (IN202500) form, any PPV
amounts are allocated to the Purchase Price Variance account defined by the posting class of the item. For more
information, see the Standard Cost Valuation Method section of the Item Costs and Valuation Methods topic.

PPV Allocation Modes for Items with Other Valuation Methods

In Acumatica ERP, you can select how you want to process the purchase price variance amounts for stock items
with the following valuation methods: Average, FIFO, or Specific. On the Purchase Orders Preferences (PO101000)
form, you can select one of the following modes of PPV allocation:
• Inventory Account: To record the variance to the inventory accounts to update the item costs. If you select
this mode, you also need to select the reason code (in the adjacent box) that will provide the expense
accounts and subaccounts used for the allocation of the PPV amounts.
• Purchase Price Variance Account: To record any variance amounts to the purchase price variance accounts to
be further processed as additional expenses.
The modes of PPV allocation are discussed in detail in the sections below.
 Allocating the Purchase Price Variance | 388

The Inventory Account Mode of PPV Allocation

If Inventory Account is selected as the mode of PPV allocation, on release of a bill, an inventory adjustment for the
PPV amounts is generated automatically. You can view the reference number of the adjustment in the PPV Ref.
Nbr. column on the Document Details tab of the Bills and Adjustments (AP301000) form.
Consider a few scenarios that may occur with a received stock item (with no lot or serial numbers) when the bill is
released:
• If no units of the item have been issued from a warehouse since the item was received, this adjustment
debits the inventory account of the item for the positive variance amount and credits the PO Accrual
account (or credits the inventory account for the negative amount and debits the PO Accrual account for the
same amount). See Purchase Price Variance Allocation: Example 1.
• If all the units of the item have been issued from a warehouse before the bill has been created and an
adjustment has been generated, this adjustment debits the variance amount to the expense account
associated with the reason code.
• If some (but not all) of the units of the item have been issued from the warehouse, the adjustment
distributes the variance amount proportionally between the quantity of units issued and the quantity of
units still in the warehouse, and allocates the respective amounts to the expense account (associated with
the reason code) and to the inventory account. For details, see Purchase Price Variance Allocation: Example
2.

If multiple bills are created for partial quantities of items from a receipt and certain quantities
of the items (from that receipt) have been issued from the warehouse, the PPV amounts on
each adjustment generated for a partial bill are allocated between the inventory accounts and
the expense accounts in the same proportion in which the original quantities from the receipt
are distributed between the quantities issued and the quantities still in stock.

If a PPV adjustment would result in negative balance of the inventory account, the adjustment
amount is posted to the expense account.

If you need to reverse the bill linked to the receipt, you can do this only if the adjustment has been released.
On reversal of the bill, no new adjustment is created to revert the original adjustment—the original adjustment
remains in the system. If you then create a second bill for the same purchase receipt, the system generates a new
adjustment that adjusts the first (original) adjustment.

The Purchase Price Variance Account Mode of PPV Allocation

If Purchase Price Variance Account is selected as the mode of PPV allocation, on release of a bill, the entire PPV
amount is recorded to the Purchase Price Variance account defined by the posting class of the item.
Related Links
• Item Costs and Valuation Methods
• Purchase Orders Preferences
• Purchase Price Variance Allocation: Example 1
• Purchase Price Variance Allocation: Example 2

Purchase Price Variance Allocation: Example 1

This topic describes all the documents that you would need to create and the transactions generated for the
following scenario:
• The Inventory Account mode is selected for allocation of purchase price variance (PPV) amounts.
 Allocating the Purchase Price Variance | 389

• Purchased items have the Average cost valuation method assigned.

• All the quantities of the items remain in stock at the date when a bill is created.
.

Step 1: Creating a Purchase Receipt

By using the Purchase Receipts (PO302000) form, you create a purchase receipt for the following items.

Table: Purchase Receipt

Item Quantity Unit Cost Amount

Item1 10 250 2500

Item2 23 120 2760

Item3 15 380 5700

Total: 10960

As a result, an inventory receipt is created and released. On its release, the following transactions are generated.

Table: GL Transactions Generated for the Inventory Receipt

Account Debit Amount Credit Amount

Inventory (Item1) 2500 0

Inventory (Item2) 2760 0

Inventory (Item3) 5700 0

PO Accrual 0 10960

Step 2: Creating a Bill

Later, you receive and enter the vendor bill for the initial quantities of the items with the following information.

Table: Vendor Bill

Item Quantity Unit Cost Amount

Item1 10 450 4500

Item2 23 120 2760

Item3 15 180 2700

Total: 9960

On release of the bill, the following transactions have been generated.

 Allocating the Purchase Price Variance | 390

Table: GL Transactions Generated for the Vendor Bill

Account Debit Amount Credit Amount

PO Accrual 9960 0

Vendor AP 0 9960

Also, on release of this bill, an inventory adjustment has been generated with the following lines.

Table: Inventory Adjustment

Item Extended Cost

Item1 2000

Item3 -3000

Table: GL Transactions Generated for the Inventory Adjustment

Account Debit Amount Credit Amount

Inventory (Item1) 2000 0

Inventory (Item2) 0 3000

PO Accrual 1000 0

Purchase Price Variance Allocation: Example 2

This topic describes all the documents that you would have to create and the transactions generated for these
documents for the following scenario:
• The Inventory Account mode is selected for allocation of purchase price variance (PPV) amounts.
• Purchased items have the Average cost valuation method assigned.
• Between the date of the receipt and the date of the bill, some quantities of the purchased items were issued
(sold).

Step 1. Creating a Purchase Receipt

By using the Purchase Receipts (PO302000), suppose that you create a purchase receipt for the following items.

Table: Purchase Receipt

Item Quantity Unit Cost Amount

Item1 10 250 2500

Item2 23 120 2760

Item3 15 380 5700

 Allocating the Purchase Price Variance | 391

Item Quantity Unit Cost Amount

Total: 10960

As a result, an inventory receipt is created and released. On its release, the following transactions are generated.

Table: GL Transactions Generated for the Inventory Receipt

Account Debit Amount Credit Amount

Inventory (Item1) 2500 0

Inventory (Item2) 2760 0

Inventory (Item3) 5700 0

PO Accrual 0 10960

Step 2. Creating an Inventory Issue

During the next few days, you sell some quantities of the items. The inventory issue is generated with the following
lines.

Table: Inventory Issue

Item Quantity Unit Cost Amount

Item1 7 250 1750

Item2 23 120 2760

Item3 5 380 1900

Total: 6410

And this issue generates the following transactions.

Table: GL Transactions Generated for the Issue

Account Debit Amount Credit Amount

Inventory (Item1) 0 1750

Inventory (Item2) 0 2760

Inventory (Item3) 0 1900

Expense (COGS) 6410 0

Step 3: Creating a Bill

Later, you receive and enter the vendor bill for the initial quantities of the items with the following information.
 Allocating the Purchase Price Variance | 392

Table: Vendor Bill

Item Quantity Unit Cost Amount

Item1 10 450 4500

Item2 23 200 4600

Item3 15 180 2700

Total: 11800

On release of this bill, the following transactions are generated.

Table: GL Transactions Generated for the Bill

Account Debit Amount Credit Amount

PO Accrual 11800 0

Vendor AP 0 11800

Also, on release of this bill, an inventory adjustment is generated with the following lines.

Table: Inventory Adjustment

Item Extended Cost

Item1 600

Item3 -2000

Item1 (PPV expense) 1400

Item2 (PPV expense) 1840

Item3 (PPV expense) -1000

On release of the adjustment, the following transactions are generated.

Table: GL Transactions Generated for the Inventory Adjustment

Account Debit Amount Credit Amount

Inventory (Item1) 600 0

Inventory (Item3) 0 2000

PPV expense (Item1) 1400 0

PPV expense (Item2) 1840 0

PPV expense (Item3) 0 1000

PO Accrual 0 2000
 Allocating the Purchase Price Variance | 393

Account Debit Amount Credit Amount

PO Accrual 0 1840

PO Accrual 3000 0
 Replenishing Inventory Through Transfers | 394

Replenishing Inventory Through Transfers

Replenishment Through Transfers: General Information

The replenishment functionality in Acumatica ERP can accommodate various ways of replenishing stock items.
This chapter describes replenishment in which you can maintain a particular quantity of stock items by transferring
items from a warehouse where the items are available to a destination warehouse.

Learning Objectives
In this chapter, you will do the following:
• Become familiar with the general workflow of item replenishment through transfers
• Replenish stock by transferring items between warehouses

Applicable Scenarios
You perform replenishment through transfers if your company has multiple warehouses and replenishes stock
items by transferring them from another warehouse where they are available.

Replenishment Through Transfers in Acumatica ERP

You can use the functionality of replenishment through transfers between warehouses if the Inventory
Replenishment and Multiple Warehouses features are enabled on the Enable/Disable Features (CS100000) form.
On the Prepare Replenishment (IN508000) form, you can view the list of stock items that require replenishment. A
stock item is listed on the form if for the item at the warehouse where the item is needed, the following settings are
specified on the Replenishment tab of the Item Warehouse Details (IN204500) form:
• Reorder Point: The stock level that prompts the system to replenish the stock of the item at this warehouse
when the available quantity is below the reorder point specified for this item at this warehouse.
• Replenishment Source: Transfer.
You initially specify these settings on the Stock Items (IN202500) form for a stock item. These settings are copied to
the Item Warehouse Details form for each combination of the stock item and a warehouse. On this form, you can
adjust the settings for the item in the warehouse where the item is stocked.
On the Prepare Replenishment form, the quantity to process is calculated in the base unit of measure (UOM). On
Create Transfer Orders form, the quantity specified in the Quantity column is recalculated in the purchase UOM
and displayed in the UOM column. For example, if ten stock items should be transferred in one box, then the
quantity of ten UOMs is converted to one box to be transferred.
For details about the configuration of replenishment and the calculation of replenishment parameters, see
Replenishment for Stock Items.

General Steps of Replenishment Through Transfers

To replenish stock items by transferring them from one warehouse to another, you perform the following general
steps:
1. On the Prepare Replenishment (IN508000) form, which lists the stock items that require replenishment, you
process all stock items or only those you select. As a result, the system creates replenishment requests,
 Replenishing Inventory Through Transfers | 395

which are internal Acumatica ERP records that are used as the basis for transfer orders. Replenishment
requests for items of the Transfer source are listed on the Create Transfer Orders (SO509000) form.
2. You generate transfer orders requesting replenishment by using the Create Transfer Orders form. The system
will generate orders of the TR type on the Sales Orders (SO301000) form.
3. When the stock items are shipped from the source warehouse to the destination warehouse, you create the
shipment on the Shipments (SO302000) form, confirm the shipment, and update the inventory.
4. When you are receiving the items, you create purchase receipts of the Transfer type and release them on the
Purchase Receipts (PO302000) form.

Workflow of Replenishment Through Transfers

A general workflow of replenishment through transfers involves the steps and generated documents shown in the
following diagram.
Replenishing Inventory Through Transfers | 396
 Replenishing Inventory Through Transfers | 397

Replenishment Through Transfers: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for performing
replenishment through transfers, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
We recommend that before you start performing replenishment through transfers, you make sure that the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in the
following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• Inventory and Order Management
• Inventory
• Inventory Replenishment
• Multiple Warehouses if your company replenishes inventory
through transfers
• Multiple Warehouse Locations if your company uses multiple
warehouse locations

Multiple forms The replenishment functionality has been configured, as de-

scribed in Configuration of Replenishment: General Information.

Stock Items (IN202500) The needed stock items have been created and the replenish-
ment settings have been specified for each existing stock item
for which replenishment will be performed.

Order Types (SO201000) The needed order types have been created.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Replenishment Through Transfers: Process Activity.

Replenishment Through Transfers: Process Activity

The following activity demonstrates how to prepare and perform replenishment in Acumatica ERP by transferring
goods between warehouses.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Replenishing Inventory Through Transfers | 398

Story
Suppose that you are Matt Parker, a purchasing manager of the SweetLife Fruits & Jams company. You are going
to buy grapefruit for the SweetLife Store branch and refill the stock in the Retail warehouse. In this branch,
replenishment is performed by transferring the needed goods from the Wholesale warehouse of the SweetLife
Head Office and Wholesale Center branch to the Retail warehouse.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Multiple Warehouses
• Multiple Warehouse Locations
• Inventory Replenishment
• On the Warehouses (IN204000) form, the WHOLESALE and RETAIL warehouses have been created.
• On the Stock Items (IN202500) form, the GRAPEFRUITS stock item has been created.
• On the Order Types (SO201000) form, the Transfer (TR) order type, which can be specified on the Sales
Orders (SO301000) form for a transfer order, has been created.
• On the Sales Orders form, for the Cakeado customer, a sales order dated 01/25/2023 has been created for 25
pounds of grapefruit.

Process Overview
In this activity, you will do the following:
1. On the Stock Items (IN202500) form, specify the replenishment settings of the GRAPEFRUITS stock item.
2. On the Item Warehouse Details (IN204500) form, review the replenishment settings of the GRAPEFRUITS stock
item in the RETAIL warehouse.
3. Prepare and process the stock items that require replenishment on the Prepare Replenishment (IN508000)
form.
4. Prepare and process the documents for shipping items from the WHOLESALE warehouse by using the Create
Transfer Orders (SO509000), Sales Orders (SO301000), and Shipments (SO302000) forms.
5. Prepare and process the purchase receipt for the items in the RETAIL warehouse on the Purchase Receipts
(PO302000) form; the corresponding inventory receipt is automatically created on the Receipts (IN301000)
form and released.

System Preparation
Before you start preparing and performing replenishment through transfers, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as purchasing manager Matt Parker with the parker username and the 123 password.
2. Sign in as purchasing manager by using the parker username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
 Replenishing Inventory Through Transfers | 399

4. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, select the
SweetLife Store branch.

Step 1: Specifying the Replenishment Settings of a Stock Item

To specify the replenishment settings of the GRAPEFRUITS stock item, do the following:
1. Open the GRAPEFRUITS stock item on the Stock Items (IN202500) form.
2. On the Replenishment tab, in the row that has Transfer in the Source column, specify the following
settings:
• Reorder Point: 30
• Max Qty.: 100
3. On the form toolbar, click Save.

Step 2: Reviewing the Replenishment Settings of the Item-Warehouse Pair

To review the replenishment settings of the GRAPEFRUITS stock item in the RETAIL warehouse, do the following:
1. Open the Item Warehouse Details (IN204500) form.
2. In the Summary area, specify the following settings:
• Inventory ID: GRAPEFRUITS
• Warehouse: RETAIL
3. On the Replenishment tab, make sure that the following settings are specified:
• Override Replenishment Settings: Cleared
• Seasonality: NONE
• Replenishment Source: Transfer
• Replenishment Method: Min./Max.
• Replenishment Warehouse: WHOLESALE
• Reorder Point: 30
• Max Qty.: 100
With these settings, you replenish grapefruit in the RETAIL warehouse by transferring the needed quantities
of the item from the WHOLESALE warehouse. The GRAPEFRUITS stock item appears in the list of items for
replenishment on the Prepare Replenishment (IN508000) form when you have 30 pounds (which is the base
unit of measure for this item) or less of the item in stock. The Max Qty. value is used for the calculation
of replenishment parameters in the RETAIL warehouse. For details, see Configuration of Replenishment:
Replenishment Methods.

Step 3: Preparing the Replenishment

To process any items in the SweetLife Store branch that require replenishment, do the following:
1. Open the Prepare Replenishment (IN508000) form.
2. In the Selection area, specify the following settings to view in the table the items pending replenishment in
the SweetLife Store branch:
• Warehouse: RETAIL
• Purchase Date: 1/30/2023
• Me: Cleared
• Only Suggested Items: Selected
 Replenishing Inventory Through Transfers | 400

With this setting, only items that require replenishment are displayed on the form.
The table shows the items pending replenishment in the SweetLife Store branch (to which you are signed
in).
3. In the row for the GRAPEFRUITS stock item, make sure that the following settings are specified:
• Replenishment Source: Transfer
• Source Warehouse: WHOLESALE
4. In the Qty. to Process column of this row, notice that 125 is shown. Because a sales order for 25 pounds of
grapefruit exists in the system, the system added this quantity to the quantity to be replenished.

To view this sales order, on the Sales Orders (SO301000) form, open the sales order for the
Cakeado customer dated 01/25/2023.

5. In the row for the GRAPEFRUITS stock item, select the check box in the unlabeled column.
6. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the
results of the processing. The system generates the replenishment request for the transfer, which consists of
the GRAPEFRUITS item, and adds the request on the Create Transfer Orders (SO509000) form.
7. Close the Processing dialog box. Notice that the row with the GRAPEFRUITS stock item is no longer
displayed in the table.

Step 4: Shipping the Stock Items Between the Warehouses

Now that you have prepared the replenishment request for the grapefruit, you need to prepare the needed
documents for shipping the fruits from the WHOLESALE warehouse to the RETAIL warehouse. Do the following:
1. On the Create Transfer Orders (SO509000) form, in the row with IN Replenishment in the Plan Type box and
GRAPEFRUITS in the Inventory ID box, select the unlabeled check box.
2. On the form toolbar, click Process.
The system creates a transfer order for a two-step transfer and opens the order on the Sales Orders
(SO301000) form.
3. On the form toolbar, click Create Shipment.
4. In the Specify Shipment Parameters dialog box, which opens, make sure that the 1/30/2023 date and the
WHOLESALE source warehouse are specified, and click OK. The system closes the dialog box, creates the
related shipment of the Transfer type, and opens it on the Shipments (SO302000) form.
5. In the Warehouse ID box of the Summary area, notice that WHOLESALE is specified, and in the To
Warehouse box, notice that RETAIL is specified. This indicates that the grapefruit will be shipped from the
WHOLESALE warehouse to the RETAIL warehouse.
6. To confirm the created shipment, on the form toolbar, click Confirm Shipment.
7. To update the inventory of the WHOLESALE warehouse, on the form toolbar, click Update IN. The system
issues the GRAPEFRUITS stock item from the WHOLESALE warehouse. On the Orders tab, in the Inventory
Ref. Nbr. column, you can see the reference number of the transfer, which is also a link. If needed, you could
click the link to open the transfer of the 2-Step type on the Transfers (IN304000) form.
8. On the Inventory Allocation Details (IN402000) form, in the Selection area, do the following:
a. In the Inventory ID box of the Selection area, select GRAPEFRUITS.
b. In the Warehouse box, select RETAIL.
c. In the On Hand box, note the current quantity of grapefruit on hand.
9. On the Qty by Plan Type tab, on the toolbar of the Addition table, select All Records.
10.In the row that has In-Transit in the Plan Type column, make sure that the quantity is 125, as shown in the
following screenshot. This quantity of grapefruit is ready to be received in the RETAIL warehouse.
 Replenishing Inventory Through Transfers | 401

Figure: The stock item in transit

Step 5: Receiving the Stock Items in the Retail Warehouse

To create the documents to reflect the receipt of the grapefruit in the RETAIL warehouse, do the following:
1. On the Purchase Receipts (PO302000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Transfer Receipt
• Date: 1/30/2023
• Warehouse: RETAIL
3. On the Details tab, do the following:
a. On the table toolbar, click Add Transfer.
b. In the Add Transfer Order dialog box, which opens, select the check box in the unlabeled column of the
only row with the transfer order that you have processed earlier in this activity.
c. Click Add & Close to close the dialog box and add the line of the transfer order to the receipt.
4. On the form toolbar, click Release to release the transfer receipt. The system creates and releases the
inventory receipt.
5. Open the Inventory Summary (IN401000) form.
6. In the Selection area, specify the following settings:
a. Inventory ID: GRAPEFRUITS
b. Warehouse: RETAIL
Notice that in the On Hand column, the quantity is 125, as shown in the following screenshot.

If you need to change the order of columns in any table, you can drag a column by its header to
the new place in the table.
 Replenishing Inventory Through Transfers | 402

Figure: The stock item received in the RETAIL warehouse

You have replenished grapefruit in the RETAIL warehouse.

 Replenishing Inventory Through Purchases | 403

Replenishing Inventory Through Purchases

Replenishment Through Purchases: General Information

The replenishment functionality in Acumatica ERP can accommodate various ways of replenishing stock items. You
can maintain the needed level of stock at your warehouses by purchasing the appropriate quantity of items from
vendors.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Become familiar with the general workflow of item replenishment through purchases
• Replenish stock by purchasing items from a vendor

Applicable Scenarios
You perform replenishment through purchases if your company needs to optimize the replenishment of stock and
to purchase stock items at the right time from particular vendors when the stock is below a certain level.

Replenishment Through Purchases in Acumatica ERP

You can use the functionality of replenishment through purchases if the Inventory Replenishment feature and one or
both of the following features are enabled on the Enable/Disable Features (CS100000) form:
• Multiple Warehouse Locations
• Multiple Warehouses
On the Prepare Replenishment (IN508000) form, you can view the list of stock items that require replenishment. A
stock item is listed on the form if for the item at a warehouse where the item is needed, the following settings are
specified on the Replenishment tab of the Item Warehouse Details (IN204500) form:
• Reorder Point: The stock level that prompts the system to replenish the stock of the item at this warehouse
when the available quantity is below the reorder point specified for this item at this warehouse.
• Replenishment Source: Purchase.
On the Prepare Replenishment form, the quantity to process is calculated in the base unit of measure (UOM). On
the Create Purchase Orders form, the quantity specified in the Quantity column is recalculated in the purchase
UOM and displayed in the UOM column. For example, if ten stock items should be purchased in one box, then the
quantity of ten UOMs is converted to one box to be purchased.
For details about the configuration of replenishment and the calculation of replenishment parameters, see
Replenishment for Stock Items.

General Steps of Replenishment Through Purchases

To replenish stock items by purchasing them from a vendor, you perform the following general steps:
1. On the Prepare Replenishment (IN508000) form, which lists the stock items that require replenishment, you
process all stock items or only those you select.
 Replenishing Inventory Through Purchases | 404

2. You create the needed purchase orders for all the stock items to be purchased from vendors by using the
Create Purchase Orders (PO505000) form. You can work with each purchase order on the Purchase Orders
(PO301000) form.
3. You create and release the following documents to reflect the receipt of the purchased items:
• The purchase receipt on the Purchase Receipts (PO302000) form
• The inventory receipt on the Receipts (IN301000) form

Workflow of Replenishment Through Purchases

A general workflow of replenishment through purchases involves the steps and generated documents shown in the
following diagram.
 Replenishing Inventory Through Purchases | 405

Replenishment Through Purchases: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for performing
replenishment through purchases, and to understand (and change, if needed) the settings that affect the
processing workflow.
 Replenishing Inventory Through Purchases | 406

Implementation Checklist
We recommend that before you start performing replenishment by purchase, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• Inventory and Order Management
• Inventory
• Inventory Replenishment
• Multiple Warehouses
• Multiple Warehouse Locations if your company uses
multiple warehouse locations

Multiple forms The replenishment functionality has been configured, as

described in Configuration of Replenishment: General Infor-
mation.

Stock Items (IN202500) The needed stock items have been created and the re-
plenishment settings have been specified for each existing
stock item for which replenishment will be performed.

Other Settings That Affect the Workflow

You can affect the workflow of replenishment through purchases by specifying additional settings. To cause the
system to use the default vendor of the inventory item, select the Default check box for this vendor on the Vendors
tab of the Stock Items (IN202500) form.

If your organization uses multiple warehouses, you can also specify the preferred vendor on the Item
Warehouse Details (IN204500) form for the combination of an item and a warehouse. By default, the
system inserts the default vendor specified for the item, but you can override the preferred vendor
by selecting the Override Preferred Vendor check box and then selecting the needed vendor in the
Preferred Vendor box.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Replenishment Through Purchases: Process Activity.

Replenishment Through Purchases: Process Activity

The following activity demonstrates how to prepare and perform a replenishment by purchasing the required
quantity of goods from a vendor.
 Replenishing Inventory Through Purchases | 407

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are Matt Parker, a purchasing manager of the SweetLife Fruits & Jams company. As part of your
everyday routine, you buy fruits, including kiwis, in the SweetLife Head Office and Wholesale Center branch and
refill stock. This branch orders fruit directly from vendors. It is time to buy kiwis when you have 50 pounds or less of
the item in the available stock. You need to specify replenishment settings for the item an replenish the item in the
Wholesale warehouse.
You replenish kiwis in the WHOLESALE warehouse by purchasing the stock item from a vendor. The KIWIS stock item
appears in the list of items for replenishment on the Prepare Replenishment (IN508000) form when you have 50
pounds (which is the base unit of measure for this item) or less of the item in the available stock.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Multiple Warehouses
• Inventory Replenishment
• On the Replenishment Classes (IN208800) form, the PURCHASE replenishment class has been created.
• On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.
• On the Stock Items (IN202500) form, the KIWIS stock item has been created.

Process Overview
In this activity, you will do the following:
1. On the Stock Items (IN202500) form, you will specify the replenishment and vendor settings of the KIWIS
stock item.
2. On the Item Warehouse Details (IN204500) form, you will review the replenishment settings of the KIWIS
stock item in the WHOLESALE warehouse.
3. You will prepare and process the stock items that require replenishment on the Prepare Replenishment
(IN508000) form.
4. You will prepare a purchase order for the vendor on the Create Purchase Orders (PO505000) form. On the
Purchase Orders (PO301000) form, you will take it off hold and send it to the vendor.
5. You will prepare and process the purchase receipt for the items on the Purchase Receipts (PO302000) form;
the corresponding inventory receipt will be automatically created on the Receipts (IN301000) form and
released.

System Preparation
Before you start preparing and performing replenishment through purchases, you should do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as purchasing manager Matt Parker with the parker username and the 123 password.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as purchasing manager Matt Parker with the parker username and the 123 password.
 Replenishing Inventory Through Purchases | 408

3. Launch the provided Acumatica ERP instance and sign in as a purchasing manager by using the parker
username and the password provided in the class.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Specifying the Replenishment and Vendor Settings of the Stock Item
To specify the replenishment and vendor settings of the KIWIS stock item, do the following:
1. Open the KIWIS stock item on the Stock Items (IN202500) form.
2. Go the Vendors tab. Notice that there is one row for the ALLFRUITS vendor.
3. In the Lot Size column, type 15.
4. On the Replenishment tab, in the row that has Purchase in the Source column, specify the following
settings:
• Reorder Point: 50
• Max Qty.: 140
5. On the form toolbar, click Save.

Step 2: Reviewing the Replenishment Settings of the Item-Warehouse Pair

To review the replenishment settings of the KIWIS stock item in the WHOLESALE warehouse, do the following:
1. Open the Item Warehouse Details (IN204500) form.
2. In the Summary area, specify the following settings:
• Inventory ID: KIWIS
• Warehouse: WHOLESALE
3. On the Replenishment tab, make sure that the following settings have been specified:
• Override Replenishment Settings: Cleared
• Seasonality: NONE
• Replenishment Source: Purchase
• Replenishment Method: Min./Max.
• Replenishment Warehouse: Not selected
• Reorder Point: 50
• Max Qty.: 140
With these settings, you replenish kiwis in the WHOLESALE warehouse by purchasing the stock item from a
vendor. The KIWIS stock item appears in the list of items for replenishment on the Prepare Replenishment
(IN508000) form when you have 50 pounds (which is the base unit of measure for this item) or less of the
item in the available stock. The Max Qty. value is used for the calculation of replenishment parameters in
the WHOLESALE warehouse. For details, see Configuration of Replenishment: Replenishment Methods.

Step 3: Preparing the Replenishment

Suppose that as part of your everyday routine, you need to check whether any stock items in the SweetLife Head
Office and Wholesale Center branch require replenishment; if so, you need to process them. Do the following:
 Replenishing Inventory Through Purchases | 409

1. Open the Prepare Replenishment (IN508000) form.

2. In the Selection area, specify the following settings:
• Warehouse: WHOLESALE
• Purchase Date: 1/30/2023
• Me: Cleared
• Only Suggested Items: Selected
With this setting, only items that require replenishment are displayed in the table.
The table shows the items pending replenishment in the SweetLife Head Office and Wholesale Center branch.
3. In the row for the KIWIS stock item, make sure that the following settings are specified:
• Replenishment Source: Purchase
• Preferred Vendor ID: ALLFRUITS
4. In the Qty. to Process column of this row, notice that 150 is specified. On the Vendors tab of the Stock Items
(IN202500) form, the ALLFRUITS vendor's lot size is 15, so the system has increased the quantity to be a
multiple of 15.
5. In this row, select the check box in the unlabeled column.
6. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the
results of the processing. The system generates the replenishment request for the purchase, which consists
of the KIWIS item, and adds the request to the Create Purchase Orders (PO505000) form.
7. Click Close to close the Processing dialog box.
Notice that the row for the KIWIS stock item is no longer displayed in the table.

Now you can create a purchase order for the 150 pounds of kiwis.

Step 4: Creating the Purchase Order

To create the purchase order for the All Fruits Mall vendor, do the following:
1. On the Create Purchase Orders (PO505000) form, in the row with the IN Replenishment plan type and the
KIWIS stock item, select the check box in the unlabeled column.
2. On the form toolbar, click Process.
The system creates a purchase order for 150 pounds of kiwis for the ALLFRUITS vendor and opens the order
on the Purchase Orders (PO301000) form.
3. On the form toolbar, click Remove Hold. The system saves the purchase order and changes its status to
Open.
Suppose that you now send the purchase order to the All Fruits Mall vendor by email.
4. Open the Inventory Summary (IN401000) form.
5. In the Selection area, specify the following settings:
• Inventory ID: KIWIS
• Warehouse: WHOLESALE
Notice that in the On Hand column, the quantity is zero.

Step 5: Receiving the Stock Items from the Vendor

Suppose that the All Fruits Mall vendor has delivered kiwis to your WHOLESALE warehouse.
To create the documents that reflect the receipt of the purchased item, do the following:
 Replenishing Inventory Through Purchases | 410

1. On the Purchase Orders (PO301000) form, open the purchase order with 150 pounds of kiwis, which you
have created in the previous step.
2. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts (PO302000) form with
the new purchase receipt. The receipt has the Balanced status and the data copied from the linked purchase
order.
3. On the form toolbar, click Release. The system creates and releases the inventory receipt. On the Other
tab, you can view the reference number of the created inventory receipt; you could also click the reference
number link to view the inventory receipt on the Receipts (IN301000) form.
4. Open the Inventory Summary (IN401000) form.
5. In the Selection area, specify the following settings:
• Inventory ID: KIWIS
• Warehouse: WHOLESALE
In the On Hand column, notice that the quantity is 150, as shown in the following screenshot.

If you need to change the order of columns in any table, you can drag a column by its header to
the new place in the table.

Figure: The stock items received in the WHOLESALE warehouse

You have replenished kiwis in the WHOLESALE warehouse.

 Replenishing Inventory Through a Distribution Center | 411

Replenishing Inventory Through a Distribution Center

Replenishment Through a Distribution Center: General Information

The replenishment functionality in Acumatica ERP can accommodate various ways of replenishing stock items.
You can maintain a particular quantity of stock items in a destination warehouse by purchasing items that are first
received at a source warehouse and then transferred to the destination warehouse. The company may use this
source warehouse as a distribution center.

Learning Objectives
In this chapter, you will do the following:
• Become familiar with the general workflow of item replenishment through a distribution center
• Replenish stock by transferring items from a distribution center to the destination warehouse

Applicable Scenarios
You perform replenishment through a warehouse that functions as a distribution center if your company performs
consolidated purchasing to this warehouse and other warehouses are replenished from the distribution center.

Replenishment Through a Distribution Center in Acumatica ERP

You can use the functionality of replenishment through a distribution center if the Inventory Replenishment and
Multiple Warehouses features are enabled on the Enable/Disable Features (CS100000) form.
In Acumatica ERP, if your company has multiple warehouses, you can configure replenishment for multiple
warehouses by performing centralized purchasing to a distribution center. This distribution center is then the
source warehouse for transfers to destination warehouses.
On the Prepare Replenishment (IN508000) form, you can view the list of stock items that require replenishment. A
stock item is listed on the form if for the item at the warehouse where the item is needed, the following settings are
specified on the Replenishment tab of the Item Warehouse Details (IN204500) form:
• Reorder Point: The stock level that prompts the system to replenish the stock of the item at this warehouse
when the available quantity is below the reorder point specified for this item at this warehouse.
• Replenishment Source: Purchase.
• Replenishment Warehouse: The warehouse that functions as a distribution center.
For details about the configuration of replenishment and the calculation of replenishment parameters, see
Replenishment for Stock Items.

On the Prepare Replenishment form, the quantity to process is calculated in the base unit of measure (UOM). On
the Create Purchase Orders (IN505000) and Create Transfer Orders (SO509000) forms, the quantity specified in the
Quantity column is recalculated in the purchase UOM and displayed in the UOM column. For example, if ten stock
items should be purchased in one box, then the quantity of ten UOMs is converted to one box to be purchased.

General Steps of Replenishment Through a Distribution Center

To replenish stock items by purchasing items that are first received at a distribution center and transferring the
items to the destination warehouse, you perform the following general steps:
 Replenishing Inventory Through a Distribution Center | 412

1. On the Replenishment tab of the Item Warehouse Details (IN204500) form, for the stock items in the
distribution center, you select Purchase as the replenishment source; you do not specify a replenishment
warehouse. For the stock items in the destination warehouses (which should be replenished through
purchasing to a distribution center), you specify Purchase as the replenishment source and select the
distribution center as the replenishment warehouse.
2. For the source warehouses, you process the needed stock items that require replenishment: On the Prepare
Replenishment (IN508000) form, which lists the stock items that require replenishment, you process all stock
items or only those you select.
3. You generate transfer orders requesting replenishment by using the Create Transfer Orders (SO509000)
form. These orders will move the products from the replenishment warehouse to the warehouse in which
you need to replenish the item. When you generate the transfer orders, for the orders of the TR type on the
Details tab of the Sales Orders (SO301000) form, the system selects the Mark for PO check box for each row.
4. You generate purchase orders by using the Create Purchase Orders (PO505000) form. The system will create
a purchase order for the source warehouse, which you can work with on the Purchase Orders (PO301000)
form.
5. You create and release the following documents to reflect the receipt of the purchased items in the source
warehouse:
• The purchase receipt on the Purchase Receipts (PO302000) form
• The inventory receipt on the Receipts (IN301000) form
6. By using the Sales Orders form as a starting point, you create the shipment from the transfer order that you
have created. On the Shipments (SO302000) form, you confirm the shipment and update the inventory.
7. You receive the stock items in the destination warehouse as follows:
a. You create and release a transfer receipt on the Purchase Receipts form.
b. The system creates and releases the related inventory receipt on the Receipts form.

Workflow of Replenishment Through a Distribution Center

A general workflow of replenishment by purchase though a distribution center involves the steps and generated
documents shown in the following diagrams.
Replenishing Inventory Through a Distribution Center | 413
Replenishing Inventory Through a Distribution Center | 414
 Replenishing Inventory Through a Distribution Center | 415

Replenishment Through a Distribution Center: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for performing
replenishment through a distribution center, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
We recommend that before you start performing replenishment through a distribution center, you make sure the
needed features have been enabled, settings have been specified, and entities have been created, as summarized
in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• Inventory and Order Management
• Inventory
• Inventory Replenishment
• Multiple Warehouses

Multiple forms The replenishment functionality has been configured, as de-

scribed in Configuration of Replenishment: General Informa-
tion.

Stock Items (IN202500) The needed stock items have been created and the replen-
ishment settings have been specified for each existing stock
item for which replenishment will be performed.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Replenishment Through a Distribution Center: Process Activity.

Replenishment Through a Distribution Center: Process Activity

The following activity demonstrates how to prepare and perform the replenishment of goods through a distribution
center.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are Matt Parker, a purchasing manager at the SweetLife Fruits & Jams company. The SweetLife
Store branch regularly receives small orders for mangoes from a customer. To fill your stock, you order mangoes
from the Glory Fruit Case vendor by using the replenishment functionality.
 Replenishing Inventory Through a Distribution Center | 416

In the SweetLife company, fruits are delivered to the Wholesale warehouse, which serves as a distribution center
for the other warehouses. To make sure that mangoes are allocated for the Retail warehouse, you will purchase
mangoes to the Wholesale warehouse and then transfer the fruits from the Wholesale warehouse to the Retail
warehouse.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Multiple Warehouses
• Inventory Replenishment
• On the Warehouses (IN204000) form, the WHOLESALE and RETAIL warehouses have been created.
• On the Stock Items (IN202500) form, the MANGOES stock item has been created.
• On the Order Types (SO201000) form, the Transfer (TR) order type, which can be selected on the Sales Orders
(SO301000) form for a transfer order, has been created.

Process Overview
In this activity, you will do the following:
1. On the Stock Items (IN202500) form, specify the economic order quantity for the MANGOES stock item.
2. On the Item Warehouse Details (IN204500) form, review the replenishment settings of the MANGOES stock
item in the RETAIL warehouse.
3. Prepare replenishment for the needed stock items in the RETAIL warehouse on the Prepare Replenishment
(IN508000) form.
4. Prepare a transfer order on the Create Transfer Orders (SO509000) form.
5. Prepare a purchase order for the vendor to the WHOLESALE warehouse on the Create Purchase Orders
(PO505000) form. On the Purchase Orders (PO301000) form, you will take it off hold and send it to the
vendor.
6. Prepare and process the purchase receipt for the items in the WHOLESALE warehouse on the Purchase
Receipts (PO302000) form; the corresponding inventory receipt is automatically created on the Receipts
(IN301000) form and released.
7. Prepare and process the sales order on the Sales Orders (SO301000) form and the shipment on the
Shipments (SO302000) form to ship items from the WHOLESALE warehouse to the RETAIL warehouse.
8. Prepare and process the purchase receipt for the items in the RETAIL warehouse on the Purchase Receipts
form; the corresponding inventory receipt is automatically created on the Receipts form and released.

System Preparation
Before you start preparing and performing replenishment through a distribution center, you should do the
following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as purchasing manager Matt Parker with the parker username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.
 Replenishing Inventory Through a Distribution Center | 417

4. On the Enable/Disable Features (CS100000) form, disable the Project-Specific Inventory feature.

Step 1: Specifying the Economic Order Quantity for the Stock Item
To specify the economic order quantity for the MANGOES stock item, do the following:
1. Open the MANGOES stock item on the Stock Items (IN202500) form.
2. Go to the Vendors tab. Notice that there is one row for the GLORYFRUIT vendor.
3. in the EOQ column, type 20. You will use the economic order quantity as the fixed quantity. SweetLife's
warehouse specialists have determined this quantity of the MANGOES item by estimating the cost of
ordering mangoes from the Glory Fruit Case vendor.
4. On the form toolbar, click Save.

For the MANGOES stock item, the Fixed Reorder Quantity replenishment method is used in the RETAIL warehouse.
Based on this quantity, a request for replenishment for the same quantity can be generated on the Prepare
Replenishment (IN508000) form.

Step 2: Reviewing the Replenishment Settings of the Item-Warehouse Pair

To review the replenishment settings of the MANGOES stock item in the RETAIL warehouse, do the following:
1. Open the Item Warehouse Details (IN204500) form.
2. In the Summary area, specify the following settings:
• Inventory ID: MANGOES
• Warehouse: RETAIL
3. On the Replenishment tab, make sure that the following settings are specified:
• Override Replenishment Settings: Selected
• Seasonality: NONE
• Replenishment Source: Purchase
• Replenishment Method: Fixed Reorder Qty
• Replenishment Warehouse: WHOLESALE
• Reorder Point: 10
• EOQ: 20
With these settings, you replenish mangoes in the RETAIL warehouse by purchasing the item through the
WHOLESALE warehouse. The MANGOES item appears in the list of items for replenishment on the Prepare
Replenishment (IN508000) form when you have 10 pounds (which is the base unit of measure for this item) or
less of the item in the available stock. Also, 20 pounds of mangoes will be used as the fixed quantity for the
calculation of replenishment parameters in the RETAIL warehouse.

Step 3: Preparing the Replenishment

To prepare the replenishment for mangoes in the RETAIL warehouse, do the following:
1. Open the Prepare Replenishment (IN508000) form.
2. In the Selection area, specify the following settings:
• Warehouse: RETAIL
• Purchase Date: 1/30/2023
• Me: Cleared
• Only Suggested Items: Selected
 Replenishing Inventory Through a Distribution Center | 418

• With this setting, only items that require replenishment are displayed.
The table shows the items pending replenishment in the SweetLife Head Office and Wholesale Center branch,
to which you are signed in.
3. In the row for the MANGOES stock item, review the following settings:
• Qty. to Process: 20
• Replenishment Source: Purchase
• Source Warehouse (replenishment warehouse): WHOLESALE
• Preferred Vendor ID: GLORYFRUIT
4. In this row, select the check box in the unlabeled column.
5. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the
results of the processing. The system generates a replenishment request for the MANGOES stock item and
adds the request to the Create Transfer Orders (SO509000) form.
6. Click Close to close the Processing dialog box.
Notice that the row for the MANGOES stock item is no longer displayed in the table.

Now you can create a transfer order.

Step 4: Creating the Transfer Order

To create a transfer order for the 20 pounds of mangoes, do the following:
1. On the Create Transfer Orders (SO509000) form, in the row with the IN Replenishment plan type and the
MANGOES stock item, select the check box in the unlabeled column.
2. On the form toolbar, click Process.
The system creates a transfer order for 20 pounds of mangoes and opens it on the Sales Orders (SO301000)
form. Notice that the status of the order is Open. In the table footer, you can see that the On Hand quantity
of mangoes is 0. This means that you cannot ship mangoes from the WHOLESALE warehouse yet because the
item is not in stock and needs to be purchased.
3. On the Details tab, for the MANGOES line, make sure that the Mark for PO check box is selected. This means
that the order line is marked for purchasing.

Step 5: Creating the Purchase Order

To create the purchase order to purchase mangoes from the Glory Fruit Case vendor, do the following:
1. While you are still viewing the transfer order on the Sales Orders (SO301000) form, click Create Purchase
Order on the More menu, under Replenishment.
2. On the Create Purchase Orders (PO505000) form, which opens, in the row with the SO to Purchase plan type
and the MANGOES stock item, select the check box in the unlabeled column.
3. On the form toolbar, click Process.
The system creates a purchase order for 20 pounds of mangoes and opens it on the Purchase Orders
(PO301000) form. Notice that the status of the order is On Hold.
4. On the form toolbar, click Remove Hold. The system changes the status of the purchase order to Open.

Suppose that you now print the purchase order and send it to the Glory Fruit Case vendor by mail.

Step 6: Receiving the Stock Items from the Vendor

Suppose that the Glory Fruit Case vendor has delivered the mangoes to the Wholesale warehouse. To prepare the
documents to reflect the receipt of the mangoes, do the following:
 Replenishing Inventory Through a Distribution Center | 419

1. While you are still viewing the purchase order with 20 pounds of mangoes on the Purchase Orders
(PO301000) form, click Enter PO Receipt on the form toolbar. The system opens the Purchase Receipts
(PO302000) form with the new receipt. The receipt has the Balanced status and the data copied from the
linked purchase order.
2. On the form toolbar, click Release. The system creates and releases the purchase receipt. On the Other tab,
in the IN Ref. Nbr. box, you can view the reference number of the created inventory receipt; you could also
click the reference number link to view the inventory receipt on the Receipts (IN301000) form.
3. Open the Inventory Summary (IN401000) form.
4. In the Selection area, specify the following settings:
a. Inventory ID: MANGOES
b. Warehouse: WHOLESALE
In the On Hand column, notice that the quantity of 20, representing the 20 pounds of mangoes that you
have received. In the SO Allocated column, notice that 20 is displayed, which means that this quantity is
allocated for the sales order of the Transfer type to the RETAIL warehouse.

The mangoes are ready for shipment to the RETAIL warehouse.

Step 7: Shipping the Stock Items from the Distribution Center

To prepare the documents for shipping the mangoes from the WHOLESALE warehouse to the RETAIL warehouse, do
the following:
1. On the Sales Orders (SO301000) form, open the transfer order for the 20 pounds of mangoes. You prepared
this transfer order in Step 4 of this activity to transfer the purchased fruits from the WHOLESALE warehouse
to the RETAIL warehouse.
2. On the form toolbar, click Create Shipment.
3. In the Specify Shipment Parameters dialog box, which opens, make sure that the 1/30/2023 date and the
WHOLESALE source warehouse are specified, and click OK. The system closes the dialog box, creates the
related shipment of the Transfer type, and opens it on the Shipments (SO302000) form.
4. On the form toolbar, click Confirm Shipment.
5. To update the inventory of the WHOLESALE warehouse and issue the items from the WHOLESALE warehouse,
on the form toolbar, click Update IN. The system issues the mangoes from the WHOLESALE warehouse and
changes the status of the shipment to Completed. On the Orders tab, you can view the reference number
of the created transfer order; if needed, you could also click the reference number link to view the transfer
order on the Sales Orders form.

Step 8: Receiving the Stock Items in the Warehouse

Suppose that the RETAIL warehouse receives the mangoes. To update the stock, do the following:
1. On the Purchase Receipts (PO302000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Transfer Receipt
• Warehouse: RETAIL
3. On the Details tab, do the following:
a. On the table toolbar, click Add Transfer.
b. In the Add Transfer Order dialog box, which opens, select the check box in the unlabeled column of the
only row, which is for the transfer that you have processed earlier in this activity.
c. Click Add & Close to add the line with the stock item to be received to the transfer receipt.
 Replenishing Inventory Through a Distribution Center | 420

4. On the form toolbar, click Release. The system releases the transfer receipt and creates and releases the
related inventory receipt. On the Other tab, in the IN Ref. Nbr. box, you can view the reference number
of the created inventory receipt; if needed, you could also click the reference number link to view the
inventory receipt on the Receipts (IN301000) form.
5. Open the Inventory Summary (IN401000) form.
6. In the Selection area, specify the following settings:
a. Inventory ID: MANGOES
b. Warehouse: RETAIL
Notice that in the On Hand column, the quantity is 20, as shown in the following screenshot.

If you need to change the order of columns in any table, you can drag a column by its header to
the new place in the table.

Figure: The stock item received in the RETAIL warehouse

Now the 20 pounds of mangoes are available for sale in the RETAIL warehouse.
 Processing Intercompany Purchases and Returns | 421

Processing Intercompany Purchases and Returns

This chapter provides information about intercompany purchases and returns.

Intercompany Purchases and Returns: General Information

If the intercompany sales functionality is configured in Acumatica ERP, you can automatically generate a sales
order for each purchase order from a company or branch within the same tenant to process a sale of stock or non-
stock items.

Learning Objectives
In this chapter, you will learn how to do the following:
• Process an intercompany purchase of stock items
• Process and intercompany return of stock items

Applicable Scenarios
You use the intercompany sales functionality if there are multiple companies defined in the same tenant and one
of the companies (the purchasing company) has ordered a service or purchased stock items from another company
(the selling company).

Processing an Intercompany Purchase

Once the intercompany sales functionality has been configured, as described in Intercompany Sales: Implementation
Activity, the sale and purchase documents between the selling and purchasing companies can be processed.

In Acumatica ERP, to begin processing an intercompany purchase, on the Purchase Orders (PO301000) form,
the manager of the purchasing company creates a purchase order to the selling company. The manager of the
purchasing company adds the required items to the purchase order and removes the On Hold status from the order.
Then the manager of the selling company opens the Generate Intercompany Sales Orders (SO504000) form and
generates a sales order for this purchase order by selecting the unlabeled check box in the line with the purchase
order and clicking Process. The system generates a sales order with the Open status for the purchasing company
and automatically copies the relevant settings and the line details of the originating purchase order.
Then the manager of the selling company creates a shipment by clicking Create Shipment on the form toolbar
of the Sales Orders (SO301000) form and confirms the shipment on the Shipments (SO302000) form. When the
shipment is confirmed, the manager of the purchasing company opens the Generate Intercompany Purchase
Receipts (PO504000) form and generates a purchase receipt based on the shipment's settings and line details by
selecting the unlabeled check box in the line with the shipment and clicking Process. Then the manager of the
purchasing company releases the generated purchase receipt on the Purchase Receipts (PO302000) form.
The manager of the selling company bills the purchasing company for the shipped items by preparing an SO
invoice, which is a financial document in the system that contains links to the applicable shipments and sales
orders. The prepared SO invoice can be reviewed and released on the Invoices (SO303000) form. When the SO
invoice is released, the system releases a corresponding AR invoice, which can be viewed on the Invoices and
Memos (AR301000) form.

When the AR invoice is released, the manager of the purchasing company opens the Generate Intercompany
Documents (AP503500) form and generates an AP bill by selecting the unlabeled check box in the line with the
purchase receipt and clicking Process. Then the manager of the purchasing company releases the AP bill on the
Bills and Adjustments (AP301000) form.
 Processing Intercompany Purchases and Returns | 422

Workflow of the Intercompany Purchase

For an intercompany purchase between the branches of two different companies, the typical process involves the
actions and generated documents shown in the following diagram.

Intercompany Purchases and Returns: Intercompany Returns

For intercompany purchases, you can generate purchase returns.

 Processing Intercompany Purchases and Returns | 423

In this chapter, you will learn how to create a purchase return and automatically generate a sales return based on
the purchase return.

Learning Objectives
In this chapter, you will learn how to create a purchase return and automatically generate a sales return based on
the purchase return.

Applicable Scenarios
You use the intercompany returns functionality if there are multiple companies defined in the same tenant and one
of the companies (the purchasing company) needs to make a return of a purchased item to another company (the
selling company).

Processing an Intercompany Return

In Acumatica ERP, to begin processing an intercompany return, on the Purchase Receipts (PO302000) form, the
manager of the purchasing company creates a purchase return, which is a document of the Return type, that
includes a line for each item being returned. To create a purchase return, the manager of the purchasing company
opens the purchase receipt with the items to be returned, select the unlabeled check boxes on the Details tab for
the lines with these items, and clicks Return on the form toolbar. The system copies the relevant information from
the purchase receipt to a new purchase return on the Purchase Receipts form. In the copied lines, the purchasing
manage specifies the quantity of items to be returned in the Receipt Qty. column. If no replacement required, the
purchasing manager clears the Open PO check box in the lines of the purchase return. Then the manager saves the
purchase return and releases the return by clicking Release on the form toolbar.
The manager of the selling company opens the Generate Intercompany Sales Orders (SO504000), selects the
Purchase Return option in the Purchase Doc. Type box in the Summary area of the form, selects the unlabeled
check box in the line with the purchase return and clicks Process on the form toolbar. The system generates sales
return of the RC type with the Open status and automatically copies the relevant settings and the line details
of the originating purchase return. The manager of the selling company opens sales return on the Sales Orders
(SO301000) form and creates a shipment with the Receipt operation by clicking Create Receipt on the form
toolbar. Then the manager releases the shipment by clicking Confirm Shipment on the form toolbar.
To adjust the customer's balance, the manager of the selling company create an SO credit memo on the Shipments
form by clicking Prepare Invoice on the form toolbar while the manager is still viewing the shipment. The system
creates a credit memo to the customer and opens it on the Invoices (SO303000) form. On the form toolbar of the
Invoices form, the manager clicks Release to release the credit memo.

When the manager of the selling company releases the SO credit memo, the system automatically generates a
corresponding inventory receipt for the returned items on the Receipts (IN301000) form; it also creates and releases
a credit memo on the Invoices and Memos (AR301000) form. Then the manager of the purchasing company open
the Generate Intercompany Documents (AP503500) form, selects the unlabeled check box in the line with the
credit memo and clicks Process on the form toolbar. The system generates a debit adjustment on the Bills and
Adjustments (AP301000) form. The manager of the purchasing company opens the generated debit adjustment
on the Bills and Adjustments form, clicks Remove Hold on the form toolbar and then clicks Release. The system
adds the details of the debit adjustment to the Billing History tab of the Purchase Receipts (PO302000) form for the
initial purchase return.

Workflow of an Intercompany Return

For an intercompany return between the branches of two different companies, the typical process involves the
actions and generated documents shown in the following diagram.
 Processing Intercompany Purchases and Returns | 424

Intercompany Purchases and Returns: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
intercompany sales orders, and to understand (and change, if needed) the settings that affect the processing
workflow.
 Processing Intercompany Purchases and Returns | 425

Implementation Checklist
We recommend that before you initially process intercompany sales, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure that the following features have been en-
abled:
• Standard Financials
• Multibranch Support
• Multicompany Support
• Advanced Financials
• Inter-Branch Transactions
• Inventory and Order Management
• Inventory (this feature is required for sales and pur-
chases of stock items)

Companies (CS101500) If you are going to extend as a customer or vendor

any company that has the Without Branches compa-
ny type, make sure that the company has been config-
ured. For details, see Company Without Branches: To
Configure a Company Without Branches.

Branches (CS102000) If you are going to extend as a customer or vendor any

branches of companies with the With Branches Not Re-
quiring Balancing or With Branches Requiring Balanc-
ing company type, make sure that the companies have
been configured. For details, see Company with Branch-
es that Do Not Require Balancing: Implementation Activ-
ity and Company with Branches that Require Balancing:
Implementation Activity.

Vendor Classes (AP201000) Make sure that the vendor class to be used for a ven-
dor extended from a company or branch has been de-
fined. For details, see Accounts Payable: To Create a
Vendor Class.

Customer Classes (AR201000) Make sure that the customer class to be used for a cus-
tomer extended from a company or branch has been
defined. For details, see Accounts Receivable: To Cre-
ate a Customer Class.

Order Types (SO201000) Make sure that the SO order type is active and has
been configured, as described in . Note that in produc-
tion, you can use any type of the sales order. The SO
order type is required for Intercompany Purchases and
Returns: To Process an Intercompany Purchase

Other Settings That Affect the Workflow

You can affect the workflow of intercompany sales and purchases by specifying additional settings as follows:
 Processing Intercompany Purchases and Returns | 426

• To select the type of sales order that the system will use by default when creating an intercompany sales
order, select the a value in the Default Type for Intercompany Sales box on the Sales Orders Preferences
(SO101000) form.
• To select the type of sales order that the system will use by default when creating an intercompany
sales return, select the a value in the Default Type for Intercompany Returns box on the Sales Orders
Preferences (SO101000) form.
• To cause sales orders of a particular order type to be created with the On Hold status (so the user can verify
them before processing them further), select the Hold Documents on Entry check box for the order type
on the Order Types form. For more information on other order type settings affecting the workflow of sales
orders, see .
• To cause the system to automatically create an accounts payable bill on release of a purchase receipt
by default, select the Create Bill on Receipt Release check box on the Purchase Orders Preferences
(PO101000) form. In this case, when a user creates a purchase receipt on the Purchase Receipts (PO302000)
form, the system automatically selects the Create Bill check box. (The user can clear this check box for a
particular bill.) For information on processing bills, see AP Bills: General Information.
• To cause the system to automatically post general ledger batches generated during the processing of sales
and purchase documents, select the Automatically Post on Release check box on the General Ledger
Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions:
General Information.
• To select the source of the expense account used in the AP documents, select a value in the Use
Intercompany Expense Account From box on the Accounts Payable Preferences (AP101000) form.
• To select the source of the sales account used in the AR documents, select a value in the Use Intercompany
Sales Account From box on the Accounts Receivable Preferences (AR101000) form.
• To cause inventory issues to be automatically generated and released on release of SO invoices, select the
Automatically Release IN Documents check box on the Sales Orders Preferences (SO101000) form.
• To cause general ledger batches generated during the processing of sales documents to be posted
automatically, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Intercompany Purchases and Returns: To Process an Intercompany
Purchase.

Intercompany Purchases and Returns: Implementation Activity

The following activity will walk you through the configuring branches of two companies within the same tenant for
processing intercompany sales and purchases.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the Head Office of the Muffins & Cakes company has to purchase juicers from the Service and
Equipment Sales Center of SweetLife Fruits & Jams. To avoid the creation of a new customer and vendor to
represent the selling and purchasing companies and the processing of a sales transaction by the accounting
 Processing Intercompany Purchases and Returns | 427

departments of two branches, the chief accountant of SweetLife has decided to use the intercompany sales
functionality.
Acting as a system administrator, you need to extend the SWEEPEQUIP branch of SweetLife to be a vendor and the
MHEAD branch of Muffins & Cakes to be a customer.

Configuration Overview
For the purposes of this activity, the following features have been enabled:
• Standard Financials
• Multibranch Support
• Multicompany Support
• Advanced Financials
• Inter-Branch Transactions
On the Branches (CS102000) form, the SWEETEQUIP (Service and Equipment Sales Center) and MHEAD (Muffins
Head Office & Wholesale Center) branches of SweetLife and Muffins & Cakes, respectively, have been defined.
On the Vendor Classes (AP201000) form, the INTERCO vendor class for vendors extended from companies and
branches has been configured.
On the Customer Classes (AR201000) form, the INTERCO customer class for customers extended from companies
and branches has been configured.

Process Overview
In this activity, on the Branches (CS102000) form, you will extend the SWEETEQUIP branch to be a vendor and the
MHEAD branch to be a customer. On the Vendors (AP303000) form, you will update the settings of the new vendor
and on the Customers (AR303000) form, you will update the settings of the new customer.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in as a system administrator by using the following credentials:
• Username: gibbs
• Password: 123
2. Sign in as a system administrator by using the gibbs username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that
today's date is displayed.

Step 1: Reviewing the AP and AR Preferences

Before you start configuring the intercompany sales functionality, you need to review the related AP and AR
preferences. Do the following:
1. Open the Accounts Payable Preferences (AP101000) form.
2. In the Data Entry Settings section, review the value in the Use Intercompany Expense Account From box.
In the box, Vendor Location is specified, meaning that the system will use the expense account specified on
the Vendor Locations (AP303010) form for the vendor location selected in an AP document.
3. Open the Accounts Receivable Preferences (SO201000) form.
4. In the Data Entry Settings section, review the value in the Use Intercompany Sales Account From box.
 Processing Intercompany Purchases and Returns | 428

In the box, Customer Location is specified, meaning that the system will use the sales account specified on
the Customer Locations (AR303020) form for the customer location selected for the AR document.

Step 2: Extending a Branch as a Vendor

To extend the SWEETEQIP branch as a vendor, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select SWEETEQUIP.
3. On the More menu, click Extend as Vendor. The system opens the Vendors (AP303000) form with the
appropriate settings copied from the branch to the vendor.
4. In the Vendor Class box in the Summary area, select INTERCO.
5. In the warning message that displays, click Yes.
6. On the form toolbar, click Save.

For a branch that has been extended as a vendor, on the Branches form, the View Vendor
command becomes available on the More menu. You can click it to review the settings of the
vendor created based on this branch on the Vendors form. Similarly, for a company that has
been extended as a vendor, the View Vendor command becomes available on the Companies
form.

Step 1: Extending a Branch as a Vendor

To extend the SWEETEQIP branch as a vendor, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select SWEETEQUIP.
3. On the More menu, click Extend as Vendor. The system opens the Vendors (AP303000) form with the
appropriate settings copied from the branch to the vendor.
4. In the Vendor Class box in the Summary area, select INTERCO.
5. In the warning message that displays, click Yes.
6. On the form toolbar, click Save.

For a branch that has been extended as a vendor, on the Branches form, the View Vendor
command becomes available on the More menu. You can click it to review the settings of the
vendor created based on this branch on the Vendors form. Similarly, for a company that has
been extended as a vendor, the View Vendor command becomes available on the Companies
form.

Step 3: Extending a Branch as a Customer

To extend the MHEAD branch as a customer, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select MHEAD.
3. On the More menu, click Extend as Customer. The system opens the Customers (AR303000) form with the
appropriate settings copied from the branch to the customer.
4. In the Customer Class box in the Summary area, select INTERCO.
 Processing Intercompany Purchases and Returns | 429

5. In the warning message that displays, click Yes.

6. On the form toolbar, click Save.

For a branch that has been extended as a customer, on the Branches form, the View Customer
command becomes available on the More menu. You can click it to review the settings of the
customer created based on this branch on the Customers form. Similarly, for a company that
has been extended as a customer, the View Customer command becomes available on the
Companies form.

Step 2: Extending a Branch as a Customer

To extend the MHEAD branch as a customer, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select MHEAD.
3. On the More menu, click Extend as Customer. The system opens the Customers (AR303000) form with the
appropriate settings copied from the branch to the customer.
4. In the Customer Class box in the Summary area, select INTERCO.
5. In the warning message that displays, click Yes.
6. On the form toolbar, click Save.

For a branch that has been extended as a customer, on the Branches form, the View Customer
command becomes available on the More menu. You can click it to review the settings of the
customer created based on this branch on the Customers form. Similarly, for a company that
has been extended as a customer, the View Customer command becomes available on the
Companies form.

Intercompany Purchases and Returns: To Process an Intercompany Purchase

The following activity will walk you through the process of selling an item from one company to another company
within the same tenant.

Story
Suppose that the Head Office of the Muffins & Cakes company has to purchase two new juicers from the Service
and Equipment Sales Center of SweetLife Fruits & Jams. The system administrator has set up the intercompany
sales functionality to enable generation of sales orders based on purchase orders, purchase receipts based on
shipments, and AP bills based on AR invoices.
Acting as a purchasing manager of Head Office of Muffins & Cakes, you need to create a purchase order to the
SWEETEQIP branch.

Configuration Overview
For the purposes of this activity, the following features have been enabled:
• Standard Financials
• Multibranch Support
• Multicompany Support
 Processing Intercompany Purchases and Returns | 430

• Advanced Financials
• Inter-Branch Transactions
• Inventory and Order Management
• Inventory
On the Stock Items (IN202500) form, the JUICER35 inventory item has been configured.
On the Warehouses (IN204000) form, the MHEADWH warehouse has been created and specified for the MAIN
location of the MHEAD branch.
On the Branches (CS102000) form, the following activities have been performed:
• The SWEETEQUIP (Service and Equipment Sales Center) branch of SweetLife has been defined and extended
as a vendor.
• The MHEAD (Muffins Head Office & Wholesale Center) branch of Muffins & Cakes has been defined and
extended as a customer.
For details, see Intercompany Sales: Implementation Activity.

Process Overview
In this activity, you will first review the intercompany sales settings on the Sales Orders Preferences (SO101000)
form. On the Vendors (AP303000) form, you will specify the warehouse of the Muffins & Cakes company as the
default one for the SWEETEQUIP vendor. On the Purchase Orders (PO301000) form, you will create a purchase order
from Muffins Head Office & Wholesale Center to Service and Equipment Sales Center, specifying SWEETEQUIP as
the vendor, and save the purchase order. You will then cause the system to generate a sales order based on the
purchase order on the Generate Intercompany Sales Orders (SO504000) form. When the sales order is generated,
on the Sales Orders (SO301000) form, you will create and confirm a shipment for this sales order, and then you will
cause the system to generate a purchase receipt based on the shipment on the Generate Intercompany Purchase
Receipts (PO504000) form. You will then create an SO invoice by clicking Prepare Invoice on the form toolbar of
the Shipments (SO302000) form. You will release the SO invoice on the Invoices (SO303000) form, and the system
will create an AR invoice. You will cause the system to generate an AP bill on the Generate Intercompany Documents
(AP503500) form and release this bill on the Bills and Adjustments (AP301000) form.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Nenad Pasic by using the pasic username and the 123 password.

For simplicity, you perform all steps of this activity under the username which has access to
both Service and Equipment Sales Center and Muffins Head Office & Wholesale Center branches.
However, in a production environment, the steps for different branches may be performed by
different users.

2. Sign in as s purchasing manager by using the pasic username and the provided password.

For simplicity, you perform all steps of this activity under the username which has access to
both Service and Equipment Sales Center and Muffins Head Office & Wholesale Center branches.
However, in a production environment, the steps for different branches may be performed by
different users.

3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
 Processing Intercompany Purchases and Returns | 431

4. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Muffins Head Office & Wholesale Center branch.
5. As a prerequisite activity, in the tenant with the U100 dataset, make sure you have extended the
SWEETEQUIP branch as a vendor and the MHEAD branch as a customer, as described in Intercompany Sales:
Implementation Activity

Step 1: Reviewing the Sales Order Preferences

To review the type of sales orders that will be used for intercompany sales, do the following:
1. Open the Sales Orders Preferences (SO101000) form.
2. On the General tab, in the Intercompany Order Settings section, review the following settings:
• Default Type for Intercompany Sales: SO - Sales Order
This is the type of sales order that the system will use by default when creating an intercompany sales
order.
• Default Type for Intercompany Returns: RC - Return for Credit
This is the type of an order that the system will use by default when creating an intercompany return.
3. On the form toolbar, click Save.

Step 2: Specifying the Default Warehouse for the Vendor

To specify the warehouse of the Muffins & Cakes company as the default warehouse for the SWEETEQUIP vendor in
the MHEAD branch to which you are currently signed in, do the following:
1. Open the Vendors (AP303000) form.
2. In the Vendor ID box, select SWEETEQUIP.
3. Go to the Purchase Settings tab.
4. In the Warehouse box (Shipping Instructions section), select MHEADWH.
5. On the form toolbar, click Save to save your changes.

Step 3: Creating an Intercompany Purchase Order

To create an intercompany purchase order, do the following:
1. Open the Purchase Orders (PO301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. Click Add New Record on the form toolbar, and in the Summary area, specify the following settings:
• Type: Normal
• Vendor: SWEETEQUIP
• Date: 1/30/2023 (inserted automatically)
• Description: Purchase of juicers
3. On the Details tab, click Add Row on the table toolbar and specify the following settings for the new row:
• Branch: MHEAD
• Inventory ID: JUICER35
• Warehouse: MHEADWH (inserted automatically based on the selected vendor)
 Processing Intercompany Purchases and Returns | 432

• Order Qty.: 2
• Unit Cost: 1200
• Ext. Cost: 2400 (calculated automatically)
4. On the form toolbar, click Remove Hold to save the document with the Open status.

Step 4: Generating an Intercompany Sales Order

To generate an intercompany sales order, do the following:
1. Open the Generate Intercompany Sales Orders (SO504000) form.
2. In the only line, select the unlabeled check box and click Process on the form toolbar.
The system generates a sales order with the SO type and Open status for the MHEAD customer and
automatically copies the relevant settings and the line details of the originating purchase order.
3. In the dialog box, which opens, click Close.
4. On the Purchase Orders (PO301000) form, open the purchase order that you have created in Step 3.
5. On the Other tab, notice that the system inserted the number of the generated sales order into the Related
Order Nbr. box. This number is a link to the sales order.
6. Click the link in the Related Order Nbr. box. The system opens the sales order on the Sales Orders
(SO301000) form.
7. Review the sales order.
Notice that MHEAD is specified in the Customer box for this order. On the Details tab, SWEETEQUIP is
specified in the Branch column and the order details have been copied from the originating purchase order.
On the Shipping tab, notice that the system has inserted the number of the originating purchase order in
the Related Order Nbr. box. This number is a link to the purchase order.

Step 5: Creating a Shipment

To generate a shipment for the intercompany sales order, do the following:
1. While you are still viewing the sales order for the MHEAD customer, on the form toolbar, click Create
Shipment.
2. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected in the
Shipment Date box and EQUIPHOUSE is selected in the Warehouse ID box, and click OK.
3. The system creates a shipment for the sales order and opens it on the Shipments (SO302000) form.
4. On the form toolbar, click Confirm Shipment.

Step 6: Creating a Purchase Receipt

To create a purchase receipt, do the following:
1. Open the Generate Intercompany Purchase Receipts (PO504000) form.
2. In the only line, select the unlabeled check box and click Process on the form toolbar.
The system generates a purchase receipt that contains the relevant settings and detail rows copied from the
shipment.
3. In the dialog box, which opens, click Close.
4. On the Shipments (SO302000) form, open the shipment that you have created in Step 5.
5. On the Shipping tab, click the link in the Related PO Receipt Nbr. box.
 Processing Intercompany Purchases and Returns | 433

6. On the Purchase Receipts (PO302000) form, which the system opens, review the purchase receipt with the
SWEETEQUIP vendor and the 1/30/2023 date.
7. On the form toolbar, click Remove Hold, and then click Release.

Step 7: Creating an SO Invoice

To prepare an SO invoice for the shipment, do the following:
1. On the Shipments (SO302000) form, open the shipment that you created in Step 5.
2. On the form toolbar, click Prepare Invoice.
The system creates an SO invoice for the shipment and opens it on the Invoices (SO303000) form.
3. On the form toolbar, click Release.
The system assigns the Open status to the SO invoice and creates an AR invoice.

Step 8: Creating an AP Bill

To create an AP bill, do the following:
1. Open the Generate Intercompany Documents (AP503500) form.
2. In the only line, select the unlabeled check box and click Process on the form toolbar.
The system generates an AP bill. The line in the AP bill is linked to the lines of the purchase order and
purchase receipt that you have created in Steps 3 and 6.
3. In the dialog box, which opens, click Close.
4. On the Bills and Adjustments (AP301000) form, open the bill with the SWEETEQUIP vendor and the 1/30/2023
date.
5. On the form toolbar, click Remove Hold, and then click Release to release the bill.
6. Return to the purchase order to SWEETEQUIP on the Purchase Orders (PO301000) form, and review its
details.
Notice that the order now has a status of Closed, as shown in the screenshot below. On the PO History
tab, notice that the information about the purchase receipt and AP bill that were prepared for the order
is displayed. According to this information, the purchased items have been received to inventory of the
Muffins Head Office & Wholesale Center branch and billed in full, so the intercompany purchasing process is
completed.
 Processing Intercompany Purchases and Returns | 434

Figure: Intercompany purchase order processed to completion

Intercompany Purchases and Returns: To Process an Intercompany Return

The following activity will walk you through the process of processing an intercompany return.

Story
Suppose that the Head Office of the Muffins & Cakes company has purchased two new juicers from the Service and
Equipment Sales Center of SweetLife Fruits & Jams and then the company discovered that one juicer was enough
to produce the required amount of juice.
Acting as an accountant of Muffins & Cakes, you need to process a purchase return of one juicer.

Configuration Overview
For the purposes of this activity, the following features have been enabled:
• Standard Financials
• Multibranch Support
• Multicompany Support
• Advanced Financials
• Inter-Branch Transactions
• Inventory and Order Management
• Inventory
On the Stock Items (IN202500) form, the JUICER35 inventory item has been configured.
On the Warehouses (IN204000) form, the MHEADWH warehouse has been created and specified for the MAIN
location of the MHEAD branch.
On the Branches (CS102000) form, the following activities have been performed:
• The SWEETEQUIP (Service and Equipment Sales Center) branch of SweetLife has been defined and extended
as a vendor.
 Processing Intercompany Purchases and Returns | 435

• The MHEAD (Muffins Head Office & Wholesale Center) branch of Muffins & Cakes has been defined and
extended as a customer.
For details, see Intercompany Sales: Implementation Activity.

Process Overview
In this activity, on the Order Types (SO201000) form, you will review the intercompany settings of the RC order
type. On the Vendors (AP303000) form, you will review the default warehouse of the SWEETEQUIP vendor. On the
Purchase Receipts (PO302000) form, you will create and release a purchase return. You will then cause the system
to generate a sales return based on the purchase return on the Generate Intercompany Sales Orders (SO504000)
form. On the Sales Orders (SO301000) form, you will create and release a receipt for the sales return. You will then
process an SO credit memo on the Invoices (SO303000) form and prepare a debit adjustment on the Generate
Intercompany Documents (AP503500) form. On the Bills and Adjustments (AP301000) form, you will release the debit
adjustment and finally, you will review the initial purchase return on the Purchase Receipts form.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Nenad Pasic by using the pasic username and the 123 password.

For simplicity, you perform all steps of this activity under the username which has access to
both Service and Equipment Sales Center and Muffins Head Office & Wholesale Center branches.
However, in a production environment, the steps for different branches may be performed by
different users.

2. Sign in as a purchasing manager by using the pasic username and the provided password.

For simplicity, you perform all steps of this activity under the username which has access to
both Service and Equipment Sales Center and Muffins Head Office & Wholesale Center branches.
However, in a production environment, the steps for different branches may be performed by
different users.

3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
4. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Muffins Head Office & Wholesale Center branch.
5. As a prerequisite activity, in the tenants with the U100 dataset, make sure you have extended the
SWEETEQUIP branch as a vendor and the MHEAD branch as a customer, as described in Intercompany Sales:
Implementation Activity.
6. As a prerequisite activity, make sure you have processed an intercompany purchase of juicers, as described
in Intercompany Purchases and Returns: To Process an Intercompany Purchase.

Step 1: Reviewing the Intercompany Sales Return Settings

To review the settings the system uses when processing intercompany sales returns, do the following:
1. Open the Order Types (SO201000) form.
2. In the Order Type box, select RC.
 Processing Intercompany Purchases and Returns | 436

This is the order type that the system will use later when generating a sales return. This order type is
specified in the Default Type for Intercompany Returns box on the Sales Orders Preferences (SO101000)
form.
3. Review the settings specified in the Intercompany Posting Settings section on the General tab.
In the Use Sales Account From and Use COGS Account From boxes, Inventory Item is selected. It means
that the system will use the sales account and COGS account associated with the inventory item when
creating an intercompany sales return.
4. Open the Vendors (AP303000) form.
5. In the Vendor ID box, select SWEETEQUIP.
6. On the Purchase Settings tab, in the Warehouse box, review the default warehouse of this vendor specified
for the MHEAD branch to which you are signed in.
This is the warehouse you specified in Intercompany Purchases and Returns: To Process an Intercompany
Purchase. It is used by default in documents created for the SWEETEQUIP vendor in the MHEAD branch.

Step 2: Creating an Intercompany Purchase Return

To create an intercompany purchase return, do the following:
1. Open the Purchase Receipts (PO302000) form.
2. Open the purchase receipt with the SWEETEQUIP vendor, which you created in Intercompany Purchases and
Returns: To Process an Intercompany Purchase.
3. On the Details tab, select the unlabeled check box in the line of the purchase receipt with the JUICER35
item.
4. On the form toolbar, click Return to create a purchase return that corresponds to the purchase receipt and
includes the selected line.
The system creates a document with the Return type and with appropriate settings copied from the
purchase receipt, and opens it on the same form.

Step 3: Specifying the Settings of the Intercompany Purchase Return and Releasing the Return
To define the specific settings of the return document, do the following:
1. While you are still viewing the purchase return that was created on the Purchase Receipts (PO302000)
form, in the Summary area, make sure that the Original Cost from Receipt option is selected in the Cost of
Inventory Return From box. With this option selected, the item will be issued from inventory at the cost at
which it was purchased.
2. Make sure that the Create Bill check box is cleared. You will later generate a debit adjustment manually.
3. In the only return line on the Details tab, change the Receipt Qty. to 1 (which is the quantity of items to be
returned).
4. In the line, clear the Open PO Line check box to indicate that no replacement is needed for returned items.
5. On the form toolbar, click Save to save the purchase return, which has the Balanced status and can thus be
released.
6. On the form toolbar, click Release.

Step 4: Creating an Intercompany Sales Return

To generate an intercompany sales return, do the following:
1. Open the Generate Intercompany Sales Orders (SO504000) form.
 Processing Intercompany Purchases and Returns | 437

2. In the Summary area, select the Purchase Returns option in the Purchase Doc. Type box.
3. In the only line, select the unlabeled check box and click Process on the form toolbar.
The system generates a sales return of the RC type with the Open status and automatically copies the
relevant settings and the line details of the originating purchase return.
4. In the dialog box, which opens, click Close.
5. On the Sales Orders (SO301000) form, open the sales order of the RC type with the MHEAD customer and
review its details.

Step 5: Preparing and Releasing a Receipt

To create a receipt for the intercompany sales return, do the following:
1. While you are still viewing the sales return on the Sales Orders (SO301000) form, on the form toolbar, click
Create Receipt.
2. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected in the
Shipment Date box and EQUIPHOUSE is selected in the Warehouse ID box, and click OK.
The system creates a shipment with the Receipt operation and Open status, and opens this shipment on the
Shipments (SO302000) form.
3. On the form toolbar, click Confirm Shipment.

Step 6: Processing an SO Credit Memo

Now that you have processed the return of the items to SweetLife's inventory, you need to prepare an SO credit
memo to Muffins & Cakes to adjust the customer's balance. To prepare the credit memo, do the following:
1. While you are still viewing the shipment on the Shipments (SO302000) form, on the form toolbar, click
Prepare Invoice. The system creates a credit memo to the customer and opens it on the Invoices
(SO303000) form.
2. On the form toolbar, click Release to release the credit memo, which is assigned the Open status, as shown
in the following screenshot.

Figure: Credit memo created for processing of a return

When you release the SO credit memo, the system automatically generates a corresponding inventory
receipt for the returned items on the Receipts (IN301000) form; it also creates and releases a credit memo
on the Invoices and Memos (AR301000) form. In the AR credit memo, the MHEAD company is specified as the
customer so that an intercompany AP debit adjustment can be created.
 Processing Intercompany Purchases and Returns | 438

Step 7: Preparing a Debit Adjustment

To prepare a debit adjustment, do the following:
1. Open the Generate Intercompany Documents (AP503500) form.
2. In the only line, select the unlabeled check box and click Process on the form toolbar.
The system generates a debit adjustment on the Bills and Adjustments (AP301000) form.
3. In the dialog box, which opens, click Close.
4. On the Bills and Adjustments form, open the generated debit adjustment, click Remove Hold on the form
toolbar, and then click Release.
The system adds the details of the debit adjustment to the Billing tab of the Purchase Receipts (PO302000)
form for the initial purchase return as shown in the following screenshot.

Figure: Purchase return processed to completion

Intercompany Purchases and Returns: Generated Transactions

As you perform intercompany purchases and returns, you create and process a purchase order, a sales order, a
shipment, a purchase receipt, an AR invoice, and an AP bill. When you release the AR and AP documents, the system
updates the customer's and vendor's balances. Inventory documents are used to track item movements. To update
the account balances, the system generates and posts the GL transactions described in the following sections.

Transaction Generated for an AR Invoice

When you create and release an AR invoice, the system generates the following general ledger transaction.

Branch Account Debit Credit

SWEETEQUIP (Selling 19010 - Accounts Receivable - Related Amount 00.00

branch) Company
 Processing Intercompany Purchases and Returns | 439

Branch Account Debit Credit

SWEETEQUIP (Selling 43000 - Related Company Sales40000 - 00.00 Amount

branch) Sales Revenue

You can view the reference number of the GL batch on the Financial tab of the Invoices (SO303000) form and on the
Financial tab of the Invoices and Memos (AR301000) form.

Transaction Generated for an Issue

When the goods are issued from the warehouse of the selling branch, the system generates the following general
ledger transaction.

Branch Account Debit Credit

SWEETEQUIP (Selling 12100 - Inventory Asset 0.00 Amount

branch)

SWEETEQUIP (Selling 50000 - COGS Inventory Amount 00.00

branch)

You can view the reference number of the GL batch on the Financial tab of the Issues (IN302000) form.

Transaction Generated on Release of PO Receipt

When you process a purchase receipt, the system generates the following general ledger transaction on release of
the inventory receipt.

Branch Account Debit Credit

MHEAD (Purchasing branch) 12700 - Inventory Asset for MHEAD ware- Amount 00.00
house12700 - Inventory Asset for MHEAD
warehouse12100 - Inventory Asset

MHEAD (Purchasing branch) 20100 - Inventory Purchase Accrual 00.00 Amount

You can view the reference number of the GL batch on the Financial tab of the Receipts (IN301000) form.

Transaction Generated for an AP Bill

When the system creates an AP bill based on the AR invoice you created, the system generates the following general
ledger transaction aer release of this bill.

Branch Account Debit Credit

MHEAD (Purchasing branch) 26010 - Accounts Payable - Related Compa- 00.00 Amount
ny

MHEAD (Purchasing branch) 20100 - Inventory Purchase Accrual Amount 00.00

You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments (AP301000)
form.
 Processing Intercompany Purchases and Returns | 440

Transaction Generated on Release of PO Return

When you process a purchase return, the system generates the following general ledger transaction on release of
the return.

Branch Account Debit Credit

MHEAD (Purchasing branch) 12700 - Inventory Asset for MHEAD ware- 00.00 Return amount
house12700 - Inventory Asset for MHEAD
warehouse12100 - Inventory Asset

MHEAD (Purchasing branch) 20100 - Inventory Purchase Accrual Return amount 00.00

You can view the reference number of the GL batch on the Financial tab of the Issues (IN302000) form.

Transaction Generated for an SO Credit Memo

When you process a return of items, you create an SO credit memo. The system generates the following general
ledger transaction aer the release of the credit memo.

Branch Account Debit Credit

SWEETEQUIP (Selling branch) 19010 - Accounts Receivable - Related 00.00 Return amount
Company

SWEETEQUIP (Selling branch) 43000 - Related Company Sales43000 Return amount 00.00
- Related Company Sales40000 - Sales
Revenue

You can view the reference number of the GL batch on the Financial tab of the Invoices and Memos (AR301000)
form.

Transaction Generated for a Sales Return

When you process the return of items to the warehouse of the selling branch, the system generates the following
general ledger transaction.

Branch Account Debit Credit

SWEETEQUIP (Selling branch) 12100 - Inventory Asset Return amount 00.00

SWEETEQUIP (Selling branch) 50000 - COGS - Inventory 00.00 Return amount

You can view the reference number of the GL batch on the Financial tab of the Issues (IN302000) form.

Transaction Generated for a Debit Adjustment

When you process a return of items, aer the creation of an AR credit memo to adjust the customer's balance,
you create a debit adjustment to adjust the vendor's balance. The system generates the following general ledger
transaction aer the release of the debit adjustment.
 Processing Intercompany Purchases and Returns | 441

Branch Account Debit Credit

MHEAD (Purchasing branch) 26010 - Accounts Payable - Related Com- Return amount 00.00
pany

MHEAD (Purchasing branch) 20100 - Inventory Purchase Accrual 00.00 Return amount

You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments (AP301000)
form.

Intercompany Purchases and Returns: Mass-Processing of Documents

This topic explains how to process multiple documents related to intercompany purchases and returns.

Mass-Creating Intercompany Sales Orders

You can create multiple sales orders on the Generate Intercompany Sales Orders (SO504000) form by selecting the
Purchase Orders option in the Purchase Doc. Type box, selecting the unlabeled check box in the purchase order
lines to be processed, and clicking Process on the form toolbar to generate an intercompany sales order or sales
orders.

Mass-Creating Intercompany Purchase Receipts

You can create multiple purchase receipts on the Generate Intercompany Purchase Receipts (PO504000) form by
selecting the unlabeled check box in the shipment lines to be processed, and clicking Process on the form toolbar
to generate an intercompany purchase receipt or purchase receipts.

Mass-Creating Intercompany Sales Returns

You can create multiple sales returns on the Generate Intercompany Sales Orders (SO504000) form by selecting the
Purchase Returns option in the Purchase Doc. Type box, selecting the unlabeled check box in the purchase order
lines to be processed, and clicking Process on the form toolbar to generate an intercompany sales order or sales
orders.

Intercompany Purchases and Returns: Related Report and Inquiry Forms

In the following sections, you can find details about the inquiry forms you may want to review to gather
information about intercompany purchases and returns.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Finding Items in Transit in Intercompany Shipments

If you need to find stock items that have been issued from the warehouse of the selling company but have not
arrived at the warehouse of the purchasing company, you can use the Intercompany Goods in Transit (IN402010)
inquiry form.
 Processing Intercompany Purchases and Returns | 442

In the boxes of the Selection area of the inquiry form, you specify the selection criteria for the documents to be
loaded in the table. You can also narrow the search results by selecting the Show Only Overdue Items and Show
Only Items Without Receipt check boxes.
If the Show Only Overdue Items check box is selected, the system shows only documents for which a value exists
in the Days Overdue column of the inquiry table. If the check box is cleared, all in-transit items are shown.
If the Show Only Items Without Receipt check box is selected, the system shows only items for which
purchase receipts have not yet been generated. That is, the shipments that contain these items are not linked to
intercompany purchase receipts. If this check box is cleared, all in-transit items are shown.

Finding Returned Items in Transit in Intercompany Shipments

If you need to find stock items that have been returned from the warehouse of the purchasing company but have
not arrived at the warehouse of the selling company, you can use the Intercompany Returned Goods in Transit
(IN402020) inquiry form.
In the boxes of the Selection area of the inquiry form, you specify the selection criteria for the documents to be
loaded in the table.
 Processing Purchase Requests and Requisitions | 443

Processing Purchase Requests and Requisitions

By using purchase requisitions, which are part of the inventory and order management functionality, your
organization can create and process requests for goods and services and prevent cost overruns. The purchase
requisitions functionality provides configurable, budget-compliant request documents and facilitates a bidding
process.

Purchase Requests and Requisitions: General Information

By using external requests in Acumatica ERP, you can create customer purchase requests, create purchase
requisitions based on these requests, and solicit bids from multiple vendors so that you can select the best bid.
By using internal requests in Acumatica ERP, you can create employee purchase requests, validate requests against
the budget, create purchase requisitions based on these requests, and solicit bids from multiple vendors so that
you can select the best bid.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Become familiar with the general workflow of the purchase requisition functionality based on customer
requests and employee requests
• Learn about budget validation
• Learn about the selection and acceptance of vendor bids
• Process a purchase requisition based on customer requests
• Process a purchase requisition based on employee requests
• Process a purchase requisition that is not based on requests

Applicable Scenarios
You process a purchase requisition in the following cases:
• You are reselling hard-to-find products, such as exotic products or products that are not produced in your
country.
• You offer products directly from manufacturers.
• You purchase products by using invitations to bid.

Creation of Purchase Requests

In Acumatica ERP, you can create purchase requisitions directly or first create purchase requests on the Requests
(RQ301000) form. Each request is associated with the specific customer or employee that wants the item, so
requests are described as external requests or internal requests. A purchase request has the list of stock items
to be purchased on the Details tab and vendor contact information on the Vendor Info tab if you already know
which vendor the items will be purchased from. Aer you have created the requests, you can create a requisition
document based on them.
If you want to purchase stock items from a vendor and then sell to a customer, you create an external request. In
the Request Class box, you select an external request class. For an external request class, the Customer Request
check box is selected on the Request Classes (RQ201000) form. You create a purchase requisition based on any
 Processing Purchase Requests and Requisitions | 444

number of customer requests. You can manually select the vendor to purchase items from, or you can request
vendor bids and then select the best offers for the items.
If you want to purchase stock items from a vendor for employee needs, you create an internal request. In the
Request Class box, you select a request class that defines requests as used for employee needs. For such a class,
the Customer Request check box is cleared on the Request Classes form.
If employees of your company order low-cost items, such as office supplies, you can create any number of internal
requests and create a purchase requisition based on the requests. You can configure employee requests to require
approval or budget verification—or use both of these controls to keep costs in check.
If you already work with a vendor that gives your company the best prices and discounts for these items (that is,
if no bidding should occur for the items), you can manually specify the vendor from which you want to purchase
items. If you know that all items will be purchased from the same vendor, you can specify that vendor on the
Vendor Info tab of the Requests form. If different items should be purchased from different vendors that are known
in advance, you can specify the vendor for each item in the Vendor column of the Details tab.

Budget Validation
If your organization allocates budgets for internal purchases, you can use budget validation for internal requests
to prevent cost overruns of requested goods and services. Before you can use budget validation, you should make
sure that the budgets have been created and released in the system on the Budgets (GL302010) form.
On the Budget tab of the Requests (RQ301000) form, you can see if the cost of the stock items included in a request
complies with the budget. If the cost exceeds the budget, you can edit the list of items in the request, reject the
request, or process it in the next financial period.

Creation of a Purchase Requisition

On the Requisitions (RQ302000) form, you add items for purchase and select the vendors from which the items will
be purchased. The process of creating a requisition can begin differently depending on whether you have already
created purchase requests on the Requests (RQ301000) form for the items to be included in the requisition:
• If you have not first entered requests for the items, you use the Requisitions form as a starting point. You add
the items directly on the Details tab by clicking Add Items on the table toolbar for each item to be added.
• If you have already entered the requests to be included in the requisition, you start the creation of the
requisition on one of the following forms:
• Create Requisitions (RQ504000): You can use this form as a starting point to create a requisition based on
requests that have been created in the system. You can enter any needed selection criteria and view the
list of requests that meet this criteria. You can then process–that is, include in the purchase requisition
the system will create–all listed requests or only those you select. You can include multiple requests
in one requisition if the stock items in these requests will be ordered from the same vendor or set of
vendors. Aer you invoke processing on this form, you use the Requisitions form for all future processing
of the created requisition. You can create multiple requisitions by repeating the steps of including the
needed requests and clicking Process on the form toolbar.
• Requisitions: On the Details tab of this form, you can click Add Requested Items on the table toolbar to
add items in purchase requests. You can add additional stock items by clicking Add Items on the table
toolbar.
You use the Requisitions form to fully process a requisition from creation to release. The form also lists the purchase
orders and sales orders created for the requisition, with links you can use to quickly open these orders.
On the Requisitions form, you can merge lines on the Details tab with the same stock item into one line. These lines
can be merged if the stock item was requested by the same requester (a customer or an employee), has the same
estimated unit cost specified in the Est. Unit Cost column, and the same expense account in the Account column.
If you create a requisition from requests by using the Create Requisitions form, you can select the Merge Lines
check box in the Selection area of the form to merge the lines of all the requests included in the requisition that
contain the same stock item with the same Line Source, Inventory ID, UOM, and Account (expense account)
 Processing Purchase Requests and Requisitions | 445

setting. The state of the Merge Lines by Default check box on the Purchase Requisitions Preferences (RQ101000)
form also determines the default state of the Merge Lines check box on the Create Requisitions form.
In an existing requisition, you can merge lines manually on the Details tab of the Requisitions form by selecting the
Included check box for the lines in the list and clicking Merge Lines on the table toolbar.

Requesting of Bids
If you will be obtaining bids from vendors and choosing the best offers, you send requests for proposal to vendors
once the requisition contains all the needed information. On the More menu of the Requisitions (RQ302000)
form, you click Send Requests for Proposal. The system creates a PDF file that contains a request for proposal,
generates an email to each vendor listed in the Bidding tab of the form, attaches the file to the email, and adds the
email to the outgoing mail. If a schedule has been configured in the system, the email will be sent automatically
the next time this schedule is executed. Alternatively, you can send a request to a particular vendor. On the Bidding
tab, you select a vendor in the Bidding Vendors table and click Send Request on the table toolbar.

Selection and Acceptance of Bids

If you have requested bids from multiple vendors for a requisition, you can process these bids from multiple
vendors to select the best offers with the lowest prices. You start the selection process by entering these responses
into the system by using the Bidding Responses (RQ303000) form.
You process the bids for a particular requisition by using the Complete Bidding (RQ503000) form, where you select
the reference number of the requisition in the Summary area. To run automatic bidding, you click Update Result
on the form toolbar. The system selects a vendor or multiple vendors for each stock item automatically based on
the offered price and any quantity limitations from vendor responses. In the Bidding Details table of the Bidding
Results tab, the price is shown in the Bid Unit Cost column and the quantity is shown in the Bid Qty. column. You
can view the bidding results and manually correct them if you want to change the automatically selected vendors.
If any vendor response has been changed or withdrawn aer the system selected vendors for a requisition, you
enter new responses on the Bidding Responses form by editing the existing responses. Then if you want to again
begin vendor selection, you go back to the Complete Bidding form, click Clear Result on the form toolbar to clear
the selected vendors for all lines of the requisition, and click Update Result again.
When you analyze the bidding responses, you can select the bids manually. You may want to take into account the
lowest price, the number of days needed to deliver the order, the vendor shipping terms, and any special offers
from a vendor. You can select a vendor with a better bid by using the Requisitions (RQ302000) form as follows:
You click the vendor line in the Bidding Vendors table on the Bidding tab and click Choose Vendor on the table
toolbar. You can select only one vendor per requisition on the Requisitions form.
Aer you have analyzed and corrected the bidding results, you accept the results by clicking Complete Bidding on
the form toolbar. You can view the selected vendors as follows:
• If one vendor is selected for a requisition, you can view the vendor's settings on the Vendor Info tab of the
Requisitions form.
• If more than one vendor is selected for a requisition, you can click View Bidding on the More menu (which
opens the Complete Bidding form) and view the selected vendors on the Bidding Results tab.

Workflow of Processing Purchase Requisitions

To process a purchase requisition, you perform the following general steps:
1. Optional: Create a purchase request or multiple requests on the Requests (RQ301000) form. For an internal
purchase request, you can use validation against the budget before you add the request to the purchase
requisition. For details, see Purchase Requisition Configuration: Setup of Budget Validation for Internal
Requests.
 Processing Purchase Requests and Requisitions | 446

2. Create a requisition as follows: You create a requisition that is not based on requests on the Requisitions
(RQ302000) form. If a requisition is based on requests, you can use the Create Requisitions (RQ504000) form
as a starting point.
3. Prepare a purchase requisition for the bidding. On the Requisitions (RQ302000) form, you can edit a
requisition that was created by using the Create Requisitions form or created from scratch. You can use
buttons on the Details tab to add stock items for purchase and to add customer or employee requests that
have been entered.
If you will be requesting bids from vendors, you add the vendors to the Bidding Vendors table on
the Bidding tab to specify which vendors will be considered for this requisition. (Step 4 describes the
continuation of requesting and processing bids.) To manually select a vendor for the requisition, you specify
it in the unlabeled area of the tab (above the Bidding Vendors table) and leave the table blank.
4. Optional: Send requests for proposal (RFPs) to vendors. On the Requisitions form, you can send requests for
proposal as follows:
• To a specific vendor listed in the Bidding Vendors table by clicking the vendor and then clicking Send
Request on the table toolbar
• To all the vendors listed on the Bidding tab by clicking Send Requests for Proposal on the More menu

When a request for proposal has been sent, the system selects the check box in the Request
Sent column in the Bidding Vendors table of the Bidding tab.

5. Enter bids from vendors into the system on the Bidding Responses (RQ303000) form.
6. Optional: For a requisition that has stock items that have been requested by customers, you may need to
generate a sales quote for the customer and reach agreement on the requisition with the customer. On the
Requisitions form, you create a sales quote by clicking Create Quote on the More menu. This creates an
order with the Quote behavior of the type specified on the Purchase Requisitions Preferences (RQ101000)
form. When the quote has been approved by the customer, you can proceed with the sale of the stock items,
as described in Step 9.
7. Process bidding responses and select a vendor for the requisition. If you have run automatic bidding, you
analyze and correct the automatic bidding results by using the Complete Bidding form. Also, you can use this
form to select multiple vendors.

When you know which vendor you wanted to select for the requisition and do not initiate the
bidding process, you manually select the vendor on the Bidding tab of the Requisitions form.

8. Create purchase orders (and sales orders for customer requests, see the following step). On the Requisitions
form, you click Create Orders, which creates a purchase order or multiple purchase orders for the vendor or
vendors on the Purchase Orders (PO301000) form.
9. Create sales orders for customer requests. On the Requisitions form, you click Create Orders, which creates
a sales order or multiple sales orders for the customer or customers on the Sales Orders (SO301000) form. A
sales order has the SO behavior and the type specified on the Purchase Requisitions Preferences form.
The lines of the created sales order on the Sales Orders form have the Marked for PO check box selected
and are linked to the corresponding lines of the created purchase orders.
10.Send the purchase order or orders to each vendor. On the Purchase Orders form, you click Email Purchase
Order on the More menu to send the created purchase order to the vendor or vendors selected to fulfill the
requisition.
11.Receive the stock items in a warehouse: You create and process the documents related to the stock items
being received in a warehouse by using the Purchase Receipts (PO302000) and Receipts (IN301000) forms.
12.Provide items to the customers. You use the Sales Orders form to create the shipment and the Shipments
(SO302000) form to create and process the documents for shipping stock items to customers.
 Processing Purchase Requests and Requisitions | 447

If you are instead providing the stock items to employees, you create and process inventory
transactions for issuing the items to the employees of your organization by using the Issues
(IN302000) form.

Workflow of a Purchase Requisition

The following diagrams illustrate the workflow of a purchase requisition, which may or may not be based on
requests.
Processing Purchase Requests and Requisitions | 448
Processing Purchase Requests and Requisitions | 449
 Processing Purchase Requests and Requisitions | 450

Purchase Requests and Requisitions: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
purchase requests and requisitions, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
We recommend that before you start processing purchase requests and requisitions, you make sure the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in the
following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• Inventory and Order Management: This group of fea-
tures includes the features associated with the stan-
dard functionality of inventory and order manage-
ment.
• Inventory: Gives you the ability to maintain stock items
using forms related to the inventory functionality and
use the inventory and order management functionali-
ty for creating and processing documents that include
stock items.
• Purchase Requisitions: This feature gives users the abil-
ity to create purchase requests and requisitions, per-
form bidding to find the best prices, and control bud-
get compliance.

Request Classes (RQ201000) The needed request classes for purchase requests have
been created, as shown in the Purchase Requisition Con-
figuration: To Create an External Request Class sample ac-
tivity.

Other Settings That Affect the Workflow

You can affect the workflow of processing purchase requests by specifying additional settings. When you are
preparing to create a purchase requisition from requests, you can select the Merge Lines check box in the Selection
area of the Create Requisitions (RQ504000) form. This causes the system to merge the lines of all the requests
included in a requisition that contain the same stock item with the same unit cost.
If a purchase requisition has already been created, you can merge lines manually on the Details tab of the
Requisitions (RQ302000) form by selecting the Included check box for the lines to be merged and clicking Merge
Lines on the table toolbar.

With manual merging in this way, the system will merge lines even if they have different unit costs and
requesters. For external requests, we do not recommend that you merge items requested by different
customers, because this may cause sales documents to be linked incorrectly to purchase requisitions.
 Processing Purchase Requests and Requisitions | 451

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you process
an external purchase request by performing instructions similar to those described in the following topics:
• Purchase Requests and Requisitions: To Process External Requests
• Purchase Requests and Requisitions: To Process Internal Requests
• Purchase Requests and Requisitions: To Process a Requisition Without Requests

Purchase Requests and Requisitions: To Process External Requests

The following activity demonstrates how to process a purchase requisition that is based on external requests from
the customer.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are Matt Parker, a purchasing manager in the SweetLife Head Office and Wholesale Center branch,
and you are responsible for processing requests from customers who order fruit in your company. The company
works with two fruit vendors: All Fruits Mall, and Good Fruits. SweetLife's sales managers have received the
following requests for fruit from the FourStar Coffee & Sweets Shop and HM's Bakery & Cafe customers:
• 30 pounds of tangerines and 43 pounds of lemons for a cocktail party from FourStar Coffee & Sweets Shop
• 200 pounds of oranges and 80 pounds of apples for a big birthday party from HM's Bakery & Cafe
You need to enter these requests into the system, create a purchase requisition, and request bids from the vendors.
You will select the best vendors to fulfill the requests. The selected vendors will ship fruits to your company's
warehouse. You will then process the needed documents to receive the fruits and ship them to the customers.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory
• Purchase Requisitions
• On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.
• On the Request Classes (RQ201000) form, the CUSTOMER request class has been created with the following
settings:
• Customer Request: Selected, which indicates that this class is used for requests received from
customers
• Allow Multiple Vendors per Request: Selected, which indicates that purchase orders can be split by
multiple vendors
• On the Stock Items (IN202500) form, the following stock items have been created: APPLES, LEMONS,
ORANGES, and TANGERINES.
• On the Customers (AR303000) form, the following customers have been created:
• HMBAKERY (HM's Bakery & Cafe)
 Processing Purchase Requests and Requisitions | 452

• COFFEESHOP (FourStar Coffee & Sweets Shop)

• On the Vendors (AP303000) form, the following vendors have been created: ALLFRUITS and GOODFRUITS.
• On the Purchase Requisitions Preferences (RQ101000) form, the Create Purchase Order on Hold check box
is cleared, which means that purchase orders are created in the Open status.

Process Overview
In this activity, you will do the following:
1. On the Requests (RQ301000) form, enter the customer requests into the system.
2. On the Create Requisitions (RQ504000) form, initiate the creation of a purchase requisition based on the
customer requests. Then on the Requisitions (RQ302000) form, send the requisition to the vendors that may
participate in bidding.
3. On the Bidding Responses (RQ303000) form, enter bids from vendors into the system.
4. On the Complete Bidding (RQ503000) form, initiate automatic bidding among the vendors and manually
select a vendor.
5. On the Requisitions form, initiate the creation of the purchase orders for the selected vendors.
6. On the Purchase Orders (PO301000) and the Purchase Receipts (PO302000) form, prepare and process the
purchase receipts for the ordered stock items.
7. On the Sales Orders (SO301000) form, prepare the sales order and the related shipment of the stock items to
the customer.

System Preparation
Before you start performing the steps of this activity, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as purchasing manager Matt Parker with the parker username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.
4. On the Enable/Disable Features (CS100000) form, disable the Project-Specific Inventory feature.

Step 1: Creating the Customer Requests in the System

To create the customer requests from the COFFEESHOP and HMBAKERY customers, do the following:
1. On the Requests (RQ301000) form, add a new record.
2. In the Summary area, do the following:
a. In the Request Class box, make sure that CUSTOMER is selected.
b. In the Requested By box, select COFFEESHOP.
c. In the Description box, type Order for tangerines and lemons.
3. On the Details tab, do the following:
a. On the table toolbar, click Add Row.
b. In the row, specify the following settings:
 Processing Purchase Requests and Requisitions | 453

• Inventory: TANGERINES
• Order Qty.: 30
c. On the table toolbar, click Add Row.
d. In the row, specify the following settings:
• Inventory: LEMONS
• Order Qty.: 43
4. On the form toolbar, click Remove Hold. The system saves the request and assigns the request the Open
status.
5. While you are still on the Requests form, add another new record.
6. In the Summary area, do the following:
a. In the Request Class box, make sure that CUSTOMER is selected.
b. In the Requested By box, select HMBAKERY.
c. In the Description box, type Order for oranges and apples.
7. On the Details tab, do the following:
a. On the table toolbar, click Add Row.
b. In the row, specify the following settings:
• Inventory: ORANGES
• Order Qty.: 200
c. On the table toolbar, click Add Row.
d. In the row, specify the following settings:
• Inventory: APPLES
• Order Qty.: 80
8. On the form toolbar, click Remove Hold. The system saves the request and assigns it the Open status.

Step 2: Creating a Purchase Requisition

To create a combined requisition for the customers' requests that you have created in the previous step, do the
following:
1. On the Create Requisitions (RQ504000) form, make sure that all four request lines are displayed in the table.
2. On the form toolbar, click Process All.
3. In the Confirmation dialog box, which opens, click Yes. On the Requisitions (RQ302000) form, the system
opens the requisition that it has created based on the requests.
4. On the Bidding tab, in the Bidding Vendors table, make sure that ALLFRUITS is specified.
5. Add the GOODFRUITS vendor as follows:
a. On the table toolbar, click Add Row.
b. In the Vendor column, select GOODFRUITS.
The ALLFRUITS and GOODFRUITS vendors will be invited to take part in bidding.
6. On the form toolbar, click Remove Hold. The system saves the requisition and assigns it the Pending
Bidding status.

Suppose that you have sent the requisition to these vendors by email. In a system where email functionality has
been configured, you would click Send Requests for Proposal on the More menu of the Requisitions form to send
all the requests to the vendors or send each request by clicking the vendor on the Bidding tab and clicking Send
Request on the table toolbar.
 Processing Purchase Requests and Requisitions | 454

Step 3: Entering the Vendor Responses into the System

Suppose that you have received bids from both vendors. The ALLFRUITS vendor can deliver only 150 pounds of
oranges, and a minimum of 50 pounds must be purchased from this vendor. This vendor does not have tangerines
in stock but can provide the requested quantity of lemons and apples. Also, this vendor provides you a discount if
you purchase more than two items in one order.
The GOODFRUITS vendor can deliver the requested quantity of oranges but at a higher price than the one offered by
ALLFRUITS. The GOODFRUITS vendor has tangerines in stock and can deliver the requested quantity of lemons and
apples.
To add the responses from the vendors to the system, do the following:
1. Open the Bidding Responses (RQ303000) form.
2. In the Summary area, do the following:
a. In the Requisition box, select the identifier of the only requisition with the Pending Bidding status.
b. In the Vendor box, select ALLFRUITS.
3. On the Bidding Details tab, specify the listed settings in the following table rows:
• The row with TANGERINES in the Inventory ID column:
• Min. Qty.: 0.00
This is the minimum quantity of the item that the vendor can supply.
• Bid Qty.: 0.00
This is the total quantity of items that the vendor can supply, according to the bidding response.
• Bid Unit Cost: 0.00
This is the total quantity of items that the vendor can supply, according to the bidding response.
• The row with LEMONS in the Inventory ID column:
• Min. Qty.: 0.00
• Bid Qty.: 43.00
• Bid Unit Cost: 2.60
• The row with ORANGES in the Inventory ID column:
• Min. Qty.: 50.00
• Bid Qty.: 150.00
• Bid Unit Cost: 2.00
• The row with APPLES in the Inventory ID column:
• Min. Qty.: 0.00
• Bid Qty.: 80.00
• Bid Unit Cost: 2.20
4. On the form toolbar, click Save.
5. Review the rows of the table. They should have the settings shown in the following table.

Inventory ID Min. Qty. Bid Qty. Bid Unit Cost

TANGERINES 0 0 0

LEMONS 0 43 2.60

ORANGES 50 150 2.00

 Processing Purchase Requests and Requisitions | 455

Inventory ID Min. Qty. Bid Qty. Bid Unit Cost

APPLES 0 80 2.20

6. In the Vendor box of the Summary area, select GOODFRUITS.

7. On the Bidding Details tab, specify the listed settings in the following table rows:
• The row with TANGERINES in the Inventory ID column:
• Min. Qty.: 0.00
• Bid Qty.: 30.00
• Bid Unit Cost: 1.60
• The row with LEMONS in the Inventory ID column:
• Min. Qty.: 0.00
• Bid Qty.: 43.00
• Bid Unit Cost: 2.55
• The row with ORANGES in the Inventory ID column:
• Min. Qty.: 0.00
• Bid Qty.: 200.00
• Bid Unit Cost: 2.20
• The row with APPLES in the Inventory ID column:
• Min. Qty.: 0.00
• Bid Qty.: 80.00
• Bid Unit Cost: 2.30
8. On the form toolbar, click Save.
9. Review the rows that you have added to the table. They should have the settings shown in the following
table.

Inventory ID Min Qty. Bid Qty. Bid Unit Cost

TANGERINES 0 30 1.60

LEMONS 0 43 2.55

ORANGES 0 200 2.20

APPLES 0 80 2.30

Step 4: Selecting the Best Bids from Vendors

To perform automatic bidding and then correct the bidding results manually, do the following:
1. On the Complete Bidding (RQ503000) form, in the Ref. Nbr. box, select the reference number of the only
requisition with the Pending Bidding status.
2. On the form toolbar, click Update Result. The system selects vendors automatically and updates the
information on the Bidding Results tab.
Notice that in the Selection area, the Splittable check box is selected because the Allow Multiple Vendors
per Request check box has been selected on the Request Classes (RQ201000) form for the class of the
 Processing Purchase Requests and Requisitions | 456

request based on which the requisition has been created. This setting means that the system can split the
order between multiple vendors.
3. On the form toolbar, click Save.
4. On the Bidding Results tab, analyze the results of the automatic bidding as follows:
a. In the Requisition Details table, click the TANGERINES row.
In the Bidding Details table, the GOODFRUITS vendor is selected because only this vendor can supply
tangerines.
b. In the Requisition Details table, click the ORANGES row.
In the Bidding Details table, in the unlabeled column, the check boxes for both vendors are selected.
This means that the quantity of the oranges is split between these two vendors. The ALLFRUITS vendor
offered the best price for the oranges, but the vendor can provide only 150 pounds of oranges, whereas
the needed quantity is 200 pounds. Thus, you will order another 50 pounds of oranges from the
GOODFRUIT vendor at a higher cost.
c. In the Requisition Details table, click the APPLES row.
In the Bidding Details table, in the unlabeled column, the check box for the row with the ALLFRUITS
vendor is selected because this vendor offered a lower price and can provide the required amount of
apples.
d. In the Requisition Details table, click the LEMONS row.
In the Bidding Details table, in the unlabeled column, the row with the GOODFRUITS vendor is selected
because this vendor offered a lower price. However, the ALLFRUITS vendor provides you a discount if you
purchase more than two items in one order.
5. In the Bidding Details table, select the ALLFRUITS vendor for the LEMONS stock item as follows:
a. Clear the unlabeled check box for the GOODFRUITS vendor.
b. On the form toolbar, click Save.
c. Select the unlabeled check box for the ALLFRUITS vendor.
d. On the form toolbar, click Save.
6. On the form toolbar, click Complete Bidding. The status of the requisition is changed to Open.

Now that you have selected the vendors, you can create the needed purchase orders to be sent to the vendors.

Step 5: Creating the Purchase Orders

To create the purchase orders for the vendors, do the following:
1. On the Requisitions (RQ302000) form, open the requisition with the Open status that you have earlier created
in this activity.
2. On the More menu, click Create Orders. The system creates purchase orders for the ALLFRUITS and
GOODFRUITS vendors. Because the requisition is based on customer requests of these items, the system
also creates sales orders for the HMBAKERY and COFFESHOP customers. Also, the requisition is assigned the
Released status.
3. On the Purchase Orders tab, make sure that purchase orders with the Open status are listed for the
ALLFRUITS and GOODFRUITS vendors, as shown in the following screenshot.

If your system has a different set of purchase and sales documents than those in the initial
U100 dataset, you may see different values in the screenshots.
 Processing Purchase Requests and Requisitions | 457

Figure: The purchase orders for the vendors

4. On the Sales Orders tab, make sure that sales orders with the Open status are listed for the COFFEESHOP
and HMBAKERY customers, as shown in the following screenshot.

Figure: The sales orders for the customers

You have created purchase orders for both vendors. Suppose that you have emailed the purchase orders to the
vendors.

Step 6: Receiving the Items from the Vendors

Suppose that the vendors have delivered the ordered fruits to the WHOLESALE warehouse. To create the documents
that reflect the receipt of the items in the warehouse, do the following:
1. On the Purchase Orders (PO301000) form, open the purchase order for the ALLFRUITS vendor that you have
prepared earlier. (The purchase order contains the ORANGES, APPLES, and LEMONS stock items.)
2. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts (PO302000) form
with the new receipt. Notice that the receipt has the Balanced status and the data copied from the linked
purchase order.
3. On the form toolbar, click Release. The system releases the purchase receipt; it also creates the
corresponding inventory receipt and releases it. On the Other tab, in the IN Ref. Nbr. box, you can view the
reference number of the inventory receipt. (The reference number is also a link that you can click to view the
inventory receipt on the Receipts (IN301000) form.) On the Orders tab, notice that the listed purchase order
now has the Completed status.
 Processing Purchase Requests and Requisitions | 458

4. On the Inventory Allocation Details (IN402000) form, do the following:

a. In the Inventory ID box of the Selection area, select ORANGES.
b. In the Warehouse box, select WHOLESALE.
c. On the Qty by Plan Type tab, on the toolbar of the Deduction table, select All Records in the filter box.
d. Make sure that the quantity in the SO Allocated row is 150 and the quantity in the SO to Purchase row is
50 (this quantity will come from the other vendor).
e. In the Inventory ID box, select APPLES.
f. In the Deduction table, make sure that the quantity in the SO Allocated row is 80.
g. In the Inventory ID box, select LEMONS.
h. Make sure that the quantity in the SO Allocated row is 43.
5. On the Purchase Orders form, open the purchase order for the GOODFRUITS vendor that you have prepared
earlier. The purchase order has the Open status and contains the ORANGES and TANGERINES stock items.
6. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts form with the new
receipt, which has the Balanced status and the data copied from the linked purchase order.
7. On the form toolbar, click Release. The system releases the purchase receipt; it also creates the
corresponding inventory receipt and releases it. On the Other tab, in the IN Ref. Nbr. box, you can view the
reference number of the inventory receipt. (The reference number is also a link that you can click to view the
inventory receipt on the Receipts form).
8. On the Inventory Allocation Details form, do the following:
a. In the Inventory ID box of the Selection area, select ORANGES.
b. In the Warehouse box, select WHOLESALE.
c. In the Deduction table of the Qty by Plan Type tab, make sure that the quantity in the SO Allocated row
is 200 (which is now the full amount to fulfill the customer's order).
d. In the Inventory ID box, select TANGERINES.
e. In the Deduction table, make sure that the quantity in the SO Allocated row is 30.

All fruits are allocated for sales orders, which means that these fruits are not available for other orders. Now you
can prepare and process the documents for shipping the fruits to the customers, which you will do in the next step.

Step 7: Shipping the Fruits to the Customers

In this step, you will perform the needed actions to ship the fruits to the customers. You will process the sales
orders, create and confirm shipments for them, create and release the related invoices, and generate the needed
inventory transactions. Do the following:
1. On the Sales Orders (SO301000) form, open the sales order with the Open status for the HMBAKERY customer
that the system prepared earlier in this activity. (The sales order contains the ORANGES and APPLES stock
items.)
2. On the form toolbar, click Quick Process.
3. In the Process Order dialog box, which opens, do the following:
a. In the Warehouse ID box, make sure that WHOLESALE is selected.
b. In the Shipment Date section, make sure that Today is selected.
c. In the Shipping section, make sure that the following check boxes are selected:
• Create Shipment
• Confirm Shipment
• Update IN
 Processing Purchase Requests and Requisitions | 459

With this check box selected, the system will generate the inventory transactions for confirmed
shipments.
d. In the Invoicing section, make sure that the Prepare Invoice check box is selected.
e. Select the Release Invoice check box.
f. Click OK. The system completes the sales order and creates and processes the documents related to the
sales order. You can see the links to these documents in the Processing Results dialog box.
g. Click OK to close the dialog box. Notice that the sales order now has the Completed status.
4. On the Inventory Allocation Details (IN402000) form, do the following:
a. In the Inventory ID box of the Selection area, select APPLES.
b. In the Warehouse box, select WHOLESALE.
c. On the Qty by Plan Type tab, on the toolbar of the Deduction table, select All Records in the filter box.
d. Make sure that the quantity in the SO Allocated row is 0.
e. In the Inventory ID box, select ORANGES.
f. Make sure that the quantity in the SO Allocated row is 0.
5. On the Sales Orders form, open the sales order with the Open status for the COFFESHOP customer that the
system created earlier in this activity. (The sales order contains the TANGERINES and LEMONS stock items.)
6. On the form toolbar, click Quick Process.
7. In the Process Order dialog box, which opens, do the following:
a. In the Warehouse ID box, make sure that WHOLESALE is selected.
b. In the Shipment Date section, make sure that Today is selected.
c. In the Shipping section, make sure that the following check boxes are selected:
• Create Shipment
• Confirm Shipment
• Update IN
d. In the Invoicing section, make sure that the Prepare Invoice check box is selected.
e. Select the Release Invoice check box.
f. Click OK. The system completes the sales order and creates and processes the documents related to the
sales order. You can see the links to the documents in the Processing Results dialog box.
g. Click OK to close the dialog box. Notice that the sales order now has the Completed status.
8. On the Inventory Allocation Details form, do the following:
a. In the Inventory ID box of the Selection area, select TANGERINES.
b. In the Warehouse box, select WHOLESALE.
c. On the Qty by Plan Type tab, on the toolbar of the Deduction table, select All Records in the filter box.
d. Make sure that the quantity in the SO Allocated row is 0.
e. In the Inventory ID box, select LEMONS.
f. Make sure that the quantity in the SO Allocated row is 0.

You have performed the needed processing for shipping the ordered fruits to the customers.
 Processing Purchase Requests and Requisitions | 460

Purchase Requests and Requisitions: To Process Internal Requests

The following activity demonstrates how to process a purchase requisition initiated by internal requests within the
company. These requests do not require approval.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are an office manager in the SweetLife Fruits & Jams company who orders office supplies for all
departments of the company. These supplies are ordered from a single preferred vendor, the Spectra Stationery
Office vendor, and bidding is not involved in the requisition process. The company orders these items based on
requests that employees enter into the system. Employees can select only items from a predefined list. Office
supplies do not require approval from department leads due to their relatively low value.
You need to the requests that employees have submitted over the past week into one purchase requisition and
send the related purchase order to the vendor. You will then process the receipt and issuing of these items.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management
• Inventory
• Purchase Requisitions
• On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.
• On the Stock Items (IN202500) form, the following stock items have been created: PEN, PENCIL, and PAPER.
• On the Request Classes (RQ201000) form, the INTSUPPLY request class has been created as follows:
• The Restrict Requested Items to the Specified List check box has been selected, and the PEN, PENCIL,
and PAPER items have been added to the Item List tab. Restricting the list of items in a request class
reduces the probability of mistakes made during the data entry of requests of the class.
• The Allow Multiple Vendors per Request check box has been cleared. Per the company's business
practices, all of the items in requests of the class are purchased from one vendor.
• On the Vendors (AP303000) form, the STATOFFICE vendor has been created.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management
• Inventory
• Purchase Requisitions
• On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.
• On the Stock Items (IN202500) form, the following stock items have been created: PEN, PENCIL, and PAPER.
• On the Request Classes (RQ201000) form, the INTSUPPLY request class has been created as follows:
 Processing Purchase Requests and Requisitions | 461

• The Restrict Requested Items to the Specified List check box has been selected, and the PEN, PENCIL,
and PAPER items have been added to the Item List tab. Restricting the list of items in a request class
reduces the probability of mistakes made during the data entry of requests of the class.
• The Allow Multiple Vendors per Request check box has been cleared. Per the company's business
practices, all of the items in requests of the class are purchased from one vendor.
• On the Vendors (AP303000) form, the STATOFFICE vendor has been created.

Process Overview
In this activity, you will do the following:
1. On the Requests (RQ301000) form, enter all internal requests from employees into the system.
2. On the Create Requisitions (RQ504000) form, initiate the creation of a purchase requisition based on the
employees' requests.
3. On the Requisitions (RQ302000) form, initiate the creation of a purchase order and send it to the selected
vendor.
4. On the Purchase Orders (PO301000) and Purchase Receipts (PO302000) forms, prepare and process the
purchase receipt for the ordered stock items.
5. On the Issues (IN302000) form, create the inventory issue to reflect the items being issued to the employees
who requested the items.

System Preparation
Before you start processing a purchase requisition based on requests from employees, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as office manager Joshua Mueller with the mueller username and the 123 password.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as office manager Joshua Mueller with the mueller username and the 123 password.
3. Sign in to the system as Joshua Mueller by using the mueller username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating the Internal Requests

Suppose that you have received requests for pens, paper, and pencils from the Sales department and the
Operations department of the company. To enter these requests, do the following:
1. On the Requests (RQ301000) form, add a new record.
2. In the Summary area, do the following:
a. In the Request Class box, select INTSUPPLY.
b. In the Requested By box, notice that the employee ID and name that corresponds to your user account is
automatically inserted.
c. In the Description box, type The Sales department's order for office supplies.
3. On the Details tab, do the following:
 Processing Purchase Requests and Requisitions | 462

a. On the table toolbar, click Add Row.

b. In the row, specify the following settings:
• Inventory: PEN
• Order Qty.: 15
c. On the table toolbar, click Add Row.
d. In the row, specify the following settings:
• Inventory: PAPER
• Order Qty.: 12
e. On the table toolbar, click Add Row.
f. In the row, specify the following settings:
• Inventory: PENCIL
• Order Qty.: 10
4. On the form toolbar, click Remove Hold. The system saves the request and changes the status of the
request to Open.
5. While you are still on the Requests (RQ301000) form, add another new record.
6. In the Summary area, do the following:
a. In the Request Class box of the Summary area, select INTSUPPLY.
b. In the Description box, type The Operations department's order for office
supplies.
7. On the Details tab, do the following:
a. On the table toolbar, click Add Row.
b. In the row, specify the following settings:
• Inventory: PEN
• Order Qty.: 25
c. On the table toolbar, click Add Row.
d. In the row, specify the following settings:
• Inventory: PAPER
• Order Qty.: 15
e. On the table toolbar, click Add Row.
f. In the row, specify the following settings:
• Inventory: PENCIL
• Order Qty.: 5
8. On the form toolbar, click Remove Hold. The system saves the request and changes the status of the
request to Open.

Step 2: Creating a Purchase Requisition

To create a requisition for the requests that you entered in the previous step, do the following:
1. On the Create Requisitions (RQ504000) form, make sure that all six lines with the requested items are listed.
2. In the Vendor box of the Summary area, select STATOFFICE. In this case, you will not request and process
bids because you know that this vendor gives your company the best prices.
3. On the form toolbar, click Process All. On the Requisitions (RQ302000) form, the system opens the
requisition that it has created based on the requests.
 Processing Purchase Requests and Requisitions | 463

4. On the Details tab, do the following:

a. For the two rows with the PEN inventory ID, select the check boxes in the unlabeled column.
b. On the table toolbar, click Merge Lines to reduce the number of lines in the purchase documents.
c. For the two rows with the PAPER inventory ID, select the check boxes in the unlabeled column.
d. On the table toolbar, click Merge Lines.
e. For the two rows with the PENCIL inventory ID, select the check boxes in the unlabeled column.
f. On the table toolbar, click Merge Lines.
Now the requisition contains three lines.
5. On the form toolbar, click Remove Hold. The system saves the requisition and changes its status to Open.

Step 3: Creating the Purchase Order

To create the purchase order for the STATOFFICE vendor, do the following:
1. While you are still viewing the open requisition that you have created on the Requisitions (RQ302000) form,
click Create Orders on the More menu. The system creates a purchase order for the requisition and assigns
the requisition the Released status.
2. On the Purchase Orders tab, notice that the system has listed a purchase order with the Open status for the
STATOFFICE vendor, as shown in the following screenshot.

If your system has a different set of purchase and sales documents than those in the initial
U100 dataset, you may see different values in the screenshots.

Figure: The purchase order for the vendor

You have created the purchase order for the vendor. Suppose that you have sent the purchase order to the vendor.

Step 4: Receiving the Items from the Vendor

Suppose that the Spectra Stationery Office vendor has delivered the ordered items to the WHOLESALE warehouse.
To create the documents that reflect the receipt of the items in the warehouse, do the following:
1. While you are still viewing the Purchase Orders tab of the Requisitions (RQ302000) form for the requisition,
click the link in the Order Nbr. column. The system opens a pop-up window with the purchase order on the
Purchase Orders (PO301000) form.
2. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts (PO302000) form with
the new receipt. The receipt has the Balanced status and the data copied from the linked purchase order.
 Processing Purchase Requests and Requisitions | 464

3. On the form toolbar, click Release. The system releases the purchase receipt; it also creates the
corresponding inventory receipt and releases it. On the Other tab, you can view the reference number of the
created inventory receipt. The reference number is also a link you can click to view the inventory receipt on
the Receipts (IN301000) form.
4. On the Inventory Allocation Details (IN402000) form, do the following in the Selection area:
a. In the Inventory ID box, select PEN.
b. In the Warehouse box, select WHOLESALE.
c. Make sure that the quantity in the Available for Issue box is 50.
d. In the Inventory ID box, select PENCIL.
e. Make sure that the quantity in the Available for Issue box is 22.
f. In the Inventory ID box, select PAPER.
g. Make sure that the quantity in the Available for Issue box is 62.

You have received the office supplies in the warehouse, and now you can issue the items to the departments that
ordered them.

Step 5: Issuing Inventory Items from a Warehouse

Suppose that you have provided the office supplies that you ordered to the applicable departments. To create and
process the needed documents for issuing the items from the WHOLESALE warehouse, do the following:
1. On the Issues (IN302000) form, add a new record.
2. In the Description box of the Summary area, type Issue of office supplies to the Sales
and Operations departments.
3. On the Details tab, click Add Items on the table toolbar.
4. In the Summary area of the Inventory Lookup dialog box, which opens select WHOLESALE in the
Warehouse box.
5. Make sure that the Show Available Items Only check box is selected.
6. To select the required items, do the following:
a. In the Inventory box, type pen to filter the list of items.
b. In the unlabeled column, select the check box for the row with the PEN item.
c. In the Qty. Selected column of the same row, type 40.
d. In the unlabeled column, select the check box for the row with the PENCIL item.
e. In the Qty. Selected column of the same row, type 15.
f. In the Inventory box, type paper.
g. In the unlabeled column, select the check box for the row with the PAPER item.
h. In the Qty. Selected column of the same row, type 27.
7. Click Add & Close to add the selected items to the issue and close the dialog box.
8. On the form toolbar, click Release. The system changes the status of the issue to Released.
9. Open the Inventory Allocation Details (IN402000) form.
10.In the Selection area, do the following:
a. In the Inventory ID box, select PEN.
b. In the Warehouse box, select WHOLESALE.
c. Make sure that the value of the Available for Issue box is 10.
 Processing Purchase Requests and Requisitions | 465

d. In the Inventory ID box, select PENCIL.

e. Make sure that the value of the Available for Issue box is 7.
f. In the Inventory ID box, select PAPER.
g. Make sure that the value of the Available for Issue box is 35.

You have issued the items from the WHOLESALE warehouse to the company's departments.

Purchase Requests and Requisitions: To Process a Requisition Without Requests

The following activity demonstrates how to process a purchase requisition that is not based on purchase requests.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are Joshua Mueller, an office manager in the SweetLife Fruits & Jams company who orders
office supplies and furniture. You need to order new computer chairs for your company's employees: 15 high-back
computer chairs, and 20 high-back mesh computer chairs. You need to send the related requests for proposals to
the Compulink and Co and Space Computers Ltd. vendors and request bids from these vendors. When you have
the bids, you need to select the vendor or vendors the company will buy from. You also need to purchase the new
computer chairs and process them through their issuing.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management
• Inventory
• Purchase Requisitions
• On the Mailing & Printing tab of the Purchase Requisitions Preferences (RQ101000) form, the RQPROPOSAL
predefined mailing has been listed and will be used for sending proposal requests to vendors by email.
• On the Stock Items (IN202500) form, the following stock items have been created: COMPCHAIR (high-back
computer chair) and COMPCHAIRM (high-back mesh computer chair).
• On the Vendors (AP303000) form, the COMPULINK and SPACECOMP vendors have been created.
• On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.

Process Overview
In this activity, you will do the following:
1. On the Requisitions (RQ302000) form, create a purchase requisition and send it to the vendors that will
participate in bidding.
2. On the Bidding Responses (RQ303000) form, enter bids from vendors into the system.
3. On the Complete Bidding (RQ503000) form, initiate automatic bidding among the vendors and review the
bidding results.
4. On the Requisitions form, initiate the creation of the purchase orders for the selected vendor.
 Processing Purchase Requests and Requisitions | 466

5. On the Purchase Orders (PO301000) and the Purchase Receipts (PO302000) form, prepare and process the
purchase receipt for the ordered stock items.
6. On the Issues (IN302000) form, create the inventory issue to reflect the items being issued to the employees
who requested the items.

System Preparation
Before you start processing a purchase requisition without requests, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as office manager Joshua Mueller with the mueller username and the 123 password.
2. Sign in to the system as Joshua Mueller by using the mueller username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
4. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating a Purchase Requisition

To create a requisition, do the following:
1. On the Requisitions (RQ302000) form, add a new record.
2. In the Description box of the Summary area, type: Purchase of computer chairs for
employees.
3. On the Details tab, do the following:
a. On the table toolbar, click Add Row.
b. Specify the following settings for this row:
a. Inventory ID: COMPCHAIR
b. Order Qty.: 15
c. Est. Unit Cost: 139
c. On the table toolbar, click Add Row.
d. Specify the following settings for this row:
a. Inventory ID: COMPCHAIRM
b. Order Qty.: 20
c. Est. Unit Cost: 99
4. On the form toolbar, click Save.
5. On the Bidding tab, add the bidding vendors as follows:
a. On the table toolbar, click Add Row.
b. In the Vendor box, select SPACECOMP
c. On the table toolbar, click Add Row.
d. In the Vendor box, select COMPULINK
6. On the form toolbar, click Remove Hold. The system saves the requisition and assigns the requisition the
Pending Bidding status.
 Processing Purchase Requests and Requisitions | 467

7. On the More menu, click Send Requests for Proposal. The system creates a PDF file that contains a request
for proposal for each vendor, generates an email to each vendor, attaches the files to the emails, and adds
the emails to the outgoing mail. If a schedule has been configured in the system, the emails will be sent
automatically the next time this schedule is executed.

You could refresh the webpage and click Activities on the title bar of the Requisitions form. The
system opens the Tasks & Activities dialog box, from which you can open the emails to the
vendors.

You have created a purchase requisition and sent the requests for proposal to the vendors.

Step 2: Entering the Vendor Responses into the System

Suppose that you have received bids from both vendors. The COMPULINK vendor can provide the 15 computer
chairs that you need, but at a higher price than that of the SPACECOMP vendor, and 10 mesh computer chairs (you
need 20) at a lower price than that of SPACECOMP. The SPACECOMP vendor can provide the requested quantities of
both kinds of chairs (15 computer chairs and 20 mesh computer chairs), but its price for mesh computer chairs is
higher than that of COMPULINK.
To add the responses from the vendors to the system, do the following:
1. Open the Bidding Responses (RQ303000) form.
2. In the Summary area, do the following:
a. In the Requisition box, select the identifier of the only requisition with the Pending Bidding status.
b. In the Vendor box, select COMPULINK.
3. On the Bidding Details tab, specify the listed settings in the following table rows:
• The row with COMPCHAIR in the Inventory ID column:
• Min. Qty.: 00.00
This is the minimum quantity of the item that the vendor can supply.
• Bid Qty.: 15.00
This is the total quantity of items that the vendor can supply, according to the bidding response.
• Bid Unit Cost: 149.00
This is the unit cost of the item from this vendor, according to the bidding response.
• The row with COMPCHAIRM in the Inventory ID column:
• Min. Qty.: 00.00
• Bid Qty.: 10.00
• Bid Unit Cost: 99.00
4. On the form toolbar, click Save.
5. In the Vendor box of the Summary area, select SPACECOMP.
6. On the Bidding Details tab, specify the listed settings in the following table rows:
• The row with COMPCHAIR in the Inventory ID column:
• Min. Qty.: 00.00
• Bid Qty.: 15.00
• Bid Unit Cost: 139.00
• The row with COMPCHAIRM in the Inventory ID column:
• Min. Qty.: 00.00
• Bid Qty.: 20.00
• Bid Unit Cost: 119.00
 Processing Purchase Requests and Requisitions | 468

7. On the form toolbar, click Save.

Step 3: Selecting the Best Bids from Vendors

To perform automatic bidding and review the bidding results, do the following:
1. On the Complete Bidding (RQ503000) form, in the Ref. Nbr. box, select the reference number of the only
requisition with the Pending Bidding status.
2. On the form toolbar, click Update Result. The system selects vendors automatically and updates the
information on the Bidding Results tab.
Notice that in the Selection area, the Splittable check box is selected. The system selected the check box
because more than one vendor has been added to the requisition; this means that the system can split the
order between these vendors.
3. On the form toolbar, click Save.
4. On the Bidding Results tab, analyze the results of the automatic bidding as follows:
a. In the Requisition Details table, click the COMPCHAIR row.
In the Bidding Details table, in the unlabeled column, the check box for the SPACECOMP vendor is
selected. The SPACECOMP vendor offered the best price for the COMPCHAIR item and can provide the
entire needed quantity of this item. Thus, you will order these chairs from this vendor.
b. In the Requisition Details table, click the COMPCHAIRM row.
In the Bidding Details table, notice the following:
• In the unlabeled column, the check boxes are selected for both vendors.
• In the Order Qty. column, 10 is specified for both vendors.
The COMPULINK vendor offered a lower price but can provide only 10 chairs. Thus, you will have to
purchase the other 10 chairs from the SPACECOMP vendor.
5. On the form toolbar, click Complete Bidding. The status of the requisition is changed to Open.

Step 4: Creating the Purchase Orders

To create the purchase orders for the vendors, do the following:
1. On the Requisitions (RQ302000) form, open the requisition with the Open status that you have earlier created
in this activity.
2. On the More menu, click Create Orders. The system creates purchase orders for the COMPULINK and
SPACECOMP vendors and assigns the requisition the Released status.
3. On the Purchase Orders tab, make sure that purchase orders with the Open status are listed for the
COMPULINK and SPACECOMP vendors, as shown in the following screenshot.

If your system has a different set of purchase and sales documents than those in the initial U100
dataset, you may see different values in the screenshots.
 Processing Purchase Requests and Requisitions | 469

Figure: The purchase orders for the vendors

Suppose that you have emailed the purchase orders to the vendors.

Step 5: Receiving the Items from the Vendors

Suppose that the vendors have delivered the ordered chairs to the WHOLESALE warehouse. To create the
documents that reflect the receipt of the items in the warehouse, do the following:
1. While you are still viewing the Purchase Orders tab of the Requisitions (RQ302000) form for the requisition,
click the link in the Order Nbr. column in the row with the COMPULINK vendor. The system opens the
purchase order on the Purchase Orders (PO301000) form.
2. On the form toolbar, click Enter PO Receipt. The system navigates to the Purchase Receipts (PO302000)
form with the new receipt. Notice that the receipt has the Balanced status and the data copied from the
linked purchase order.
3. On the form toolbar, click Release. The system releases the purchase receipt as well as creating the
corresponding inventory receipt and releasing it. On the Other tab, you can view the reference number of
the created inventory receipt. The reference number is also a link that you can click to view the inventory
receipt on the Receipts (IN301000) form.
4. Close the Purchase Receipts form.
5. On the Purchase Orders tab of the Requisitions form, in the row that has SPACECOMP in the Vendor column,
click the link in the Order Nbr. column. The system opens ta pop-up window with the purchase order on the
Purchase Orders form.
6. On the form toolbar, click Enter PO Receipt. The system opens the Purchase Receipts form with the new
receipt. The receipt has the Balanced status and the data copied from the linked purchase order.
7. On the form toolbar, click Release. The system releases the purchase receipt; it also creates the inventory
receipt and releases it. On the Other tab, you can view the reference number of the created inventory
receipt. (The reference number is also a link that you can click to view the inventory receipt on the Receipts
form.)
8. Close the Purchase Receipts form.
9. On the Inventory Allocation Details (IN402000) form, do the following in the Selection area:
a. In the Inventory ID box, select COMPCHAIR.
b. In the Warehouse box, select WHOLESALE.
c. Make sure that the quantity in the Available for Issue box is 15.
d. In the Inventory ID box, select COMPCHAIRM.
e. Make sure that the quantity in the Available for Issue box is 20.
 Processing Purchase Requests and Requisitions | 470

You have received the computer chairs in the warehouse, and now you can issue the items to the employees that
ordered them.

Step 6: Issuing Inventory Items from the Warehouse

Suppose that you have provided the chairs that you ordered to the employees. To create and process the needed
documents for issuing the items from the WHOLESALE warehouse, do the following:
1. On the Issues (IN302000) form, add a new record.
2. In the Description box of the Summary area, type Issue of computer chairs to employees.
3. On the Details tab, click Add Items on the table toolbar.
4. In the Summary area of the Inventory Lookup dialog box, which opens, select WHOLESALE in the
Warehouse box.
5. Make sure that the Show Available Items Only check box is selected.
6. To select the required items, do the following:
a. In the Inventory box, type chair to filter the list of stock items.
b. In the unlabeled column, select the check box in the row with the COMPCHAIR item.
c. Copy the value in the Qty. Available column of the same row to the Qty. Selected column.
d. In the unlabeled column, select the check box in the row with the COMPCHAIRM item.
e. Copy the value in the Qty. Available column of the same row to the Qty. Selected column.
f. Click Add & Close to add the selected items to the issue and close the dialog box.
7. On the form toolbar, click Release. The system changes the status of the issue to Released.
8. Open the Inventory Allocation Details (IN402000) form.
9. In the Selection area, do the following:
a. In the Inventory ID box, select COMPCHAIR.
b. In the Warehouse box, select WHOLESALE.
c. Make sure that the value of the Available for Issue box is 0.
d. In the Inventory ID box, select COMPCHAIRM.
e. Make sure that the value of the Available for Issue box is 0.

You have issued the items from the WHOLESALE warehouse to the company's employees.
 Appendix | 471

Appendix
The appendix provides some reference information relevant for this document. The additional information in this
section is a useful source for readers who need some reference material that is related to system forms and tables,
as well as running reports.
In this section:
• Reports
• Form Toolbar
• Table Toolbar
• Glossary

Reports

In addition to offering a comprehensive collection of reports, Acumatica ERP gives you a high degree of control over
each report.
On a typical report form, described in Report Form, you can adjust the report settings to meet your specific
informational needs. You can specify sorting and filtering options and select the data by using report-specific
settings—such as financial period, ledger, and account—and configure additional processing settings for each
report. The settings can be saved as a report template for later use. For details, see To Run a Report and To Create a
Report Template.

Aer you run a report, the prepared report appears on your screen. You can print the report, export the report to a
file, or send the report by email.
This chapter describes a typical report form and the main tasks related to using reports.

In This Chapter
• Report Form
• To Run a Report
• To Modify a Filter on a Report Form
• To Create a Report Template

Report Form

Before you run a report, you set a variety of parameters on the report form. You can select a template or manually
make selections that affect the information collected. Also, you can specify appropriate settings to print or email
the finished report.
The following screenshot shows a typical report form.
 Appendix | 472

Figure: Parameters View of Report Form

1. Report Form Toolbar

2. Template Area
3. Details Area

Report Form Toolbar

The following table lists the buttons of the report form toolbar when you are configuring a report.

Button Description

Cancel Clears any changes you have made and restores default settings.

Run Report Initiates data collection for the report and displays the generated report.

Save Template Gives you the ability to save the currently selected report as a template with all the select-
ed settings.

Remove Tem- Removes the previously saved template.

plate
This button is available only when you select a template.

Schedule Tem- Opens the Select Schedule Name Dialog Box dialog box, which you can use to schedule re-
plate port processing.
This button is available only when you select a template.

Table: Select Schedule Name Dialog Box

Element Description

Schedule The schedule for report processing. Select an existing schedule, or leave the box blank
and click OK to open the Automation Schedules (SM205020) form to create a new sched-
ule for running the report. For more information on scheduling, see Automated Process-
ing: General Information in the Acumatica ERP System Administration Guide.
 Appendix | 473

Element Description

Merge Reports A check box that indicates (if selected) that this report will be merged with the other re-
ports selected for merging into one net report when processed.

You can check the reports that will be merged when processed on the Send
Reports (SM205060) form.

Merging Order The number of the report in the net report.

Report Toolbar
The following table lists the buttons of the toolbar aer you run the configured report.

Buttons Icon Description

Parameters   Navigates back to the report form to let you change the report parameters.

Refresh   Refreshes the information displayed in the report (if any data changes were made).

Groups   Adds to the report a le pane where the report structure is shown. Click a report node
to highlight the pertinent data in the right pane.

View PDF / Displays the report as a PDF, or displays the report in HTML format. The available but-
View HTML ton depends on the current report view; if you're viewing a PDF, for instance, you will
see the View HTML button.
/

First   Displays the first page of the report.

Previous   Displays the previous page.

Next   Displays the next page.

Last   Displays the last page of the report.

Print   Opens the browser dialog box so you can print the report.
 Appendix | 474

Buttons Icon Description

Send   Opens the Email Activity dialog box, which you use to send the report file (in the cho-
sen format) to the specified email address.

Export   Enables you to export the data in the chosen format (Excel or PDF).

Template Area
Use the elements in this area to select an existing template and then use the template, share it with other users, or
use it as your default report settings.
The Template area elements, which are available for all reports, are described in the following table.

Table: Template Area Elements

Element Description

Template The template to be used for the report. If any templates were created and saved, you can
select a template to use its settings for the report.

Default A check box that indicates (if selected) that the selected template is marked as the default
one for you. A default template cannot be shared.

Shared A check box that indicates (if selected) that the selected template is shared with other
users. A shared template cannot be marked as the default.

Locale A locale that you select to indicate to the system that the report should be prepared with
the data translated to the language associated with this locale. This box is displayed if
there are multiple active locales in the system. For details, see Locales and Languages.

Report Parameters Tab

The Report Parameters tab includes sections where you can specify the contents of the report depending on the
current report and vary in the following regards:
• How many elements and which elements are available on a particular report
• Whether elements contain default values
• Whether specific elements require values to be selected
• Whether elements may be le blank to let you display a broader range of data

Additional Sort and Filters Tab

The Additional Sort and Filter tab contains additional sorting and filtering conditions:
• Additional sorting conditions: Defines the sorting order. You can add a line, select one of the report-
specific properties, and select the Descending or Ascending sort order for the column.
• Additional filtering conditions: Defines the report filter. You can add a line, select one of the report-
specific properties, and define a condition and its value. The list of conditions include one-operand and
two-operand conditions. To create a more complicated logical expression, you can use brackets and logical
operations between brackets. For more information on creating filters, see Managing Advanced Filters. For
detailed procedures on using ad hoc filters, see Working with Reports: Process Activity.
 Appendix | 475

Print and Email Settings Tab

If you plan to print the report or save the report as a PDF, select the appropriate settings in the Print Settings area.

Table: Print Settings Section

Element Description

Deleted Records Selects the visibility of the data deleted from the database.

Print All Pages Causes all pages of the report to be printed.

Print in PDF format Displays the report in PDF format.

Compress PDF file Indicates that the system will generate a compressed PDF.

Embed fonts in PDF file Indicates that the system will generate the PDF with fonts embedded.

If you plan to send the report as an email, in the Email Settings area, specify the format in which the report will be
sent, as well as the email subject, the recipients of copies of the report, and the email account of the recipient.

Table: Email Settings Section

Field Description

Format The format (HTML, PDF, or Excel) in which the report will be emailed.

Merge function for reports in Excel format is not supported. If you want to
merge a report with other reports and send an aggregated report by email,
you should select either the HTML or PDF format for the report.

Email Account The email address of the recipient.

CC An additional addressee to receive a carbon copy (CC) of the email.

BCC The email address of a person to receive a blind carbon copy (BCC) of the email; an address
entered in this box will be hidden from other recipients.

Subject The subject of the email.

Report Versions Tab

If the report has multiple versions, you can select one of them.
This tab displays the data only to users assigned with report designer user role.
Report versions are designed in the Report Designer. To activate editing report versions, give the user report
designer role.

Table: Report Versions Tab Toolbar

Button Description

Refresh Refreshes the list of report versions.

 Appendix | 476

Button Description

Select Temporarily activates the selected report version.

Related Links
• To Run a Report
• To Create a Report Template
• Types of Filters
• Automation Schedule Statuses

Report

Once you click Run Report, the prepared report appears on your screen. You can print the report, export the report
to a file, or send the report by email.
The prepared report is displayed in the report view of the report form. For more information about setting up the
report parameters and the parameters view of the report form, see Report Form.

Report Toolbar
The following table lists report toolbar buttons.

Buttons Icon Description

Parameters   Navigates back to the report form to let you change the report parameters.

Refresh   Refreshes the information displayed in the report (if any data changes were made).

Groups   Adds to the report a le pane where the report structure is shown. Click a report node
to highlight the pertinent data in the right pane.

View PDF / Displays the report as a PDF, or displays the report in HTML format. The available but-
View HTML ton depends on the current report view; if you're viewing a PDF, for instance, you will
see the View HTML button.
/

First   Displays the first page of the report.

Previous   Displays the previous page.

 Appendix | 477

Buttons Icon Description

Next   Displays the next page.

Last   Displays the last page of the report.

Print   Opens the browser dialog box so you can print the report.

Send   Opens the Email Activity dialog box, which you use to send the report file (in the cho-
sen format) to the specified email address.

Export   Enables you to export the data in the chosen format (Excel or PDF).

Related Links
• Filters
• Report

Form Toolbar

The form toolbar, available on most forms, is located near the top of the form, under the form title (and subtitle, if
the form has one), as shown in the following screenshot.
The form toolbar includes the following:
• Standard buttons (see Item 1 in the following screenshot), with the particular set of buttons depending on
the specific form
• On some forms, form-specific buttons (Item 2)
• On some form, the More button (Item 3); clicking this button opens the More menu (Item 4), which contains
additional form-specific commands

Figure: The form toolbar and the More menu

 Appendix | 478

You use the standard buttons on the form toolbar to navigate through entities that were created by using the
current form, insert or delete an entity, use the clipboard, save the data you have entered, or cancel your work on
the form.
A form toolbar on a particular form may include form-specific buttons in addition to standard buttons; it may also
(or instead) include commands on the More menu. These form-specific buttons and commands provide navigation
to related forms, invoke specific actions, and perform modifications or processing related to the functionality of the
form.

Standard Form Toolbar Buttons

The following table lists the standard buttons of the form toolbar. A form toolbar may include some or all of these
buttons.

Table: Standard Form Toolbar Buttons

Button Icon Description

Discard Changes   Discards any unsaved changes made to the entity, and navigates to the list of
and Close records that is related to the current form.

If the system opened the current form in a pop-up window (from

a different form), this button is not displayed. To return to the
original form, click Close.

Save & Close   Saves the changes made to the entity, and navigates to the list of records that
is related to the current form.

Save   Saves the changes made to the entity.

Cancel   Depending on the context, does one of the following:

• Discards any unsaved changes you have made to entities and retrieves the
last saved version.
• Clears all changes and restores the default settings.

Add New Record   Clears any values you've specified on the form, restores any default values,
and initiates the creation of a new entity.

Delete   Deletes the currently selected entity, clears any values you have specified on
the form, and populates elements with the default values that the system in-
serts when a new entity is created.

You can delete an entity only if it is not linked with another enti-
ty.
 Appendix | 479

Button Icon Description

Clipboard   Provides menu commands you can use to do the following:

• Copy: Copy the selected entity to the clipboard.
• Paste: Paste an entity or template from the clipboard.
• Save as Template: Create a template based on the selected entity.
• Import from XML: Import an entity or a template from an .xml file.
• Export to XML: Export the selected entity to an .xml file.
For more information on templates and copy-and-paste operations in
Acumatica ERP, see Using Forms. For more information on importing and ex-
porting .xml files, see Importing and Exporting Data to Excel and XML in the
Acumatica ERP User Guide.

Go to First Record   Displays the first entity (in the list of entities of the specific type) and its de-
tails.

Go to Previous   Displays the previous entity and its details.

Record

Go to Next Record   Displays the next entity and its details.

Go to Last Record   Displays the last entity (in the list of entities of the specific type) and its de-
tails.

View Schedule   Gives you the ability to schedule the processing. For more information, see
Automated Processing: General Information.

Inquiry Form Toolbar Buttons

Acumatica ERP inquiry forms present data in a tabular format; they may also have selection criteria you can use
to filter the data in the table. Predefined inquiry forms are provided as part of Acumatica ERP out of the box, and
inquiry forms can be designed by a user with the appropriate access rights by using the Generic Inquiry tool (for
details, see Managing Generic Inquiries in the Acumatica ERP Reporting Tools Guide). A form toolbar of an inquiry
form contains both the standard form toolbar buttons (described in the table above) and the additional buttons
described below.

Button Icon Description

Refresh   Refreshes the inquiry data in the table.

Cancel   Clears all changes (including selection criteria that has been specified, if the
generic inquiry form has this criteria) and restores the default settings.
 Appendix | 480

Button Icon Description

Add New Record   Initiates the creation of a new entity.

Edit   Opens the applicable data entry form with the selected record.

Fit to Screen   Expands the form to fit on the screen and adjusts the column widths propor-
tionally.

Export to Excel   Exports the data to an Excel file. For more information, see Integration with Ex-
cel in the Acumatica ERP Getting Started Guide.

Filter Settings   Opens the Filter Settings dialog box, which you can use to define a new filter.
After the filter has been created and saved, the corresponding tab appears on
the table. For more information about filtering, see Filters.

The More Menu and Form-Specific Buttons

If there are multiple form-specific commands on the form toolbar, they are displayed on a single menu—the More
menu—and listed under descriptive categories, which makes it easier to find the needed menu command. On the
More menu, you can easily define your favorite menu commands, which eases access to them.
On some forms, the system places a button (which is highlighted in green) on the form toolbar for the expected next
command, which represents the likely next step to be performed on the selected record. The following screenshot,
which shows the Cash Transactions (CA304000) form, illustrates an example of the form toolbar and the More menu,
which contains categories and menu commands.

Figure: The form toolbar of the Transactions form

The numbered items in the screenshot indicate the following:

1. A highlighted button for the expected next command, which represents the next logical step to be
performed on the record selected on the form
2. Another button for a command that is commonly performed on the form
3. The More button, which you click to open the More menu
 Appendix | 481

4. The More menu with most form-specific menu commands and descriptive categories on it
5. The star icon, which is used to mark the individual user's favorite commands on the form
6. An unavailable command

Favorite Commands
Based on your role in the company and your job duties, you may use some commands more oen than others.
On the form toolbar, you can specify these commands as favorites. This will cause the system to duplicate the
commands as form toolbar buttons, easing access to them.
To add a command to the form toolbar as a button, you open the More menu, hover over the needed command,
and click the star icon when it appears. The yellow color of the star indicates that the command has been added
to your favorites, and a button for the command appears on the form toolbar immediately. The following example
shows two commands that have been added to the user's favorites on the Invoices and Memos (AR301000) form
and thus added as buttons on the form toolbar.

Figure: Favorite commands on the More menu and the corresponding toolbar buttons

Favorites are individual to each user account, specific to a particular form, and preserved across user sessions.

Highlighted Buttons and Commands

On some forms, the system applies predefined logic to commands for specific records. Based on this logic, the
system may place a button on the form toolbar, highlight it using some color, or do both of these things.
If a command is the expected next command (that is, the command that is most likely to be clicked for a record
with the current status), it is shown both on the form toolbar and on the More menu. The primary command on the
form toolbar is highlighted in green (see Item 1 in the following screenshot), and on the More menu, it is marked
with a green dot (Item 2). Below is an example of a cash transaction on the Cash Transactions (CA304000) form that
has the On Hold status (Item 3). Before you can process it, you need to remove it from hold. Because Remove Hold
is the next logical command, it is displayed as a button on the form toolbar and highlighted in green.
 Appendix | 482

Figure: The highlighted command and the corresponding status

Unavailable Commands on the More Menu

By default, on the More menu, the system displays all commands that could be available for the form, based on the
system configuration. Some of these commands may be unavailable (that is, they are listed but cannot be clicked).
These are the commands that are not applicable to the record based on its current status or other factors.

The Responsive Form Toolbar and More Menu

The form toolbar and the More menu have a responsive layout, meaning that they dynamically adjust to different
screen sizes. When there is enough space, buttons for highlighted and favorite commands are displayed on the
form toolbar. When the screen size decreases, the system moves the commands off the form toolbar one by one but
keeps them on the More menu.
If there are multiple categories on the More menu, the categories and menu commands can be displayed in
multiple columns on the More menu, depending on the screen size and the number of categories. When the
screen size decreases, the system moves some categories and menu commands to the le to decrease the number
of columns, and in the screens of the smallest size, all categories are displayed in one column. Below are two
examples of the same menu in different screen sizes for a record on the Bills and Adjustments (AP301000) form.
 Appendix | 483

Figure: The form toolbar and More menu on a wide screen

Figure: The form toolbar and More menu on a narrow screen

 Appendix | 484

Related Links
• Integration with Excel
• To Copy a Document Contents to a New Document
• To Create a Document with a Template

Table Toolbar

Each table on an Acumatica ERP form, tab, dialog box, or page has a table toolbar, which contains the buttons
you can use to work with the details or objects of the table. A toolbar, shown in the following screenshot, includes
buttons that are specific to the table, standard buttons that most table toolbars have, and the search box (for some
tables; for others, the search box is displayed in the filtering area).

Figure: Table toolbar

Standard Table Toolbar Buttons

The following table describes the standard table toolbar buttons. A table toolbar may include some or all of those
buttons. If a table toolbar includes table-specific buttons, they are described in the reference help topic.

Button Icon Description

Refresh   Refreshes the data in the table.

Switch Between   Controls how the elements are displayed: in a table (grid) with rows and columns;
Grid and Form or as separately arranged elements for one table row, with navigation tools you use
to move between row data.

Add Row   Appends a new row to the table so you can define a new detail or object. The new
row may contain some default values.

Delete Row   Deletes the selected row.

 Appendix | 485

Button Icon Description

Move Row Up   Moves the selected row one position up.

Move Row Down   Moves the selected row one position down.

Fit to Screen   Adjusts the table to the screen width and makes the column width proportional.

Export to Excel   Exports the data in the table to an Excel file. For more information, see Integration
with Excel in the Acumatica ERP Getting Started Guide.

Filter Settings   Opens the Filter Settings dialog box, which you can use to define a new advanced
filter. After you create and save the filter, the corresponding tab appears on the ta-
ble.
For more information about filtering, see Filters. For details on the Filter Settings
dialog box, see Filter Settings Dialog Box.

Load Records   Opens the File Upload dialog box, described in detail below, so you can locate and
from File upload a local file for import. You can use this option to import data from an Excel
spreadsheet (.xlsx) or .csv file. For the detailed procedure, see To Import Data
from a Local File to a Table.

Search   A box in which you can type a word, part of a word, or multiple words. As you type,
the system filters the contents of the table to display only rows that contain the
string you have typed in any column.

Download   Downloads the selected file.

File Upload Dialog Box

With the File Upload dialog box, you select a file of one of the supported formats (.csv or .xlsx) to import data
from the file.

Element Description

File Path The path to the file you want to upload.

To select the file, click Browse, and then find and select the file you want to upload.

The dialog box has the following button.

Upload Closes the dialog box and opens the Common Settings dialog box, where you specify the
import settings.
 Appendix | 486

Common Settings Dialog Box

In the Common Settings dialog box, which opens if you click Upload in the File Upload dialog box, you specify the
import settings for a file that you has selected in the File Upload dialog box.

Element Description

Separator Chars The character that is used as the separator in the imported file.
By default, the comma is used as the separator. You specify the separator character if the
imported file uses any other separator.
This box appears only if you import data from a .csv file.

Null Value Optional. The value that is used to mark an empty column in the imported file. You speci-
fy the null value if the value in the imported file differs from the empty string.

Encoding The encoding that is used in the imported file.

This box appears only if you import data from a .csv file.

Culture The regional format that has been used to display the time, currency, and other measure-
ments in the imported file.

Mode The mode defining which rows of the uploaded file will be imported into the table. The
following options are available:
• Update Existing: The rows already present in the table will be updated, and the rows
not present in the table will be added.
• Bypass Existing: Only the new rows that are not present in the table will be imported.
The rows that are already present in the table will not be updated.
• Insert All Records: All the rows from the file will be imported into the table.

If you select this option, you may get duplicated rows because the sys-
tem won't check for duplicates when importing rows from the file.

The dialog box has the following buttons.

OK Closes the dialog box and opens the Columns dialog box.

Cancel Closes the dialog box without importing the data from the file.

Columns Dialog Box

In the Columns dialog box, which opens if you click OK in the Common Settings dialog box, you match the
columns in the imported file that you have selected in the File Upload dialog box to the columns in the Acumatica
ERP table to which you are importing data.

Element Description

Column Name The name of the column in the uploaded file.

Property Name The name of the corresponding column in the table in Acumatica ERP.
 Appendix | 487

Element Description

The dialog box has the following buttons.

OK Closes the dialog box and imports the selected file.

Cancel Closes the dialog box without importing the data from the file.

Related Links
• Tables
• Integration with Excel
• To Import Data from a Local File to a Table