freight only purchase orders

Freight-only purchase orders are only used when freight charges are required to transfer the product from facility to facility and there are required charges to an external/internal vendor to haul the product. These transactions are created using Facility Transfers.

Create a Freight-Only Purchase Order

The following options are outlined in the Freight-Only Purchase Order document:

• Creating a Freight-Only Purchase Order
• Purchase Order Header
• Purchase Order Line Details
• Posting a Purchase Order

Purchase Order Header

The purchase order header contains the base data to outline the freight-only purchase order. The header is divided into two sections to group the data that is entered in the purchase order.

• Purchase Order - establishes the base data for the purchase order.
• Derived - displays derived data based on the details that have been entered in Purchase Order.

Purchase Order

The Purchase Order tab contains the base data for the purchase order.

1. In General>Purchases, select Orders.

2. In the Purchase Orders index, click to create a new purchase order.

3. Click on the Purchase Order tab.
   
   
   

4. In the PO No field, the purchase order number will auto-generate. The user can override the PO No if required.

5. In the PO Date field, the current date will default as this field represents the date that purchase order was created.

6. From Buyer No, select the buyer that is assigned to the purchase order. Buyers are created in: Admin>Business>Definitions>Buyers.

7. From Vendor No, select the vendor that will supply the products on the purchase order.

8. Location Id is used if the vendor has multiple locations that ship products. Use the drop-down menu to select the appropriate location. Locations are defined in General>Master Data>Vendors.

9. From Broker No, select the broker that is assigned to the purchase order. Brokers are created in: Admin>Business>General>Definitions>Brokers.

10. In the Supplier Ref No field, enter the reference number that the vendor supplied in regards to the purchase order. An example may the vendor's order number generated from the purchase order.

11. From Dest Cost Center No, select the cost center that will receive the products identified on the purchase order. This is also referred to as the destination cost center which will be receiving the transferred goods.

12. From Pickup Cost Center No, select the cost center from which the products will be picked up.  This is also referred to as the source cost center which will be shipping the goods to the destination cost center.

13. In the Comments field, enter any additional information related to the purchase order.

14. Freight Term No determines the freight terms for the purchase order. Freight terms default from the vendor but can be modified if necessary. Some common examples of freight terms are: FOB, CIF.  This field is typically not used for freight only options as the goods are being transferred between two internal facilities.

15. In the Attachment field, any type of file can be attached (Example: Word document, picture, music or video clip).

16. Select the Void Flag to nullify the purchase order.

Derived

The fields in the Derived tab will automatically generate  based on the selections in the Purchase Order tab. The Derived fields cannot be modified.

Line Item Order Details

After completing the header of the order, the freight line can be added to the purchase order. There are several fields and tabs in the Purchase Order Line Details that also must be  completed in the creation process. There are many fields in the details, however they can be sorted or removed to accommodate the user requirements. For this document, they have been divided into different parts in order to show a screenshot of all fields.

1. Click on the PO Line Items grid
2. Click the drop down arrow beside and select Add Freight Only Line to create a new purchase order freight detail line.

3. The freight line will default with the following fields established with no option to edit
1. Haulage Vendor No is  derived from the vendor defined in the purchase order header and will be the vendor responsible for hauling the product between facilities.
2. Freight Type defaults to Freight Only and cannot be modified.





4. The PO Line No is assigned by default and indicates the purchase order for the selected line.

5. Dest Cost Center No and Dest Cost Center Name will default based on the Dest Cost Center No with no option to modify. This will be the feed mill receiving the transferred product.

6. Price Mode determines where in the process the price can be changed. Select the required Price Mode. Available options are:

1. PO Price - The vendor will be paid based on the price entered on the purchase order. Any differences recognized at invoice will require a debit or credit memo to adjust for the difference. Debit and credit memo amounts will be applied to a purchase price variance account.

2. Invoice Price - The purchase invoice can be adjusted based on the invoice received from the vendor. Differences between purchase order price and invoice price will be applied to a purchase price variance account.

3. Market Price - Freight will be received based on the prices established in Market Prices. The invoice will be paid to the vendor based on the received price. Further details related to this option can be located in Create market price purchase order.

7. Payment Term No defaults from the selected vendor. Payment terms can be modified if required.

8. Currency No defaults based on the currency assigned to the product vendor. Select from the list to change the currency.

9. Currency Name displays the currency rate that has been selected for the order.

10. Currency Exchange Rate automatically sets to the current exchange rate if the Currency No is changed. The currency rate can be manually entered if there is a guaranteed exchange rate related to the purchase order. Otherwise, the rate will be determined based on the rate that is in effect on the date that the product is received. The rate will also be adjusted at purchase invoice with the difference in rate between receive date and invoice date being coded to the foreign exchange gain/loss account.
    



 

11. From Vendor SKU No, select the freight product for the purchase order.
12. Vendor SKU Name will automatically default from the selected Vendor SKU No, and displays a description of the selected product.
13. The Product No will be derived based on the selected vendor sku.

14. Product Name will be derived from the Product No.

15. Product Type defaults to Freight and cannot be modified.

16. Unit Description displays how the freight will be calculated (Example: Tonnes).

17. Enter the number of Vendor Units that will be number of inventory units transferred from facility to facility.

18. In the Vendor Unit Price field, enter the purchase price that will be paid for each freight  unit. (Example: Enter the price per ton if using per ton calculated freight).
19. Enter the Price for the freight. For example, if the rate is $10/ton, enter $10.00. When the product is transferred, the appropriate freight cost will be calculated.
20. Total Add On Price indicates the total amount of premium add-ons for the freight. The add-on details are defined on the Premium Add-Ons tab of the child grid.
21. Total Discounts indicates the total amount of discount add-ons for the freight. The add-on details are defined on the Discount Add-Ons tab of the child grid.
22. Total Tax indicates the total amount of tax for the freight and add-ons. The tax codes must be added on the Taxes tab in order for taxes to be calculated. Taxes are estimated at the tie of the purchase order and determined at receipt.
23. Total Price represents the total amount of the purchase, including the freight, premiums, discounts, and taxes.
    

 



 

24. If the freight is Taxable, the flag must be checked to calculate taxes on the product. The tax code can be optionally added to the Vendor SKU, but must be added to the purchase order for taxes to be calculated.
25. Pay Basis determines if the vendor is paid based on received units or shipped units. The default is set to Received, but it can be modified..

26. Freight cannot be modified for a Freight product.

27. From Transport Type, select the method of transportation for the freight. Options are: Ground Pickup, Rail, Air, Water, or Ground Delivery. The default is set to Ground Delivery.
28. Enter the required number of loads In No of Receivings if there is a specified number of loads to deliver the freight. Otherwise, if only a single load is required, leave the default value of "0".
29. In the Begin Receive Date field, enter the earliest date the freight can be received. The date will default to the PO date and can be modified as required.
30. In the End Receive Date field, enter the last date the freight can be received. If the period is indefinite, leave the default value.
31. When the Closed flag is marked, the freight can no longer be received, even if the defined quantity has not yet been received. If the Closed flag is checked, the purchase order quantity will no longer appear on the PO Inventory.
32. In the Comments field, enter any additional comments related to the purchase order.
33. In the Contract Attachment field, any type of accompanying file can be attached. For example, a Word document, picture, music, or video clip.
34. Adjustments Units displays a value only if the purchase order has been adjusted using Purchases> Orders> Order Adjustments.
35. Adjustments Vendor Units displays a value only if the purchase order has been adjusted using Purchases> Orders> Order Adjustments..  

Post a Purchase Order

The purchase order must be saved and posted for the purchase order to be used in a Facility Transfer. Posting will also prevent a purchase order from being modified. With proper permissions, a purchase order can be un-posted and posted as many times as required until a facility transfer has been entered for the purchase order. Once a facility transfer has been entered, the purchase order can no longer be un-posted. If the approval process is implemented, the purchase order must be approved prior to being posted. Details related to approving purchase orders can be reviewed in Purchase Order Approval.

1. Click to save the purchase order.
2. Close the purchase order. If the purchase order has not been saved, the user will be prompted to save the purchase order.
3. In the purchase order index, locate the purchase order and right-click to select Post. Multiple purchase orders can be posted at the same time by highlighting the required purchase orders and right-click to select Post.