Introducing the Purchase Orders Module

Note: The Accounts Payable and Encumbrance modules must be installed in order to use the Purchase Orders module.

The Purchase Orders module provides easy entry for purchase orders. It is designed to handle repeat buying practices, as well as one-time purchase entries. You can create customized codes for commonly ordered items. Automatic item quantity and pricing, along with totaling, save time and avoids costly errors.

The Purchase Orders module integrates seamlessly with the Encumbrances module allowing you to create encumbrance entries directly from purchase order information. Using the Choose Items/Encumbrances form to select individual purchase order line items for recording invoices or paying vendors achieves integration with the Accounts Payable, Cash Disbursements, and the Write Checks transaction entry forms. If the purchase orders are encumbered, encumbrance liquidations will be processed simultaneously. Line item cancellations, receipts, and receipt adjustments are easily accessible through toolbar buttons on the transaction entry form, thus providing additional control over tracking and compliance.

The Purchase Orders module offers two work flow options for processing purchase orders: Skip Receiving and Receiving. These options can be used exclusively or together.

  • The Skip Receiving option flows directly to the Accounts Payable, Cash Disbursement, and Write Check processes and is controlled by amounts rather then quantities. It is ideal for blanket purchase orders when multiple invoices or payments are processed against a single purchase order.
  • The Receiving option for processing purchase orders can strengthen your internal control and audit trail by providing strict monitoring of item quantities. Since quantities are the primary attribute, this method is ideal for organizations maintaining inventory. Because all purchase items must be received, the risk for paying for an item before it is received is eliminated.

To Add This Module

  1. First the Purchase Orders module must be added to the organization by the Administrator.
  2. Either add Purchase Orders to a current organization (Organization>Add a Module Wizard - Module Panel), or select the Purchase Orders module when creating a new organization (File>New Organization Wizard - Modules Panel).
  3. Once the Purchase Orders module has been applied to an organization, the Purchase Orders menu selections are available. These selections are integrated into the MIP Fund Accounting menu selections.
  4. There are Checklists available for setting up this module and its processes. Please refer to the online help (Help>Contents and Index>Reference) for modular specific menu selections, checklists, and common questions.