What is a "Back to Back Purchase Order"?
Within ERP Go, users can raise a purchase order directly from the Purchase Orders area. However, in some cases, organisations may sell items that they do not hold in stock themselves or have back orders they want to fulfil immediately. In these instances, they send a back-to-back purchase order to the supplier once a sales order is confirmed, ensuring the item is delivered either directly to the customer or to their own warehouse just in time for dispatch.
In many instances these need a purchase order to complete the process accurately with an audit trail of what was ordered with a correct reference, so that when the invoice comes in from the supplier, it can be matched to the approved purchase order.
ERP Go allows you to easily raise the purchase orders for the relevant items, this guide shows you how it's done.
If you are looking to purchase items you can follow the guide below to see how it's done:
Creating Back to Back Purchase Orders:
Purchase from Quick Pick
Here you can optionally enter:
1: A supplier account
2: The suppliers price for the sale
3: The suppliers reference (usually their order number)
5: A setting where you can copy the supplier info entered to the accessories if applicable.
Note: If you have set a default supplier rate or buying price against your products, these are automatically loaded to save you time.
If you want to set the same supplier to a selection of items quickly, you can do so from the costing view explained below.
About the Supplier Reference:
Your supplier may give you different order numbers for different lines on your order, or they may give you the same reference for all lines - or even none at all.
Later, when you raise the linked purchase orders, there will be one purchase order per supplier reference, making it easier for your suppliers to tie a particular purchase order back to their own orders.
Copying the Supplier Information to the Accessories
When selecting to purchase, you'll see that the Copy to Accessories button appears - this allows you to copy the supplier information to the accessories to easily add them to the same purchase order, if applicable.
Once it's set, even if you don't add any accessories at that point and add them later, it will set the same supplier information automatically.
If you want to revert back to using your own accessories, you can switch it off at any point.
Purchase from Order item
Click Purchase on the Order Item menu
This will open the following screen
Additionally to above fields:
Quantity to Purchase: Defaults to the Back Order quantity. If no Back Order quantity is available, it defaults to the Ordered quantity.
Supplier Discount: Can be entered if applicable.
Note: When purchase order quantity is less than ordered quantity after clicking confirm the order item will be split in 2 separate lines.
Time to review the costs and raise the purchase orders!
When you have added all of your lines, click on the Costs button
The Costs View:
The costs mode of the order allows you to see all of the costs associated with your order before you raise any necessary purchase orders.
This is a great way of being able to see what you are going to be charged and set all of the required settings before raising the purchase orders.
Within the costs view you can see any items that are to be purchased
from a supplier. Here by clicking "price" or "discount" you can edit the values directly. You can also click on Action and Edit to edit the line information in more detail - for example to remove the supplier, or change the supplier price.
You can use the blue ticks on the left hand side to select the items you want to process an action for.
Creating Purchase Orders
When you've set a supplier, a buying price and any necessary supplier reference, you can click the "Create Purchase Order" button to raise the purchase orders.
Before you click the Create Purchase Orders button you can set the purchase order address to be the Delivery Address of the customer Delivery Address or your Depot Address.
Then click Create Purchase Orders, you are asked to confirm - once you have confirmed yes - the purchase orders are created and the following screen displays:
The Total Cost here is including VAT.
Here you can click through to the linked Purchase Order by clicking on the PO number field or simply view and send it to the supplier by clicking the "Print" button.
If you have one supplier and the same supplier reference, then there will be one purchase order, if there is one supplier but two different supplier references then there will be two purchase orders.
Viewing the Margin - Costs vs Revenue - on an order:
In order to view the margin be sure the Standard Costs are set on your Products and Stock Items.
By setting the end dates, this allows the projected rental charges and costs to calculate because they have a specified end date.
When you do this, you'll notice on the order screen the margin displays as follows in the following section:
FAQ:
What if I am not allowed to authorise a purchase order?
If the user has the permission to authorise a purchase order disabled against their role, the purchase order will not be given a number and will simply be a "Draft" purchase order. A user who has got the permission set to authorise a purchase order will need to go into the Draft Purchase Order, then approve it, to assign a purchase order number.
What if the purchase order I created was wrong and I want to regenerate a new one?
If this situation arises, you can simply edit the purchase order and then delete it depending on your permissions. Then this will unlink the purchase order from the costs and you can regenerate a new one by following the process as described above.
Can I find the linked Order from the Purchase Order screen?
Yes - you can see the Source Order link on the left of the purchase order page.
Can I create a new supplier directly from the Supplier selection?
Yes if you are in the "Add Item" or "Edit Item" page (not Quick Pick) where you select the supplier you'll see an "Add Supplier" button if you search for a supplier and one cannot be found. You can then create the supplier and when you click save, it will go back to the edit item page and add them automatically.