Contract/Purchase Order Link Overview

Purchase Order Overview Information Guide -> Contract/Purchase Order Link Overview

This processing provides the ability to link a P.O. to a Contract for selected re-rental equipment, and any supporting sales parts and sub-contract services.
The order can be generated on a new or existing Purchase Order at the time the product or service is put on a Contract.
Alternatively a contract can also be linked to a product order detail when the order is entered in Purchase Orders.
Typical items and services ordered to fulfil contracts include re-rent items, fuel, transport for owned or re-rentals, and erection or dismantling of equipment such as scaffolding and temporary fencing.

Note: This processing is for Contracts and does not apply to the Counter Worksheet.
It does apply when creating a contract as well as when a worksheet, quote, or reservation is converted to a contract.

This Purchase Order Information window is suppressed in document entry and a P.O. is not created if the product has been flagged to Stop P.O. in the Make/Model and Re-Order Information (Rental Assets) or the Inventory Re-Order Information (Sales Products) window.

To use this processing the 'Inventory Received in Warehouse' feature must be activated in the Company Inventory Parameters and the operator must have Document Field Access permission to the Contract - Create Linked Purchase Order feature in Security Role Permissions.
The Contract and the Purchase Order must be for the same division and the same location.
The Contract - Change Linked P.O. Sale Cost flag in the Document Field Access controls whether the operator is able to make changes to the P.O. Cost for a sales part being ordered in the Purchase Order Information window.


Following are the requirements for a product or service to be eligible for this processing in Purchase Orders and in Contracts:

In Contract inquiries, a window is provided on the product or service detail line in the Qty field to view any associated 'Purchase Order Details'.

Re-Rent Revenue Capture
Revenue from re-rent invoicing automatically writes records to Re-Rental Transactions when the invoices are posted through Daily Close 2, and then posts to the G/L accounts defined in the Re-Rent Product Class.

Re-Rent Costs Capture
Once the warehouse receiving is complete, multiple A/P invoices from the supplier for the re-rent period can be entered in A/P Invoices by P.O.
When the re-rent is completed the P.O. is closed when the final A/P invoice is entered and the Re-Rent Balance is set to zero, and that AP invoice is posted.
The Re-Rental Information window is used to capture the billing dates and rates.

As these invoices are posted, a re-rental cost transaction is written to the Re-Rental Transactions that can be viewed in Re-Rental Inquiry/Report.

Note: When a re-rent transaction is entered using a P.O./Contract link, the A/P invoice from the re-rent supplier must be entered in A/P Invoices by P.O. (not A/P Invoices) in order to complete the P.O. link and write the re-rental transactions.

Product costs, on hand quantities, and Asset Tags are not updated in the product file for re-rental and services ordered using the P.O./Contract link.

Note: Even if the flag to Update Average Cost In Warehouse is activated in the Company Inventory Parameters, costs are NOT updated for re-rent and services ordered using the P.O./Contract link process, as these items must post through A/P Invoices by P.O. to calculate appropriate costs.

Expense Reporting and Accrual Postings
The P.O./Contract Accrual Report can be used to calculated unbilled expenses up to a cut-off date and with the option to create self-reversing accrual journals written to Standard Journals and posted to the GL through Post Standard Journals.
The report can also be run for a date in advance and together with the Unbilled Revenue Report will be useful in giving a projection of month end performance at any point during the month.

Note: The corresponding Accrual entries will be over-written the next time the P.O./Contract Accrual Report is re-run and new transactions are created, regardless of whether the posting in Post Standard Journals has been completed.

Topic Keyword: CO_PO
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