Exercise 13: Configure Purchasing

Task 1: Complete the vendor card

Scenario

As the functional consultant, you are collecting more information about the purchase process, and more particularly about the vendors who you are purchasing from and the conditions surrounding ordering and delivering of the purchased items.

In order to supply the brand-new European warehouse and to deliver the computer hardware items to the European customers, these items are purchased from European wholesalers. Some of these vendors have different sales points throughout the country.

Vendor Robert Townes is Contoso’s main supplier for all computer hardware items. They have different locations from where to order:

  • Computers and monitors need to be ordered at the following location:

    Nyborgvej 566, DK-5000 ODENSE C – contact: Hr. Allan Vinther-Wahl

  • Other computer accessories are sold from another location:

    Havnevej 6, DK-4600 KOGE – contact: Fr. Karen Friske

Robert Townes guarantees to deliver all goods within 5 days, according to the ‘cost and freight’ shipment method.

You will perform -

  1. Create an order address for the vendor

  2. Specify receiving information

Steps

  1. Create an order address for the vendor

    1. Select the Search icon in the top-right corner of the page, enter Vendors and then choose the related link.

    2. On the Vendors list page, select vendor Robert Townes (V9002).

    3. To open the vendor card, select Manage and then select Edit.

    4. In the vendor card, select Related, then select Vendor and then Order Addresses.

    5. In the opened Order Address List page, select + New.

    6. In the opened order address card, fill in the following fields:

      1. In the Code field, enter COMP&MON

      2. In the Name field, the value Robert Townes is automatically filled in.

      3. In the Address field, enter Nyborgvej 566.

      4. In the City field, enter ODENSE C.

      5. In the ZIP Code field, the value DK-5000 is automatically filled in.

      6. In the Country/Region Code field, the value DK is automatically filled in.

      7. In the Contact field, enter Hr. Allan Vinther-Wahl.

    7. Close the order address card.

    8. In the opened Order Address List page, select + New.

    9. In the opened order address card, fill in the following fields:

      1. In the Code field, enter ACCESSORIE

      2. In the Name field, the value Robert Townes is automatically filled in.

      3. In the Address field, enter Havnevej 6.

      4. In the City field, enter KOGE.

      5. In the ZIP Code field, the value DK-4600 is automatically filled in.

      6. In the Country/Region Code field, the value DK is automatically filled in.

      7. In the Contact field, enter Fr. Karen Friske.

    10. Close the order address card.

    11. Close the Order Address List page.

  2. Specify receiving information

    1. On the vendor card for vendor Robert Townes, go to the Receiving FastTab.

    2. In the Location Code field, enter EUROP.

    3. In the Shipment Method Code field, enter CFR.

    4. In the Lead Time Calculation field, enter 5D.

Task 2: Complete the item card

Scenario

The computer hardware items are not manufactured by Contoso, but purchased through wholesalers, with Robert Townes considered to be the main supplier.

Robert Townes guarantees to deliver all goods within 5 days, however some special items may take a bit longer and have a deviating delivery time. For example, the 17” monitor will take up to 7 days to deliver.

All items can only be purchased in boxes, containing 10 pieces of the hardware.

You need to set up the replenishment information on the item card.

Remark: For exercise purposes, only set up the catalog for the monitors.

You will perform

  1. Specify replenishment information

Steps

  1. Specify replenishment information

    1. Select the Search icon in the top-right corner of the page, enter Items, and then choose the related link.

    2. On the Items list page, select item 15” 1501 FP Flat Panel (CHW1002)

    3. To open the item card, select Manage and then select Edit.

    4. In the item card, go to the Replenishment FastTab and fill in the following fields:

      1. In the Replenishment System field, leave the default value Purchase.

      2. In the Lead Time Calculation field, enter 5D.

      3. In the Vendor No. field, enter V9002.

      4. In the Purch. Unit of Measure field, the value PCS is already filled in. Click on the Look Up Value button and select + New.

      5. In the opened Item Units of Measure page, fill in the following fields:

        1. In the Code field, enter BOX.

        2. In the Qty. per Unit of Measure field, enter 10.

      6. Click OK to close the page.

      7. The new code is automatically filled in the Purch. Unit of Measure field on the item card.

    5. Close the item card.

    6. On the Items list page, select item 17” M780 Monitor (CHW1003)

    7. To open the item card, select Manage and then select Edit.

    8. In the item card, go to the Replenishment FastTab and fill in the following fields:

      1. In the Replenishment System field, leave the default value Purchase.

      2. In the Lead Time Calculation field, enter 7D.

      3. In the Vendor No. field, enter V9002.

      4. In the Purch. Unit of Measure field, the value PCS is already filled in. Click on the Look Up Value button and select + New.

      5. In the opened Item Units of Measure page, fill in the following fields:

        1. In the Code field, enter BOX.

        2. In the Qty. per Unit of Measure field, enter 10.

      6. Click OK to close the page.

      7. The new code is automatically filled in the Purch. Unit of Measure field on the item card.

    9. Close the item card.

Task 3: Set up an item vendor catalog

Scenario

Although Robert Townes is considered the main supplier for all computer hardware items, these products can also be purchased with other vendors. For example, when the item is temporarily out of stock.

When replenishing the item, Contoso will use the requisition worksheet, where the main supplier will be suggested. However, it must be possible to order from other available suppliers as well. Purchase orders will be sent to the vendors, based on the vendors item numbers.

You will set up an item vendor catalog for all computer hardware items, as follows:

  • All items can be purchased with vendor Robert Townes (V9002).

  • All monitors can be purchased with vendor School of Fine Art (V9005) and can be provided within 2 days:

    • PLM-345 = 15” 1501 FP Flat Panel

    • PLM-346 = 17” M780 Monitor

  • All accessories can be purchased with vendor Meagan Bond (V9006) and can be provided within 10 days:

    • WMSA-10035 = Advanced Mouse

    • WMSA-10036 = Quietkey keyboard

    • WMSA-10037 = Speakers

Remark: For exercise purposes, only set up the catalog for the monitors.

You will perform

  1. Set up an item vendor catalog

Steps

  1. Set up an item vendor catalog

    1. On the Items list page, select item 15” 1501 FP Flat Panel (CHW1002)

    2. To open the item card, select Manage and then select Edit.

    3. In the item card, select Related, then select Purchases and then Vendors.

    4. On the opened Item Vendor Catalog page, select + New.

    5. On the new line, fill in the following fields:

      1. In the Vendor No. field, enter V9005.

      2. In the Vendor Item No. field, enter PLM-345.

      3. In the Lead Time Calculation field, enter 2D.

    6. Close the Item Vendor Catalog page.

    7. Close the item card.

    8. On the Items list page, select item 17” M780 Monitor (CHW1003)

    9. To open the item card, select Manage and then select Edit.

    10. In the item card, select Related, then select Purchases and then Vendors.

    11. On the opened Item Vendor Catalog page, select + New.

    12. On the new line, fill in the following fields:

      1. In the Vendor No. field, enter V9005.

      2. In the Vendor Item No. field, enter PLM-346.

      3. In the Lead Time Calculation field, enter 2D.

    13. Close the Item Vendor Catalog page.

    14. Close the item card.

Task 4: Configure recurring purchase lines

Scenario

Next to the suppliers of trading goods, Contoso also has a numerous amount of other costs. Often on a monthly recurring basis, the same purchase invoices need to be processed.

To reduce the processing time, you explain the configuration of ‘recurring purchase lines’ and together with the accounting manager, you set up the following example:

Contoso has to pay health and dental insurance for each employee at the company. They receive a monthly invoice with a fixed amount. These costs need to be processed per department, as follows:

  • The total amount of the invoice is CAD 1,200.00, which is processed on the 610000 income statement account.

  • 25% of the cost is for the sales department.

  • 35% of the cost is for the administration department.

  • 40% of the cost is for the production department.

You need to set up the recurring purchase lines for vendor Alpine Ski House (V9007), so that these lines are automatically filled in when creating a new purchase invoice.

You will perform

  1. Configure recurring purchase lines

Steps

  1. Configure recurring purchase lines

    1. Select the Search icon in the top-right corner of the page, enter Vendors and then choose the related link.

    2. On the Vendors list page, select vendor Alpine Ski House (V9007).

    3. Select Related, then Purchases and then select Recurring Purchase Lines.

    4. On the opened Recurring Purchase Lines page, select + New.

    5. On the new line, fill in the following fields:

      1. Click on the Look Up Value button in the Code field and select + New.

      2. On the opened Standard Purchase Code Card page, fill in the following fields:

        1. In the Code field, enter INSURANCE

        2. In the Description field, enter Monthly health insurance

        3. In the Currency Code field, enter CAD.

        4. In the Lines section, create a new line, and fill in the following fields:

          1. In the Type field, select the G/L Account option.

          2. In the No. field, enter 61000.

          3. In the Quantity field, enter 1.

          4. Add the Amount Excl. Tax field:

            1. Click on the Settings icon in the top-right corner and select Personalize.

            2. Click More on the Personalizing ribbon.

            3. Select the Lines area and click + Field in the Personalizing ribbon.

            4. An Add field to page pane will appear on the right side.

            5. Select the Amount Excl. Tax field and drag it to the right of Quantity column in the Lines area

            6. Click Done to close Personalization.

            7. In the Amount Excl. Tax field, enter 300. (25% of 1,200.00)

          5. In the Department Code field, enter SALES.

        5. In the Lines section, create a new line, and fill in the following fields:

          1. In the Type field, select the G/L Account option.

          2. In the No. field, enter 61000.

          3. In the Quantity field, enter 1.

          4. In the Amount excl. Tax field, enter 420. (35% of 1,200.00)

          5. In the Department Code field, enter ADM.

        6. In the Lines section, create a new line, and fill in the following fields:

          1. In the Type field, select the G/L Account option.

          2. In the No. field, enter 61000.

          3. In the Quantity field, enter 1.

          4. In the Amount excl. Tax field, enter 480. (40% of 1,200.00)

          5. In the Department Code field, enter PROD.

        7. Close the Standard Purchase Code Card page.

        8. Click OK to close the Recurring Purchase Lines page.

      3. The new code is now automatically filled in in the Code field on the Recurring Purchase Lines page.

      4. In the Insert Rec. Lines on Invoices field, select the Automatic option.

    6. Close the Recurring Purchase Lines page