Exercise 15: Process Purchase

Task 1: Process a purchase from order to invoice and review the posted documents

Scenario

As the purchasing agent you are replenishing the stock for the European warehouse. The computer monitors are currently low on stock and a purchase order with their main vendor Robert Townes is placed on January 1st, 2023. It was agreed to always invoice in USD instead of their currency (DKK) and a purchase request is sent to the correct order address for the following items to be delivered on January 5th, 2023:

• 100 pieces of the 15” flat panel at $ 4,999.89 a box, containing 10 pieces.

• 50 pieces of the 17” monitor at $ 5,348.56 a box, containing 10 pieces

The purchase request is confirmed by the vendor on January 8th, 2023, with order confirmation OC15-479. They mention a delivery delay of a couple of days, expecting to be able to deliver the entire order on January 12th, 2023.

Eventually the goods are delivered with delivery notes DN01-47 on January 16th, 2023, as follows:

• 11 boxes of the 15” flat panel – this is 1 box more than ordered

• 4 boxes of the 17” monitor – this is 1 box less than ordered

The purchase invoice with number 20-0747 is received by mail on January 20th, 2023, where a 5% discount is granted on the 15” monitors as a compensation for the delivery delay. The invoice needs to be paid within 30 days.

You will perform-

1. Change the currency code on the vendor.

2. Create a purchase order.

3. Receive items on the purchase order.

4. Create a posted purchase invoice from the purchase order.

5. Review the posted purchase receipt and invoice.

Steps

1. Change the currency code on 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. Select Manage and then select Edit.

   4. On the opened vendor card, go to the Invoicing FastTab, and click Show more.

   5. Leave the Currency Code field blank.

2. Create a purchase order.

   1. On the vendor card, select New Document and then select Purchase Order.

   2. On the General FastTab, fill in the following fields:

      1. In the Document Date and Order Date fields, enter 1/1/2023.

      2. In the Alternate Vendor Address Code field, enter COMP&MON.

      3. In the Vendor Order No. field, enter OC15-479.

   3. On the Invoice Details FastTab, click Show more and then fill in the following fields:

      1. In the Requested Receipt Date field, enter 1/05/2023.

      2. In the Promised Receipt Date field, enter 1/12/2023.

   4. On the Lines section, enter a new line by filling in the following field:

      1. In the Type field, enter Item.

      2. In the No. field, enter CHW1002 for the 15” flat panels.

      3. In the Location Code field, the value EUROP is automatically filled in.

      4. In the Unit of Measure Code field, the value BOX is automatically filled in.

      5. In the Quantity field, enter 10.

      6. In the Direct Unit Cost Excl. Tax field, enter 4,999.89.

      7. In the Tax Group Code, enter NONTAXABLE.

   5. On the Lines section, enter a new line by filling in the following field:

      1. In the Type field, enter Item.

      2. In the No. field, enter CHW1003 for the 17” flat panels.

      3. In the Location Code field, the value EUROP is automatically filled in.

      4. In the Unit of Measure Code field, the value BOX is automatically filled in.

      5. In the Quantity field, enter 5.

      6. In the Direct Unit Cost Excl. Tax field, enter 5,348.56.

      7. In the Tax Group Code, enter NONTAXABLE.

   6. Select Release.

3. Receive items on the purchase order.

   1. On the General FastTab, fill in the following fields:

      1. In the Posting Date field, enter 1/16/2022.

      2. In the Vendor Shipment No. field, enter DN01-47.

   2. On the Lines section, select the line for item CHW1002, and fill in the following fields:

      1. In the Over-Receipt Code field, enter OVERRCPT10.

      2. In the Qty. to Receive field, enter 11.

   3. On the Lines section, select the line for item CHW1003, and fill in the following fields:

      1. In the Qty. to Receive field, enter 4.

   4. Select the dropdown of Posting, and then select Post.

   5. Select the Receive option and click OK.

4. Create a posted purchase invoice from the purchase order.

   1. Select the dropdown of Release, and then select Reopen.

   2. On the General FastTab, fill in the following fields:

      1. In the Posting Date field, enter 1/18/2023.

      2. In the Vendor Invoice No. field, enter 20-0747.

   3. On the Invoice Details FastTab, in the Payment Terms Code field, enter 30 DAYS.

   4. On the Lines section, select the line for item CHW1002, and click on the Settings icon in the top-right corner.

   5. Select Personalize to add the Line Discount% field.

   6. Click More on the Personalizing ribbon.

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

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

   9. Select Line Discount % from the Add Field to Page pane and drag it to the right of Quantity column in the Lines area.

   10. fill in the following fields:

       1. In the Line Discount% field, enter 5.

   11. Select the dropdown next to Posting, and then select Post.

   12. Select the Invoice option and click OK.

5. Review the posted purchase receipt and invoice.

   1. Select Order and select Receipts.

   2. On the Posted Purchase Receipts page, select Find Entries.

   3. Select the line for Item Ledger Entry and select Show Related Entries.

   4. Close the Item Ledger Entries page.

   5. Close the Find Entries page.

   6. On the Purchase Order page, select Order and then select Invoices.

   7. On the Posted Purchase Invoices page, select Find Entries.

   8. Select the line for G/L entries and select Show Related Entries.

   9. Close the General Ledger Entries page.

   10. Close the Find Entries page.

Task 2: Process the return of a purchase from return order to credit memo

Scenario

While putting away stock, one of the delivered boxes of the 17” monitors turns out to be damaged. Robert Townes will refund these items on return, which is done on January 24th, 2023.

The purchase credit memo, with the same payment conditions as the invoice, and with number 20-CN0747, is received by mail on February 3rd, 2023. The correct amount of $ 4,999.89 a box will be repaid to Contoso.

You will perform -

1. Create a purchase return order

2. Ship the items

3. Create a posted purchase credit memo from the purchase return order

Steps

1. Create a purchase return order.

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

   2. In the Purchase Return Orders list page, select + New.

   3. On the General FastTab, fill in the following fields:

      1. In the Vendor Name field, enter Robert Townes (V9002).

      2. In the Document Date and Order Date fields, enter 1/24/2023.

   4. On the Invoice Details FastTab, in the Payment Terms Code field enter 30 DAYS.

   5. Select Prepare, and then select Get Posted Document Lines to Reverse…

   6. In the opened page, fill in the following options:

      1. Select the Show Reversible Lines Only checkbox

      2. In the Document Type Filter field, enter the Posted Invoices option.

      3. Select the line for item CHW1003.

      4. Click OK.

   7. On the Lines section on the purchase return order, select the line for CHW1003 and then change the Quantity field to the value 1.

   8. Select Release.

2. Ship the items.

   1. On the General FastTab, click Show more and then fill in the following fields:

      1. In the Posting Date field, enter 1/31/2023.

      2. In the Vendor Cr. Memo No. field, enter 20-CN0747.

   2. Select the dropdown next to Posting, and then select Post.

   3. Select the Ship option and click OK.

3. Create a posted purchase credit memo from the purchase return order.

   1. On the General FastTab, fill in the following fields:

      1. In the Posting Date field, enter 2/3/2023.

      2. In the Vendor Cr. Memo No. field, enter 20-CN0747.

   2. Select the dropdown next to Posting, and then select Post.

   3. Select the Invoice option and click OK.

   4. Click No to open the posted purchase credit memo.

Task 3: Process a purchase invoice for costs

Scenario

The accounting department at Contoso receives a cost invoice from vendor Robert Townes, with an invoice date 3/6/2023 and invoice number OW-21-M2458. The invoice needs to be paid within 15 days.

The invoice is for the monthly health and insurance cost of CAD 1,200.00, which is processed per department.

The accounting manager has already set up a purchase recurring line for this vendor (see Lab 4.2 exercise 4).

You need to process the invoice.

You will perform

1. Process a purchase invoice using recurring purchase lines

Steps

1. Process a purchase invoice using recurring purchase lines

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

   2. In the Purchase Invoices list page, select + New.

   3. On the General FastTab, fill in the following fields:

      1. In the Vendor Name field, enter Robert Townes (V9002).

      2. In the Posting Date field, enter 3/6/2023.

      3. In the Vendor Invoice No. field, enter OW-21-M2458.

   4. On the Invoice Details FastTab, in the Payment Terms Code field enter 15 DAYS.

   5. On the Lines section, the invoice lines for the health insurance per department are automatically filled in.

      1. On the Lines field, add a new line and enter Item in the Type field.

      2. Enter the item CHW1002 in the No. field.

      3. Enter 4 in the Quantity field.

   6. Select Post.

   7. Click Yes to post.

   8. Click No to open the posted invoice.