Sage 100

A current client is looking for the best way to handle purchasing dilemmas. Looking for feedback from the experts here: They issue a purchase order for items, but always have discrepancies in receiving AND invoicing quantities. They order 25,000 of item A, and never receive 25,000 and the discrepancies typically are better than 10%. This is the case for all of the vendors they deal with in this industry. The invoices then come in and the quantities on the invoice typically don't agree with the quantities received (in fairness some are rounded). So they have been bypassing ROI and putting them in through A/P. PO Clearing is a mess. They are looking for the ""Best Practices"" approach to using the Sage 100 ERP PO module. Suggestions?

My recommendation would be to have the user that is doing the PO Receipt of Goods (or a back office person after the fact, if the warehouse is doing the PO Receipt of Goods); modify the Quantity Ordered to match the Quantity Received. Do this step before the invoice is received. I would also recommend a PO Form that is for accounting purposes, that lists the Quantity Ordered, Quantity Received and Quantity Invoiced. I typically setup a form like this with a ""message"" that highlights discrepancies. It could be anything from just an "" * "" to spotlight a discrepancy, or a message like ""Under Received"" or ""Over Received"". Accounting would print this PO form to review before receiving in the Invoice. If the Qty Ordered does not match the Quantity Received, that should be fixed first. Then do the PO Receipt of Invoice to match the quantity received. That might not be the same quantity on the Vendor Invoice, but as long as the ""extend"" dollar amount matches the Vendor Invoice, you should be good. This process will properly close the line of the PO (three way match). As well as drop the line off of the PO Clearing Report.

What version of Sage??? Seems like a little training is in order but not sure about ""best"" practices. it seems like the industry practice to ship one amount, then bill another. Wow! Hard to be consistent with this inconsistency. I would start with ensuring that the order field, receipt field and invoice quantity all appear sided by on the various panels. In the good old days, you had to train the folks to look in the lower left corner to see this information. Company HAS to decide what to do when an item is short shipped and received. Probably should zero back order the quantity. If invoice is different than received quantity AND this will be the only invoice AND the difference isn't worth chasing, then invoice the quantity received but change the invoice amount to reflect the total invoice. Unfortunately, this will change the unit cost on the original PO. Maybe using Sage Alerts to notify the responsible parties each day when differences arise would make them aware of issues WHEN they arise.... Sadly, purchases clearing is a CF. But it can be managed with education.

Thanks, will run by them. They are on 4.5 with an upgrade to 2014 being scheduled this month.

No changes between versions.

I believe if you zero out the backordered amount when receiving goods other than what was ordered, it will also close out the line once completed. I would also set the partially close POs option to 10%. The important thing is the ROG must equal the ROI.