4.2 Purchase Orders, Receiving, & Invoicing Flashcards
What is the Purchase Orders application used for?
Create and modify purchase orders (POs)
What are internal POs generated from?
A storeroom
What can a storeroom-to-storeroom PO be likened to?
- Transfer order, or
- Internal PO
Which applications are used to track the internal movement of items?
Purchase Orders
Inventory Usage
List the applications that POs can be created from
- PO
- PR
- RFQ
- Inventory
- Purchase Contracts
How are POs typically created?
From a PR
Which action streamlines the PO creation process?
When creating a PO from a PR
Copy PR Line Items to PO
In Purchase Requisitions application
What is required to approve a PO?
Monetary approval limit that is equal to or greater than the total cost of the PO
Who sets the approval limits for each user, for POs?
System administrator
What can be specified (customized), pertaining to PR conversion to PO?
PRs must be approved before any of the PR items can be assigned to a PO
Can also specify this
What are the implications of configuring the setup (settings) to bypass validation of revisions to contracts associated with POs?
POs can be approved by any person in that group
Purchase Orders application
Complete Receipts action
What does this do?
Changes all the Purchase Order lines to show that receipts have been completed, and no lines will be added to the purchase order
Purchase Orders application
Impacts on status by Complete Receipts action
No status change on PO
Purchase Order
Editability once approved
Most fields cannot be edited
Purchase Order
How to edit after approval
Revision should be made
Purchase Orders
List statuses
- Waiting for Approval (WAPPR)
- In Progress (INPRG)
- Approved (APPR)
- Canceled (CAN)
- Closed (CLOSE)
- Pending Revision (PNDREV)
- Hold (HOLD)
- Revised (REVISD)
Purchase Orders
Default status
Waiting for Approval (WAPPR)
Purchase Orders
Editability in WAPPR status
Some fields are read-only
Purchase Orders
In Progress (INPRG) status
Indicates that a Purchase Order is being created and is not ready for approval
Purchase Order Statuses > Approved (APPR)
Availability restrictions
What must the current status be?
- WAPPR
- INPRG
- PNDREV
Purchase Order Statuses > Canceled (CAN)
Availability restrictions
What must the current status be?
- WAPPR
- APPR
- INPRG
- PNDREV
Purchase Orders
What occurs when a PO is cancelled?
Changed to status CAN
A Cancel PO transaction is sent to the supplier upon cancellation
When can an approved PO not be cancelled?
If any of the following exist:
- One or more line items were received
- The supplier sent notification of delivery of items using an ASN transaction
- The supplier rejected the cancellation
- There is a pending revision for the PO
Purchase Orders
Closed (CLOSE) status
What does this indicate?
Indicates that all of the line items were received
Editability of PO in Closed (CLOSE) status
Stored as a history record that cannot be modified
Purchase Orders
When is CLOSE (Closed) status not available?
Purchase Order is in PNDREV status
Purchase Order Statuses > Pending Revision (PNDREV)
What does this indicate?
Indicates that a PO is being revised
Purchase Order Statuses > Pending Revision (PNDREV)
Availability Restrictions
What must the current status be?
- APPR
- INPRG
Purchase Orders
Restrictions on revision
There can only be one revision of a PO in PNDREV status at a time
Purchase Orders
Editability in PNDREV (Pending Revision) status
*If the cost and tax adjustments option is enabled:
*
The following costs for PO line items can be modified:
* Unit cost
* Line cost
* Tax cost
Purchase Orders
Hold (HOLD) status
Indicates that a PO is being revised, and the associated receipts and invoices are not to be processed
How long does PO remain in Hold (HOLD) status?
Until the revision to the PO is approved
Purchase Orders
Revised (REVISD) status
Indicates that a PO was revised
Purchase Orders
Editability in REVISD status
Becomes a history record that cannot be changed
When is a PO set to Revised (REVISD) status?
When a PO being revised is approved, the status of the previous version of the PO is set to revised
Receiving application
Deals with receiving the Purchase Order line items and services at a site
PO status requirements, in order to create receipts
INPRG
APPR
True/False: POs should be completely received
False: POs do not have to be completely received - there can be partial receipts as well
List the Receipt statuses
NONE
PARTIAL
COMPLETE
Receipt in NONE status
Indicates that there are no received line items associated to the selected purchase order record
Receipt in PARTIAL status
What does this indicate?
Indicates that only part of the order has been received
Receipt in PARTIAL status
In what scenario(s) would this occur?
The outstanding items may not have arrived yet or may have been returned to the vendor
Receipt in PARTIAL status
True/False: Receipts cannot be voided in this status
False: Receipts can still be voided
Receipt in COMPLETE status
What does this indicate?
Indicates that all line items have been received
Receipt in COMPLETE status
Describe what is allowed
Pertaining to voiding receipts, and/or materials/services
Receipts can still be voided
Materials and/or services can still be returned to the vendor
True/False: Receipt statuses are also reflected on each line of the PO record
True
List the receipt line statuses for items that require inspection or serialization (Receipts)
WINSP - Waiting for Inspection
WASSET - Waiting for serialization
COMP - Complete
Receipts
What is the holding location used for?
What are the corresponding receipt line statuses?
Where items that require inspection and/or serialization go to before they can be transferred to an appropriate storeroom (or direct issue location)
WINSP - Waiting for Inspection
WASSET - Waiting for Serialization
Receipts
What will cause receipt line status to change to COMP (Complete) - for items that require inspection and/or serialization?
What transaction is created, and what does this correspond to?
Once the item is inspected and/or serialized
A transfer transaction is created: where the item is moved from the holding location to its appropriate destination
Receipt Line Statuses
Waiting for Inspection (WINSP)
What does this indicate?
Indicates that the line item is in the process of being received but has not yet been entered into inventory
Receipt Lines Statuses > Waiting for Inspection (WINSP)
Where is the item physically located? How long does it stay there?
Holding location
Until the inspection is completed
Receipt Line Statuses > Waiting for Inspection (WINSP)
Potential status changes for this line item
i.e. after inspection
WASSET, or
COMP
(depends on whether it is a rotating item)
Receipt Line Statuses
Waiting for Serialization (WASSET)
Indicates that the line item is a rotating item that is waiting to have an asset number assigned to it
Receipt Line Statuses > Waiting for Serialization (WASSET)
Where is the item located? What would be the next step?
Next step for physical location
The item is still in the holding location; it has not yet been sent to its appropriate storeroom or to its direct issue location
Receipt Line Statuses > Waiting for Serialization (WASSET)
True/False: If the line item requires inspection, the inspection has already taken place
True
Receipt Line Statuses > Waiting for Serialization (WASSET)
When will the status change, and what will it change to?
After the item has been serialized
COMP (Complete)
Receipt Line Item Status
Complete (COMP)
Indicates that the line item has been received and if necessary inspected and serialized
Receipt Line Item Statuses
What is created when the status changes to COMP?
What does this do?
Transfer transaction
Transfers the item to its appropriate store room or to its direct issue location
What type of item has status COMP upon receipt?
Line item that is:
- Not rotating
- Does not require inspection
What can be done if a receipt transaction is applied in error?
Receipt transactions can be voided
Receipt Transactions
Define void
Verb
Reversal that brings the receipt back to its former state
What is a voided receipt similar to, and what are the differences?
Similar to: a return
Exception: cannot be considered for use on a credit invoice
Voiding Receipts
A line item has been received and invoiced. Can it be voided?
No
Voiding Receipts
True/False: Rotating items cannot be voided
False: Both rotating and non rotating items can be voided
Voiding Receipts
Can you void a line item/service in status WINSP?
Waiting for Inspection
Yes
Voiding Receipts
Can you void a line item/service that has not been inspected?
Yes
Voiding Receipt Lines
Can you void receipt lines with the following properties: Serialized assets (COMP lines)
No
True/False: Returned items cannot be voided
True
True/False: Partially or fully returned receipts cannot be voided
True
What kind of items can be returned?
List the rules that apply to these
Rotating assets and direct-issue items can be returned to vendors
- The asset must be in the same storeroom it was received
- The inventory cost must be equal to the line being reversed
- Direct issue items cannot be returned if it was moved
What is the Invoicing application used for?
- Record vendor invoices for delivered materials or services as they are received
- Debit and credit notes from vendors can also be recorded and invoice details can be matched against POs and receipts
- Approved or paid invoices credit memos or debit memos can be reversed
- Items that are part of the consignment inventory can be invoiced when items are used
What kind of items can be returned?
Rotating assets and direct-issue items can be returned to vendors
List the rules that apply to returning items
- The asset must be in the same storeroom it was received
- The inventory cost must be equal to the line being reversed
- Direct issue items cannot be returned if it was moved
Purpose of entering invoices in Maximo
Allows the creation of a three way match
What is the 3-way match in Maximo?
Match invoice information against POs and receipts of materials and services
When is the 3-way match enforced? What would be the next steps?
Receipt Required? selected on a PO line item
Invoice can then be approved and routed to accounts payable
True/False: Invoices can also be created without receipts
True
List the invoice types
- Single PO
- Multiple PO
- No PO
What is a Single PO invoice?
An invoice related to a single PO
What is a Multiple PO invoice?
An invoice related to many POs
What is a No PO invoice?
An invoice without a related PO
What information is entered on a Multiple PO invoice?
- General Invoice data on the Invoice tab
- List related POs on the Invoice Lines tab
What is entered on a Single PO invoice?
Information such as:
- Invoice number
- Corresponding PO number
- Any receipts recorded for the PO
- Information specific to the invoice
What information is entered on a No PO invoice?
Invoice-specific information is entered into the application
Describe a newly entered invoice (status ENTERED)
A newly entered invoice has some fields completed by default; some of these fields are read-only.
What does a No PO invoice typically represent?
Typically such an invoice represents a bill for which there is no PR or PO
What does status indicate after an invoice is created?
Its stage in the processing cycle
List the invoice statuses
Entered (ENTERED)
Waiting for Approval (WAPPR)
Hold (HOLD)
Approved (APPR)
Paid (PAID)
Pending Reversal (PENDREV)
Reversed (REVERSED)
Scheduled (SCHED)
Cancel (CANCEL)
Invoice Statuses > Hold (HOLD)
Describe an example
When would an invoice be placed in this status?
Received an invoice but have not received the items
What is the default invoice status?
Entered (ENTERED)
Editability of a PO in status Entered (ENTERED)?
An invoice with the status of Entered can be edited.
Invoice Status > Waiting for Approval (WAPPR)
What does this indicate?
Invoice information has been entered, is ready for review and approval by the appropriate level of staff.
Invoice Statuses
Which can be changed to status Waiting for Approval (WAPPR)?
ENTERED
HOLD
Invoice Statuses
Which can be changed to Hold (HOLD)?
ENTERED
WAPPR
Invoice Statuses > Hold (HOLD)
Describe when this would be used
If the invoice must not be approved or paid, you can change the invoice to Hold status.
What invoice status(es) can be changed to Approved (APPR)?
ENTERED
WAPPR
HOLD
Invoice Statuses > Pending Reversal (PENDREV)
What does this indicate?
Indicates that the invoice is in the process of being reversed.
Invoice Statuses > Pending Reversal (PENDREV)
Provide example
If an error was made on the unit cost on the original invoice, you can reverse the invoice without having to create a return transaction.
Invoice Statuses > Paid (PAID)
What happens if invoice status is changed directly to this without first approving the invoice?
Invoice is validated for approval criteria
What closes all purchase orders associated with an invoice?
Close PO is selected on the Change Status window, and change the status to Approved
What status(es) is an invoice status change to Paid (PAID) restricted to?
ENTERED
WAPPR
APPR
HOLD
What happens if invoice status is changed directly to Paid without first approving the invoice?
Product approves the invoice
Invoice Statuses > Paid (PAID)
Editability
Stored as a history record and cannot be modified
What does invoice status Pending Reversal (PENDREV) indicate?
The invoice is in the process of being reversed
Give an example of invoice status Pending Reversal (PENDREV)
If an error was made on the unit cost on the original invoice, you can reverse the invoice without having to create a return transaction.
Invoice Statuses > Pending Reversal (PENDREV)
When is this available?
Only if the original invoice/credit memo/debit memo status is Approved or Paid
invoice status Reversed (REVERSED)
Indicates that an approved or a paid invoice, credit memo, or debit memo has been reversed.
Invoice status Scheduled (SCHED)
Indicates that the invoice is part of a payment schedule, set up for a specific contract.
Restrictions on invoice status Scheduled (SCHED)
Invoices with this status can be created only from the Contracts applications.
What status(es) is invoice status change to Cancel (CANCEL) restricted to?
ENTERED
WAPPR
HOLD
Editability of canceled invoice
Stored as a history record and cannot be modified
When creating an invoice, the invoice information is matched with…
the POs and receipt of materials and services
Outside of PO line items, what other types of items can be invoiced?
- Items without POs
- Consignment items held in inventory
- Items that do not require payment upon receipt
Site/Org rules for Invoices with associated PO(s)
An invoice can be created with POs with sites different from the invoice site.
However, the invoice must be within the same organization as the PO site
PO status restrictions for Invoices associated with PO(s)
PO status must be in:
APPR
INPRG
CLOSE
When can PO line items be copied to an invoice?
invoice created for:
- single PO
- multiple POs for a single vendor
- POs whose sites are different from invoice site
services or items received that are not on the invoice can also be viewed (?)
Implication of Receipt Required? checkbox selection, on any PO line items
The item must be received before the invoice can be approved
What can be done when an original invoice contains errors?
Such as unit cost mistakes
The original invoice can be replaced by reversing it
What does the replacement for the original invoice contain?
Replacement invoice
Updated information
True/False: An invoice can be reversed without creating a return transaction
True
What occurs when the reversal or pending reversal of an invoice is approved?
Any details part of the original invoice are reversed
All records related to the original invoice are updated with new information such as unit cost
Documents from the original invoice are added to the replacement invoice, and the original invoice becomes a history record.
