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Anything purchased from a vendor should be tracked with purchase orders.

They are essential for job costing, since they allow a cost to be committed to a job ticket before the vendor’s invoice is posted. Anyone can add a purchase order if they have the access privileges. A purchase order can be added from any computer running Clients & Profits X.

Adding the purchase order doesn’t have to be complicated, since everything about a PO doesn’t have to be entered. Instead, all that a purchase order needs is a number, an order date, a vendor, a job and task, and an amount. The purchase order’s description, specifications, and options aren’t required. This additional information can also be entered after the PO is saved. A purchase order can be printed many times, as needed.

	Learn how to add purchase orders in this Clients & Profits classroom video training session. Running time: 5:27

To add a purchase order

1 From the Purchase Order window, click the add button or choose Edit > Add Purchase Order.

The Add Purchase Order window opens.



2 Enter the purchase order number.

Purchase orders are numbered automatically based on the settings in the PO preferences. If a purchase order is numbered when added, you’ll see its number immediately. If POs are numbered when saved, the number will be blank until you’ve saved the purchase order.

3 Enter the POs remaining details:

Use template The PO template automates adding the same kind of orders by entering standard information about a purchase order automatically. Selecting a template from the pop-up menu copies its settings to this purchase order, instead of having to type the information manually. Once the PO is saved, its type can’t be changed.

Vendor Every purchase order is added for only one vendor. The vendor name, address, and markup are copied to the purchase order automatically from the vendor file, and appear on the printed form.

Date, Due date, Description The order date is the date the purchase order was added. Due date is the date on which the work is to be delivered. The description can contain any kind of useful information that explains what you’re ordering.

Job, Task The job and task are essential for accurate cost accounting. A purchase order must have at least one job and task. (It can be charged to many jobs by checking the charge to many job tickets and tasks option, which is described in the To add amounts to a purchase order.) Details from the job task, such as the task’s markup and billable status, are copied to the purchase order automatically.

If the purchase order is for a non-job purchase, such as overhead, enter NONE as the job number. This tells the purchase order to ignore the task, markup, and other job costing details.

Net Cost, Markup, Gross Net cost is the expected cost of the work -- what you will eventually pay this vendor for their work -- before commissions and markups. Markup is the percentage (entered as 17.65, 25.00, etc.) amount that is added to the net cost to calculate your gross amount. Gross is the amount your client will later be billed for this work, including commissions and markups. The vendor sees the net cost on the printed purchase order, not the gross amount (except on media insertions, which show gross amounts -- not net costs). Both the net cost and gross amounts appear on the job ticket.

The amount you enter doesn’t have to be exact; instead, it can be the most you’ll allow the vendor to charge. On the printed purchase order, the line item amounts will be totaled. This total will appear at the bottom of the purchase order to the right of the label Total Not to Exceed, (which can be customized in Purchase Order Preferences).

Description The line item description appears in the body of the purchase order. It should be used to briefly describe (in 50 letters or less) just what is being ordered. It will be copied from the task description, but can be changed.

User defined fields User fields provide an easy way to include specialized information about a purchase order. These fields are completely customizable and appear on printed purchase orders. Since the vendor sees these fields, they are ideal for describing details such as print specifications (paper stock, inks, bindery, etc.).

4 Click Save.

Saving the purchase order updates the job’s commitment totals. The PO’s net cost increases the job task’s Net POs balance, while the PO’s gross amount increases the job task’s Gross POs balance. An order can be changed at any time before it is invoiced by the vendor or pre-billed to the client.