PO

SMARTSystem Management Training Series

Training Session #6D –Box Rate Based Landed Costs Setup

Purpose:

To define the sequence of actions needed to establish Vendor Box Rate based landed costs for Purchase Orders.

Keywords:

• Box Rates – Box Rates represent all of the shipping costs associated with getting the box to you.  These costs can include: box charges, freight, customs duties, ground transportation, etc.
• Full Box Equivalent – THIS DOES NOT APPLY TO BOX RATES.
• Unit of Measure – a standard unit to describe a box size or units such as an each, a bunch or a stem.

• Country/Region – is a field in the Vendor table that represents an area from where products are shipped.

Overview:

A Vendor/Farm identifies how to calculate Landed Costs when Purchase Orders are created.

Box Rate based Landed Costs are typically established by Country/Region.  For example, the country Colombia would breakdown transportation costs by Region for Bogota and separately for Medellin due to the cost based on location.

When using Box Rates for the State of California it can be sub-divided into zones, such as, Northern California, Central California and Southern California.

Setting up Box Rates to calculate Landed Costs on Purchase Orders includes:

• Defining Country/Region
• Identify Units of Measure to include in this process
• Setting a Box Rate for each Country/Region
• Assigning Country/Region to respective Vendors
• Setting Vendors to calculate Landed Costs by Box Rates

Procedures:

1.       Determine the Country/Region that you want to establish box rates to determine Landed Costs.

2.       Determine your average Landed Cost per box size (Unit of Measure) for:

          A.      Full Box

          B.      Half Box

          C.      Quarter Box

          D       Eighth Box

          E.      etc.

3.       Make sure you have the Box Size defined in the Unit of Measure table which is found on the INVENTORY Menu:

There are 3 required parameters:

• Unit of Measure Code (up to 3 characters)
• Unit of Measure Description
• Box Type (general category, for example HB=half box) this is required for this entry to show on the Country Box Rates table (see #5 below)

Since the Unit of Measure Code is up to 3 characters and you may have more than one box type, for example HB (half box) can use the third character of the code to make it unique.  For example, if you have 3 types of half boxes you can define them as:

• EHB (Ecuador half box regular)
• EHS (Ecuador half box small)
• EHL (Ecuador half box large)

4. Establish Country/Region Table which can be found on the MANAGEMENT Menu.  The Country/Region Table Maintenance looks like this:

Enter the Country/Region Code and the Name of the area.  To remove an entry, highlight the first column and press the delete key on your keyboard.

5. Select the Vendor View and sort by Country/Region to get all of your vendors for the Country/Region you are working with in one place.

6. Select Vendors for the Country/Region you are working with and make sure the correct “Country/Region” is displayed.  If not, use the drop down menu to select the correct Country/Region for this vendor.

7. Select the Purchase Info tab and change the Shipping Calculation Type to “Box Rate” (near the bottom of the screen below):

 

8. Click MODIFY to save this information.

9. On the MANAGEMENT Menu, select Country/Region Box Rates and the following screen will be displayed: 

             

10. Select the Country/Region that you are working with and enter your Box Rates that will be used to calculate Landed Costs for this Vendor’s purchase orders.  Press enter to SAVE.

11. When your entries are saved you can update vendors for the selected Country/Region by pressing the “Update Vendors” button.  If you do not want to update an existing Vendor Box Rate, click “Do not overwrite existing Vendor box rates.” This update process will match the Vendor Table Country/Region with the Country/Region in this Box Rates Table.
12. You can verify the Vendor’s Box Rate for the Country/Region you are working with by selecting a Vendor:
13. The following is an example of how the Box Rates work with an Ecuadorian Vendor: 

    The Box Rate shows the Base Freight Cost at $12.75 for a QB (quarter box) which is set for the vendor:

In the purchase order you can add the Surcharge percent for product like Roses:

You can also add Other Vendor Charges to match with the Vendors Invoice.

See the result in the screen below:

• The Other Vendor Charges of 1.07 are entered and reflexed properly. 
• The Surcharge of $3.375 is calculated correctly based on the 7.5% entered. 
• The total Freight Cost of $17.195 is correct. 

SMARTSystem Management Training Series

Training Session #6B – SMARTSystem Purchase Order Processing Continued

Purpose:  To gain a good, strong working knowledge of Purchase Order Processing.

Keywords:  The following is a list of key terms used in the SMARTSystem

that you should be familiar with and understand.

• Allocation-is the assignment of product for Pre-Book Sales Orders to Purchase Orders.
• Mixed Box-a box containing a several different products.

PO Entry and Receiving Continued

Product Information Screen

The Product Information screen will display products enter from this screen or products entered from the Quick Entry screen.

This screen provides for the entry of product and additional features.  These additional features are:

• Line Item Edit Screen
• Product History
• Mixed Box Entry
• Recalculate Sales Prices
• Recalculate Shipping

Line Item Edit Screen

After entering a PO line items you may need to make changes.  The simplest way to make changes to a PO line item is to use the edit screen.

Just click on the line to change in the line summary portion of the Product Information screen below and it will activate the Line Item Edit screen.

This Line Item Edit screen will allow you to make changes to specific fields only.  You cannot change the Product Code or Description.  You must delete the line to change product.

The following fields can be changed on this screen:

• Purchase Quantity Ordered
• Purchase Quantity Received
• Farm
• Internal Comment
• Purchase Item Cost
• Purchase Unit of Measure
• Purchase Item Qty
• Purchase Item Freight
• Sales Price

After making your changes click the Update button to save your changes and you will return to the Product Information screen:

Or you can click the Delete button to remove the line item from the PO.

Click EXIT to return and not make any changes to the line item.

Product History Screen

 

When entering a PO line item and before you click the Add Selection button, click the Product History button to show the last 10 purchases of this product.

 

The last 10 purchase orders Received containing this product will be displayed:

Mixed Box Entry Screen

Enter a Mixed Box by clicking this button  to display the Mixed Box entry screen:

Information entered when creating the Mixed Box is in 2 parts:  Box information is at the top and contents of the Mixed Box.

Box information:

• Type of Box – is used to calculate freight for landed costs
• # Boxes – quantity
• Pack – number of units/stems in the box
• Farm – default Farm is the Vendors Farm Code

The products contained in the box are itemized:

• Select by Product Code or Product Description
• Quantity – number of units/stems in the box for this line item
• Item Cost – cost per unit
• Sales Price – will be calculated based on your defined margin or you can set the sales price yourself

Click the Add to Box button to add your entry to the Mixed Box Summary portion of the screen:

To delete a line item, click on the line and press the delete key on your keyboard.

When you click the Add to Order button the Mixed Box items will be added to the PO Summary.  Refer to the last 4 lines below:

To access the Mixed Box screen again, just click on one of the line items.

Multiple Mixed Boxes can be created on a purchase order.  By moving the slide bar at the bottom of the screen to the right there is a “Mixed Box” column which identifies the lines associated with each Mixed Box entry.

The “Add Unallocated Items” cannot be used to create a Mixed Box:

Recalculate Sales Prices

The Recalculate Sales Prices is used when you want to force the recalculation of the Sales Prices after costs have changed.  This would usually be done after Recalculate Shipping button is pressed.

Recalculate Shipping

The Recalculate Shipping button is used to force the recalculation and allocation of the additional costs resulting in a revised Landed Cost.

These buttons are display as follows:

     Practice Drills

The purpose of Practice Drills is to get you more familiar with the SMARTSystem and comfortable using it. 

1. Login into SMARTSystem
2. Go to the PURCHASE ORDER MENU and select VIEW PURCHASE ORDERS.
3. Click NEW PO at the bottom of the screen.
4. Enter several line items to the PO
5. Enter at least one Mixed Box entry with multiple items in the box.

Questions and Answers

If you have any questions or need support, please contact us at Support@Floralcomputer.com or call 727-483-5306 for assistance.

SMARTSystem Management Training Series

Training Session #6A – SMARTSystem Purchase Order Processing

Purpose:  To gain a good, strong working knowledge of Purchase Order Processing.

Keywords:  The following is a list of key terms used in the SMARTSystem that you should be familiar with and understand.

• Allocation- is the assignment of product for Pre-Book Sales Orders to Purchase Orders.
• View– The term VIEW is use for programs that present information simply with options to filter that information for specific tasks.  For example, a Sales View will show sales orders for a specific time period.

Overview:

The Purchase Order Menu is used for PO Entry, Receiving and related tasks.

Purchase Orders can be initiated from several different sub-menus providing different views, including:

• View Purchase Orders
• PO Entry and Receiving
• View Incoming Availability
• Purchase Order Document Processing

A Purchase Order progresses through three (3) phases or status conditions:

• In Process (IP) occurs when you create a PO, enter/change line items on the PO until it is ready to order product from the vendor.
• On-Order (OR) this phase occurs when the PO is placed On-Order, products On-Order can be viewed on the Incoming Availability screen and sales can be made against the incoming product.
• Received (RC) phase occurs when the PO is updated with actual quantities received and the product received is placed into inventory for sale. Product not yet received can be placed on Back Order.

Purchase Order View

The Purchase Order View is a power tool for managing buyer information and the status of orders from Vendors.  Select the Purchase Order View by using the following Menus:

                   PURCHASE ORDERS > VIEW PURCHASE ORDERS

This View is normally displayed by PO# in descending sequence (the most recent PO at the top of the screen).

PO information on this View can be filtered by:

• Arrival Start Date
• Arrival End Date
• Max Order #
• Vendor Name
• Status
• Today’s Orders checkbox

The default setting for Arrival Start  Date is 45 days prior to today’s date and the Arrival End Date is 10 days in the future.

The PO View column summary is:

• PO# – Purchase Order number assigned by the SMARTSystem.
• Sfx (Suffix) identifies a regular purchase order when zero suffix or a back order for any number greater than zero.The PO# remains the same for both regular and back order PO’s.
• SO – means Standing Order.There are two codes used in this column:
  • M = Master Standing Order
  • C = Child Standing Order

    Blank means this PO is not a Standing Order PO.

  • Ship Date – the date set by the Buyer for Shipment of product on this PO from the Vendor or Farm.
  • Status – options are: ALL status, Not Cancelled (all active orders) , In Process, Ordered, Received.
  • Buyer – Name of the person creating this PO.
  • Vendor Name – Name of the Vendor.
  • Ship Via – Transportation Carrier
  • Arrival Date – Estimate Arrival Date set by the Buyer.
  • PU/DEL – Pick-up or Delivery.
  • # of Items – Number of line items in the purchase order.
  • Qty Ordered – Quantity of all line items on the purchase order.
  • Total – Total Landed Cost
  • Email Sent – Date and Time a purchase order email was sent to the vendor.

The following setting in Control Info > System Control > Options > Purchasing Options is set to show the PO Ship Date or the PO Order Date on this View:

Each column can be sort in ascending or descending sequence by clicking the lower right corner of the column heading.

You can turn off the Total of PO’s except for selected management staff by selecting the following Menus:

  Control Info > System Control > Options

At the bottom of the Purchase Order View you can PRINT LIST of all items selected items showing on the PO View. Clicking on NEW PO will display a new PO Entry screen or REFRESH the screen with orders being added by other buyers.

On the Purchase Order View, you can double click on a PO or right click to open the PO.

PO Entry and Receiving

You can select an existing Purchase Order from the PO View by double clicking the Order that you want view and the following screen will be displayed for that vendor.  A NEW Purchase Order can be created from the NEW button on the PO View or the following Purchase Order sub-menus: 

• PO Entry and Receiving
• Purchase Order Document Processing

The first screen display for a Purchase Order is Vendor Information:

There are 6 tabs on a Purchase Order.  These tabs are normally in the following sequence:

• Vendor Information
• Product Information
• Quick Entry
• Special Order
• Standing Order Information
• Allocation

The initial entry of a PO gives it an IP (In Process) Status. The Status is shown above the tabs on the top right side of the screen.

 

Drop Ship orders can be generated by changing the ShipTo Address or establish ShipTo Addresses that can be selected with the Select ShipTo drop down.

 

The Ship Date always defaults to todays date and can be changed.

Using the Order Arrival Days from the Vendor record, as shown below, the estimated Arrival Date of the PO is calculated (Ship Date + Order Arrival Days). You can change the Arrival Date as needed.

The following setting in Control Info > System Control > Options > Purchasing Options will change the Arrival Date to the date the PO is received:

The Pickup / Delivery buttons above, between the Ship Date and Arrival Date default to Delivery.  If this PO is a local Pickup, just click the Pickup button and enter the Pickup time.

The Vendor Type in the Vendor record defines the default Purchase Type in the PO:

PO default Purchase Type:

Using the default Purchase Type in the PO a link is created to capture the PO Type information and the G/L account for Current Other Vendor Charges:

The Current Other Vendor Charges are entered and allocated to each line item entered based on the setting in System Control.

On the bottom of the Vendor Information tab the following information can be entered:

• Purchase Cost % for Landed Cost can be stored in the Vendor record and default to this field.The Purchase Cost % is often used for Hard Goods delivery charges, like 18% of product cost for the trucking fee.

  The Vendor record, Purchase Info tab at the bottom is the place to set the default Purchase Cost % of Landed Cost for this Vendor:

• Checkbox to Add Percent to Surcharge is used for US Customs or other surcharges. The additional surcharge on flowers from Ecuador is 6% and by checking this box the calculated amount is captured as a Surcharge for each line item entered.
• Vendor Invoice # is optional and can entered in this field.
• Current Other Vendor Charges are used for box charges and other Vendor Charges on the vendor invoice. These charges are used to verify the vendors invoice (Vendor Chgs:) entered into the PO, to calculate a landed cost and be transferred to the Accounting System for a complete PO.
• Total Other Import Charges represent freight or clearing charges that are billed to you separately and not part of the Vendors invoice. These charges do not go to the Accounting System as part of the purchase order since they are billed separately. But, these charges are important to calculate the landed cost of the products.
• Pickup/Delivery Instructions in the Vendor record on the Purchase Info tab can be set as default.

PO instructions will show on the PO Vendor Information screen and can be changed. 

The following setting in Control Info > System Control > Options > Purchasing Options will allocate Charges by stems or boxes as defined by this checkbox:

At the bottom of the screen is a running total from left to right:

• # Ordered
• # Received
• Vendor Charges (should always equal the vendors invoice)
• Total Product cost
• Total Other Charges
• Total Landed Costs

Product Information Screen

The next tab is the Product Information Screen which provides additional features, such as, entering Mixed Boxes.  This screen will be address later after the simpler Quick Entry screen is reviewed.

Quick Entry Screen

The Quick Entry is used to simplify the entry of a purchase order.  The entry fields for this PO screen are:

• Qnty is the number of boxes, cases, bundles, etc. being ordered.
• Pack specifies the number of units per quantity (Qnty). For example, 1 box of 125 stems.
• UofM is the unit of measure for the Qnty.
• Product Code can be entered or is optional if the product name is selected in the Description.
• Description of the product you want is selected by typing in part of the name and pressing enter or selecting the drop down menu to display products similar to the name entered.
• Item Cost is automatically displayed from the last purchase price of the product selected.
• Other Item Charges field is used if an additional cost is associated with the line item being entered.
• Landed Cost is calculated using the:
  • Item Cost
  • Allocated portion of the Current Other Vendor Charges
  • Allocated portion of the Total Other Import Charges
  • Allocated portion of the Purchase Cost %
  • Freight charges calculated based on the Ship Via

• Sales Price is calculated based on the Margin/Markup for this Product Type.
• Internal Comment is used by the buyer to provide information for salesperson using the Sales Selective Ordering screen.
• Landed Margin shows based on Sales Price

  Price Level 1 at the top of the screen shows the Price Level 1 sales price.

  You can delete a line by right clicking and selecting delete.

  To change a field, click the cell and enter the new value.  Tab to the next cell to record the change.

Add Unallocated Items

Unallocated Items are Pre-Book sales products needed for purchased to fulfill the sales order.

Special Order Information

 

This tab is used to enter additional information regarding this purchase order.

Allocation Tab

 

The Allocation tab will show a number after the word when product is on the purchase order and there are Pre-Book items that could be added from the Unallocated Items list.

Print PO

This is the PO document that can be emailed to the vendor.  There are various options associated with content of this document. Only Total Product Cost is shown on the emailed PO document.

Print W/S (Receiving Worksheet)

Practice Drills

The purpose of Practice Drills is to get you more familiar with the SMARTSystem and comfortable using it. 

1. Login into SMARTSystem
2. Go to the PURCHAE ORDER MENU and select VIEW PURCHASE ORDERS.
3. Click NEW PO at the bottom of the screen.
4. Create a purchase order.

Questions and Answers

If you have any questions or need support, please contact us at Support@Floralcomputer.com or call 727-483-5306for assistance.