Purchasing Direct

Epicor ERP 10
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1

How do Companies handle the following:

  1. Create an ‘on the fly’ Part on a Job and mark it as Purchase Direct.
  2. Buyer then purchases the Part through a credit card transaction.

How do companies:

  1. Correctly assign cost to the Job
  2. Manage the suggestion on Buyer workbench
  3. Manage the expediting of the Part
  4. Manage the issuing within the Job

Hopefully some Companies dealing with this scenario currently.

2

If a job contains a part that is not in the system (or is purchased AND not Qty Bearing), it becomes a “Buy To Job” (BTJ) part. When entering the PO, select “Job Material” in the Buy For area of the line detail. Then enter the Job Num, Asy, and Mtl.

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I can’t help with how purchases via a CC are handled, as we don’t do that.

When the part is received, its cost will go straight to WIP. The Job Num selected during PO entry will be used for tracking the cost. There is no tracking of the part except for the cost and the job. You should tage the item with the job number and move it to production (or some “Bought For Job” holding area). The system does not track qty’s of BTJ items received.

If you have two jobs that use the same part, you’ll need to create separate PO lines (one for each job).

If the parts are sold in Qty’s different than what you need, it gets tricky. Like if Job 001 need (5) eggs and job 002 needed (4), but they are only sold in packs of 12. You’d have to place your PO like:

Line 1 (5) Eggs Job: 001
Line 2 (4) Eggs Job: 002
Line 3 (3) Eggs (Buy To Other)

That last line is to pad the purchase up to the (12) required. And those 3 get expended and not charged to any job.

PO suggestions for Buy To Job appear just like Buy To Stock.

3

Thank you for the response.
I like the functionality - it just has the little snag of not handling credit card purchases well.
I need to:

  1. Allow the system to flag to the buyer that he needs to buy something btj - standard functionality
  2. Allow the buyer to create a PO on a ‘placeholder’ supplier - workaround eg CCSupplier
  3. Alert the buyer that btj parts are outstanding for Jobs - standard functionality
  4. Allow the buyer to receive the Parts - standard functionality
  5. Allow finance to match the receipt ??
  6. From a cost accounting point of view - do not double count the PO receipt with the credit card payment. ??

Hope this makes sense.

4

The Credit Card transaction is a separate situation entirely.
Create the PO to the supplier you are buying from.
Receive the PO.
Enter a PO related invoice using the Supplier you purchased from.
Here is the CC part:
Create a Bank Account for the Credit Card. Use a GL Control pointing to a Credit Card Liability account. This will accumulate all of the charges for the Credit Card.
Pay the invoice (Manual Check) using the CC Bank Account. The payment pays the invoice and accumulates the Credit Card Charge.
When the Credit Card statement comes in, any charges that were paid for with the Credit Card, should already be in the account. Enter the Credit Card Statement as an invoice. The invoice line would be the statement amount but the GL allocation should be what CC payments were made and are in the liability account with the remainder of the transaction (charges on the statement but NOT in the GL Liability account) being allocated to the proper expense account as normal.

What does this do for you?

  1. You can see what you have purchased from that supplier. Many customers make the mistake of using the Credit Card company as the supplier. This kills your purchase history because you don’t see who you bought the part from.
  2. You can see what your Credit Card Liability is and reconcile the statement. If you buy something using the Credit Card, you see who you bought it from (the invoice payment) and what your balance is on the Credit Card.

It is a good idea to use an invoice (not necessarily a PO) and the CC Payment process for any CC purchase. It can be convoluted, but both Purchasing and Accounting win.

5

Thanks Calvin.

6

Thanks Charlie.