Use these settings to choose how orders are processed, by introducing additional stages into the order processing cycle. You can also choose how to store details of cancelled orders.
Enter the order processing settings
Open: Purchase Order Processing > POP Utilities > System Set Up > POP Settings | Order Processing.
Open: Purchase Order Processing > POP Utilities > System Set Up > View POP Settings | Order Processing.
Select from the following settings:
Invoices can be checked, not just against an order, but to see if the requested service/labour has been received.
If this information is not available when the invoice is recorded; you can accept the invoice without checking the detail, or you can mark the invoice as disputed (provided you choose to use disputed invoice processing.)
Confirm with Goods Received.
Once selected Service and Free Text lines are confirmed Items from purchase orders or returns where the purchase invoice or credit note has been entered in Sage 200. Or items that have been added at a specified cost. Or items that have been manufactured (using Sage 200 Manufacturing) where the manufacturing cost is known. using the POP - Confirm Goods Received window. Both stock and free text items appear on the receipt. A warning is given if the invoice is processed before receipt of the service.
Confirm as Service/Free Text.
Once selected Service and Free Text lines are confirmed using the POP - Confirm Services Received window. The POP - Confirm Goods Received window is still used for normal stock items. Stock and free text items appear on separate receipts.
Confirmation not required.
Select this option if the service/free text line does not require receipt. You can enter the order, print an optional document, and record the invoice afterwards.
If you select Confirm with Goods Received or Confirm as Service/Free Text, you can also choose to include the amounts for these items when creating purchase order and return accruals. If you include the amounts, these are added to the Value to be Accrued column in the Purchase Order and Return Accruals window.
If you select Confirmation not required from the drop-down lists, orders for such items are not required to undergo goods received processing. You will see no warnings to say that the goods have been received when entering the invoice.
Note: If you change a setting to Confirmation not required, accruals are not posted for live orders, irrespective of the setting that was selected when the order was raised.
By default, the Allow prices to be updated when goods received option is clear. This means that cost prices are always updated when the purchase invoice is entered.
If you want to choose when to update cost prices for individual purchase orders, select Allow prices to be updated when goods are received. An Update prices when goods are received check box is available when you add standard items to purchase orders.
Note: If you are using the Average costing method, we recommend that you select Update prices when goods are received to make sure your average buying price is up to date.
You can set the default setting here for the Update prices when goods are received check box:
Invoice is recorded
Select this if you want the Update prices when goods are received check box on the Add standard items window to be clear by default.
Goods are received
Select this if you want the Update prices when goods are received check box on the Add standard items window to be selected by default.
If you select Goods are received, you must also choose the following:
- A Differences nominal account. This records any differences between the price of items on the purchase order and the invoice price.
- Whether you want to use the exchange rate entered on the purchase order (Use order exchange rate when updating prices) or the exchange rate set in Accounting System Manager(Use system exchange rate when updating prices) when the prices are updated.
Note: If you decide to change these selections at a later date this only affects order lines entered subsequently.
Understand the differences
Update stock cost prices when Invoice is recorded
Update stock cost prices when Goods are received
When goods are received, the stock is updated but with an unconfirmed Items from purchase orders that have been recorded as received, but the invoice has not been entered. Items from purchase returns that have been recorded as despatched, but the credit note has not been entered. Or items that have been manufactured (using Sage 200 Manufacturing) but not all the costs are known. value for the quantity, based on the standard or average cost. This stock will be included in the Stock Valuation report in the Unconfirmed column.
When the goods are received, goods are marked as confirmed Items from purchase orders or returns where the purchase invoice or credit note has been entered in Sage 200. Or items that have been added at a specified cost. Or items that have been manufactured (using Sage 200 Manufacturing) where the manufacturing cost is known. . The stock is included in the Stock Valuation report in the Confirmed column.
When the invoice is recorded, and the true cost known, the Nominal will be updated for the confirmed Items from purchase orders or returns where the purchase invoice or credit note has been entered in Sage 200. Or items that have been added at a specified cost. Or items that have been manufactured (using Sage 200 Manufacturing) where the manufacturing cost is known. value of the stock received. The Stock system will be updated with the true value of the stock which will now be reported in the Confirmed column in the Stock Valuation report.
When the invoice is recorded, the purchase value, using the order price, is posted to the Nominal.
Any difference in value between the order and invoice price is posted to the currency adjustment nominal account chosen.
Note: Having unconfirmed stock has implications for the cost of sales postings, if the stock is issued to sales orders. The cost of sales is posted immediately, using the average price for the item. When the purchase invoice is recorded and the true cost known, an adjustment will be posted to the cost of sales for any difference in value.
Note: Stock is always valued at the order price in both Nominal and the Stock Valuation report. Stock issued to sales orders always has a confirmed value, avoiding the adjustments to cost of sales postings. However, if your invoice and order prices vary, this may over or undervalue your stock.
GRNs, orders & returns.
Select this if you want to use a three-way match for supplier invoices.
The supplier invoice or credit note is matched to the goods received note (GRN) and to the purchase order or return.
- GRNs are always displayed for stock and miscellaneous item types.
- GRNs are only displayed for service/labour and free text items if you have chosen to confirm these items as received prior to being invoiced.
For credit notes:
GRNs are only displayed for stock and miscellaneous item types.
Service/labour or free text items are not marked as despatched when dealing with a return.
Orders & returns.
Select this if you want to use a two-way match for supplier invoices. The supplier invoice or credit note is matched directly to the purchase order or return.
All purchase order items regardless of type (stock, miscellaneous, service/labour and free text) are displayed when entering invoices or credit notes.
You can only change this when there are no outstanding orders or returns.
This allows you to control purchase invoices where irregularities are found, such as price discrepancies. When a disputed invoice is recorded against the order, the invoice is put on stop. This means the Purchase Ledger or Nominal Ledger are not updated.
Disputed invoices are resolved by deleting them, accepting them, or recording a supplier credit note against them. A disputed invoice can also be written off.
You can create your own dispute codes to explain why an invoice is disputed.
If you do not select this, such invoices can still be recorded. However the invoices are not controlled by the system and the Purchase Ledger and Nominal Ledger are both updated with the invoice values. By doing so you accept irregularities occur and resolve these issues by other means. Alternatively, you can put these invoices to one side and resolve them outside the system.
Note: If you use disputed invoices, you can also record and manage disputed credit notes.
All orders or returns that are cancelled are marked as complete during the cancellation and the following information is stored:
- Header information covering the supplier contact details.
- Order/return line details, which cover the goods requested/returned.
If you remove items from an order or return, or reduce the original quantity, you also have the option to save the cancelled details.
If you do not select this, the order/return header information is stored but not the order/return lines.
Note: If you change this after storing cancelled orders, you will need to confirm that you want to change the setting. Once you confirm this, the system will remove the stored history of cancelled orders/returns.
Select or clear Allow processing of unauthorised orders to choose whether you want to allow or prevent unauthorised orders from being processed.
|If this option is selected||If this option is not selected|
|You can not print an unauthorised order.||You can not print an unauthorised order.|
|You can receive goods for a line from an unauthorised order.||You can not receive goods for lines from an unauthorised order. These lines will be displayed but cannot be selected.|
|When you confirm goods received, lines on unauthorised orders will be included if you choose the Select all option.||When you confirm goods received, lines on unauthorised orders will not be included if you choose the Select all option.|
|You can record invoices against lines from unauthorised orders.||You can not record invoices against lines from unauthorised orders. These lines will be displayed, but cannot be selected.|
|If you amend an authorised order that has been partially received or invoiced, and it then requires authorisation, you can not receive or invoice further lines on this order until it is authorised.|
This feature is only available from Sage 200 Professional Winter 2017 version onwards.
You can check that purchase orders you are about to authorise will not exceed the budgets set on your nominal accounts.
If you enable Check budgets when authorising purchase orders, Sage 200 will check your nominal account budgets each time you authorise a purchase order.
A warning is displayed when you try to authorise the order if:
- The value of any item on the purchase order will exceed the nominal budget linked to that item.
- Any item on the purchase order contains a blank or invalid nominal account code.
Reports will provide details about:
- Which purchase orders and which nominal codes exceeded the budget.
- Which purchase orders contained items with invalid or blank nominal account codes.
If you authorise a purchase order from the Purchase Order Authorisation workspace, the order will be authorised without displaying a prior warning. You will still be able to view the reports to see if any orders exceed the budget, or included invalid nominal account codes.
How is this calculated?
The value of items in the purchase order for each nominal account is compared against the remaining annual budget for that account.
- The remaining budget takes into consideration what you've spent against that nominal account budget, which includes:
- Actual values posted for the nominal account.
Values from deferred waiting postings for the nominal account, which includes transactions for future periods in this financial year.
- Committed costs for purchase orders, which includes the value of purchase orders you've raised and not yet invoiced.
The value of the items in your purchase orders is the net value minus any discounts.
- Only purchase orders with a document date in the current financial year are included.
What happens if an order is not in the current financial year?
Only orders that are dated inside the current financial year will be compared against the budget or included in commitment reports.
If you have recently moved to a new financial year, and an order's Document date is in the previous year, the order value will not be compared against the current year's budget, and it will not be included in commitment reports.
If you enter a purchase order near the end of a financial year, consider whether the order is likely to be paid within the current year. If you don't pay for the order in the current financial year, the order will be outstanding in the next financial year, but will be dated in the previous year. Therefore, if the order is not going to be authorised or paid this year, then you could change the Document Date on the order to be in the next financial year.
If you have purchase orders that you have not yet sent to suppliers, or have not yet received the goods or services, then you may want to cancel the order and recreate it in the new financial year, so that the commitment value will be shown on reports.