How to Complete a PO in Sage 100

Initial Setup Requirements

Before working with purchase orders, ensure your system is properly configured. The Post Accounts Payable Invoices setting in Purchase Order Options significantly impacts how POs are completed. When this option is selected, the system evaluates three key quantities to determine completion status:

• Ordered quantity
• Received quantity
• Invoiced quantity

If Post Accounts Payable Invoices is cleared, only ordered and received quantities are considered for completion status.

Purchase Order Creation Process

Basic PO Entry Start by accessing Purchase Order Entry through the Purchase Order Main menu. The system automatically retrieves essential vendor information including:

• Vendor name
• Purchase address
• 1099 information
• Sales tax details
• Terms code

Important Integration Features When integrated with other Sage 100 modules, the PO system provides enhanced functionality:

• Inventory Management integration enables automatic cost calculations and unit of measure validation
• Job Cost integration allows job number, cost code and cost type entry for each line item
• Work Order integration enables costing against work orders

Receiving Goods Against a PO

The receipt of goods process is critical for PO completion. Follow these steps:

1. Access the Receipt of Goods entry screen
2. Enter the actual quantity received for each item
3. Verify all received quantities match the packing slip
4. Process the receipt through the Daily Receipt Register

The system automatically handles partial receipts by placing unreceived items on backorder.

Invoice Processing

Standard Invoice Entry When processing invoices against a PO:

1. Enter the invoice through Receipt of Invoice entry
2. Match quantities and amounts to the vendor invoice
3. Verify all line items are properly recorded
4. Update the invoice register

Prepayment Handling For orders requiring prepayment:

1. Create the PO with prepayment amount on the Totals tab
2. Process payment through AP using the Payable Deposit Account
3. Receive goods normally when delivered
4. Complete invoice entry to maintain proper records

Completion Scenarios

Full Completion A purchase order reaches completed status when:

• All ordered items are received
• All items are properly invoiced (if AP invoice posting is enabled)
• Quantities match across ordered, received, and invoiced fields

Partial Completion For partially fulfilled orders:

1. Review the Purchase Clearing Report to identify quantity mismatches
2. Adjust ordered quantities to match received amounts if items won't be fulfilled
3. Process remaining receipts and invoices as needed
4. Add a /C comment line if needed to force completion

Automated Features

Sage 100 offers several automated features to streamline PO completion:

Automatic Reordering

• System generates POs when inventory falls below specified levels
• Helps maintain optimal stock levels
• Integrates with inventory management

Drop-Ship Processing

• Enables direct vendor-to-customer shipping
• Streamlines order fulfillment
• Reduces handling costs

Retention and Purging

Completed PO Management Completed purchase orders remain in the system based on:

• Number of days specified in PO Options
• Period end processing settings
• Purge Completed POs parameters

Variance Handling The Automatically Close Partially Received PO's setting allows for completion when:

• Received quantity varies from ordered quantity within specified percentage
• Example: 10% variance allows completion of 9 received items against 10 ordered

Troubleshooting Common Issues

Backorder Resolution If a PO remains in backorder status:

1. Check Post AP Invoices setting in PO Options
2. Verify received quantities in Receipt of Goods Entry
3. Confirm invoice quantities in Receipt of Invoice Entry
4. Review Purchase Clearing Report for discrepancies

Quantity Matching When quantities don't align:

1. Compare ordered, received, and invoiced quantities
2. Adjust ordered quantities if necessary
3. Process additional receipts or invoices
4. Make GL adjustments for clearing account variances

Best Practices

Documentation Management

• Maintain clear records of all transactions
• Use comment lines to document special circumstances
• Keep backup documentation for audit purposes

Regular Maintenance

• Review Purchase Clearing Reports frequently
• Process completed POs through period end regularly
• Monitor variance reports for discrepancies

Advanced Features

Landed Cost Calculation The system supports sophisticated landed cost tracking:

• Multiple user-definable cost types
• Flexible allocation methods
• Various calculation options

Reporting Capabilities Essential reports for PO completion include:

• Variance Reports
• Cash Requirements Reports
• Month End Reconciliation Reports
• Expected Delivery Reports

Integration Benefits

When fully integrated with other modules, the PO system provides:

• Automatic inventory adjustments
• Seamless AP updates
• Real-time job cost posting
• Comprehensive audit trails

By following these procedures and utilizing the system's features effectively, organizations can maintain accurate and efficient purchase order processing in Sage 100. Regular monitoring of PO status and prompt resolution of discrepancies ensures smooth operations and accurate financial reporting.

Remember that proper completion of purchase orders is essential for maintaining accurate inventory records, vendor relationships, and financial statements. Utilizing the built-in tools and reports helps ensure consistency and accuracy throughout the procurement process.

Citations: [1] https://www.bcsprosoft.com/how-to-complete-a-back-ordered-purchase-order-in-sage-100/ [2] https://www.dwdtechgroup.com/sage-100-mas-90-200/processing-prepayments-on-a-purchase-order-in-sage-100/ [3] https://help-sage100.na.sage.com/2018/Subsystems/PO/POMAIN/PO_ENTRY_OVR.htm [4] https://www.jcscomputer.com/sage-100-purchase-order-module/ [5] https://www.swktech.com/erp-resources/sage-100-resources/sage-100-purchase-order/ [6] https://help-sage100.na.sage.com/2024/Subsystems/PO/POSETUP/OPTIONS_OVR.htm [7] https://www.blytheco.com/training-center/ [8] https://www.swktech.com/sage-100-video-controller-guide-to-managing-po-data/ [9] https://www.dsdinc.com/enhancement/purchase-order/ [10] https://www.youtube.com/watch?v=AOm7my0VEKQ