How to turn PO into SO

Kosmos

Hey again everyone,
Could you tell me please how I can turn purchase order into the sales order.
For example, we issue purchase order to our vendor for $10,000, he pays it, and than we convert this purchase order into sales order for our customer adding 20% of our commission?
I tryed to play with Special Order in Order button but the solution it gave me is not a right one. Maybe I am doing something wrong?
Thank you in advance
Anna [-o<

bobnavision

Special Order can be used - when you create a sales order and on base of it you create purchase order from requisition worksheet.

ssingla

What is the flow of transactions :
Case I:
Step 1 : Sales Order
Step 2 : Purchase Order

or
Case II
Step 1 : Purchase Order
Step 2 : Sales Order

If it is Case I then special order and drop shipment can help. In Case II AFAIK no standard solution.

Kosmos

Thank you for answer, but it is not completely what I want.
The sequence of the steps is as follows:
1. we issue PO for service to our vendor for 10,000, we got the invoice from him.
2. Immediately as we got an invoice we convert that PO for 10,000 into SO for our customer for 12,000.
How is can be done?
Thank you
Anna

Kosmos

Sorry ssingle, I have seen your message.
Yes, it is the Case II.
Thank you
Anna :roll:

jannestig

Are you not looking at this the opposite way if you have the need to purchase stock to meet the needs of a sales order or minimum stock why are the sales orders not created first then the purchase orders created from order planning tool under sales & marketing ?

what is the scenario for this need are you importing directly and paying the freight company so the stock never comes into inventory ?

ssingla

The sequence of the steps is as follows:
1. we issue PO for service to our vendor for 10,000, we got the invoice from him.
2. Immediately as we got an invoice we convert that PO for 10,000 into SO for our customer for 12,000.
How is can be done?

:-k What is the scenario. How come a service purchase order be released before a sale order.

jannestig

The only reason i can think of why she is doing it the other way (except scenario not explained) is that they are unaware of how the cost will be transfered from SO to PO then back to the SO once invoiced?

Kosmos

What I mean is that we issued PO for 10,000 for service. Vendoe sends us the invoice to pay. We pay this invoice for 10,000. Than we grab this paid PO and transfer it in SO for 12,000 (20% of our commission).
Can we do this?
Anna

themave

Kosmos wrote:

What I mean is that we issued PO for 10,000 for service. Vendoe sends us the invoice to pay. We pay this invoice for 10,000. Than we grab this paid PO and transfer it in SO for 12,000 (20% of our commission).
Can we do this?
Anna

Yes as long as you get that single thought out of your mind. you know you are going to place the purchase order, correct ?

if so, then just create the sales order first. and then use the standard functionality to create the PO.

Otherwise keep your mind set, and pay for custom programming

just my opinion

Kosmos

Thank you themave.
I will try this option.
But can I create a SO and than PO for service not for items?
Anna

jannestig

HI Kosmos

is this close to your scenario you are billing your customer based on services provided by the 3rd party vendor EG you have outsourced the service to someone else and then recieve the 3rd party invoice add your comission then bill the customer?

Question is are you using the jobs or service module and if so in what version is your NAV ?

themave

Kosmos wrote:

......But can I create a SO and than PO for service not for items?
Anna

Not sure of the base Navision, we have used a small add-on which make Drop ships and special orders even easier.

http://www.costcontrolsoftware.com/Direct%20Purchasing.htm

It handles Resources very well, so I can't remember exactly how base navision handles resources on drop shipments.

It also matters what you mean by services. We purchase a lot of outside labor. another shop will build something for us. I set up an item for the outside labor purchase. in my case it is item # LBRO (labor outside) we also resale this outside labor. now it is a service this outside company is preforming for us, but it really is no different then purchasing a widget, so we treat it as an item which make it very easy to handle in Navision. Using posting group it post to different G/L account then a regular item, so from an accounting stand point it hit the proper accounts.

Kosmos

Thank you very much.
My ordinary mind needs time to think it over.
I hope I will get it
Anna

gumboots

Kosmos wrote:

Thank you themave.
I will try this option.
But can I create a SO and than PO for service not for items?
Anna

Hi Anna,

While I cannot say your business logic is flawed, ask yourself which one business scenario sounds better to you and clarify your role in this transaction---whether you are a commission agent or a reseller:

1. SO -> PO (Have demand first and get supply)
2. PO -> SO (Get supply first then wait for the demand to happen)

In your case it appears you actually have the demand first before you place a purchase order (i.e., SO -> PO).

In Navision you can generate PO using info from SO but it is strictly a one SO to one PO basis and can be accomplished using requisition worksheet.

However if you receive multiple SOs and want to consolidate your purchase in a single PO, there is no standard function in Navision that does that so we had to develop our own last year.

When you said adding a 20% commission, do you mean you mark up the Unit Cost so your Unit Price is Unit Cost * (100% + Commission %). That is, you buy the goods for resale?

I also heard you say your markup is more like a service fee (e.g., agent commission on sourcing or procuring the items on behalf of a customer). In that case you need to create a second Sales Line as G/L Account Type for your "service". But you still need to keep the first line as Item Type (Unit Price would be your Unit Cost).

Another arrangement would be if you are only charging your customer for your sourcing "service" and you do not take title of the goods (therefore is never going to be your inventory), then you can you still create a PO but should never post a Receipt. This happens when say an offshore factory ships direct to your customer's warehouse.

Scott

Alex_Chow

If you are considering to create a modification, you can take a look at Codeunit 6620 function CopyFromSalesToPurchDoc.

The function copies document from Sales document to Purchase document, you can try copy and pasting the code but switch the tables around.

Savatage

gumboots wrote:

However if you receive multiple SOs and want to consolidate your purchase in a single PO, there is no standard function in Navision that does that so we had to develop our own last year.

Sharing IDEA..
In purchase & payables setup I created puchase codes, 1 for every vendor (not p&p anymore in ver 4 & up called something else.)
ANYWAY, On the sales line of (YES) multiple orders you can place the same Purchasing code. Now when you run the Req Worksheet Functions->SpecialOrder->Get Sales order. Filter on the Purchasing code and it will pull all those items. (I recommend adding the special order sales no & line to the purchase order subform for easy viewing)

Now the tricky part is that if these items have different vendors assigned to them it will create po's for each vendor.

Now you can create purchase codes for every vendor no and have it filled in on insert of the item no. to be used or not. This is the part where you have to sit down & figure all the tiny details on what works & what doesn't and then figure how to fix that.

But we are able to create a po by vendor for all or some of the sales orders using the purchasing code. I know I had to change the Get Sales Order Report a bit. we have a Qty ordered field that saves the original value if it's in stock or not.

I probably had to add something like this
Quantity := SalesLine."Qty. Ordered"; //addition
"Original Quantity" := SalesLine."Qty. Ordered"; //addition

gumboots

Savatage wrote:

Sharing IDEA..
In purchase & payables setup I created puchase codes, 1 for every vendor (not p&p anymore in ver 4 & up called something else.)
ANYWAY, On the sales line of (YES) multiple orders you can place the same Purchasing code. Now when you run the Req Worksheet Functions->SpecialOrder->Get Sales order. Filter on the Purchasing code and it will pull all those items. (I recommend adding the special order sales no & line to the purchase order subform for easy viewing)

Harry, thanks for sharing this idea. For us in our industry purchase is usually a decision based on negotiated prices, production capability and vendor's commitment to deliver. None of this info is captured in an Item Card. We are in fashion industry and the one Item No. to one Vendor No. does not always apply. Sometimes with very large orders we may have to place the same item with 2 different vendors for production.

However I think your purchase code is a very good idea as it can actually be "derived" from the Sales Header (say location code) with a little bit of logic coding so the purchase code can be encapsulated in the Sales Line (e.g., LOC1.SUMMER07.OTHERINFO).