Manage purchase orders

 

Updated: February 20, 2017

Applies To: Dynamics Marketing

System_CAPS_importantImportant

Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

This topic explains how to work with purchase orders for items, media, and services supplied by vendors. Once a purchase order is created, you can follow up by expensing, invoicing, or closing it. Partial expensing of purchase-order line items is supported if needed.

To work with purchase orders, you must have Edit/View Purchase Orders privileges. To work with media purchases, you must also have the Media Buyer user type. More information: Work with user accounts and staff contacts

To work with purchase orders, go to Budgeting > Payments > Purchase Orders. This brings you to the Purchase Orders list page, which provides many of the standard controls for searching, sorting, filtering, adding, removing and viewing items in the list, plus other common features. For details about how to use these common controls, see Learn how to work and get around in Microsoft Dynamics Marketing.

Each purchase order listed on the Purchase Orders list page links to a maintenance page that shows a collection of metadata related to the selected purchase order and also a list of items included in the order.

You can create two types of purchase orders: standard orders and media orders. Basic metadata and functionality are the same for each purchase order type, but the line items are more specialized for media orders. Click the Create toolbar button New button to create a new standard purchase order; click the New Media Order toolbar button New Media Order button to create a media order.

When you create or edit a purchase order, the settings listed in the following table are provided at the top of the Purchase Order maintenance page.

Field

Description

(ID)

After you have saved a new purchase order at least once, Dynamics Marketing generates a unique ID number for it, which is displayed in bold at the top of the page.

Status

Select the current status of the purchase order. This value can be useful for sorting and filtering your records and for supporting internal processes or policies. Your admin can customize the values available here; see Create custom drop-down values and folders for details about how to customize drop-down values. (Category type = Purchase Order Status)

Vendor

Specify the vendor contact associated with this purchase order. The vendor you specify must be in your contact database and also be associated with a vendor company. This is a Type-ahead field.

Vendor Company

Specify the vendor company associated with this purchase order. Usually this should be the same as the company associated with the vendor contact. This is a Type-ahead field.

Vendor Tracking #

Enter the vendor's tracking number associated with this purchase order (supplied by your vendor).

Ordered by

Specify the staff contact who placed this order. This is a Type-ahead field.

Ordered for

If this purchase order was made on behalf of a client contact, specify the client contact here. If you invoice items from the purchase order, or add them to a sales order, then this is the contact the invoice/sales-order will be assigned to (this setting is therefore required to use these features). This is a Type-ahead field.

Client PO #

If this purchase order was made on behalf of a client contact, specify the client's purchase order number here (supplied by your client).

Advertiser

If an advertiser is associated with this purchase order, then specify the relevant company here. This is a Type-ahead field.

Parent

If a parent company is associated with this purchase order, then specify the relevant company here. This is a Type-ahead field.

Agency

If an agency is associated with this purchase order, then specify that company here. This is a Type-ahead field.

Terms

Select the credit/payment terms that apply for this purchase order. This value can be useful for sorting and filtering your records and for supporting internal processes or policies. Your admin can customize the values available here; see Create custom drop-down values and folders for details about how to customize drop-down values. (Category type = Financial Terms)

Tax Rate

Specify the tax rate that applies to invoices generated for this purchase order. This is a Type-ahead field.

More information: Manage taxes

Memo

Enter notes and other miscellaneous details here.

Closed/Expensed

Indicates whether the purchase order has been closed or expensed. Select this check box to indicate that the purchase order is fully processed and no longer active. This check box is selected automatically after you fully expense all of the items in the purchase order.

Like other types of inactive records, closed or expensed purchase orders are hidden by default on the Purchase Orders list page. Use the show/hide inactive toolbar button Show All/Active Only button/Hide Inactive/Deleted button on the list page to control whether or not to see closed/expensed purchase orders in the list.

Date

Enter the purchase order date.

Need By Date

Enter the date by which you need to have the order delivered.

Confirm by Date

Enter the date by which the vendor should acknowledge receipt of the purchase order.

Send Invoices to

Specify an alternate billing contact to whom to send invoices generated from this purchase order. This is a Type-ahead field.

Tracking #

Enter an internal tracking number used within your organization to identify this purchase order.

Ship to

Specify the contact to whom this order should be delivered. This is a Type-ahead field.

Description

Enter a short description of this purchase order.

Currency

If you are using multiple currencies, select the currency used in the invoice.

Report Template

Select the template to use to generate a printable version of this purchase order that you can print directly or send in email as a PDF. Use the buttons at the top-right of the page to print or email the report.

After you have defined the basic metadata and saved a new purchase order at least once, you can begin to add line items to the order. Each line item represents a specific product or service being ordered and includes various details about that item, including the quantity orders, unit cost, total cost, marketing entity relations, and more. You'll find controls for adding and working with line items, and the list of existing line items, under the Items heading.

In addition to the usual buttons for adding, copying, deleting items, downloading to Excel, and adjusting column options, the Items section provides the special toolbar buttons described in the following table. (For details about the standard toolbar buttons, see Learn how to work and get around in Microsoft Dynamics Marketing.)

Button

Description

Wizard button
Change

Select the check box for one or more line items and then click here to open a pop-up window that lets you make common changes to the selected items quickly (including adjustments to the quantity, price and description of all selected items).

Edit button/Default Grid Mode button
Edit/Default Grid Mode

Click this button to switch between edit and default grid mode. The button symbol indicates the current mode. When in edit mode, you can edit line-item values directly in the list, without needing to open each list item individually.

Standard line items are provided for standard (non-media) purchase orders. When working with standard items, the settings described in the following table are provided on the Item maintenance page and can also be shown in the items list for the purchase order.

Setting

Description

Date

Specify a date for the item. This date is used as the accrual date.

Item/Service

If the line item refers to an item that you also catalog in your own database using the item/service features of Dynamics Marketing, then specify or create an item/service using this Type-ahead field (More information: Track items and services). If you do not store any relevant items or services in your database, then use the Description field to describe what the line item is for.

Account

Specify the general ledger account against which you will expense the line item. This is a Type-ahead field.

Budget Category

Choose a budget category for the line item. This value can be useful for sorting and filtering your records and for supporting internal processes or policies. Your admin can customize the values available here; see Create custom drop-down values and folders for details about how to customize drop-down values. (Category type = Budget Item Category)

Discount/Surcharge

If a schedule of discounts and/or surcharges applies to this item, then specify it here. This is a Type-ahead field. More information: Discounts and surcharges

Description

Enter a description of the item you are ordering.

Taxable

Check the box if the item is taxable. Taxes will be added at the rate specified on the expense header, which will initially be set to the tax rate specified for the purchase order itself. More information: Manage taxes

Quantity

Enter the quantity of this item you are ordering.

Unit Cost

Enter the cost per unit of this item.

Credit

Enter any credit applied to this item.

Shipping

Enter shipping costs, if any.

Net Total

Displays the total price of the current line item, which is calculated using the following formula:

Net Total = (Quantity * Unit Cost) - Credit + Shipping + Surcharges - Discounts

Details

Click this button to show or hide the details settings. Use the settings here to associate the line item with a company, division, department, program, opportunity, campaign, event, job, task, and/or request as needed. By making settings here, you will be able to associate line-item expenses with your other various marketing entities and initiatives.

Media line items are only provided for media purchase orders. They are very similar to standard line items, but they provide settings specifically tailored for media purchases such as for TV, radio or print advertisements. When working with media items, the settings here let you define many details about the media purchase and also to make associations with other marketing entities and initiatives that you are tracking with Dynamics Marketing. The collection of settings shown varies significantly according to the type of media outlet you choose in the Media field and also the rate type you choose in the Rate Type field. This is because the parameters for defining and paying for advertisements on television are very different from those for a newspaper.

System_CAPS_noteNote

The "buttons" shown under the various fields represent expandable collections of related settings. Like the other fields shown for media line items, the collection of buttons shown varies by media type. Click a button here to expand or collapse a section.

For more information about working with media sales and purchases, see Media sales and inventory management.

In addition to the single associations that you can make in the Details area of the main line-item settings, you can also associate a line item with any number of advertisements, brands, channels, components, locations, markets, and/or products/services. After you save your line item at least once, the Item maintenance page provides related-information tabs for each of these types of entities. Each tab provides a list view that you can use add links to any number of records of the relevant type. These settings are available for both standard and media line items.

To make these associations:

  1. Open the relevant purchase order and scroll down to the Items section.

  2. Open an existing item or add (and save) a new one. You should now be on the relevant Item maintenance page.

  3. Open the related-information tab named for the type of association you want to make.

  4. Use the controls on the tab you chose to add links to the relevant record(s).

  5. For each record in the list, set the Allocation value to reflect how much of the cost of the current line item should be accounted against that record. For example if you are working with brands, and the total price of an item is $100, and you allocate 50% of the price to Brand 1, then Dynamics Marketing will allocate $50 to Brand 1. Usually, all the allocations should add up to 100% (the total is shown at the bottom of the list).

  6. Click Save to save your settings.

When your vendor delivers the goods or services specified on your purchase order, they will also send an invoice. Now it's up to you to compare your vendor's invoice and delivery to your purchase order, make any necessary adjustments, and accrue the cost of the goods and services to your general ledger so that the invoice can be tracked and paid. This process is called expensing the purchase order. Purchase orders do not otherwise post directly to the general ledger.

In Dynamics Marketing, expenses are structured in a similar way to purchase orders. There is a main expense record, which establishes a common set of metadata, and individual expense items that belong to that expense; the value of the expense is the sum of the value of its various items. When you expense a purchase order, you do not expense the purchase order record itself. Instead, you expense each of its line items, which means that you can split the items in a purchase order between any number of expenses, or you can assign all purchase-order items to the same expense record.

In a typical, simple example, you might start with a purchase order and then expense that order by adding all of its items at once to the same new expense, which will then contain a 1:1 mapping of expense items to purchase-order items. The expense record identifies its matching purchase order record and each expense line item identifies a matching purchase-order line item from that order. In a more complicated example, you might do some or all of the following:

  • Split a purchase order across multiple expense records
    To do this, you would expense your purchase-order items in several batches. A new expense record is created for each batch.

  • Apply partial expensing to one or more purchase order items
    Partial expensing occurs when you need to expense a single purchase-order item as two separate expense items (possibly in two separate expense records). This would typically reflect a situation where you ordered, for example, 1000 brochure prints as a single purchase-order item, but receive the prints in monthly batches of 200. To do this, adjust the quantity of an expense item as you create it. Partially expensed purchase-order items show the value expensed so far and the outstanding balance on the Purchase Order maintenance page.

To expense a purchase order:

  1. Find and open the relevant purchase order as described earlier in this topic.

  2. Scroll down to the Items section of your selected Purchase Order maintenance page.

  3. Select the check box for each item you want to expense. Select the check box at the top of the table to select all items at once.

  4. Click the Expense button at the bottom of the Items list.

  5. Dynamics Marketing creates a new expense record that includes a matching expense item for each item you selected in the purchase order. You are now looking at the maintenance page for your new expense record. In a typical scenario, you could be done with this step now, but you might also do one or more of the following:

    • By default, all of the expense items are fully expensed (the quantity expensed equals the quantity ordered). If you received only part of the quantity that you ordered, then click the relevant expense item and adjust its Quantity as needed (the balance for the mapped purchase-order item will also be adjusted to reflect the quantity change).

    • If you forgot to include a purchase order item and want to add it to the current expense, then click the New button in the Items section to add an expense item, and then map that new expense item to an existing (not fully expensed) purchase-order item using its PO Item setting.

  6. Fill out the settings for your new expense record as needed. More information: Track costs of items, media, and services purchased from vendors

  7. Click Submit to save your new expense record and return to your original purchase order, where you should see that your selected purchase-order items show updated Expensed and Balance values.

    System_CAPS_noteNote

    The purchase-order Items table can provide a column called Expensed/Filled (shown as a checkmark). Use the Customize Columns button Customize Columns button to show this column if you don't see it. By default, this column is read-only and automatically changes to show a check for each item that is partially or fully expensed. Once all items show a check in this column, the Closed/Expensed check box for the purchase order is selected automatically, indicating that the purchase order is complete. Your admin can change this behavior so that the Expensed/Filled column shows manual checkbox controls instead of the read-only display (put the grid in Edit Mode to view and edit the checkboxes ). The manual setting provides more control (which can be useful, especially if you use partial expensing), but requires more attention. For details about how to set this option, see Configure site settings.

System_CAPS_noteNote

This is a limited-release feature. Limited-release features are not enabled in the Dynamics Marketing user interface unless you request them. However, they are stable features and fully supported. If you want to enable a limited-release feature for your site, please contact Microsoft Support for assistance.

Accrual expensing is an option that enables monthly accrual periods based on the 4-5-4 calendar. When this option is enabled, individual expenses are accrued during the accrual period that is active when you expense them from the purchase order, though the purchase order may remain active over several accrual periods until it is fully expensed. You can add exceptions to purchase orders to remove some value without expensing it, and as usual, you can apply partial expensing to individual purchase order items (see also Expense purchase orders).

System_CAPS_importantImportant

Monthly accrual expensing is supported only for standard purchase orders, not for media purchase orders.

To enable (or disable) accrual expensing, go to Settings > Administration > Site Settings, scroll down to the Financial Options heading and select (or clear) the Enable Accrual Expensing check box. More information: Configure site settings

When accrual expensing is enabled, the purchase order Items list includes an Accrual Report Period drop-down list, which provides entries for each accrual period going back one year. Select any accrual report period here to view expensing events and totals that were applied during that period. The purchase order Items list can display columns for Expensed (AP), Balance (AP), and Exception (AP), which display expensing totals for each item for the currently selected accrual period. (Use the Customize Columns button Customize Columns button to show or hide these columns.) The purchase order page also provides an extra set of totals for the current accrual report period. More information: Read purchase order totals

When you expense purchase-order items, or add exceptions, the expenses and exceptions are always applied in the currently active accrual period (not the period shown in the Accrual Report Period drop-down list).

An exception is a full or partial amount of the amount on a purchase order item that is excluded from being backed up by expenses in a specific accrual report period. It decreases the balance for the period, and the exception-adjusted new balance carries forward to the next period. When you close an accrual report period, the total balance minus exceptions on any purchase order should be zero. The exceptions applied will define the starting balance for the next period.

  • You can create, at most, one exception per purchase order item per accrual report period.

  • You can create an exception only for the current accrual report period (the most current, not-closed period). When you are using accrual expensing, then you can review the exceptions applied in previous periods using the Accrual Report Period drop-down list. More information: Monthly accrual expensing

To enter an exception:

  1. Select the checkbox for the purchase order item that you want to add an exception to.

  2. Click the Exception button at the bottom of the Items list.

  3. The Exception dialog box opens. Use it to define the amount of the exception and to fill in other details about it. To save the exception, click Submit .

  4. Exception values for the current accrual report period are shown in the Exception (AP)column for each item in the purchase order, with the totals at the bottom of the Items list updated to reflect all exceptions that occurred during the period. Use the Customize Columns button Customize Columns button to show or hide this column.

To view all exceptions applied to a purchase order, open its Exceptions related-information tab. The tab shows a table with each exception, and the total value of all exceptions. You can edit and/or void any listed exception by clicking on its table row, which opens the Exception form.

If you have ordered products or services on behalf of a client, then you can create an invoice or sales order directly from the relevant items of your purchase order. The procedure generates a new invoice or sales order assigned to the Ordered For contact defined for the purchase order, adds all selected purchase order items, and can optionally add a markup percentage for each item.

  1. Find and open the relevant purchase order as described earlier in this topic.

  2. Scroll down to the Items section of your selected Purchase Order maintenance page.

  3. Select the check box for each item you want to add to your new invoice or purchase order. Select the check box at the top of the table to select all items at once.

  4. Click the Invoice or Sales Order button at the bottom of the Items list.

  5. The Billing Options pop-up dialog opens. Use the controls here to choose whether to mark up the net cost of each item, or simply use the total cost. If you choose to mark up the cost, then specify a percentage in the field provided.

  6. Dynamics Marketing creates a new invoice or sales order that includes the items you selected, with prices that include your specified markup percentage (if any). Continue working with the new invoice or sales order as usual. More information: Prepare invoices for clients for items, services and media, Sales orders

When you create an invoice or sales order from a purchase order, the related purchase order is listed on the POs related-information tab of the invoice or sales order maintenance page.

At the bottom of the line-item table, you'll find a collection of calculated values for your purchase order. The following table explains how to interpret these values.

Value

Description

Total

The total cost of all items included in the purchase order.

Expense Total

The total value already expensed from this purchase order (including both mapped and unmapped items).

Balance/Variance

The difference between the purchase order total and the expense total.

Unmapped Expenses

The total value of expense items counted against the current purchase order, but which aren't mapped to any line items from the purchase order.

Not all expense records are mapped to a purchase order, but for those that are, all the items belonging to that expense are counted against that purchase order (so you can't map a single expense record to multiple purchase orders). Starting with Microsoft Dynamics Marketing 2016 Update, each item belonging to an expense that is mapped to a purchase order must be mapped to a specific line item from that purchase order. This means that newly-created purchase orders won't show any unmapped expenses. However, older versions of Dynamics Marketing didn't map expense items to purchase-order items, so older purchase-order records may show unmapped expenses..

Expensed (AP)

The total value expensed from this purchase order (including both mapped and unmapped items) during the accrual period (AP) currently selected in the Accrual Report Period drop-down list. This total appears only if you have enabled accrual expensing. More information: Monthly accrual expensing

Balance/Variance (AP)

The difference between the purchase order total and the expense total during the accrual period (AP) currently selected in the Accrual Report Period drop-down list. This total appears only if you have enabled accrual expensing. More information: Monthly accrual expensing

Unmapped Expenses (AP)

Unmapped expenses added during the accrual period (AP) currently selected in the Accrual Report Period drop-down list. This total appears only if you have enabled accrual expensing. See also the description for Unmapped Expenses given previously in this table. More information: Monthly accrual expensing 

To route a purchase order for approval:

  1. Go to the Purchase Orders list page.

  2. Use the search, sort, and filtering controls to find the purchase order you want to get approved and then select its check box (you can only send one purchase order at a time for approval).

  3. Click the Route for Approval toolbar button Route for Approval button.

  4. Dynamics Marketing opens the Approval Request page. More information: Manage review and approval routing

Purchase orders usually remain open until all the items on them have been received and expensed. If you need to close a purchase order without creating an expense, click the Close button. Dynamics Marketing selects the Closed/Expensed check box without creating an expense.

Financial and general ledger accounts are designed for marketing budget management only. Financial features are restricted to the limits stated in the Security and Financial Disclaimer. Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws, regulations, or common business practices.

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