Concepts

Tasks

Settings

Creating a Purchase Order for an On-site Contractor

Creating a purchase order for an on-site contractor provides a record of the procurement process, and the agreed on pricing and terms. Purchase orders for on-site contractors are similar to regular purchase orders, except that the on-site contractor settings must be entered. This makes the PO available for selection on timecards. If you create the purchase order from a contract, the same settings will be used.

Add a purchase order line for each trade that will be reporting time against the purchase order, using the on-site contractor purchase type. If timecards will be entered at different rates, enter a separate line for each rate. For example if the contractor will be reporting time at both regular and overtime rates, add two lines to the purchase order.

This section explains how to create a purchase order from scratch.

You can also create a purchase order directly from a requisition. See Turning a Requisition into a Purchase Order. If you are using a contract, you can create the purchase order directly from the contract. See Creating a Purchase Order From a Contract.

To Create a Purchase Order for an On-site Contractor

1.	Select the site’s Purchasing view, then the Purchase Orders tab, and then the Purchase Orders tab. By default, this tab lists all open purchase orders for the site and below.

2.	Click New. The Purchase Order window appears.

3.	Enter the Supplier for the purchase order. Browse to search for the supplier, and then select the supplier, and click OK.

4.	If you are purchasing items which are listed on a contract, select the contract from the Contract list. Selecting a contract will limit the resources that you can add to the purchase order to those that are listed on the contract.

5.	Enter a Title for the purchase order.

6.	On the Details tab, select the Requested by employee, and the Buyer responsible for the purchase order, and the Priority.

7.	Select the Contractors tab, and enter the on-site contractor settings:

Setting Name

Description

Used for on-site contractor time reporting

Select this option when the purchase order will contain lines for purchasing on-site contractors. When this option is selected, only supplier resources using the purchase type ‘on-site contractor’ can be added to the purchase order.

Invoicing rule

The rule for reconciling contractor timecards to the supplier’s invoice: • Invoice lines are matched to individual timecards: select this option to reconcile invoice lines within APM. A purchase liability will be created for each of the on-site contractor timecards. • Invoice lines are not matched to individual timecards: select this option to reconcile the invoice lines manually. You might want to do this if matching invoice lines to individual timecards is too rigid of a process.

8.	On the Terms tab, enter the terms and conditions that apply to this purchase order:

Setting Name

Description

FOB Point

The free on board (FOB) point for the order. The FOB point indicates when the title to the shipment transfers to your company. You are responsible for the delivery and handling of the order from this point on.

Freight Term

The freight term for this order. This setting typically identifies who is responsible for paying the freight charges.

Payment Term

The supplier's payment terms for this order. You can enter the terms here if you wish, but the terms stated on the invoice are the ones used to determine when to pay the bill.

Shipping Mode

This box shows how the order will be shipped to the warehouse. Click the arrow to select the appropriate mode. Common shipping modes include Rail, Supplier's truck, Customer's truck, and Air.

9.	Select the Distribution tab. Select whether you want the costs of the purchase order to be charged to a single account or to be distributed by line. If you select by line, you can choose to charge each purchase order line to a separate work order, asset, or GL account number.

10.	Select the Comments and Instructions tabs to enter any comments or instructions you would like to appear on the purchase order.

11.	You can now add lines to the purchase order. Return to the General tab, Lines tab and click New. The Purchase Order Line dialog appears.

12.	On the Details tab, enter the following:

Setting Name

Description

Resource

Enter the name of the on-site contractor trade. To search for the trade, click Browse, highlight the trade, and click OK.

Purchase type

Select On site contractor.

Number of

The total number of contractors required for the trade If this box is left blank, the system will enter “1” as a default entry.

Required for

The amount of time for which each contractor is required. For example if you are entering a trade requirement, enter how long each contractor will be needed. If this box is left blank, the requirement will default to 1.00 hour.

Price

The unit cost of the item ordered, expressed in the supplier’s ordering unit of measure and in the supplier’s currency.

Price reference

The supplier’s reference number for the price of this supplier resource. If prices exist for this supplier resource, you can select from a list of valid prices.

Discount rate

The discount rate applied to this order. This rate is usually expressed as a percentage of the cost of the order.

13.	Enter the remaining purchase order line information, as usual. For more information, see Adding Lines to a Purchase Order.

14.	When you are finished save the line by clicking OK.

15.	To add more lines, repeat steps 11 to 14.

16.	Select the Contact Info tab. In the Send to box, verify the contact person to whom you will send the purchase order, and the method that you will use to send the purchase order to the supplier.

17.	Once you have completed the purchase order, you can perform any of the following actions:

•	Sending Purchase Orders for Approval

•	Sending a Purchase Order to a Supplier

•	Printing a Purchase Order

18.	When you are finished, save and close the Purchase Order window.