Requisitions and Purchase Orders

As parts are posted to work orders, fuel transactions, transferred to other facilities, etc., inventory levels are reduced and eventually inventory will need to be replenished. The RTA system makes it easy by tracking inventory levels and creating requisitions when quantities run low. Requisitions are requests to order more parts. The list of requisitions should be reviewed and then purchase orders can be generated for the parts approved for reorder.
Using purchase orders helps in managing parts inventory. You'll be able to keep track of the parts purchased, when they were purchased, from which vendor they were purchased, how many dollars worth of parts were purchased in a specified period of time, and which parts are on back order. Purchase orders can be created manually or automatically by the RTA system. The RTA system also has the ability to track blanket POs.
RTA's PO feature is easy to use and works so good that many companies use it not only for their part inventory purchases but also for other purchases such as office supplies, janitorial supplies, and labor!
The Setup:

• Review the switches in the Parts Parameters and change settings as needed (SSM, Parts Parameters tab).
• Set the "Track Backordered Part" switch as needed (SSI, Miscellaneous I tab, switch 7).
• Flag the parts that you want RTA to track as stocked parts.
• Review the reorder point for stocked parts that have the reorder quantity locked.
• Review the part vendors and pricing.
• Most likely there are old and invalid requisitions on file that were generated before you started using requisitions and purchase orders. Run the Delete Requisitions by Vendor program to delete all existing requisitions on file (STPD). This step is optional-refer to "Part Utility Programs" for information about this utility.
• Run the Create Requisition for Low Quantity Parts program (STPC) to have the system check current inventory levels and create requisitions for parts if stock is low. This step is optional-refer to "Part Utility Programs" for information about this utility.

The Procedure:

• Process parts in the usual manner (work orders, manual charge outs, etc.).
• Review requisitions on a daily or weekly basis, depending on your stock and usage.
• Edit requisitions as needed (only if you use the Auto-Create PO feature).
• Create purchase orders to reorder the needed parts.
• Receive parts on purchase orders when the parts come in.

Setting up Part Records for Reorders

RTA generates requisitions only for stocked parts. By default, when parts are added to the system, they are flagged as stocked parts. Requisitions are created for stocked parts when the inventory level falls below the reorder point (as long as the parts aren't already on requisition or on order). For example, if a part has a reorder point of 1, a requisition is created as soon as the last part is used. If the reorder point is locked, we suggest setting the reorder point at a higher value to prevent running completely out of stock before reorders are placed. Be sure to also set the reorder point accordingly for parts that take longer to come in. If the reorder point isn't locked, the system automatically adjusts the reorder point and reorder quantity according to usage patterns and ship time so you'll have one less thing to worry about. The reorder point calculation is as follows:
(Ship days + 10 days) x Usage per Period
Days per Period
If the result is less than 1, the reorder point is set to 1. When the reorder point is set to 1, the part will be out of stock before more parts are requisitioned. The default reorder point can be set to a higher level in the "Reorder Point Settings" switch (SSM, Parts Parameters tab, switch 22).
The reorder quantity calculation is a bit more complex than the reorder point calculation and varies based on the reorder method you have selected.
Standard Reorder Method:
When the "Reorder Point Settings" option (SSM, Parts Parameters tab, switch 22) is configured for STANDARD reorder method, RTA uses a formula that takes the part price and usage into account The factor table and formula used is as follows:

(Factor x Usage per Period)
Days per Period
The factor for parts costing less than $1.00 is 200. The factor for parts costing between $1.00 and $2.00 is 90. The higher the part cost, the lower the reorder quantity. The pricing and factor values can be adjusted in the Parts Parameters (SSM, Parts Parameters tab, switch 11).
Calculated Reorder Method:
When the "Reorder Point Settings" option (SSM, Parts Parameters tab, switch 22) is configured for CALCULATED reorder method, RTA will requisition enough quantity to replenish the stock level back to the reorder point. The reorder quantity field is not used with this method. The reorder point is the target quantity that you'd like to keep in stock.
Min/Max Method:
When the "Reorder Point Settings" option (SSM, Parts Parameters tab, switch 22) is configured for MIN/MAX reorder method, RTA will requisition enough quantity to replenish the stock level back up the the max quantity specified.
Note: After setting the system to/from using the min/max method, you will need to run the "Change Reorder Method" utility (STPR). This will convert your existing reorder point and reorder quantity settings to minimum and maximum settings.
To set up a part record for reorders, do the following:

1. Select Master > Part > File Maintenance from the RTA main menu (MPM).
2. Enter a part number or press F1 to select a part from the lookup list.
3. Select the Stocked checkbox (it should be checked if you wish to have the system generate requisitions).
4. Review the Reorder Lock, Reorder Point, and Reorder Quantity and make changes as needed.
5. Review the vendor information and make changes as needed.
6. Save the record.

Setting up Part Records for Lot Purchases

You can set up part vendors to take advantage of discount pricing for lot purchases (i.e., bulk purchases). Lot ordering is extremely beneficial when purchasing bulk fluids such as oil and ATF. These no longer need to be purchased individually by the quart. Instead, they may be purchased by the gallon, case, barrel, or even tanker truck. Brake shoes for larger equipment can be purchased in "per axle" sets of 4, and the smaller items, such as nuts and bolts can be purchased in boxes of 50 or 100. Many vendors also offer discounts for filters and other items when purchased in case-packs.
A part vendor record can be setup for either individual purchases OR lot purchases; in other words, a single cross-reference cannot be used for purchases in individual quantities AND bulk quantities. However, since the RTA system allows you to add an unlimited number of part vendors per part, you can set up two vendor records using the same vendorone for individual orders, the other for lot orders.
A vendor record is set up for lot purchases. When a quantity of 1 is purchased for the part, the system uses the lot price and the lot quantity for inventory tracking (e.g., a purchase of 1 barrel adds 220 quarts of oil to inventory). If this vendor record is set as the primary vendor (Rank = 1), requisitions auto-created by the system for this part will be ordered by the barrel.
A vendor record set up for individual purchases. When the part is purchased, the individual order quantity and price is used for inventory tracking and distribution (e.g., a purchase of 10 adds 10 quarts of oil to inventory).
To set up part vendor records for lot purchases, do the following:

1. Select Master > Part > File Maintenance from the RTA main menu (MPM).
2. Enter a part number or press F1 to select a part from the lookup list.
3. Edit or add vendor records as needed. Remember, the cross-reference number is the key in determining the price and quantity that gets used when the part is ordered. Refer to "Adding a Part" earlier in this chapter for field descriptions if necessary.

Manually Adding Requisitions

As previously stated, requisitions are automatically created for stocked parts when the inventory level falls below the reorder point. To manually create a requisition, to order non-stocked parts for example, do the following:

1. Select Parts > Purchase Orders > Edit Requisitions from the RTA main menu (PPE).
2. Enter a part number or press F2 to select a part from the lookup list. If you use the primary part number, the requisition uses the primary vendor on the requisition. To use an alternate part vendor, enter the vendor's part number (or cross-reference part number) instead.
3. Read the message displayed and choose Yes to add a new requisition.
4. Verify the vendor information and part pricing from that vendor and then enter the individual quantity to reorder, not the bulk quantity. For example, if you need a case of ATF and a case contains 12 quarts, enter 12 for the quantity, not 1 for the case quantity. If this vendor is set up for lot purchases, the system will automatically compute how many cases should be ordered when POs are auto-created (PPA).
5. Choose Req Notes to add up to five lines of notes for this requisition (optional).
6. Choose OK to save the requisition.

Reviewing Requisitions

The list of parts on requisition should be reviewed on a regular basis, daily or weekly depending on your needs, to make sure your inventory is sufficiently stocked.
Things to Note About the Requisitions

• Auto-created requisitions always use the primary part vendor-the vendor record with a Rank of 1.
• Manually created requisitions can use any part vendor-based on the vendor cross-reference number.
• The reorder quantity on auto-created requisitions is determined by the calculation method set in the "Reorder Point Settings" switch (SSM, Parts Parameters tab, switch 22). If the standard method is used, the reorder quantity from the part record is used. If the calculated method is used, the system reorders the quantity needed in order to bring the inventory level back up to the reorder point. If the min/max method is used, the system reorders the quantity needed in order to bring the inventory level up to the max quantity.
• The reorder quantity is displayed in individual quantities and prices, even if the part is set up for bulk purchases from that vendor. This provides consistency when viewing the requisition quantities-you'll know that a requisition quantity of 1 means 1 each as opposed to having to remember that 1 lot might be 1 half-dozen for some parts, 1 dozen for others, or 1 box of 24, etc.

Printing a Quote Sheet

While viewing requisitions a quote sheet can be printed and provided to your vendor. The vendor fills out the quote sheet with current pricing and estimated delivery time and returns the information to you.

1. Select Parts > Purchase Orders > Edit Requisitions from the RTA main menu (PPE).
2. Click the "Quote Sheet" button.
3. Check the boxes next to each part that you would like a quote on.
4. Click the "Print" button to print the quote sheet for your vendor.

Printing a Requisition List

This option is very detailed, providing both individual pricing and lot pricing (if the vendor has been set up for lot purchases). If you use the Auto-Create PO feature, you should print a requisition list so you'll know exactly which parts and the total cost that will be ordered from each vendor. This option is very detailed, displaying both individual pricing and lot pricing (if the vendor has been set up for lot purchases). To generate the Requisition report, do the following:

1. Select Parts > Purchase Orders > Print Requisitions from the RTA main menu (PPP).
2. Enter the starting and ending facility number(s) or press F1 to select the facility number(s) from a lookup list.
3. Enter the starting and ending vendor number(s) or press F1 to select the vendor(s) from the lookup list.

Reviewing Requisitions On-Screen

To quickly view requisitions on-screen, select Parts > Purchase Orders > Edit Requisitions from the RTA main menu (PPE) and then press F1. This option displays requisitions in a lookup list format, sorted by part number or vendor number according to your preference. Select a requisition from the list to view additional information or make changes to it.

Changing Requisitions

Changes can be made to the requisition vendor, reorder quantity, and notes. To do so:

1. Select Parts > Purchase Orders > Edit Requisitions from the RTA main menu (PPE).
2. Bring up the existing requisition by inputting the primary part number, the cross-reference number, pressing F1 to select the requisition from the lookup list, or pressing F2 to select a part from the lookup list.
3. Make the changes as needed. To change the requisition vendor, simply enter a new cross-reference number or press F1 to select one from the lookup list. To modify the notes, choose Req Notes.
4. Choose OK to save the changes.

Deleting Requisitions

To delete a requisition, do the following:

1. Select Parts > Purchase Orders > Edit Requisitions from the RTA main menu (PPE).
2. Bring up the existing requisition by inputting the primary part number, the cross-reference number, pressing F1 to select the requisition from the lookup list, or pressing F2 to select a part from the lookup list.
3. Choose Delete.
4. Choose Yes to confirm the deletion.

Auto-Creating Purchase Orders

Purchase orders can automatically be created by the RTA system for the requisitions on file. The POs can be created for one vendor, a range of vendors, or for all the requisitions on file. When this feature is used, the system creates one purchase order per vendor containing multiple lines for the parts ordered from that vendor. If a vendor has an open blanket PO, the newly created PO will be an extension of the open blanket PO (refer to "Blanket Purchase Orders"  below for more information). To auto-create POs, do the following:

1. Select Parts > Purchase Orders > Auto-Add from the RTA main menu (PPA).
2. Read the message displayed before choosing Yes to continue.
3. Enter the information to be processed.
4. Choose OK to start the PO creation process.

When the process is complete, a message displays the first and last PO numbers created. If you aren't planning to print the POs right away, you may want to jot down this information in case you want to print the POs later.
Auto-Add Purchase Order Field Descriptions

• Vendor Information: Enter the vendor facility number and the starting and ending vendor number(s) or press F1 to make the selection from the lookup list. The requisition file is searched and if requisitions for the specified vendors are found, a PO will be created for each vendor. If more than one requisition exists for a vendor, additional PO lines will be added to the PO created for that vendor.
• PO Information: The Bill to facility number is the facility that will be billed for these orders. The Ship to facility number is the facility that needs the parts. Both the Bill to facility and the Ship to facility information will be printed on the PO for reference. When the parts ordered are received on the PO, the inventory will be placed in the facility where the PO was created, not the Ship to facility.

If you are using PO prefixes and/or PO suffixes, enter this information (SSM, Parts Parameters tab, switches 17 and 18). These entry fields are grayed out if not being used.
You may also be prompted for the Starting PO number if PO numbers aren't automatically generated by the RTA system (SSM, Parts Parameters tab, switch 31). If RTA is generating the PO number, this entry field is grayed out.
The last item in this section is the PO notes. Enter PO notes as needed. The notes entered here are applied to all the POs created in this process.

• Print Options: Select the Yes or No radio button depending on whether or not you want to print POs immediately after the process has completed. If the No radio button is selected, all the other selections in this area will not be available. If the Yes radio button is selected, select the appropriate radio buttons for the remaining print options.

Manually Creating Purchase Orders

To manually create a PO, follow the steps listed below. You may or may not be prompted for some of the information described due to the settings in the Parts Parameters (SSM, Parts Parameters tab). Data fields controlled by a switch will be noted (SSx, switch xx).

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Choose Add.
3. Add the PO header information.
4. Add a PO line for each part ordered (optional, SSP, switch 5).

Add Purchase Order: Header Field Descriptions

• Prefix and Suffix (SSM, Parts Parameters tab, switches 17 and 18): Enter the PO prefix and/or suffix.
• Bill to/Ship to (SSM, switch 26): Enter the Bill to and Ship to facility numbers or press F1 to select a facility from the lookup list. The information entered here is printed on the PO for reference. When the parts are received on the PO, the inventory will be placed in the current facility, not the Ship to facility.
• Vendor: Enter the vendor facility and number for this PO or press F1 to make the selection from a lookup list. If a blanket PO exists for this vendor (SSM, Parts Parameters tab, switch 14), the blanket PO information is displayed and you'll be given the option to use the blanket PO; choose Yes to use the blanket PO; choose No to create a new purchase order.
• Invoice Number (SSM, Parts Parameters tab, switch 29): Enter the vendor invoice number corresponding to this PO. Another invoice prompt is provided when receiving parts in case the vendor issues several invoices based on when the parts are delivered, rather than one invoice based on when the parts were ordered.
• PO Number and Extension (SSM, Parts Parameters tab, switch 31): Enter up to ten digits or characters for the PO number (depending on whether you're using a numeric or text numbering system) and up to four digits for the PO extension if this is a blanket purchase order.

Add Purchase Order: Add Line Field Descriptions
NOTE: If the "Allow Zero Lines PO" switch is set to YES, the PO can be saved at this point without adding any PO lines (SSM, Parts Parameters tab, switch 5).
Add lines as needed to order parts on the PO. As a PO line is added, the system updates the PO totals and continues to bring up the Add Line window until you choose Cancel to quit the Add Line process.
NOTE: _Adding PO linesplacing the orderdoes not increase inventory levels. Inventory levels are updated when the PO lines are received._

• Part Number: Enter the part number or cross-reference number to order or press F1 to select a part from the lookup list or press F2 to display parts on requisition for the selected vendor.

If cores are tracked for this part, you'll have the option of adding a PO line for the core part.
Choose Yes to automatically add an additional line for the core charges. The quantity ordered will match the quantity of the part being ordered and the price will come directly from the core record. (If this purchase is an exchange and there are no core charges, choose No.). Afterwards, a prompt may appear stating that the vendor in not currently on the part's vendor list.
This message simply means that the vendor on this PO is not listed in the part record as a primary or alternate vendor. Choose Continue to order the part from this vendor anyway, Add Vendor to order the part and add this vendor as an alternate vendor in the part record, or Cancel to reenter the part number.
If the part record is found and a requisition exists, a prompt may appear (SSM, Parts Parameters tab, switch 28) indicating the details of the requisition.
Check the Requisition Qty displayed. If a change is needed, choose Change Qty and type in the new quantity. If the quantity is good, choose Delete Req. to order the quantity shown and delete the existing requisition OR choose OK button to order that quantity and keep the existing requisition on file.
If the part record is not found, you'll have the option of adding the part to inventory. Choose Add to order the part and add the part record to the system. When adding the part record, keep in mind that the quantity entered will be increased by the quantity ordered and received on this PO. For example, if a total quantity of 5 is entered in the stock areas when adding the part and a quantity of 2 is ordered on the PO, a total of 7 will be in stock after the PO line is received. Choose Continue to order the part and treat it as a non-file part—no part record will be created and inventory value will not be affected. Choose Cancel to reenter the part number.

• Vendor Cross-Reference Number: Accept the default number displayed, enter a new cross-reference number, or press F1 to select a cross-reference number from the lookup list. The following prompt will appear if you enter a new cross-reference number:

If the cross-reference is not found, you'll have the option of adding it to the part. Choose Add to order the part and add the new cross-reference number to the system. Choose Continue to treat the new cross-reference number as non-file—it will be referenced on this particular purchase order, but the part record will not be updated with the number. Choose Cancel to reenter the cross-reference number.

• Part Manufacturer: Accept the default shown or enter a new part manufacturer.
• Order or Lot Quantity: Accept the default shown or enter a new quantity to order. Pay close attention to the label because it indicates if the order quantity is for individual or bulk purchases. The label shows Order Qty for individual orders; BOX Qty, CASE Qty, DRUM Qty, etc. for lot purchases (based on the Lot unit description in the part record). Our sample shows oil being ordered by the barrel.
• Part Price: Accept the default shown, select a price from the drop down list, or enter a new price. If this is a lot purchase, Vendor LOT displays next to the part price (see sample).
• SIC Code (SSM, Parts Parameters tab, switch 20): Enter the SIC code for this part.
• Account Number (SSM, Parts Parameters tab, switches 36 and 37): Accept the default shown, select an account from the drop down list, enter a new account number, or press F1 to select an account number from the lookup list. Only account numbers added through the Update Account # option are displayed on the lookup list (STPA).
• Work Order and Line Number (SSM, Parts Parameters tab, switches 32 and 34): Enter the work order number and the work order line number for which this part is being ordered or press F1 to make the selection from a lookup list. Entering this information is optional; doing so enables you to immediately post the part to the specified work order when the part is received. Refer to "Receiving and Posting a Part to a Work Order" below for more information.
• Requisition Number (SSM, Parts Parameters tab, switch 32): Enter a requisition number as needed.
• Taxable: This checkbox is active if the vendor record contains a tax rate (MNM). Fill in this checkbox as needed to flag the part order as taxable or not taxable. Tax will be added to the PO total if this checkbox is selected. The tax rate comes from the vendor record.
• Tax Rate: Choose between the tax rate configured for the vendor (default) or a tax rate defined for the facility.
• Requisition: This is an optional field that can be used to record info such as a requisition number or name of person requesting the part, if desired.
• Freight: Enter an amount of freight to charge for this individual part. Leave this blank if you want to enter a total freight charge for the entire order.
• Line Notes: Choose Line Notes to add up to five lines of text specifically for this PO line.

Add Purchase Order: Add Notes
To add or modify PO line notes, select Notes > Line notes from the menu or click on the Line Notes icon in the toolbar.
To add notes pertaining to the entire PO, select Notes > PO notes from the menu or click on the PO Notes icon in the toolbar; up to three lines of text can be added.
Add Purchase Order: Add Miscellaneous PO Information
To add miscellaneous PO information, select View > View PO Info from the menu or click on the View PO Info icon in the toolbar. The Buyer field is automatically filled in by the system if the "Set Buyer to User ID" switch is set to YES (SSM, Parts Parameters tab, switch 6). The Due date and PO create date fields are also automatically filled in by the system. The due date is the sum of the PO create date plus the longest ship time from the parts ordered on the PO. Enter the data in the remaining entry fields as needed.

The Purchase Order Screen

Now that POs have been created, it's time to get acquainted with the PO screen and the information displayed on the screen.

1. PO Header Information: This contains information for the entire PO.
2. PO Lines: These are the parts on order/parts received. The data columns can be expanded or compressed as needed to view the data on the PO lines.
3. PO Status: Open = no parts have been received on the PO; Partial = some parts have been received, but the order is not complete yet; Closed = all parts on the PO have been received.
4. Lines: This displays the total number of PO lines on the PO. On the sample PO, it's not critical to know this information since all the lines are displayed on one screen, but for POs containing numerous lines, seeing the number of total lines is helpful and can serve as a reminder that there are more PO lines to process.
5. Totals: Order total shows the dollar value of the parts on order. Received total shows the dollar value of the parts already received. Neither of these figures includes taxes. These totals are updated as additional parts are ordered and received on the PO. Freight total shows the total freight charges recorded.
6. Selected PO Lines: Lines are selected by selecting the checkbox in front of the PO line. Once a PO line or multiple PO lines are flagged, you can receive or delete the selected line(s).
7. Unit of Issue: This indicates the volume ordered—individual or bulk quantities (e.g., EA, FT, CS, BOX, DRM).
8. Status: This displays the PO line status. Open = Items have been ordered, but none have been received; Partial = part of the quantity ordered has been received and the remaining items are on backorder; Completed = the entire quantity ordered has been received and the line is closed.

Changing a Purchase Order

To change a PO, do the following:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Make changes to the PO header as needed. The vendor number can be changed only if the PO has an OPEN status (i.e., no parts have been received yet). Once parts have been received on the PO, the vendor field becomes unavailable for changes.
4. To edit a PO line, highlight the PO line to change and then select Edit > Edit line from the menu, click on the Edit Line icon in the toolbar, or double-click the line. Changes can be made to PO lines that have already been received (the line has a status of COMPLETED). However, the changes won't affect inventory or the PO totals until the changes have been received on the PO. Refer to "Correcting a Received PO Line" for information and correction samples.
5. Make changes to the miscellaneous PO information and notes as needed by selecting the option from the menu or clicking on the appropriate icon in the toolbar.
6. Save the PO.

Deleting and Undeleting a Purchase Order Line

If you cancel an order, you can delete the corresponding line on the PO. Only open PO lines can be deleted from purchase orders (i.e., lines that have not been received). A deleted PO line is marked as *Deleted* and remains on the PO. An undelete option is available to make the PO line active again. To delete or undelete a PO line, do the following:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Check the checkbox(es) for the PO line(s) to delete or undelete.
4. To delete a PO line, select Edit > Delete selected lines from the menu or click on the Delete Selected Lines icon in the toolbar.

To undelete a PO line, select Edit > Undelete selected lines from the menu or click on the Undelete Selected Lines icon in the toolbar.

1. A warning is displayed for each PO line to be deleted; choose Yes to confirm the deletion.

Reverse Purchase Receipts

Mistakes happen. The good news is that erroneously entered receipt transactions can be quickly and easily corrected. To reverse erroneous postings, do the following:

1. Select Utilities > Reverse PO Receipts from the drop-down menu.
2. Select the checkbox next to each erroneous receipt transaction.
3. Click the OK button to negate the selected transactions.

An additional offsetting receipt transaction will be posted by the system to negate and cancel the original transaction. When the purchase order receipt list is printed, all erroneous postings and corresponding offsetting entries will be displayed on the printout for audit purposes.

Printing a Purchase Order

When all PO lines have been added to the PO, you can print a copy of the PO and submit the order to the vendor. If you have fax software installed on your computer (not sold by RTA), you can print and fax the order at the same time. If your vendor accepts email orders, you can print and email the PO to the vendor at the same time; refer to "Emailing the Displayed Report as an Attachment" for email instructions.
Several PO print formats are available. Try the various formats by changing the settings on the "PO Print Defaults" switch to select the format that fits your needs (SSM, Parts Parameters tab, switch 10).

Printing an Individual Purchase Order

To print a specific PO:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Select File > Print from the menu or click on the Print PO icon in the toolbar.
4. Select the desired print options from the dialog box and choose OK to start printing.

Printing a Range of Purchase Orders

To print multiple POs, do the following:

1. Select Parts > Purchase Orders > Print PO from the RTA main menu (PPI).
2. Enter the starting PO number and extension (if using blanket POs, SSP, switch 14) or press F1 to select a PO from the lookup list.
3. Enter the ending PO number and extension or press F1 to select a PO from the lookup list.
4. Select a radio button to specify whether to print all POs in the specified range or only POs that are open, partial, or complete.
5. Select a radio button specifying whether to print a shop or vendor copy of the PO (SSM, Parts Parameters tab, switch 25).
6. By default, the Individual line notes checkbox is active; deselect this checkbox to exclude line notes from printing on the PO.

Receiving Parts into Inventory

When the parts on order are delivered, you should receive the appropriate PO or PO lines to update inventory levels and value. Tag records can be generated, tire records can be created, and work orders can be processed when PO lines are received. Two options are available for receiving parts on POs.

• Receive parts through a hand-held TriCoder (PPT): A TriCoder program is available for receiving parts into inventory. Incoming part data can be scanned and stored in the TriCoder and then later uploaded to automatically update existing purchase orders. The program prompts for PO number, PO extension, invoice number, part number, quantity received, and price. Refer to "Receive PO Parts Program" in the TriCoder Programs section of Chapter 8—Bar Coding for more information and instructions for using this option.
• Receive parts manually (PPC): POs can be processed individually as parts come in. See the following section for more information about this option.

When receiving parts manually (PPC), if only a few parts on the PO were delivered, use the Receive Lines Individually option. Receiving a PO line individually allows you to control what happens to the parts received on each PO line such as placing some of the parts on backorder or posting the parts received on one PO line directly to a work order while placing the parts from another PO line into stock. If you're using multiple stocking areas (SSM, Parts Parameters tab, switch 9), you can specify the quantity and the stocking area in which to place the parts received.
If all or most of the parts on the PO came in, use the Receive Lines as Group option, which allows all the selected PO lines to be received simultaneously. Unlike the Receive Lines Individually option where you must answer a set of prompts per PO line, this option prompts once for data and applies the response to all the PO lines accordingly. The PO lines will be received "as is" -meaning the quantity on order is the quantity that will be received. It does not allow items to be placed on back order nor does it allow the quantity received to be distributed to various stocking areas (SSM, Parts Parameters tab, switch 9). If changes to the PO line are needed, then make the changes beforehand.
The following steps detail all the possible prompts that may appear. The actual prompts that appear on your system will vary depending on the settings in the parts parameters.
To receive parts into inventory, do the following:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Flag the PO line(s) to receive by selecting the appropriate checkbox(es).
4. Select Utilities > Receive Lines Individually from the menu or click on the Receive Lines Lines Individually icon in the toolbar. OR

Select Utilities > Receive Lines as Group from the menu or click on the Receive Lines as Group icon in the toolbar.

1. If receiving lines individually, a prompt displays asking you to confirm the quantity and stocking area.

Choose Yes if the information shown is correct. If the quantity and/or the stocking area need to be changed, choose No and then enter the change as needed. If you entered a quantity that is less than the quantity ordered on the PO line AND the "Track Backordered Part" switch is set to YES (SSI, Miscellaneous I tab, switch 7), you'll have the option of placing the remaining quantity on backorder; otherwise, the remaining quantity will be zeroed out.
This prompt also appears if receiving lines as a group AND Prompt PO Lines/Page is set to YES in the "Prompt PO Lines/Close" switch (SSM, Parts Parameters tab, switch 7).

1. If you're using the auto-post to work order feature, a prompt displays giving the option of automatically posting the part received to the specified work order or placing the quantity in stock. In order to use this feature the "Prompt Post Part to WO" switch must be set to AUTO (SSM, Parts Parameters tab, switch 34).
2. The available options in the next prompt depend on the settings in the parts parameters.

Select a radio button indicating whether to create tag records for the parts received (tag records will be created if the Create tags checkbox is selected in the part record).
Enter the received date, invoice number, and invoice date as needed (SSM, Parts Parameters tab, switch 30).
By default, the Post to Work Order checkbox is active allowing you to manually post the part to one or more work orders; clear this checkbox to place the quantity received into inventory instead. In order to use this feature the "Prompt Post Part to WO" switch must be set to YES (SSM, Parts Parameters tab, switch 34). If you opt to post to work order, the work order screen will come up; post the part in the usual manner. Refer to "Posting Work Order Transactions" for instructions if necessary.
If a partial order is being received, select a radio button indicating whether to put the remaining quantity on backorder (SSI, Miscellaneous I tab, switch 7).

Receiving a Tire Part

When receiving part s, if the part is flagged as a tire type, you'll have the option to create individual tire records in the Tire Inventory module (MTM). A prompt appears asking if you want to update the tire file.
Choose Yes to create tire records and enter minimal information needed in order to add the tire records. For the tire number, enter the tire prefix first (e.g., BFG03 for B.F. Goodrich tires purchased in 2003) followed by the starting individual tire number. For example, if 20 tires are being received and a tire prefix of BFG03 and a starting tire number of 1 is entered, tire records created would be numbered BFG030001 through BFG030020. Refer to "Adding a Tire" for information on the tire entry fields. When all the tire records have been created, you'll be given the opportunity to print or view the tire records created.

Receiving and Posting a Part to a Work Order

When receiving parts, you have the option of immediately posting the parts to a work order. The parts can be manually posted or auto-posted to work orders during the receive PO line process.
The instructions for using this feature assume you have a working knowledge of the work order and purchase order programs.

Canceling an Item Ordered

At times you may order an item and it turns out your selected vendor cannot fill that order. An alternative to back-ordering the item and waiting for the vendor to fill it, is to simply cancel the order and go elsewhere. The 'Move Lines to Another PO' button on the toolbar makes this easy. By clicking that button, all open or partial lines on the PO will be removed from the current PO and added to a brand new PO, on which you will specify the alternate vendor.Auto-Posting Parts Received to Work Orders
The auto-post parts feature automatically posts the entire quantity being received on a PO to a specified work order. If you don't want to post the entire order to a work order, use the receive by line option to receive a partial order, auto-posting that portion, and then receive the PO line again to put the remaining quantity in stock (or post it to another work order). This feature writes all the transactions necessary for tracking part purchases and usage-just as if you had placed the quantity into inventory and then later posted it to a work order.
To have the ability to auto-post parts to work orders when receiving PO lines, do the following:

• Set Prompt for WO Number to YES in the "Prompt for WO # Req #" switch (SSM, Parts Parameters tab, switch 32).
• Set the "Prompt Post Part to WO" switch to AUTO (SSM, Parts Parameters tab, switch 34).
• Set the "Allow Close" switch to NO (SSM, Parts Parameters tab, switch 34). This will prevent a work order line from being closed while there is still an outstanding part on a purchase order waiting to be be received and auto-posted to it.

Once the switches have been set, do the following:

1. Add a work order line for the job that needs the part.
2. When adding a PO line, indicate the work order and work order line number to auto-post to. The work order must be valid and open. If the work order is not yet available, it can be assigned later by editing the PO line or during the receive PO process.
3. When receiving the PO, select the options pertaining to auto-posting parts to work orders by checking the box to enable auto-post parts. Input a work order and job line number if not specified earlier when the PO was created. Click the auto-post button to receive the parts and post them to the work order.

Manually Posting Parts Received to Work Orders
This feature brings up the Work Order module during the receive PO process. You have full functionality to add, view, post, and close work orders as needed. This feature isn't as quick and easy to use as the auto-post feature, but it offers more flexibility and freedom by allowing you to post any part number, in any quantity, to any work order-for any number of work orders. When you're done posting to work orders, the system returns to the purchase order.
To have the ability to manually post parts to work orders when receiving PO lines, set the "Prompt Post Part to WO" switch to YES (SSM, Parts Parameters tab, switch 34). Then, when receiving a PO, select the options pertaining to auto-posting parts to work orders by checking the box to enable auto-post parts. Input a work order and job line number if not specified earlier when the PO was created. Click the auto-post button to receive the parts and post them to the work order.

Correcting a Received PO Line

Corrections can be made to PO lines that have already been received, even if the line is already closed; however, be aware that the changes don't affect the inventory levels or the PO totals until they are received on the PO. For example, if you received parts in at the wrong price, changing the price on the PO line will not have any affect on the PO totals or the inventory value. What must be done in this case is the original order must be backed out and another order, with the corrected price, must be re-received. To correct a received PO line, do the following:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Highlight the PO line to correct and then select Edit > Edit line from the menu or click on the Edit Line icon in the toolbar.
4. Make changes to the order quantity and/or part price as needed. Refer to the table shown for instructions on how to make corrections.
5. Receive the corrected PO line.

NOTE: Deleting a purchase order does not undo the transactions already processed and received.

Recording Freight Charges

Freight charges can be recorded and listed as a single line-item on the purchase order with the entire cost of the freight. Alternatively, the freight charge can be automatically divided up and a portion of the freight added to each individual part. If the freight is divided up between the parts, then the cost of the freight will be recouped when the part is sold on a work order.
Recording freight as a single line item:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Add a line for each part that is purchased from the vendor.
4. Click the "ADD FREIGHT" button in the header section of the purchase order.
5. Enter the total freight cost in the prompt.
6. Click the OK button. The freight is now added to the freight total displayed and will be printed in the totals section of the purchase order.

Applying freight charge to the individual part:

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a PO number or press F1 to select a PO from the lookup list.
3. Add a line for each part that is purchased from the vendor.
4. Check the box next to each of the parts that you want to apply freight cost to.
5. Click the "ADD FREIGHT" button in the header section of the purchase order.
6. Enter the total freight cost in the prompt.
7. Check the box for "post freight to lines".
8. Click the OK button. A weighted portion of the total freight is now applied to each of the selected parts and is displayed on each line item. The total freight is added to the freight total displayed and will be printed in the totals section of the purchase order.
9. Each individual purchase order line can be edited and the freight portion amount changed if you desire to split the freight differently than the system's weighted calculation. This must be adjusted prior to receiving the item into inventory.
10. Receive the purchase orders. The portion of the freight assigned to each part is added to the value of the part as it is received into inventory. When the part is sold on a work order, the vehicle will be charged the price with the freight included, recouping the cost of the freight to your shop.

Purchase Approvals

Users can be restricted from spending more than a certain amount of money without approval from an authorized user. Checks and balances! Configure the PO approval minimum for your facility. Purchases under this dollar amount need no additional approval. Configure which users can approve purchases above this amount, and up to what amount. An audit trail of each purchase the user approves is recorded. PO's over the amount cannot be received. Instead, the user must request approval using one of various methods. The supervisor is notified via the selected method, then responds. Once the PO is approved, the user can receive the items.

Enable the Approvals Feature

The PO Approvals feature is optional. If you wish to use this feature, first it must be enabled.

1. Select System > Setup System Switches > Main System Parameters from the RTA main menu (SSM).
2. Enable the option 'Use PO Approval' by setting it to YES.

Configure Approval Minimum

Employees with access to the Purchase Order module can create and receive purchases for dollar amounts lower than specified here without triggering the approvals process.

1. Select Master > Facility > File Maintenance from the RTA main menu (MFM).
2. Enter a facility number or press F1 to select a facility from the lookup list.
3. In the 'General' tab, fill in a dollar amount for PO Approval Minimum.
4. Repeat this step for each facility in your system.

Configure Approval Employees

For each employee that is authorized to approve purchases made by other employees, specify the dollar limits that they are authorized to approve.

1. Select Master > Employee > File Maintenance from the RTA main menu (MMM).
2. Enter an employee number or press F1 to select an employee from the lookup list.
3. In the 'PO Approval' tab, fill in a dollar amount for PO Approval Maximum. This is the largest amount that this employee will be able to approve for purchase.
4. Fill in a digital signature PIN. This PIN will be used by the employee when approving purchases in order to digitally certify that the employee, in fact, authorized the approval.
5. Repeat this step for each employee that will have approval responsibilities.

Purchase Order Status

Minimum Approval: Employee may complete the purchase order without approval, since it meets the facility approval minimum requirements.
Pending Approval: Employee has submitted the PO for approval, but it has not yet been granted.
Not Approved: Employee may not complete the purchase order until approval is granted by someone with the authority to do so.
Approved: Approval has been granted by someone with the authority to do so. Employee may now proceed with the order and receive the purchase order.

Requesting Approval Procedure

As employees create purchase orders as detailed in previous sections in this manual, they will be prevented from performing the process of receiving a Purchase Order if the total dollar amount on the PO exceeds the Approval Minimum configured for the facility. The STATUS field of the purchase order will indicate whether they may proceed without approval or if they need to request approval.
If the status displays 'Not Approved', the employee will need to request approval.

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a purchase order number or press F1 to select a PO from the lookup list.
3. Click on the 'Approval' button on the toolbar.
4. Optionally click the 'Edit Comments' button and fill in any comments as needed.
5. Click the 'Request Approval' button.
6. Fill in the employee requesting to make the purchase in the 'Requested By' section.
7. Choose a method to make the request:
   • RTA Messenger (add-on option to the software which must be installed and configured for sending messages between user accounts in the Fleet Management Software.)
   • E-Mail (internet email. Email account and server information must be configured for the user)
   • Verbal (signifying that the approver was notified verbally about the PO)
8. Select approver(s). A list of all employees authorized to approve a purchase order at this dollar amount is listed. Check the box next to one or more potential approvers and click the 'Save Request' button. If RTA Messenger or Email were selected in step 7, they approver(s) will receive notification via the chosen method.
9. The status of the PO will be changed to "Pending Approval".

Granting Approval Procedure

As approvers receive requests to grant approval for a pending PO, they will either approve the PO, request approval from someone else, or not approve the request.

1. Select Parts > Purchase Orders > Create/Receive PO from the RTA main menu (PPC).
2. Enter a purchase order number or press F1 to select a PO from the lookup list.
3. Click on the 'Approval' button on the toolbar.
4. Click the 'Approve this PO' button. A new window will open to certify the approval.
5. Fill in your employee number and your approval PIN to proceed.
6. Use the available buttons to process the PO as desired:
   • View PO: displays the detailed item list and prices of all of the items to be purchased.
   • Approve PO:
   • Deny Approval:
   • Forward Request: Select another employee to approve the PO.
7. Choose a method to notify the requestor of the approval decision and fill in any desired comments about the approval or denial decision.
8. Press Continue.

Blanket Purchase Orders

A blanket PO is a PO in which a vendor doesn't need approval for everything that is purchased from them. Blanket POs are usually good for a specified period of time and have a set budget limit. Each time a PO is manually created (PPC), the RTA system checks to see if the vendor has an existing blanket PO. If a blanket PO exists, you'll be given the option to use the existing blanket PO or to cut a new, non-blanket PO. Auto-generated POs automatically use the blanket PO if one exists (PPA). As parts are ordered on blanket POs, the system tallies the cost of the parts purchased. The displayed purchase totals include part tax paid if the "Add Tax to Part Cost" switch is set to YES (SSM, Parts Parameters tab, switch 24). Warning messages are displayed if the blanket PO has expired or if an order exceeds the allowable budget. When a blanket PO has expired or the budget limit has been reached and more parts need to be ordered, you can either exceed the existing blanket PO budget amount (password level 1 is required), increase the current blanket PO budget amount, create a new blanket PO, or create a regular (non-blanket) PO.

Adding a Blanket Purchase Order

In order to use blanket POs, the "Use Blanket POs" switch must be set to YES (SSM, Parts Parameters tab, switch 14). To create a blanket purchase order, do the following:

1. Select Parts > Purchase Orders > Create Blanket PO from the RTA main menu (PPB).
2. Enter a vendor number for the blanket PO or press F1 to select a vendor from the lookup list.
3. Enter the blanket PO facility number or press F1 to select a facility from the lookup list.
4. If you're using your own PO numbers, enter the blanket PO number (SSM, Parts Parameters tab, switch 31).
5. Enter the budget limit.
6. Enter the starting and ending dates or press F1 to select the dates from the calendar.
7. Enter the current and oldest PO open extension (optional).

Changing a Blanket Purchase Order

To edit a blanket PO, do the following:

1. Select Parts > Purchase Orders > Create Blanket PO from the RTA main menu (PPB).
2. Enter a vendor number for the blanket PO or press F1 to select a vendor from the lookup list.
3. Make the changes as needed.
4. Save the record.

NOTE: Blanket POs can also be changed by calling up the vendor record (MNM) and then selecting Edit > Blanket Info from the menu or clicking on the Edit Blanket Info icon in the toolbar.

Creating a new Blanket Purchase Order

If your are wanting to end your previous blanket PO and start a new fresh PO, do the following:

1. Select Parts > Purchase Orders > Create Blanket PO from the RTA main menu (PPB).
2. Enter a vendor number for the blanket PO or press F1 to select a vendor from the lookup list.
3. You should get a prompt that says there is a blanket PO already but that the budget is all used up or that it has expired. Select Yes to create a new PO
4. If it takes you straight into the vendor, you will need to change your expiration date so that the blanket PO shows that it is expired. Then exit out and repeat steps 1-3.
5. Enter in the new blanket PO information
6. Save the record.

Deleting a Blanket Purchase Order

Once a blanket PO is created, it can't technically be deleted from the system. However, you can change the budget amount and expiration date so the blanket will no longer be validrefer to the previous section for instructions.

Quick Receive Purchases

This simple entry screen allows the quick receipt of parts off an invoice or packing slip. Part quantities and prices are updated, but no purchase order will be created in the system. Transactions of the part receipts are logged and appear on the various purchase order reports (RPT, RPR, RPN)
To record parts received, navigate to Parts > Purchase Orders > Quick Receive PO (RPR) from the RTA main menu. Fill in the pertinent details about the parts received.

1. Date: Enter the date received (defaults to today's date).
2. PO/Invoice Number: Enter the PO number or Invoice number.
3. Part Number: Enter the part number. If the part# does not exist in RTA, you'll be prompted to Add, Continue, or Cancel. Add, will bring up the Parts Master Screen, letting you add the part on the fly. Continue, will not add the part to the inventory, but instead it will be treated as a Non-File Part. Cancel, will take the cursor back to the part number field to be re-entered.
4. Description: If the part number is in the system, it will default to the part's description. If the part does not exist, you will be prompted to enter a description.
5. Quantity received: Enter the received quantity.
6. Price: Enter the individual part purchase price (price per unit).
7. Ok: Click the OK button to complete the part transaction. The cursor reverts back to the Part Number field and you'll be prompted for the next part number (the process will repeat for this PO/Invoice number).
8. Exit: When finished receiving parts, click the Exit button.

For a new PO/Invoice Number while processing multiple parts, click on the PO Number field , and enter the new PO Number and date. Then continue on with entering the parts, quantity, and pricing.

Auto-Creating a PO from Work Orders

When the "Outside WO/Create PO" switch is set to YES (SSM, switch 23), a PO is automatically created when an outside work order is added to the system (WW).
The newly created PO contains three lines; OUT-LABOR, OUTPARTS, and OUT-TIRES. The Miscellaneous Purchase Order Information window contains the following work order information:

• The work order number is stored in the WO number field.
• The username is stored in the Buyer field (SSM, Parts Parameters tab, switch 6).
• The vehicle number is stored in the PO for field and it also displays as the description on each PO line.

When the work order is closed, all parts and labor costs posted on outside work order lines will be accounted for on the purchase order. All tire costs, inside and outside jobs, will be accounted for on the purchase order. The purchase order is automatically received and closed when the work order is closed. Additionally, if the invoice number and invoice date were indicated on the work order, prior to closing the work order, that information is also included in the purchase order transaction.

Purchase Order Reports

Previous purchases for an individual part number can be looked up quickly by bringing up that part record (MPM) and then selecting View > Purchases from the menu or clicking on the Purchases icon in the toolbar. The following PO reports are available if you need printed information or data for multiple parts, POs, or vendors.

• Range of Purchase Orders (PPI)
• Purchase Order Summary (PPV)
• Open/Pending PO Lines (PPL)
• Parts On-Order/Back-Order (PPO)
• Parts Received by Part Number or Date (RPT)
• Parts Received by Invoice Number or Vendor (RPR)
• Purchases by Account Number (RPN)