Direct Purchasing

Direct Purchasing

First “Direct Purchasing” allows you to issue a Purchase Order for a NAV “Resource”.   In standard NAV the only way to purchase a non-Item is to purchase directly to a (G/L Account).   An example of a purchased resource is outside processing. (Painting Service, Heat Treating, Plumbing,…)

The Vendor provides a service that you may resell or the service is part of the cost of a product (job) that you make and then resell.

Resources that you purchase must be assigned a Gen. Prod. Posting Group that works in combination with the Gen. Business Posting Groups that have GL Chart of account numbers in the Purchasing account columns.

You can now enter a Resource line type on a Purchase Order, Invoice, or Credit Memo. The Resource line can also have a Job No. assigned to it.  When the Purchase Order is posted it will post that cost to the Jobs just like “Type Item” posts costs to Jobs.

The extended text option on Resources also works when creating Purchase Orders.  Automatic Ext. text works too.

Standard Purchase lines hold the cost that you will pay to the vendor and it also holds the Unit Price that you intend to charge the Customer if the line entries are posted to Jobs.  Resources on the purchase lines will do all of this just like items.   The Resource cost and the unit price will also be changed if there are special costs or prices set up in the Resource Cost and Resource Price tables.

Second new  functionality: A Resource on a Sales Line can use Purchasing Code = Direct Purchase.   Direct Purchase Codes can only be used with Resources.   Drop Ship and Special Order type Purchasing Codes can only be used with Items (standard Navision).   Please note that the Resource being used with the Direct Purchase Option must have a Vendor No. in the Vendor No. field available.

Information like Job No., Work Type, and Unit Price on the Sales Lines will be sent over to the Purchase Lines.   The Sales Order lines are directly linked with Purchase Lines.   You can lookup the PO from the Sales Order lines and or look up the sales order from the Purchase Order lines.

This capability is ideal for clients that need to purchase “Direct” from the Sales Order. Think of it as a “push” to the Purchase Order system.   Direct Purchasing has a choice on the Sales Order that sends Drop Ship, Special Order, and Direct Purchase lines to the Requisition Worksheet.  There is even an option in the setup to go through the Requisition Worksheet and automatically generate the Purchase Order(s) without any other steps.  There is also a new field on the Sales Lines called “Ship-to Option” that allows you the ship to instructions on the Purchase Order to be controlled per Sales Order Line.  What this means is that each Sales Line can have a different Ship-to Code which will create separate Direct Ship type of Purchase Orders.

Third new functionality: Sales Order No. History and Purchase Order No. History.  Two new tables have been added to track EVERY Number.  Even Deleted or Skipped Numbers.  New reports have been created to track Customer Invoices and Vendor Invoices allocated to the Sales Order Number.

What this means is that you now can see at a glance all related Invoices against a Sales Order and all related Vendor Invoices against a Sales Order.  It is like “Sales Order Costing”.  All actual costs against a Sales Order are now easily associated with that Sales Order.

Fourth new functionality: Direct Purchasing interface with Job Costing.  If you combine Direct Purchasing with Job Costing you can use “Special Order” and “Direct Purchases” and add the Job Number to the Line.  Then when the Purchase Order is created the Job Number will be automatically populated on the Purchase Order Line as well.

Key Features:

- Menu Choice to enable Direct Purchase Orders generation directly from a Sales Order Line.
Purchase Items or Purchase Resources

- Ability to generate Purchase Orders for Resources.

- Resource’s Extended Text works with Purchase Orders.

- Sales Order No. History and Purchase Order No. History

- “Ship-to” option available on Sales Order Lines to generate Purchase Order Ship to Instructions.

- Requisition Worksheet now allows a Job Number to be added.

Enjoy this mini-Video on “Direct Purchasing”:
[Shown in "Classic", but available in "RTC" too.]