Workshops and Study Questions

Instructions: Pick one of the companies you have been working with so far, kitchen products or beverages, whichever you like. List the raw materials and components that you want to set up. These are the items that you need to purchase.

1 First, make sure that each of the items are set up with the appropriate planning information. In particular, what fields do you need to check?

2 See if you have any open sales orders for your finished items. (If not, plug in a forecast.)

a Run Selective MRP for your product line. This should generate some requirements for your purchased items.

3 Approve one of the planned purchase orders. Look at this in the Purchasing menu. Where did you look?

4 Add a new supplier for this item.

5 This supplier supplies you with at least two of your component items. Set this up in the system. Enter both a quote quantity and cost.

6 Enter a purchase order for this supplier. Order exactly 1,000 units. (Do not specify a requisition.)

7 Enter another purchase order and specify a requisition.

8 Purchasing can also be used for non-inventory activities. Assume you are refurnishing your office. Add a new supplier and enter a purchase order for some new furniture.

9 You are now establishing data entry procedures for purchasing non-inventory items. Look at the purchase order line item detail screen.

a Which fields would be handled differently for non-inventory purchases?

b Of these, which should you make sure are entered on this type of PO?

2 How would you set up the system if you wanted to use requisition approvals at one site and not at another, when running both in the same database?

3 When you enter a purchase order, where does the line item unit cost come from? List three sources and when they are used.

4 Overshipment tolerances apply to all product lines and sites in a database.

5 A purchase order line item of type S identifies a ___________________ purchase. This type of purchase order normally specifies the ____________ _____________.

6 If you are not using Accounts Payable, you should set the Receiver Type to zero in Purchasing Control.

1 Select the order you entered in step 6 of the previous workshop. (This should be an order for 1,000 units. If you do not have one, enter a new one.)

2 You made a mistake, you processed a receipt for 999 units, but it should have been 99.

3 Of the 99 units you received, 25 of them did not pass inspection.

4 Receive the items for your office (from step 8 of the previous workshop).

5 Receive all of the other purchase orders for your raw materials.

a What location did the system assume you would receive these into?

6 If you get a chance, go into Accounts Payable and enter the supplier invoice for your furniture. Use Voucher Maintenance and enter your PO number. Notice that this brings in all of the PO information—supplier, terms, and so on.

a On the receiver screen, do a lookup browse at Receiver number and a list of all your receipts appears.

c Notice the variances that appear if you voucher a different quantity than was received or at a different price than was on the PO.

1 Purchase order receipts processed for line item Type M (memo) or S (subcontract) do not affect inventory.

Receipts of line item type M increase the balance (debit) in the GL ___________________________ account.

Receipts of line item Type S normally increase the balance (debit) in the GL ___________________________ account.

2 Items can be received into only one site at a time. If you need to receive into another site, you need to process another Purchase Order Receipts transaction.

3 Processing a negative receipt in Purchase Order Receipts automatically generates a return document to send to your supplier.

4 How do you process a return to supplier if the purchase order has been closed?

5 Returning items against a PO automatically reopens the PO and flags the returned quantity as “on order.”

6 What is a PO price variance? How is it calculated? When is it created?

7 If the unit cost on a subcontract purchase order differs from the standard subcontract cost on the work order routing, the difference is posted as a PO price variance.

Instructions: In this exercise you enter blanket order and release a part of the blanket order to a PO.

1 Make sure that you do not need to use approved requisitions to generate a PO.

2 Create a blanket order for:

3 Print the blanket order you just created.

4 Generate a PO from the blanket order you just created to release 100 of item 01013.

5 Review the purchase order that you created.

Verify that the data from your blanket order has been copied to the purchase order.

2 Prepare the blanket order for release. What fields did you have to enter in Blanket Order Maintenance to do this?

3 Release the blanket order. Look at the resulting purchase order. Note the purchase order number it was assigned.

1 What two fields do you need to check before you can release a blanket order to an order?

2 Blanket purchase orders are just like requisitions. MRP treats them as firm planned orders.

3 The first time you release a purchase order from blanket order number BP3, the purchase order number is set to _________________.

4 Once the blanket order quantity has been released, no more releases can be processed against it.

5 You work with one supplier who provides all of your printed product manuals. Usually you use about 12,000 units a year, and they have quoted you a fixed price based on this volume. Manuals are not planned by MRP, they are just set up on a reorder point. Although sometimes your needs change, usually you order 2,000 every two weeks.