Managing POs

1. Set to Archive Quotes and Orders in Purchases & Payables Setup – this creates an archive copy of the PO on each posted receipt. NOTE: My NAV 2016 (out-of-the box) does not create an archive copy on posting the invoice. If you change the cost of an item at invoice (voucher) and need an archived copy, you will need to do this manually before posting the invoice. My customer did not do this.
2. Create Purchase Order for contract Quantity and Amount.
3. When receiving the items,
   1. If the Quantity to Receive is less than the contracted amount, change the Qty to Receive on the purchase line to the actual quantity. DO NOT change the Quantity. Receive – a PO archive copy is created. If the receipt is considered complete, set the Qty. to Receive on the line to 0.
   2. If the Quantity to Receive is more than the original quantity entered on the PO, reopen the PO, add a new line below the original line by copying all values from the original line except for Quantity and Order Date – enter the additional quantity to receive and the receiving date as the Order Date on this line. We decided to put “CHANGE” in the Description on this line. Release the Purchase Order. Receive – a PO archive copy is created including the newly added line. This preserves the original contract and includes the accepted change.
   3. If the Quantity to Receive is equal to the contracted amount, well that one is easy!
4. When the PO is invoiced, if the quantity received and invoiced completes the order, it is automatically deleted. However, if a PO is partially received and invoiced, it will not be deleted.

NAV will allow you to delete a PO if the received quantity is fully invoiced even if the line Quantity is not completely received. NOTE: There is no reason to change the Quantity to match the Qty. Invoiced on the line to delete a Purchase Order.

The customer reviews Purchase Order Status report as part of their month end process. They delete purchase orders they consider to be received in full even though the quantity received is less than the original order quantity. The Purchase Order Line filters used on the report: Location, Qty. to Receive = 0, Qty. Received Not Invoiced = 0, Quantity Received <>0. If there was any doubt, they would just leave the PO until the next month’s review. They do this monthly as it keeps the task more manageable.