Entering Purchase Charges—Exercises

IMPORTANT
It is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Basic Data Setup

Enter Purchase Part

Purpose: The purpose of this exercise is to show you how to set up a purchase part that is required for running this particular functionality.

Windows:
Purchase Part

  1. Enter the following purchase part: XX62–450 Soft Racing Tire.
  2. Select PCS as the unit of measure.

General exercise for Purchase Part

Enter Charge Group

Purpose: The purpose of this exercise is to show you how to enter a charge group for use in the exercise below.

Windows:
Procurement Basic Data/Purchase Charge Groups

  1. Enter the following charge group: XXFREIGHT.

General exercise for Charge Group

Enter Charge Type

Purpose: The purpose of this exercise is to show you how to enter a charge type for use in the exercise below.

Windows:
Purchase Charge Types

  1. Enter the following charge type: XXAIR.
  2. Connect this charge type to the following charge group: XXFREIGHT.

General exercise for Charge Type

Enter Supplier with Charge Connected

Purpose: The purpose of this exercise is to show you how to set up the basic data required for running this functionality.

Windows:
Supplier

  1. Enter the following suppliers: XX–150 Michelin and XX–160 Goodyear.
  2. Connect Charge Type XXAIR to Supplier XX–150 on your own site.

General exercise for Supplier
General exercise for Supplier with Charge

Enter Supplier for Purchase Part

Purpose: The purpose of this exercise is to show you how to set up the basic data required for running this functionality.

Windows:
Supplier for Purchase Part

  1. Connect Supplier XX–150 Michelin and XX-160 Goodyear to purchase part XX62–450 Soft Racing Tire.

General exercise for Supplier for Purchase Part

Required Data

Enter Purchase Order

Purpose: The purpose of this exercise is to familiarize you with the required data that is used in the exercises below.

  1. Create a purchase order from Supplier XX–150 using Part Number XX62–450.

General exercise for Purchase Order

Main Exercises

Purpose: The purpose of these exercises is to learn how charges are connected to purchase orders. It will also show you what the purchase order documents look like when charges are used. You will also learn how to connect a charge to a purchase order when working with parts without part numbers.

Windows:
Purchase Order

Add Purchase Charge to Order with Stored Purchase Part

  1. Open the Purchase Order window.
  2. Create or query for a purchase order from Supplier XX–150 using Part Number XX62–450.
  3. Click the Charges tab.
  4. Review the charges that are listed.
  5. Print and review the purchase order. Where in the document do the charges appear?

Add Purchase Charge of type Unit Charge to Order with Stored Purchase Part

  1. Open the Purchase Order window.
  2. Create a purchase order for Supplier XX–160 using Part Number XX62–450.
  3. Click the Charges tab and add Charge XXAIR.
  4. Connect the charge line to the purchase order line and select the Unit Charge check box.
  5. Click the Part Order Lines tab and update the Quantity field.
  6. Click the Charges tab and review the quantity of the charge line.

Add Purchase Charge of Type Percentage with Stored Purchase Part

  1. Open the Purchase Order window.
  2. Create a purchase order for Supplier XX–160 using Part Number XX62–450.
  3. Click the Charges tab and add Charge XXAIR.
  4. Remove the charge price/base and instead enter a charge (%).
  5. Review the charge amount that appears at the bottom of the Charges tab.
  6. Note that if the charge is not connected to a specific line, the percentage is applied on the total purchase order amount.

Add Purchase Charge using Conditions with Stored Purchase Part

  1. Connect Charge Type XXAIR to Supplier XX–150 and purchase part XX62–450 on your own site.
  2. Enter a value in the Min Order Amt/Base field of 100 on the connected charge line for the supplier for purchase part.
  3. Open the Purchase Order window.
  4. Create a purchase order for Supplier XX–150 using Part Number XX62–450. Make sure that the total order amount exceeds 100.
  5. Save the purchase order line.
  6. Note the information message which says that charge XXAIR has been added as it's condition has been fulfilled.
  7. Review the charge amount at the bottom of the Charges tab.
  8. Note that the added charge line is connected directly to the purchase order line.

Add Purchase Charge to Order without Stored Purchase Part

  1. In the Purchase Order window, create a purchase order from Supplier XX-160 for a part without a part number.
  2. In the Charges tab, add Charge XXAIR for the part.
  3. Print and review the purchase order.

Review Landed Cost Calculations

  1. Open the Purchase Order window.
  2. Search for any of the purchase orders created in the above exercises.
  3. Right-click and then click Calculate Landed Cost and evaluate the information shown in the Landed Cost tab. It displays the total cost for each part when considering discounts, additional costs and charges.
  4. To view more details for each purchase part, select any of the the lines and then right-click and open the Landed Cost Details window.
  5. In this window you can view detailed information about how the landed cost for each purchase order line is built up based on the charges connected on the order.