Purchasing

Purchasing equipment is similar to purchasing any other item. Purchase orders are generated for specific vendors. The line items on a purchase order may be inventory or non-inventory items. A line item can be marked as a capital item. A commitment is recorded for accounting purposes. Where the item being purchased is set up as an inventory item, and there is a corresponding equipment model set up in Equipment Management, the system will automatically create an equipment record in the Equipment Manager when the purchase order transaction is processed. The processing of equipment purchases should be initiated through a purchase order, not a receiving transaction. Equipment Management allows you to create purchase order types to classify different sorts of purchase orders. A purchase order type can be defined specifically for capital purchases. When a purchase order is created with a purchase order type of capital purchase, each line on the purchase order will be marked as a capital item. The item will then be available for entry in the Microsoft Dynamics GP Fixed Asset Management module, and the quantity will not be added to inventory.

Before you can create purchase orders for equipment items, make sure the following has been done:

• Enable alternate windows (Administration > System > Alternate/Modified Forms and Reports)
• Record the equipment items as inventory items (Cards > Inventory > Item).
• Set up an equipment model that is linked to a serialized inventory item (Cards > Equipment > Equipment Model).
• Create an equipment model with purchasing item numbers. This allows the system to automatically generate an equipment record in Equipment Management when the equipment is purchased (Cards > Equipment > Equipment Model).

We recommend that you use the equipment model number as the inventory item number. In addition, profitability must be set up for the item. 

If the item is to be recorded in the Fixed Asset Management module, mark the item as a capital item on the purchase order and change the account on the purchase order to the asset clearing account. Once the item is received, and you select an asset stub in the Asset General Information window, the asset ID created will be the same as the equipment ID and will be automatically linked to the equipment record in Equipment Management. The asset ID and some information from the Fixed Asset Management module will be displayed on the Asset Information tab in the Equipment Manager window.

If the purchase order type is marked for capital items, when the items are received, the inventory quantity will not be increased, even though the equipment is associated with an inventory item.