This article provides a detailed explanation of all available Purchase Order (PO) settings and how each option affects purchasing, receiving, and inventory workflows.

Enable Scanning on Receive

Allows you to receive items on a Purchase Order using a barcode scanner. This enables bulk scanning of items, which can be reviewed before completing the PO receiving process.

Reset Negative Quantity to 0 on Receive

When enabled, any item with a negative stock quantity will be reset to 0 before receiving the PO.

• Enabled: If an item has -7 QOH and you receive 10, the resulting stock will be 10.
• Disabled: If an item has -7 QOH and you receive 10, the resulting stock will be 3.

Show Quantity on Order

Displays how many units of each item are already on order, including quantities from Purchase Orders, Stock Transfers, and other sources.

Reduce Ordering Quantity by Quantity on Order

When set to In Progress, forecasting and replenishment features account for items already on order to prevent double ordering.

Reduce Quantity Upon Stock Transfer (In Progress)

Controls when inventory is deducted from the transferring location.

• OFF: Stock is reduced only after the receiving location completes the transfer.
• ON: Stock is reduced as soon as the Stock Transfer status is set to In Progress.

Note: This setting is determined by the transferring location.

Use in EDI and Custom Export Files

Defines which identifier is used in EDI and Custom Export files.

• Purchasing SKU or SKU: Uses the vendor-specific Purchasing SKU if available; otherwise, the product SKU.
• Purchasing SKU or Product Code: Uses the Purchasing SKU if available; otherwise:
  1. Product Code
  2. SKU (if Product Code is not defined)

Default Product Cost When Receiving PO

Defines how item cost is calculated during PO receiving:

1. Based on Item Cost or Vendor Suggested Cost

When this option is selected, the item cost is taken directly from the PO line item.

• Cost source: Cost from the Purchase Order item

This method does not average with existing inventory and always applies the PO item cost.

2. Based on Average Item Cost

This method recalculates the item cost using a weighted average based on existing stock and the received quantity.

If stock before receiving is greater than 0:

The new cost is calculated as:

(Old Cost × Old Stock + New Cost × Received Quantity) ÷ (Old Stock + Received Quantity)

If stock before receiving is equal to 0:

• The cost is set to the PO item cost
• This behaves the same as Based on Item Cost or Vendor Suggested Cost

3. Based on Average Landed Item Cost

This method works similarly to the average item cost, but uses the landed cost from the Purchase Order instead of the item cost.

If stock before receiving is greater than 0:

The new cost is calculated as:

(Old Cost × Old Stock + Landed Cost from PO × Received Quantity) ÷ (Old Stock + Received Quantity)

If stock before receiving is equal to 0:

• The cost is set to the Landed Cost from the Purchase Order

Choosing the appropriate cost calculation method ensures accurate inventory valuation and correct Cost of Goods Sold (COGS) reporting.

Purchase Order Export Page Orientation

Defines the export orientation for Purchase Orders.

• Portrait
• Landscape

Allow Item-Specific Discount

Allows discounts to be applied per line item rather than to the entire Purchase Order.

Vendor Minimum Order Validation Step

Defines when the system validates a vendor’s minimum order amount.

• Before opening a Purchase Order
• Before moving the Purchase Order to In Progress status

Show Reorder Points

Displays minimum and maximum reorder points directly in the PO table.

Show Sold in Last 30 Days

Displays the quantity sold for each item over the last 30 days.

Receiving Item Price

Defines whether the item price during receiving is taken from:

• The Purchase Order
• The item’s existing price

Receiving Item Cost

Defines whether the item cost during receiving is taken from:

• The Purchase Order, using the Default Product Cost When Receiving PO setting
• The item’s existing cost

Behavior When Adding an Item That Already Exists in a PO

Controls how quantities are handled when adding an item that already exists in a PO.

• Add quantity: Adds the new quantity to the existing quantity.
• Preserve existing quantity: Keeps the existing quantity and allows changes only manually.
• Use higher quantity: Uses the higher value between the existing quantity and the newly calculated quantity.

Vendors Used for Adding Items to PO

Defines which vendors are used when adding items via Low Stock, Forecast, or Replenishment.

• Primary vendor: Only the primary vendor assigned to the product is used.
• All vendors: All vendors assigned to the product are allowed.

Default Status

Defines the default status when opening a new Purchase Order.

• Open
• In Progress

Allow Large Paging

Allows displaying more than 100 items per page in the Purchase Order table.

Always Show Notes

Ensures that line-item-specific notes are always visible.

Warehouse

Allows you to select a warehouse location for the current store. The warehouse must exist within your store chain.

Show Ordered Total During Receiving

Displays the original ordered total along with the current receiving total during the PO receiving process.

Auto-Send Discrepancy Reports

Allows you to define a list of email addresses that will automatically receive a discrepancy report when a Purchase Order is received.