PO.SH.00 Shipments 750

PO.SH.
00
Purchase Order Shipments Guide 750

Table of Contents
PO.SH.00 Shipments 750 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
About this guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PO.SH.10.00 About Shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PO.SH.20.00 Sample data, exercises and examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
PO.SH.20.10 Supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
PO.SH.20.20 Inventory Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PO.SH.20.30 Purchase Order Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
PO.SH.30.00 Shipment processing configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
PO.SH.30.10 Configure the major function flags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
PO.SH.30.20 Define shipment charges special accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
PO.SH.30.30 Set the next shipment number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
PO.SH.30.40 Define foreign currency codes and rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
PO.SH.30.50 Maintain Inventory records for foreign shipment processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
PO.SH.30.50.10 Import Tariff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Add import tariff code to item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
PO.SH.30.50.20 Tariff Country Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
PO.SH.30.50.30 Tariff Duty Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
PO.SH.30.50.40 Pack Cubic Size and Pack Weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
PO.SH.40.00 Processing shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
PO.SH.40.10 Create a shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
PO.SH.40.20 Assign purchase orders to shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Set in transit details by purchase order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Set in transit details by item code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Set in transit details by manufacturer code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
PO.SH.40.30 Maintain details for a shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
PO.SH.40.40 Create a shipment costing report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
PO.SH.50.00 Extra charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
PO.SH.50.10 Distribution methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
PO.SH.50.20 Enter extra shipment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
PO.SH.60.00 Supplier Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
PO.SH.60.10 Supplier invoice with tax correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
PO.SH.60.20 View the General Ledger entries of cost items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
PO.SH.70.00 Extra charges invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Post a shipment charge onto a shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
PO.SH.80.00 Goods Receipt by Shipment - partial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
PO.SH.80.10 Receive the goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
PO.SH.80.20 View the General Ledger entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
PO.SH.90.00 Duty Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Process duty invoice to a shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
PO.SH.100.00 Freight invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
PO.SH.110.00 Process multiple shipment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
PO.SH.110.10 Process multiple charges to a shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
PO.SH.120.00 Adjust Posted Suppliers Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Post invoice for the correct value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
PO.SH.130.00 Receive remaining shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
PO.SH.140.00 Landed cost enquiries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
PO.SH.150.00 Final re-cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
PO.SH.160.00 Update the ledgers for a shipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
PO.SH.170.00 Exchange rate differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
PO.SH.170.10 Purchase Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
PO.SH.170.20 Supplier Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
PO.SH.170.30 Goods receipt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Final re-cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
PO.SH.180.00 Merging shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
PO.SH.190.00 Splitting shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
PO.SH.200.00 Scenario General Ledger entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Average cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Standard cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
PO.SH.210.00 Scenario special accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
PO.SH.00 Shipments 750
About this guide

This guide provides a comprehensive overview of the functionality for the configuration and operations of shipments in Pronto Xi.
Audience
This guide is designed for the following audience:
Shipment Administration staff

Stock Costing staff
Cost Accounting staff
Overview
In this guide you will learn how to:
Create a shipment
Place goods in-transit
Receive goods on the shipment
Create Suppliers invoice
Add charges to a shipment
Distribute costs
Work with foreign currency
Re-cost shipments
Produce costing reports
View related General Ledger postings
Prerequisites
It is assumed that you:
Have access to the Purchase Order and Accounts Payable modules

Have Pronto Xi version 750 or higher installed
Are familiar with the general navigation and functionality available in Pronto Xi
Are familiar with the purchasing and goods receipt functions.
Published 29.10.2018 13:38 Pronto Xi Education Series 750 4 of 126

© Copyright 2018 Pronto Software Limited. All rights reserved.

01102018
Software version: 750.0
Trademarks
® Pronto, Pronto (logo), P (logo), Pronto Software, Pronto Xi, Pronto Xi Dimensions, and Pronto Enterprise Management System are
trademarks registered by Pronto Software Limited (ABN 47 001 337 248) in Australia, USA and other countries.
™- trademarks of Pronto Software Limited (ABN 47 001 337 248)
IBM® and Cognos® are trademarks of International Business Machines Corporation. Disclaimer
The information contained within this document is provided on an “as is” basis, is subject to change without notice, and is not
warranted to be error-free.
While this guide provides specific, practical examples of implementing Pronto Xi features, it cannot cater for all possible requirements
of our customers. We hope, nevertheless, that this guide will stimulate ideas for extending or enhancing your Pronto Xi
implementation, and we strongly encourage you to seek professional advice regarding your specific business needs.

PO.SH.10.00 About Shipments

Shipments are used to record despatches of goods from suppliers where the supplier is either in another country, or the goods are coming
from a supplier that delivers orders in large quantities (such as a whole semi-trailer or container loads).
A shipment can include items from a number of purchase orders and can record any freight or cost associated with its delivery.
The Shipment Processing menu is used to create shipments and track the progress of the goods with more detail than standard purchase
order processing.

PO.SH.20.00 Sample data, exercises and examples

A scenario has been established in this guide to demonstrate realistic requirements and to reflect the data set up in the Pronto Xi training
data set. Screen captures have been used to assist. Whilst every attempt is made to document flag settings and data used there could be
instances where the data does not match exactly the screen shots in the company that you are using (for example, costing flags used). The
average cost of the items is set from the start of the scenario (refer to the section PO.SH.20.20 Inventory Items for set up details). If the cost
of items differs for your examples then the shipment costing reports will not be the same as provided in this guide.
 For all of the steps, tasks and examples shown throughout this guide, where the user is required to enter data, these are all based
on the fictitious Fred Kirks Enterprises company requirements, which is expanded throughout the various sections of the guide.
You will need to set up your data based on your business needs.
Prerequisite Setup Requirements

For the scenario in this guide set up is required of the following:
PO.SH.20.10 Supplier
PO.SH.20.20 Inventory Items
PO.SH.20.30 Purchase Order Creation
Scenario
Fred Kirks Enterprises for many years has been sourcing all inventory requirements for their Cushions from local suppliers.
The rising costs of these locally supplied products has prompted the need to source compatible products from overseas.
A supplier has been selected which means you are now ready to initialise the process by completing the setup requirements i.e.
configured the major function flags, defined the shipment charges special accounts, define the foreign currency codes and rates and
create the import duty tariffs as described in the section PO.SH.30.00 Shipment processing configuration.
You will then be able to complete the following tasks required to process a shipment of cushions. For details of the items to create and
the purchase orders refer to the section PO.SH.20.30 Purchase Order Creation
1. Create a Shipment
2. Assign Purchase Orders to the Shipment
3. Enter Extra Charges Estimates with their Distribution Method
4. Process Suppliers Invoice with Tax Correction
5. Process Extra Charge Invoice
6. Receive Goods by Shipment (PO M004) – Partial Receipt
7. Process Duty Invoice
8. Process Multiple Extra Charges Invoice
9. Adjust "Posted" Suppliers and Extra Charges Invoices
10. Receive Goods by Order (PO M101) and Maintain Purchase Orders (PO M006)
11. Print Shipment Costing Report
12. Landed Cost enquiries
13. Final Recost
14. Update Ledgers
15. Exchange Rate Differences
16. Merging shipments
17. Splitting Shipments

PO.SH.20.10 Supplier
Create a Supplier (or use one already available). For this guide we are using a supplier called CUS001.
Because this is a foreign supplier the they are exempt from GST.
The supplier sells in a currency of USD with a exchange rate of 0.7400. To set up currency codes refer to the section PO.SH.30.40 Define
foreign currency codes and rates.

PO.SH.20.20 Inventory Items

Five Inventory Items are used throughout this guide.
Information in setting up Pack Cubic Size, Weight and Import Tariff is found in the section PO.SH.30.50 Maintain Inventory records for
foreign shipment processing.
The items are set up as follows.
Item Storage Pack Weight Pack Cubic Size Unit Conv Standard Cost Duty %
R1CUSHION EACH 0.10 0.05 EACH 1 10.00 5.00
 Weight and Volume

Note that Item Weight and Volume can be instrumental in helping to configure purchasing requirements that could have
container weight or volume constraints. They may also play a part in the distribution process with constraints imposed by
freight contractors and warehouse storage restrictions.
R1CUSHION
1 Via Inventory > Maintain Inventory > Inventory Maintenance/Enquiry (INV M138) select or create the following.

2 From the above screen click Suppliers.

On the Suppliers screen you can set the buy price (or this can be entered manually when the purchase orders are created).
3 From the Inventory Maintenance screen click Whse.

Item costings are displayed here. For our examples the costs are as shown.

R2CUSHION


3 From the Inventory Maintenance screen click Whse.

R3CUSHION


From the Inventory Maintenance screen click Whse.


R4CUSHION



R5CUSHION




PO.SH.20.30 Purchase Order Creation

For this guide a purchase order for the US customer must be created with lines as follows.
Scenario
You are required to create purchase order lines for the following cushion items:
Item Price Purchased Quantity Unit Extended Price (USD) Purchased Weight Purchased Volume
R1CUSHION 5.00 500.00 EACH 2500.00 50.00 25.00
R2CUSHION 10.00 1000.00 EACH 10000.00 90.00 60.00
R3CUSHION 15.00 1500.00 EACH 22500.00 120.00 105.00
R4CUSHION 20.00 2000.00 EACH 40000.00 140.00 160.00
R5CUSHION 2.50 250.00 CTN 625.00 15.00 225.00
TOTALS 5250.00 75625.00 415.00 575.00
Below are the formulas for the Extended Price and Purchased Weight columns:
Column Formula
Extended Price Purchased Quantity x Price (in supplier's currency).

For example, R1CUSHION - 500 x 5.00 = 2500
Purchased Weight Purchased Quantity x Conversion Factor x Item Weight.

for example, R3CUSHION - 1500 x 1 x 0.08 = 120
Purchased Volume Purchased Quantity x Item Volume

For example, R5CUSHION - 250 x 0.90 = 225
When processing shipments, the item volume specified in the Pack Cubic Size field in the Supplier For Item screen is used.

Steps
1 Refer to the Purchase Orders Education Guide for instructions on how to:
Enter a new purchase order

Enter the five Line items as per the above scenario.
2 The header screen will look like the following:
3 The Lines screen will look like the following:
4 Write down the values in the Order Total, Total Volume and Total Weight fields in the Purchase Order screen. These values will
be important for the distribution of cost later in this guide.
5 Click Q for Quit.

The Purchase Order Conclusion screen is displayed.
6 Enter P for print in the Select Status field.
7 Click OK.
8 Select Print Order & Finish from the drop-down menu.

9 Enter the print date or accept the default date and click OK.
10 The order will now have a status of On Order.

PO.SH.30.00 Shipment processing configuration

There are a number of tasks required to setup before you can perform Shipment Processing and Costing:
PO.SH.30.10 Configure the major function flags

PO.SH.30.20 Define shipment charges special accounts
PO.SH.30.30 Set the next shipment number
PO.SH.30.40 Define foreign currency codes and rates
PO.SH.30.50 Maintain Inventory records for foreign shipment processing

PO.SH.30.10 Configure the major function flags

The following major function flags are necessary for shipment processing and costing:
Shipment Code Length

Purchase Shipment Charges Used
Purchase Shipment Invoicing
Scenario
Fred Kirks Enterprises requirements are to:
Assign next available number to shipments, padding out to 6 characters

Record charges against shipments
Allow processing of type x invoices, even if an invoice has already been processed
Setup the major function flags to support the above.|
Steps
1 Select Administration > System Administration > Major Function Flags > Purchasing Procedures (SYS M063).
The Purchasing Procedures screen is displayed.

2 Complete the following major function flags for Shipment Processing and Costing:
Shipment Code Length Enter the shipment code length.
N Leave code as it is entered and do not assign the next number.
5-9 Pad the code out to 5 and 9 characters respectively.
A Pad the code out to 10 characters.

Enter 6.
Purchase Shipment Charges Used Specify whether to record charges against the shipment.
Y Yes - Enable the recording of charges against the shipment
N No - Disable the Shipment Charges screen and recosting.

Enter Y.
Purchase Shipment Invoicing Specify whether to enable processing of invoices.
0 Enable processing of completed supplier shipment invoices.
1 Disable processing of completed supplier shipment invoices.

Enter 0.
3 Click OK to continue.

PO.SH.30.20 Define shipment charges special accounts

Shipment Charges special accounts are necessary for processing foreign shipment transactions and costing and will need to be setup.
Scenario
Fred Kirks Enterprises requires the following special accounts setup for shipment charges:
Steps
1 Select Administration > System Administration > Special Accounts Maintenance (GL M013).
The Special Accounts Maintenance screen is displayed.
2 Click Entry.

3 Complete setting up the charges special accounts for the following, using the example described above:
Account Name Account Code Account Name Description
PI The General Ledger account Inventory In-transit
PPFRT The General Ledger account Purchase Provision – Freight
PPDUTY The General Ledger account Purchase Provision – Duty
PPDUTY The General Ledger account Purchase Provision – Duty
SHPVAR The General Ledger account Shipment Variance
SHPFIN The General Ledger account Shipment Final Variance
SPPC0 to SPPC9 The General Ledger account Purchase Provision – Charges
 SHPVAR and SHPFIN represent the distinction between Balance Sheet and Profit & Loss.
In effect SHPVAR only posts the WIP shipment details and any balance remaining in SHPVAR at shipment completion is posted to
SHPFIN.
If the GL accounts for SHPVAR and SHPFIN are the same, no posting will occur.|

PO.SH.30.30 Set the next shipment number

The SH entry in the Serial Numbers – YY code table determines the next shipment number. The padding of the number is defined in the
Shipment Code Length field in the Purchasing Procedures (SYS M063) major function flags.
Steps
1 Select Administration > System Administration > Table Maintenance Menu > YY-Serial Numbers (Next Number) (SYS M170).
The Serial number – YY screen is displayed.
2 Find the Table Code SH.
3 If you wanted to change the next shipment number, click Correct. For the purposes of this training just note the next shipment
number.

PO.SH.30.40 Define foreign currency codes and rates

You need to define all foreign currencies in which your organisation will conduct transactions and record current exchange rates.
Scenario
Fred Kirks Enterprises requires the following foreign currency and exchange
rate:
Country Exchange rate
USD 0.74
Create a new Currency Code
1 Select Administration > System Administration > System Codes and Messages >Local/ Foreign Currency Maintenance >
Currency Maintenance > Currency Code Maintenance (SYS M218).
The Currency Code Maintenance screen is displayed.
2 Click Entry.

3 Complete the following fields.
Currency Enter the currency code. An alphanumeric code of up to four characters.

Enter USD.
Description Enter the currency description.

Enter US Dollar.
Type (Optional). Used for information purposes only. For example, to identify currency codes that have been
specifically set up for end-of-month currency revaluations rather than transactional purposes.
Decimals Enter the number of decimal places needed to record the amount in this currency. If left blank, the currency
uses only whole number amounts.
Enter 2.
Display Specify whether this currency code is to be displayed during currency code lookups or enquiries.
Options available:
Y Yes – display during currency code lookups or enquiries.
N No - hide currency codes that are not intended to be used for normal transaction purposes. While
the currency code is excluded from the lookup screen, it can still be used if entered correctly.
Enter Y.
4 Press Enter.
The Enter Currency Details screen is displayed.
Enter the following Currency Rate details:
Currency Rate Enter the exchange rate for the foreign currency.
Enter 0.74
Local Enter the local currency rate

Enter 1
5 Click OK.
The Currency Code Maintenance screen is displayed.
6 If you wish to change a rate, click Maintain Rates from the Currency Code Maintenance screen.

PO.SH.30.50 Maintain Inventory records for foreign shipment

processing
When items are imported from an overseas supplier, the tariff charged is dependent on the following:
The country of the supplier.

The nature of the item.
To maintain imported items, it is suggested that the following fields need to be maintained:
PO.SH.30.50.10 Import Tariff

PO.SH.30.50.20 Tariff Country Code
PO.SH.30.50.30 Tariff Duty Rate
PO.SH.30.50.40 Pack Cubic Size and Pack Weight

PO.SH.30.50.10 Import Tariff

The value in the Import Tariff field in the Inventory Maintenance/Enquiry screen is used to define the rate of duty payable on an imported
item.
Define import tariff codes

The rate of duty payable when an item is imported needs to be defined.
Scenario
Fred Kirks Enterprises requires the two duty tariff rates payable when cushions are imported, RATEA and RATEB. We will now set these
up using the rates in the screen below.

Steps
1 Select Administration > System Administration > System Codes and Messages > Code Tables (SYS M099).
The Code Tables - ZZ screen is displayed.
2 Click Find to locate the Type Code, DY.
3 Click Select.
The Duty Tariff Codes – DY code table is displayed.
4 Click Entry to add a new tariff code.

5 Complete the following fields:
Table Code Enter an import duty tariff code, RATEA
Description Enter a description of what this tariff code is for, RateA 5%
Normal Enter the duty rate for non-developing countries, 5%.
Develop Enter the duty rate for developing countries, 2.5%.
Other Enter other tariff rate, 7.5%.
6 Repeat steps 4 – 5 for tariff code RATEB.
Add import tariff code to item

Once the import tariff codes have been created they can be added to the items.
Scenario
Fred Kirks Enterprises imports cushions from an overseas supplier. The duty tariff code for item R1Cushion is RateA i.e. 5%
Item code Import Tariff Code
R1CUSHION RATEA
R2CUSHION RATEB
R3CUSHION RATEA
R4CUSHION RATEB
R5CUSHION Blank
Steps
1 Select Inventory > Maintain Inventory > Inventory Maintenance/Enquiry (INV M138).
The Inventory Maintenance/Enquiry screen is displayed.
2 Find the required imported item code, R1Cushion
3 Click Correct.

4 Enter the duty tariff code in the Import Tariff field.
5 Click OK to confirm.
6 Repeat for the additional items.

PO.SH.30.50.20 Tariff Country Code

The value in the Tariff Country Code field in the Supplier For Item screen (accessed from the Supplier mode in Inventory Maintenance
/Enquiry (INV M138) function), is used to identify the imported item’s country of origin and in conjunction with the Import Tariff code sets
the Import Duty Rate .
Valid values for the Tariff Country Code field are:
D – Developing Country
O – Other Country
Z – Zero Tariff
N or Blank – Normal
Refer to the section PO.SH.30.50.30 Tariff Duty Rate for use of this field.

PO.SH.30.50.30 Tariff Duty Rate

The value in the Tariff Duty Rate field is used to determine the rate of duty for the item, and is dependent on the Tariff Country Code field.
Both these field are used in conjunction with the Import Tariff field in the Inventory Maintenance/Enquiry screen to calculate the duty on
imported goods.
If a value is not entered in the Tariff Country Code field, but the import tariff code is specified in the Inventory Maintenance/Enquiry
screen, the normal duty rate of that duty tariff code will apply.
Example
Using the Tariff Codes created earlier we will show the effect of changing the Country Code flag on an item's supplier record.

Steps
Select Inventory > Maintain Inventory > Inventory Maintenance/Enquiry (INV M138).
From this screen, find your item and click Suppliers.
The supplier record for that item is displayed. This screen contains all information relating to the supplier relating to this particular
item only. Because we have set the Tariff Code for this item to RATEA we can see that the Tariff Duty Rate is 5%.
Click Correct.
In correct mode, TAB down to the Tariff Country Code field and enter D.
Press Enter.

You can see that the Tariff Duty Rate has changed to 2.5%.
TAB back to the Tariff Country Code field and change to O and also to Z to see the effect of this field.
For the purposes of this training we need the Tariff Duty Rate to be set to 5% so leave the screen with the country code blank.

PO.SH.30.50.40 Pack Cubic Size and Pack Weight

Item Weight and Volume can be instrumental in helping to configure purchasing requirements that could have container weight or volume
constraints. They may also play a part in the distribution process with constraints imposed by freight contractors and warehouse storage
restrictions.
Both of these fields can be accessed via the Inventory Maintenance/Enquiry screen and in addition the cubic size can be set for each
item's supplier via the Stock Supplier for Item screen.
Pack Cubic Size

The value in the Pack Cubic Size field is the size or volume of the item in cubic meters.
Pack Weight
The value in the Pack Weight field is the item pack weight in kilograms or equivalent in litres.
Scenario
The item weights and sizes used throughout this guide are as follows.
Item Code Pack Cubic Size Pack Weight
R1CUSHION 0.050000 0.1000
R2CUSHION 0.060000 0.0900
R3CUSHION 0.070000 0.0800
R4CUSHION 0.080000 0.0700
R5CUSHION 0.90000 0.0600

We will now add these size and weight values to the items.
Steps
1 Select Inventory > Maintain Inventory > Inventory Maintenance/Enquiry (INV M138).
The Inventory Maintenance/Enquiry screen is displayed.
2 Find the required imported item code, R1Cushion
3 Click Correct.

4 Tab to the Pack Cubic Size field and enter the size of the item.
Then Tab to the Pack weight field and enter the weight of the item.
5 Press F4 to save the information.
6 Repeat for the additional items.

PO.SH.40.00 Processing shipments

Shipments are used to record despatched goods from:
Suppliers in another country, or

A local supplier that delivers orders in large quantities such as a whole semi-trailer or container loads.
A shipment can include multiple purchase orders, items from different purchase orders, freight cost and other costs associated with the
delivery.
Shipment Details
Items and a supplier have been set up and a purchase order created.
The supplier sells in $USD with a currency exchange rate of 0.74.
Freight charges are in US dollars with a currency exchange rate of 0.74. All other extra charges will be in local currency.
At each stage of processing, a shipment costing report is generated and journal entries posted to the General Ledger are verified. The
journal entries are shown for companies which hold inventory value by average cost.
Once the shipment processing is complete, the full set of general ledger entries will be available to provide the overall picture of the
shipment process.
In this section, you will:
PO.SH.40.10 Create a shipment

PO.SH.40.20 Assign purchase orders to shipment
PO.SH.40.30 Maintain details for a shipment
PO.SH.40.40 Create a shipment costing report

PO.SH.40.10 Create a shipment

Shipments are created via the Shipment Create (PO M009) function.
Steps
1 Select Purchase Orders > Shipment Processing > Shipment Create (PO M009).
The Shipment Create screen is displayed.
2 Complete the following fields based on your company requirements.
Shipment
Details
Shipment No. Press Enter to accept the next system generated number.
Pronto Software recommends prefixing the shipment number to create a unique shipment number to
make the journal entries in the General Ledger easier to find, as a numeric shipment number can
coincide with a sales order, work order, and so on.
Supplier Enter the supplier account code, or press F2 (Lookup Help) to access the Supplier Enquiry table and
select from the list.
Leave this field blank if there are multiple suppliers on the shipment, and the supplier code will be
automatically assigned depending on the orders attached.
Enter CUS001
Departure Port Enter the departure port of the shipment.

Leave blank
Arrival Port Enter the arrival port code where the shipment will be received.
Leave blank
Departure Date Enter the date the goods are leaving the departure point.

Whse Receiving Specify the warehouse that will receive the shipment.
Goods Enter 300
Exp. Arrival Date Enter the date the shipment is due to arrive in the warehouse.
Shipment GL Enter the GL account to post the shipment details to, or accept the default general ledger account code
Account SHPVAR. If SHPVAR is not defined, it will default to PURVAR.
Enter 10015340
Allow Final Specify whether full costing is to be done after the goods for the shipment are received and ledgers
Recost updated.
Option Description
Y Final recosting is a manual process
N Final recosting is automatic after the shipment is received and ledgers updated.
Enter Y.
Vessel/Payment
Leave the
following fields
blank for our
scenario
Vessel/Carrier Enter the name of the vessel or carrier.

Name
Voyage/Flight Enter the voyage flight number.

Number
Shipping Specify the code for the shipping company.

Company
Consignment Enter the shipment consignment number.

Number
Kg Enter the shipment total weight. the weight can be entered manually or calculated automatically from
the weight of the items attached to the shipment
Number of FCL Enter the number of full container loads.
Order Terms Specify the order terms or press F2 to access the Terms Descriptions codes table and select from the
list.
The order terms entered here will update the order terms of the purchase orders in this shipment.
Payment Terms Specify the number of days allowed for payment.
LC Number Specify the letter of credit number (if applicable) or press F2 to access the Letter of Credit Help table
and select from the list.
Security Enter the security lodgement number for the vessel (if applicable).
Lodgement
Port of If a Security Lodgement number is entered, enter the port of document lodgement.
Lodgement

3 Select OK to confirm.
The In Transit Details screen is displayed.
4 To assign purchase orders to this shipment refer to the section PO.SH.40.20 Assign purchase orders to shipment.

PO.SH.40.20 Assign purchase orders to shipment

When creating a foreign shipment using the Shipment Create function, the in transit details of the shipment must be defined. Once you
have created a shipment, the "In Transit" Details screen is displayed where you nominate an In Transit entry method. An entry method
can be one of the following:
Set in transit details by purchase order

Set in transit details by item code
Set in transit details by manufacturer code
Purchase order or Item code are the most commonly used methods.
Set in transit details by purchase order

1 In the In Transit Details screen, enter P in the Entry Method field.
This option uses the purchase orders to set the purchase order items to a status of In Transit.
The Set Delivery Dates on Line screen is displayed.
In the Method field, specify the delivery dates on the lines. Options are:
L Leave line dates as is
R Reset line dates to zero
S Set line dates to the Expected Arrival Date.

Enter S.

The Purchase Orders On Current Shipment screen is displayed.
4 Enter the Purchase Order in the Order No field or press F2 to access the Purchase Order to Select screen and select from the
available list.
Enter your PO number.
5 The Shipment Details screen is displayed with the purchase order lines.
6 Click All Transit to set all the items on the shipment to a status of In Transit, or select Item Transit to set each line item
individually.
Click All Transit.

7 A Confirmation screen is displayed.
Click Yes.
8 Click Quit to exit the Shipment Details screen.

The Purchase Orders On Current Shipment screen is displayed.
9 Click Enter Ord to include more purchase orders on this shipment if required.
10 Press Esc when finished. Your shipment will now have a status of In Transit.
Set in transit details by item code

Enter S (Item Code) in the Entry Method field to enter in transit details by item.
This option is useful if you are creating a shipment for a range of items on various purchase orders or the supplier might have been unable
to supply these items on previous shipments and is now filling multiple backorders and new orders for some items.
Steps
1 In the In Transit Details screen, enter S in the Entry Method field.

This option uses the item code to set the purchase order items to a status of In Transit.

The Process Item Codes screen is displayed.
3 Enter the item code being shipped in the Item Code field, R1Cushion.
4 Press Enter.
The Shipment Purchase Orders screen is displayed.
available list.
Enter your PO number.

6 The Process Item Codes screen is displayed.
Enter the quantity to be put in transit in the Transit field, 500.
7 Press Esc to exit the Process Item Codes screen.
8 The Confirm Finish screen is displayed.

Enter Y and click OK to confirm finish.
9 Your shipment will now have a status of In Transit.

Set in transit details by manufacturer code

Enter M (Manufacturer/Supplier Part Number) in the Entry Method field to enter in transit details by item.
Steps
1 In the In Transit Details dialog, enter M in the Entry Method field.

This method uses the supplier's item code to set the purchase order items to a status of In Transit.
This process is similar to option S – Transit Details by Item Code.
The Process Item Codes screen is displayed.
3 Enter the item code used by the supplier in the Supp. Item Code field, R1Cushion.
4 Click Enter.
The Shipment Purchase Orders screen is displayed.

available list.
Enter 160
6 The Process Item Codes screen is displayed.
Enter the quantity to be put in transit in the Transit field, 500.
7 Press Esc to exit the Process Item Codes screen.
8 The Confirm Finish screen is displayed.

Enter Y and click OK to confirm finish.
9 Enter the item code being shipped in the Item Code field, R1Cushion.

PO.SH.40.30 Maintain details for a shipment

Details for existing shipments can be maintained using the Maintain Shipment Details (PO M102) function.
Steps
1 Select Purchase Orders > Shipment Processing > Maintain Shipment Details (PO M102).
The Maintain Shipment Details screen is displayed.
 When this function is accessed for the very first time, the first record in the table is displayed. Subsequently, this
function always recalls the last record that you viewed, if it is still available.
2 Enter the shipment number in the Shipment No. field or press F2 to access the Purchase Order Shipment Enquiry table and select
from the list.

3 The following modes are available from the Maintain Shipment Details screen.
Find Find the required shipment.
Correct Correct values on the screen.

If you change the expected arrival date and other shipment header details, it is possible to set up the delivery
date on individual lines of the order.
The Set Delivery Date on Lines dialog is displayed with the following options:
L Leave line item delivery date as is.
R Reset line delivery dates to zero.
S Set the line delivery date to the expected arrival date entered on the shipment. This is the default.
Remove Cancel the shipment and return all orders to On Order status.
When a shipment is cancelled, the purchase order is removed from the shipment. You cannot cancel a shipment
after goods have been received or an invoice has been posted to the shipment.
Transit Enter details of goods being shipped for the shipment.

Until goods have been received or an invoice posted for the shipment, it is possible to change the in-transit
quantity of a line item.
Check the in-transit details before any postings or update are processed.
Lines Show details of item codes on the shipment.
Order Show details of purchase orders on the shipment.
Charges Enter the extra charges for the shipment.
Goods Enter details of goods received for the shipment.

Recd
Update Update the General Ledger for the shipment.
Extra Access a drop-down list of extra options that are available in this screen.

PO.SH.40.40 Create a shipment costing report

Shipment Costing reports can be created via any of the shipment maintenance screens.
Steps
Click Extra then Report on Costs.
2 The Shipment Costs screen is displayed.

Report Format Specify the required report format.
S Supplier details format
Blank Normal format – show details by shipment number

Leave this field Blank.
Full Item Description Specify whether or not to print full item code description.
Enter N.
Shipment numbers From the Shipment Maintenance screen this field will default to the current shipment.
4 In the Processing Options screen accept the default of I (to run the report immediately) and click OK.

5 The report is generated.

The Duty calculation, based on the import tariff rate set for each item code and the purchase order currency rate (which is USD =
0.74) is already included in the report.
At this point, the shipment has a status of In Transit. No shipment or financial data has been posted to the General Ledger.
A Shipment Costing report can also be generated via the Cognos reporting package.

PO.SH.50.00 Extra charges

Extra charges can be included in the cost of the goods when received. Points to consider when entering these extra charges are:
What charges are relevant?

When should they be included?
How should they be entered and managed?
Any charges incurred in the process of bringing goods into the premises and making them ready for sale can be included in the value of
goods. These costs can include freight, outside storage, agency fees and so on.
Extra costs can come in long after the goods have been received and sold. These costs can greatly affect the end value of goods. These costs
can be entered as estimates and then corrected later or entered when the actual invoices or costs are received.
The urgency of entering the charges depends on the method used for the cost of goods i.e. either standard costing or average costing. For
example, when using standard costing, it might not be as urgent to include the costs before selling the goods. These costs will not affect the
margin since it is already set. When average costing is used, it can be more urgent since it might be necessary to calculate the profit with a
cost figure that might not be final.
The Shipment Charges screen contains the different types of charges that can be included in a shipment. The shipment requires items in
transit before charges can be added.
All the costs, except freight, are entered in local currency. Freight charges can be entered in a currency other than the supplier currency, or
in local currency.
When entering a cost, a single character suffix can be appended to the value to indicate the method of distributing that cost to the items on
the purchase orders.
See also:
PO.SH.50.10 Distribution methods

PO.SH.50.20 Enter extra shipment charges

PO.SH.50.10 Distribution methods

Pronto Xi distributes the shipment charges between the goods to determine the average cost of each item on the shipment. As the charges
are entered, it is possible to specify how these charges are to be applied to the value of the goods during re-costing. The following
distribution methods are available:
Distribution Description
Method
Q Money amount distributed by line quantity.

Formula: Charge Value x Order Line Quantity
Total Order Quantity
Example: R1CUSHION 1000 x 500 / 5250 = $95.24
$, ' ' Money amount distributed by line value.

The charges are divided between items according to the ratio of the value of the item to the total value of the
shipment. Use this option to apportion the charges on a direct monetary value basis.
Formula: Charge Value x Order Line Value
Total Order Value
W Money amount distributed by line weight.

The charges are divided between the items according to the ratio of the weight of the item to the total weight of the
shipment.
Formula: Charge Value x Order Line Weight
Total Order Weight
V Money amount distributed by line volume.

The charges are divided between items according to the ratio of the volume of the item to the total volume of the
shipment.
Formula: Charge Value x Order Line Volume
Total Order Volume
F, % Percentage of FOB.
Formula: Purchase Price (converted to local currency) x % of FOB
Example: R5CUSHION (844.60 / 0.74) x 5% = $42.23
C Percentage of all Charges.

Formula: (Charge + Freight + Duty) x % of all charge
L Percentage of landed cost.

Formula: (Purchase Price (converted to local currency) + (Charges to this Point + Freight + Duty) x % of land cost

Distribution Method Calculations based on the scenario in PO.SH.50.20 Enter extra shipment charges.
Item Qty $ W V Duty FOB% Costs% Both%
R1CUSHION 95.24 33.06 90.91 43.48 281.53 168.92 28.86 199.22
R2CUSHION 190.48 132.23 163.64 104.35 1126.13 675.68 115.45 796.89
R3CUSHION 285.71 297.52 218.18 182.61 2533.78 1520.27 259.75 1793.01
R4CUSHION 380.95 528.93 254.55 278.26 4504.51 2702.70 461.78 3187.58
R5CUSHION 47.62 8.26 272.72 391.30 0.00 42.23 7.22 49.81
Totals 1000.00 1000.00 1000.00 1000.00 8445.95 5109.80 873.06 6026.51

PO.SH.50.20 Enter extra shipment charges

All the costs, except freight, are entered in local currency. Freight charges can be entered in a currency other than the supplier currency, or
in local currency.
When entering a cost, a single character suffix can be appended to the value to indicate the method of distributing that cost to the items on
the purchase orders. The available distribution methods are detailed in the Distribution Methods section.
Scenario
Below are the distribution method calculations for Fred Kirks - Extra Charges scenario.
Item Qty $ W V Duty FOB % Costs Both %

%
R1CUSHION 95.24 33.06 90.91 43.48 281.53 168.92 28.86 199.22
R2CUSHION 190.48 132.23 163.64 104.35 1126.13 675.68 115.45 796.89
R3CUSHION 285.71 297.52 218.18 182.61 2533.78 1520.27 259.75 1793.01
R4CUSHION 380.95 528.93 254.55 278.26 4504.51 2702.70 461.78 3187.58
R5CUSHION 47.62 8.26 272.72 391.30 0.00 42.23 7.22 49.81
TOTALS 1000.00 1000.00 1000.00 1000.00 8445.95 5109.80 873.06 6026.51
Once the extra charges and distribution methods are entered, the Shipment Charges screen will look like the
following.
The charge fields have been defined in Define shipment charges special accounts.

Steps
2 Enter the required shipment number in the Shipment No field.
3 Click Charges.
The Shipment Charges screen is displayed.
The charge fields displayed in this screen are based on the descriptions of the corresponding special accounts: SPPC0 to SPPC9,
and PPFRT.
4 Complete the fields as described below:
Charges
Freight Specify the currency in which the freight charges are being entered.
Currency Leave this field blank if the charges are in the local currency.
Enter USD
Freight Specify the freight amount and distribution method.

Amount Enter 670$.
Agent Specify the agent fees and distribution method.

Fees Enter 1000$.
Interest Specify the interest and distribution method.

Enter 1000W.
Finance Specify the finance charges and distribution method.

Charges Enter 1000V.
Insurance Specify the insurance and distribution method.

Enter 5F.

Local Specify the local cartage and distribution method.

Cartage Enter 5C.
Local Specify the local storage and distribution method.

Storage Enter 5L.
Shipment These are the user defined charge fields.

charge Leave these blank for now.
fields
Admin Specify the General Ledger account where charges are posted.
Account Leave blank for now.
Admin Specify the Admin amount to be posted to the Admin Account specified above.
Charge Leave blank for now.
Create Specify whether to create purchase orders for value charges.

Charges
Order Y Charge type purchase orders are created and maintained for each of the charge categories entered
for the shipment
N Do not create purchase orders for value charges.

When charges are added or modified after the initial entry, the charge type purchase orders are also updated
automatically (these purchase orders are notational only and cannot be modified other than automatically in
shipment processing).
For shipments with a type X transactions – Extra Shipment Charges, the shipment number and purchase order
number are required. After the invoices are posted, the purchase orders are updated with the payment
amount. An invoice entry needs to be made for each of the charge types and purchase order number.
When the shipment is finally re-costed, the charges purchase orders are set to a status of Finished. The
advantage of using these charge orders is that the system maintains the extra charge value for the charge type
itself. After the actual invoice value is entered, the shipment is updated to equal this value. When using charge
orders, they relate directly to one charge type only. This means that if the invoice is for more than one charge
type, then it must be entered more than once
Enter N.
Duty
Details
Calculate Duty is always calculated based on the $ value.

Duty Specify if duty is to be calculated using one of the following options:
A Use the amount entered and distribute it to all item lines on this shipment
S Use the Item code tariff rate for this supplier
N Do not calculate duty
Enter S.
5 Click OK.
You are returned to the Maintain Shipment Details screen.

6 If you go back into the Charges screen the total duty will have been calculated.
7 The Shipment Costs report can be generated at this point to display the extra charges entered.

PO.SH.60.00 Supplier Invoice

This section describes posting of invoices that are associated with a shipment using the Fast Supplier Invoice Entry (AP T020) function.
The types of invoices can be:
Supplier invoice with Tax Correction

Supplier Invoice Adjustment
Duty invoice
Freight invoice
Extra Charges Invoice
Extra Charge Invoice Adjustment
The transaction types that will be covered for invoice posting are:
S – Purchase Shipment
X – Extra Shipment Charges.
This section includes:
PO.SH.60.10 Supplier invoice with tax correction

PO.SH.60.20 View the General Ledger entries of cost items

PO.SH.60.10 Supplier invoice with tax correction

The GL entries for a goods-first shipment are different to those for an invoice-first shipment. Since invoice-first shipment is the most usual,
this is used in our scenario.
Scenario
You will now post the supplier invoice with the information below, using the Fast Supplier Invoice Entry (AP T020)
function before the goods are received and general ledger entries are created.
Steps
1 Select Accounts Payable > Supplier Transactions > Fast Supplier Invoice Entry (AP T020).
The Transaction Entry screen is displayed.
Enter the Transaction Date. The next available Batch Reference is automatically allocated.
2 The Fast Supplier Invoice Entry datagrid is displayed.

Account Specify the supplier code.

Enter CUS001.
Type Specify the required transaction type.

The following transaction types are relevant for shipment processing:
S Purchase shipment.
This transaction type is used to post suppliers' invoices to purchase orders that have been attached to
a shipment.
X Extra Shipment Charges

This transaction type can be used to post additional charges from alternate suppliers, for example, an
invoice from a Customs Agent
Enter S.
4 The Extra Details – Shipment Invoice (S-Type) screen is displayed.

Complete the following based on your requirements:
Invoice Enter details here that are relevant to you.

Details
Invoice Will default to today's date but can be changed.

Date
Shipment Specify your shipment number or press F2.
Purchase Specify your purchase order number or press F2.

Order When there are multiple purchase orders on the shipment and the invoice to post is for the whole shipment,
leave the Purchase Order field blank. When multiple invoices are received for the shipment, enter each
purchase order for each invoice
Conversion The conversion rate for the invoice defaults to the system rate applicable for the invoice date. This can be
Rate overridden.
Curr Amt Ex Total in the currency of the shipment (in the case of the example used here, this is USD.
Tax

The Invoice Tax Details – Breakdown screen is displayed.
6 Review the entries in the datagrid.

If any changes are required, click Correct and make the necessary changes.
On viewing the screen, you notice that a Tax Rate of 10% has been incorrectly applied to the supplier and we will need to
adjust the indicated Tax Amount.
Change the Tax Amount to the correct value, enter 0.00
You are returned to the Fast Supplier Invoice Entry for Transaction screen.
8 Enter the due by date in the Due By field.
9 Tab through the remaining fields.
10 Enter more supplier account codes as required.
11 Press Esc to exit entry mode.
12 Click Post.

13 The Batch Entry Check Totals screen is displayed.
14 Enter Y in the Complete Posting field and press Enter.

The Batch Control Totals screen is displayed with the posting details.
At this point, the GL entries for both standard and average cost items are the same.
16 The GL batch can be viewed using the Batch Enquiry (GL E009) function.

17 After the invoice is posted the status of the shipment is changed to In Progress and the details within the Shipment Values are
updated to reflect the current invoicing status.

PO.SH.60.20 View the General Ledger entries of cost items

You can view the details of batches created for all General Ledger postings using the Batch Enquiry (GL E009) function.
Steps
Select General Ledger > GL Transactions > Batch Enquiry (GL E009).
The Batch Enquiry screen is displayed.
Find the required batch.
Select GL Details.
The GL Transaction Batch Enquiry screen is displayed.
For the journal entries created in this example, refer to the section "PO.SH.200.00 Scenario General Ledger entries".
For the list of relevant shipment special accounts and the actual account equivalents used in this example, refer to the section "PO.SH.
210.00 Scenario special accounts".

PO.SH.70.00 Extra charges invoice

At this point, there are two possibilities about what the next event can be. First, it is likely that the actual goods will be received. However, it
is also likely that invoices related to extra charges will be received before goods receipt.
It is often the case that various charges associated with a shipment are invoiced at different times.
Scenario
Use a type X invoice type to post the local storage charges before goods receipt.
While the original estimate was based on 5% with a distribution method of L we are now entering the true Local Storage invoice cost
$925.00 and the applicable Tax Code Y in the Shipment Charges screen.
Post a shipment charge onto a shipment
The following describes the posting of Extra Charges Shipment Invoices (Type "X")
This includes charges that are additional to the Suppliers Invoice, Freight or Duty.
Charges such as Agents Fees, Local Cartage and Fumigation are typical examples of charges that what would normally be classified as "X"
type Extra Charges
Steps
2 Enter the Transaction Date.

3 The Fast Supplier Invoice Entry screen is displayed.

In the Account field type Sundry.
Enter X in the Type field.
4 The Extra Details – Shipment Extra Charge(s)(X-Type) screen is displayed.
5 Enter the category in the Category field, C5 for local storage.

Leave the Currency field blank.

6 While the original estimate was based on 5% with a distribution method of L we are now entering the true Local Storage invoice
cost $925.00 and the applicable Tax Code Y.
Enter the true Local Storage invoice cost, 925.00 and the applicable Tax Code, X (exempt).
You are returned to the Extra Details – Shipment Extra Charge(s)(X- Type) screen.
8 Enter the Recost value based on the following options:
Option Description
A Recost with added charge, this will add to the value already present
R Replace with actual charge, this will replace any existing charge
N No Recost will be applied

Enter R.

10 The Invoice Tax Details – Breakdown screen is displayed. Ensure Tax Rate and Amount are zero.
Select OK to return to the Fast Supplier Invoice Entry for Transaction screen.
11 Enter any applicable Discount or Withholding Tax implications

For this scenario leave these fields blank.
12 Select Post.
13 The Batch Entry Check Totals screen is displayed.

Enter Y in the Complete Posting field.
14 The Batch Control Total report is generated.
15 At this stage, the GL entries for both standard and average cost items are the same and can be viewed using the Batch Enquiry
(GL E009) function.
For the journal entries created in this example, refer to the section "PO.SH.200.00 Scenario General Ledger entries".
For the list of relevant shipment special accounts and the actual account equivalents used in this example, refer to the section "
PO.SH.210.00 Scenario special accounts".

PO.SH.80.00 Goods Receipt by Shipment - partial

Goods receipt is a major event in the life of a shipment. For foreign shipments, the goods can be received either before or after the invoices
have been received and in part or in full.
When a shipment is received, the goods attached to it are booked into the destination warehouse.
In this section, you will:
PO.SH.80.10 Receive the goods

PO.SH.80.20 View the General Ledger entries
Scenario
The shipment items have now been received for shipment 000025. Enter the received and in-transit details for the following shipped
items:
Item Code Received Quantity In Transit Quantity
R1CUSHION 500 0
R2CUSHION 600 400
R3CUSHION 900 600
R4CUSHION 2000 0
R5CUSHION 250 0
The duty is to be calculated using the Stock rate (S).
The completed Shipment Goods Receipt screen will look like the following:

PO.SH.80.10 Receive the goods

We are now ready to receive the goods into our warehouse.
Steps
1 Select Purchase Orders > Shipment Processing > Goods Received by Shipment (PO M004).
The Goods Received by Shipment screen is displayed.
2 Locate your shipment.
3 Select Goods Recd.

The Goods Received Details for Shipment screen is displayed.

4 Complete the following based on Fred Kirks requirements.
Receiving Specify the warehouse to receive the item, 300.

Warehouse
Received Enter the date the goods are to be received.

Date
Inwards No. Specify the delivery docket number if required or leave blank to use the next available number.
Serial Specify whether to skip serial numbers (the visibility of this field depends on the settings of your major
Numbers function flags).
Enter N.
Put Stock Specify whether to put stock on hold (stock with On Hold status are processed through the Inventory
On Hold module using the QA Release Held Items (INV T002) function).
Enter N.
The Purchase Order on Shipment screen is displayed showing all the purchase orders on the shipment.
There are 3 options to receive goods:
All Receive This will receive every line in full without showing the details
Ship Receive Displays a screen showing every line on the shipment to process
Order Receive Displays a screen showing the lines on the purchase order highlighted
6 Select Ship Receive to receive the shipment line by line.

The Shipment Goods Receipt screen is displayed.
7 Find the required Item Code for the order, R1CUSHION.
8 Select Receive to update the received quantity of the item.

The screen changes to entry mode on the Price column.

9 Tab across to the Received column and enter the quantity received, 500.
10 Tab across to the In Transit Qty column and accept the In Transit qty of 0.
11 Repeat steps above and receive the remaining items. For R2CUSHION and R3CUSHION only a partial qty is received.
12 Select Quit.

13
Final Enter the rate that is specified on the purchase order.

Currency This rate can be changed and does not affect the exchange loss or gain calculated by the system as this is
Rate calculated from the invoice and payment rates.
In this case, USD.
Charges Leave all charges as they are.
Calculate Specify the duty to be calculated.

Duty The available duty types are:
A – Amount to be entered
S – Item rate
N – Do not calculate duty
For this exercise we will set the Calculate Duty flag to S
Total Duty Enter the default rate is the rate specified in the shipment. This rate can be altered at this time if required.
This field is not available when a calculated rate is used.
Duty Enter the duty currency rate defaults to the rate on the purchase order. This can be overridden.
Currency
Rate
Access Tariff Specify whether to view duty rates for stocked items. Allows maintenance of specials
Codes
All Charges If all charges have been entered set to Y else set to N
Entered Enter N.
You are returned to the Goods Received by Shipment screen.
 The shipment charges are distributed between the goods to determine the average cost of each item on the shipment.
As the charges are entered, it is possible to specify how these charges are to be applied to the value of the goods during
re-costing. For more information refer to the PO.SH.50.20 Enter extra shipment charges section.
15 Press Esc.
The Transaction Date and Batch Details screen is displayed.
16 Confirm General Ledger Batch creation.

17 The Update Ledgers screen is displayed.
18 Confirm the details and click OK.

At this point:
A goods received report and a shipment costing report is generated.

Stock-on-hand quantities are increased.
Inventory movement transactions are produced.
19 A shipment costing report is automatically created. This report shows details about the distribution of costs per category per
line.

20 Run a shipment costing report similar to the reports we have run previously (Maintain Shipment Details (PO M102) > Extra >
Report on Costs).
The items listed now only show the costings relative to the received quantities.

PO.SH.80.20 View the General Ledger entries

Details of batches created for all General Ledger postings can be viewed using the Batch Enquiry (GL E009) function.
Steps
Select General Ledger > GL Transactions > Batch Enquiry (GL E009).
Select GL Details to show further posting information for the batch.

For the journal entries created in this example, refer to the section PO.SH.200.00 Scenario General Ledger entries.
For the list of relevant shipment special accounts and the actual account equivalents used in this example, refer to the section PO.SH.
210.00 Scenario special accounts.
The inventory movement transactions created for this example are shown in the following table:
Item Type Batch Ref Qty Cost
R1CUSHION PO 0001K9 422 500 4002.21
R2CUSHION PO 0001K9 422 600 9,819.83
R3CUSHION PO 0001K9 422 900 20,977.86
R4CUSHION PO 0001K9 422 2000 64,761.66
R5CUSHION PO 0001K9 422 250 1,361.90
100,923.46

PO.SH.90.00 Duty Invoice

There are various ways of handling duty. When the duty invoice is not available before goods receipt, the Goods Recd mode in the Maintain
Shipment Details (PO M102) screen provides several options for showing duty on the shipment.
An option needs to be entered in the Calculate Duty field:
N – Do not calculate duty

S – Use the item code tariff rate for this supplier
A – Enter an amount and distribute it to all item lines on this shipment.
Duty is based on the FOB (Free on Board) cost of the item. The cost is affected by the currency rate. The rate used to calculate FOB can be
different from that which the customs department use.
Entering the duty invoice will affect the General Ledger the same way for standard cost and average cost.
Scenario
Based on the process example provided in the section PO.SH.50.20 Enter extra shipment charges, the calculated duty is $USD
6250.
Enter an invoice for this actual value.
Entering the duty invoice will affect the General Ledger the same way for standard cost and average cost.

Process duty invoice to a shipment
Steps
1 Select Accounts Payable > AP Transactions > Fast Supplier Invoice Entry (AP T020).
2 Enter the transaction date in the Transaction Entry screen.

The Fast Supplier Invoice Entry screen is displayed
3 Enter the supplier code 'Sundry' in the Account field.

Enter X in the Type field.
4 The Extra Details – Shipment Extra Charges screen is displayed.

Enter the invoice details, date and shipment number.
In the Category field enter D for duty.
The currency of the duty transaction is USD.
5 The Shipment Charges screen is displayed and the Foreign field will be waiting input.
In the Foreign field enter 6250.
In the Tax Code enter X.
Click OK.

6
The Extra Details – Shipment Extra Charges screen is displayed again with the currency amount included.
In the Recost field enter R to replace the actual charges.
Click OK.
7 The Invoice Tax Details – Breakdown screen is displayed.
8 Select OK.
You are returned to the Fast Supplier Invoice Entry screen.
9 Complete the remaining fields if required.

For this scenario leave blank.
10 Finish entering the duty invoice and press Esc to exit the entry mode.
11 Select Post.
The Batch Entry Check Totals screen is displayed.
Enter Y in the Complete Posting field and press Enter.
12 The Batch Control Totals report is generated.

13 Click OK.
At this stage, the journal entries for both standard and average cost items are the same and can be viewed using the Batch
Enquiry (GL E009) function.

PO.SH.100.00 Freight invoice

We have received the invoice for freight charges and will now input this into the system.
Steps
1 Select Accounts Payable > AP Transactions > Fast Supplier Invoice Entry (AP T020).
2 Enter the transaction date.

The Fast Supplier Invoice Entry screen is displayed.
Enter Account Code Sundry and type X.
3 The Extra Details - Shipment Extra charges screen is displayed.

Complete the following fields based on Fred Kirks requirements.
Invoice Details Enter the invoice number.
Invoice Date Specify the effective invoice date.
Shipment Enter your the shipment number.
Category Available options:
D Duty
F Freight in foreign currency
CO Shipment charges
Blank Multiple charges

Enter F.
Currency This freight is entered in a foreign currency.

Enter USD.

4 The Shipment Charges screen is displayed.

Enter the freight charge in the Foreign column as 670$ and Tax Code X.
5 Click OK.
You are returned to the Extra Details – Shipment Extra Charge(s) screen.
6 Enter R in the Recost field.
8 The Invoice Tax Details – Breakdown screen is displayed.

Select OK.
9 Select Post.

The Batch Control Totals for Batch screen is displayed.

11 Click OK.
The Batch Control Totals for Batch report is generated.

PO.SH.110.00 Process multiple shipment charges

The remaining shipment charges are now ready to be processed.
In this section, you will learn how to:
PO.SH.110.10 Process multiple charges to a shipment
Scenario
Enter actual values for agent's fees, bank interest and finance charges exactly as previously estimated.
However, the actual values for insurance and local freight (cartage) are different from the estimated values. These two values were
originally estimated as $4231.42 and $829.14 respectively as shown on the costing report below.
These invoices are now a total amount of $5400. The insurance value is $4504.77 and cartage is $895.23.

PO.SH.110.10 Process multiple charges to a shipment
Steps
2 Enter the Transaction Date. The next available Batch Reference is automatically allocated.
3 The Fast Supplier Invoice Entry datagrid is displayed.

Enter the account of Sundry and X in the Type field.
4 The Extra Details – Shipment Extra Charge(s) screen is displayed.
5 Complete the following details based on Fred Kirks requirements.
Invoice Details Enter the invoice number.
Invoice Date Specify the effective invoice date.
Shipment Enter your shipment number.
Category Available options:
D Duty
F Freight
CO Shipment charges
Blank Multiple charges

Leave blank for multiple charges.
Currency Leave blank.

6 The Shipment Charges screen is displayed.

The Existing Local column displays the values which are currently allocated to this shipment. Use the Local column to enter the
values for this invoice.
When entering actual costs, be careful not to change the distribution method for the charges.
For example, if the original value is 5.00F (percentage of FOB) and a new value of 4504.77 is entered, the value has not only
changed from 5.00 to 4504.77, but also the distribution method (from F to $). The default distribution method is $.
The Agents Fees, Interest and Financial Charges are all entered as 1000$ and Tax Code X.
In the Insurance field enter 4504.77$ and Tax Code X.
In the Local Cartage field enter 895.23$ and Tax code X.
7 Click OK.
You are returned to the Extra Details – Shipment Extra Charge(s) screen.
8 Enter R in the Recost field to replace any existing charge.
10 Select OK.
12 Finish entering the charges and press Esc to exit the entry mode.
13 Select Post.


The Batch Control Totals for Batch screen is displayed.
15 Click OK.
The Batch Control Totals for Batch report is generated.
At this stage, the journal entries for both standard and average cost items are the same and can be viewed using the Batch
Enquiry (GL E009) function.
For the list of relevant shipment special accounts and the actual account equivalents used in this example, see PO.SH.210.00
Scenario special accounts.

PO.SH.120.00 Adjust Posted Suppliers Invoice

From time to time the suppliers posted invoice may need to be amended. In this instance the amount needs to be reversed first and then
another invoice created.
Scenario
The invoice for supplier CUS001 was previously posted was for $USD 75625.00
The supplier has advised that the invoice should be for $USD 76625.00
Steps
2 Enter details in the Transaction Date and Batch Reference fields.
3 The Fast Supplier Invoice Entry screen is displayed.
4 Enter the supplier code in the Account field, CUS001.

5 Enter the transaction type in the Type field.

The following two transaction types are relevant for shipment processing:
S Purchase Shipment.
This transaction type is used to post suppliers’ invoices to purchase orders that have been attached to a shipment.
X Extra Shipment Charges.

This transaction type can be used to post additional charges from alternate suppliers, for example, an invoice from a
Customs Agent.
Enter S.
6 The Extra Details – Shipment Invoice screen is displayed

Complete entering details in this screen, as shown below.
At the fields Shipment and Purchase Order you can select the relevant records via the lookup facility
The amount previously entered is reversed in total.
The conversion rate for the invoice defaults to the system rate applicable for the invoice date, but can be overridden.
Correct and change the Tax Amount to 0.

Press Esc to exit entry mode.

11 Select Post.

Click OK.
13 Via Maintain Shipments - the Invoice Total is now zero.
14 The Invoice Total has been reduced by the reversal posting.
Post invoice for the correct value

Now post the Invoice for the correct value of $USD 77625.00
Steps
2 Enter details in the Transaction Date and Batch Details screen.

The Fast Supplier Invoice Entry screen is displayed.
Enter the supplier - CUS001.

3 Enter the transaction type in the Type field.

The following two transaction types are relevant for shipment processing:
S Purchase Shipment.
This transaction type is used to post suppliers’ invoices to purchase orders that have been attached to a shipment.
X Extra Shipment Charges.

This transaction type can be used to post additional charges from alternate suppliers, for example, an invoice from a
Customs Agent.
Enter S.
4 The Extra Details – Shipment Invoice screen is displayed.

Complete entering details in this screen, as shown below.
At the Shipment and Purchase Order fields you can select the relevant records via the lookup facility.
The conversion rate for the invoice defaults to the system rate applicable for the invoice date, but can be overridden.
When there are multiple purchase orders on the shipment and the invoice to post is for the whole shipment, leave the Purchase
Order field blank. When multiple invoices are received for the shipment, enter each purchase order for each invoice.
Correct the Tax Amount to 0.
9 Enter more supplier account codes as required.
10 Press Esc to exit entry mode
11 Select Post.


At this point, the journal entries for both standard and average cost items are the same.
The journal entries can be viewed using the Batch Enquiry (GL E009) function.
14 The Invoice Total on the shipment has now been corrected to the amended invoice amount.

PO.SH.130.00 Receive remaining shipment

We are now ready to receive the remaining goods on the shipment.
Steps
1 Select Purchase Orders > Goods Received by Order (PO M101).

The Goods Received by Order screen is displayed.
Locate the required purchase order relative to the shipment. In this case it is the suffix order that was created when
we did a partial goods receipt previously.
Select Goods Receipt.
3 The Goods Received Details for Shipment screen is displayed.
Receiving Warehouse The warehouse to receive the item.
Received Date The date the goods are to be received.
Inwards No Accept the generated reference or replace it with another reference
Serial Numbers Will default depending on items on the Purchase Order
Put Stock On Hold Default is “N”
Click OK.
5 Select the Purchase Order to be received.
6 Click Ship Receive.

7 Click Receive on both of the lines and receive the whole quantity.
8 Select Quit.
9 The Goods Received by Order screen is displayed.

Ensure you are still highlighted on your order and click Update.
10 The Transaction Entry screen is displayed.

Enter details in the Transaction Date and Batch Details fields.

Accept the defaults.
12 Click OK.
The Batch Control Totals for Batch: screen is displayed showing the batch control totals.

13 Click OK.
The Shipment Costing Report is created.
14 The shipment is now Fully completed and the status is Waiting for Actual Costs.

PO.SH.140.00 Landed cost enquiries
Steps
1 Select Purchase Orders > Shipment Processing > Details Of Landed Cost.
The Item Code Costs Selection by Order Date screen is displayed.
2 Find the Item Code and Shipment for your enquiry.
3 Click Select.
The Details of Landed Cost screen is displayed showing the full costing details.

4 Landed Cost Enquiries can also be accessed by the following path.

Purchase Orders > Shipment Processing > Maintain Shipment
Select the required shipment.
5 Select Lines.
The Item Codes on Shipment screen is displayed.

6 Select Landed Cost.

The Details of Landed Cost screen is displayed.

PO.SH.150.00 Final re-cost

After all shipment costs have been entered and it is time to finish the shipment, a final re-cost is performed. The final re-cost accumulates
all the costs to recalculate the landed cost of all the items on the shipment.
When using standard costing method for valuing the goods, the Re-Price/Cost Shipment (PO T002) function will not change the inventory
value of the goods. When using average costing method, re-costing of the goods can occur. Additionally, Pronto Xi can create cost
adjustment for items already sold that would be affected by the final re-cost.
Regardless of whether standard or average costing is used, shipments must be finished by entering the final details of the shipment costs.
Process example - final re-cost
Based on the process example provided in the section PO.SH.110.00 Process multiple shipment charges, re-cost the local storage value
from $925 to $1250.
Steps
1 Select Purchase Orders > Shipment Processing > Re-Price/Cost Shipment (PO T002).
The Re-Price/Cost Shipment screen is displayed.
Enter or look-up the required shipment number in the Shipment No field.

2 Select Charges.
The Shipment Recosting screen is displayed.
Complete the fields as follows:
Final Enter the currency rate that will be used.

Currency Accept the default rate.
Rate
Total Enter the total duty amount to override the duty calculated on each item.
Duty The total duty is distributed between the line items on the order according to the ratios of the calculated duty
Paid on each line.
For example, suppose the calculated duty on item A is $50, and on item B is $100, making the calculated duty
on the order $150. If the total duty entered is $180, $60 duty will be assigned to item A and $120 duty to item B.
Accept the default duty.
Modify Enter Y to allow maintenance of duty amounts and rates.

Duty When set to Y, the Actual Prices and Duty for Shipment screen is displayed.
The item code, purchase price, duty amount, duty rate, duty currency rate and the system rate are displayed
and can be changed.
Enter N.
Modify Enter Y to allow actual charges paid to be entered.

Charges When set to Y, the Shipment Charges screen is displayed.
Make changes to the required charges
You are returned to the Shipment Recosting screen
Enter Y.
3 Because Y is selected in the Modify Charges field, the Shipment Charges screen is automatically displayed.
Change the Local Storage field to 1250 as shown below.

4 Click OK.
You are returned to the Shipment Recosting screen.
In the O.K. to Recost field, enter Y to Recost.
5 Click OK.
The Shipment is now at status of Ready To Be Recosted.

PO.SH.160.00 Update the ledgers for a shipment
You will now update the ledgers for shipment.
Steps
1 In any of the shipment maintenance screens (Re-price, Goods Receive or Maintain Shipment), select Update.
2 The Transaction Entry screen is displayed.
3 Complete entering the Transaction Date and Batch details and press Enter.

Complete the fields as below.

The Processing Options screen is displayed.
6 Click OK.
The Shipment Costing report is generated and the Batch Control Totals are displayed.
7 Click OK.
The Shipment Costing Report is displayed.

8 The shipment status is now Shipment Recosted.

PO.SH.170.00 Exchange rate differences

Exchange rates affect shipment in different ways. Shipment processing can often involve two or more currencies. For example, a supplier
can trade in one currency, international freight carrier in another, international insurance in another and other charges in local currency.
Additionally, more than one exchange rate can be used for the same currency. For example, when an item is received, Pronto Xi asks for the
exchange rate for the receipt and the exchange rate for the duty calculation.
For the example in this section, two foreign currencies are used as well as local transactions.
The exchange rates can affect the following steps:
Entry of the purchase order

Receipt of the supplier invoices
Receipt of the items
Receipt of the extra charges invoices
Final re-cost
Process example - exchange rate differences

In this example, the exchange rate during shipment processing varies at different stages.
The item details are in the table below:
Item description from Inventory Master
Item Storage Item Weight Item Volume Unit Conv Standard Cost Duty%
R1CUSHION EACH 0.10 0.05 EACH 1 10 5.00
For this shipment, purchase the goods based on the following information:
Purchase Order lines to be entered
Item Price USD Purchased Qty Unit Extended Price Purchased Weight Purchased Volume
R1CUSHION 10.00 1000 EACH 100000 100.00 100.00
There will also be an extra charge of US$100 for international freight. The currencies are defined with the following exchange rates.
Currency rates
Currency Code Conversion System Currency Code Description Foreign Local
USD 0.0.74000 1.0000 US Dollar
PO.SH.170.10 Purchase Order

PO.SH.170.30 Goods receipt

PO.SH.170.10 Purchase Order

When a purchase order is entered for a shipment, two options are available to determine the exchange rate to be used.
Use the system exchange rate

Enter an exchange rate specific to that purchase order.
After the currency to be used is entered, the initial rate is displayed. The Initial Rate field by default contains the current rate specified on
the Foreign Currency Code – CU code table.
Based on the process example provided in the section PO.SH.170.00 Exchange rate differences, change the exchange rate USD currency
from 0.740000 to 0.800000.


When the supplier invoice is being entered, it is possible to use the system exchange rate or enter an exchange rate specific for that
purchase order.
Based on the process example provided in the section PO.SH.170.00 Exchange rate differences, enter a rate different from both the
initial rate on the order and the current exchange rate for the currency. The current rate will now be 0.800000.
Once the invoice is posted, the final rate for the purchase order is set to 0.800000.
At this stage, the journal entries for both standard and average costing will be the same.
The shipment costing report is generated.

PO.SH.170.30 Goods receipt
Exchange rates
Exchange rate and duty
Exchange rate and item value
Extra charges
Final re-cost
Exchange rates
At the time of goods receipt, there are two exchange rates that can be applied:

These exchange rates are for the same currency, but apply to the goods receipt and the duty calculation separately.

Duty is calculated on the local currency value of the imported goods. Therefore, the exchange rate used will affect this calculation, which
will affect the landed cost of the goods.
Since duty is paid to a government authority, they use a different exchange rate than the one used to receive the goods. For this reason, an
applicable exchange rate needs to be entered when duty is calculated.

Pronto Xi assumes that the goods are received at the same exchange rate as the purchase order final rate. This is logical since this is the rate
used to enter the invoice. It is normally accepted that any exchange rate differences which occur between entering the purchase invoice
and receiving the goods are not part of the costs of the goods but an exchange rate loss or gain on payment.
It is, however, possible to take this into account in the cost of goods by overriding the default rate shown at goods receipt. In this case, the
difference between the value of the invoice as entered, and the value at goods receipt will be costed to the value of the goods, as if it were
an extra charge.

Based on the process example provided in PO.SH.170.00 Exchange rate differences, set the final currency rate to 0.48 and the duty
currency rate to 0.50.
The Shipment Costing report is generated.
Since two different rates have been entered for the same currency, the goods' landed cost has been affected.
Inventory Movement Transactions based on Process Example - Exchange Rate Differences Inventory
Item Code Type Batch PO Invoice Qty Cost
R1CUSHION PO W7 1854 IN1854 1000 6693.75
Supplier Invoice $USD 5000.00 @ 0.80 = $AUD 6250.00
Freight Invoice $USD 100.00 @ 0.80 = $AUD 125.00
Sub-Total = $AUD 6375.00
Duty @ 5% FOB (of $AUD Value) = $AUD 318.75
TOTAL = $AUD 6693.75
Extra charges
The exchange rate for an extra charge will have little effect on the shipment.
Exchange rate can be entered once the invoice has been received from a supplier. The extra charge is affected by that exchange rate alone
and the total value will be costed to the goods at re-cost time.
When charges are entered before receiving the invoice from a supplier, the landed cost of goods is estimated and the exchange rate can be
important. All extra charges apart from freight are recorded on the shipment in local currency only. Therefore, when a charge is entered
before the invoice, it is necessary to adjust the shipment value before final re-cost for the exchange difference when the invoice is entered.
When freight is selected in the Category field in the Extra Details screen, the Currency field can be specified. The costing report shows this
category for both local and foreign values. In this case, entering the cost with one exchange rate can be possible, and when the invoice
comes, it can be for the same value but with a different exchange rate. This difference will be taken into account at the time of final re-cost.
Ensure that the values of the extra charges on the shipment correspond to the invoice values, and that the entered exchange rate for
the freight charge is also the same as on the invoice.
Based on the process example provided in PO.SH.170.00 Exchange rate differences, the value of the freight remains $100 but the
currency rate will be changed to 0.63.
Use the Batch Enquiry (GL E009) function to view the journal entries. For more information, see PO.SH.60.20 View the General Ledger
entries of cost items.
Final re-cost
By default, Pronto Xi assumes that the final re-cost will be performed at the same exchange rate as the rate applied at the time of goods
receipt. It is possible to take exchange rate differences between goods receipt and the final re-cost into account, by overriding the default
rate shown at final re-cost. In this case, the difference between the value of the goods at receipt and the final re-cost will be costed to the
value of goods as if it were an extra charge.
This logic is the same as changing the exchange rate at goods receipt. Whether varying the exchange rate at goods receipt or at final re-cost,
or both, is a decision the company will make. It will depend on the method used for valuing goods.

Some example situations include:
The supplier invoice is not paid until the shipment is finished and the stock-on-hand must reflect the actual value that was paid for
the goods
The invoice is already paid but the inventory needs to reflect the exchange rate current at time of re-cost.
Based on the process example provided in Exchange rate differences on page , set the exchange rate to 0.475, which is different to the
rate applied at goods receipt.
Once the final re-cost is completed, the general ledger entries generated over the life of the shipment can be viewed.
When average costing is used, depending on when the exchange rate has changed, there will be a value left in the shipment variance
account for this shipment. This amount represents the exchange variance that was chosen to be built into the stock-on-hand after receipt
of the supplier invoice. It is likely that this value will be the same as the loss or gain on exchange when the invoice is paid. It is up to the user
where this amount will be placed.
For example:
Leave this amount in shipment variance

Journal the amount to a currency exchange loss or gain account to offset the invoice
Journal the amount to another account.
The shipment costing report is generated.
The full transaction report for this shipment from the General Ledger is generated.

PO.SH.180.00 Merging shipments

Multiple shipments can be merged into one shipment. Merging of shipments is usually done when the supplier is forwarding deliveries
together and there is a requirement to process these deliveries as one shipment.
Shipments cannot be merged when the goods of the shipments have been received. Therefore the status of the shipments to be merged
must have a status less than Goods Received – entered (which has a value of 60). For example, In-Transit – stock updated (which has a value
of 42) or In-Transit – invoice posted (which has a value of 51).
Only shipments that have the same status can be merged.
Process example - merging shipments

In this example, two shipments will be merged into one shipment. The shipment details are shown below.
Purchase Order lines for Purchase Order 1/Shipment 1
Item Code Price Unit Conv. Quantity Duty%
R1CUSHION 5.1 EACH 1 100 5.00
Purchase Order lines for Purchase Order 2/Shipment 2
Steps
1 Create a shipment for each of the above purchase orders.

3 Select the shipment to be merged.
4 Select Extra and select Merge Shipments from the drop-down list.

5 The Merge Shipments screen is displayed.
6 Click Merge.
Enter the required shipments to build a list of shipments you want to merge.
7 Press Esc to save and exit the Merge Shipments screen.

The Create/Merge Shipments screen is displayed.
8 Enter Y in the Merge Selected Shipments field.
The Create Shipment screen is displayed.

10 Enter a new shipment number or press Enter for the next system generated number.
The new shipment is displayed in the Maintain Shipment Details screen.
11 Click Lines.
The Item Codes on Shipment screen is displayed, showing all the items on both shipments that are to be included on the new
shipment.
The order lines from the previous shipments have been removed and added on to this shipment. The status of the original
shipments is In Transit - Shipment.

PO.SH.190.00 Splitting shipments

There are several reasons for splitting a shipment:
Goods on the shipment are being delivered to the warehouse in multiple deliveries.
Large shipments where shipments will be split out into smaller shipments for ease of receipt.
The ability to split a shipment is controlled by the status of the shipment.
When a shipment needs to be split and the split involves lines from orders being on different shipments, the required orders must be split
first. Once this is done, the back orders can then be created.
When back orders are created and contain serialised numbers, it is not necessary to enter the serial numbers. When serial numbers have
been entered that exceed the quantity that has been placed in transit, Pronto Xi will prompt for the serial number to be changed to match
the in-transit quantity.
Process example - splitting shipments

In this example, a shipment will be split into two shipments and delivered over two deliveries. The purchase order details attached to
the shipment are as follows:
Purchase Order lines to be created for shipment.
Shipment details for delivery 1
Shipment details for delivery 2

Steps
Split the original shipment into two shipments based on the details in Delivery 1 and Delivery 2 tables in the above example.
1 Create a purchase order for the items in the scenario above and create a shipment for that purchase order.
Select the Shipment Number to split.
3 Click Extra > Split Shipment from the drop-down list.

4 The Split Off Orders For Shipment screen is displayed.
5 Click Order Split.

The Split Order screen is displayed with the order lines of the shipment.
6 Select the first Item Code, R1CUSHION.

Click Item Split to split the line.
7 Enter the quantity of the first delivery in the Quantity 1 column. The remaining delivery balance is displayed in the Quantity 2
column.
8 Repeat for R2CUSHION.
9 Click Quit to exit the Split Order screen.

The Details for sub-order screen is displayed.

10 Enter the following details:
Warehouse Enter the warehouse the split order will be going to.
Action/Ship Date Enter the date.
Expected Arrival Date Enter the expected arrival date.
11 Click OK.
The Split Off Order For Shipment screen is displayed. Y is displayed in the Split column indicating the order is split off from this
shipment.
12 Press Esc to exit the Split Off Order For Shipment screen.
The New Shipment Details screen is displayed.
13 Enter the new charges for this shipment.
14 Enter Y in the New Charges Entered field to acknowledge that all charges are entered.
The Create Shipment screen is displayed.
16 In the Create New Shipment field, enter a new shipment number for the split shipments.

A Confirmation screen is displayed with the new shipment number.
You are returned to the Maintain Shipment Details screen.
19 Locate the newly created shipment.
20 Click Lines.
The Item Codes on Shipment screen is displayed showing the purchase order number that has been split.

PO.SH.200.00 Scenario General Ledger entries
Average cost
Special Account Value
Supplier Invoice
Debit PI Invoice value.
Credit CCTRL Invoice value.
Duty Invoice
Debit PPDUTY Invoice value.
Debit SPPC0-9 Invoice value.
Debit ITAX Tax value
Goods Receipt
Debit IN Landed cost at receipt time.
Credit PI Supplier invoice value.
Credit SHPVAR Extra cost at receipt time.
Final Re-cost
Debit IN Landed cost increase.
Credit IN Landed cost decrease.
Credit PPDUTY Extra charge value recorded on the shipment.
Credit PPFRT Extra charge value recorded on the shipment.
Credit SPPC0-9 Extra charge value recorded on the shipment.
Debit IR Re-cost rounding.
Credit IR Re-cost rounding.
Debit SHPVAR Landed cost prior to final re-cost.

Standard cost
Special Account Value
Supplier Invoice
Debit PI Invoice value.
Duty Invoice
Debit PPDUTY Invoice value.
Debit SPPC0-9 Invoice value.
Goods Receipt
Debit IN Inventory standard cost.
Credit PI Supplier invoice value.
Credit SHPVAR Difference between standard cost and buy price.
Final Re-cost
Credit PPDUTY Extra charge value recorded on the shipment.
Credit PPFRT Extra charge value recorded on the shipment.
Credit SPPC0-9 Extra charge value recorded on the shipment.
Debit SHPVAR Difference between the total shipment cost and the standard cost of the goods.

PO.SH.210.00 Scenario special accounts

Following are the special accounts which have been affected on the process examples and the General Ledger account used for these
examples.
Special Account Account Number Description
CCTRL Suppliers Control
IN Stock on Hand
IR Inventory Revaluation
PI Stock In Transit
PPDUTY Provision for duty
PPFRT Provision for freight
SPPC0 Insurance (purchase provision)
SPPC1 Local freight (purchase provision)
SPPC2 Local storage (purchase provision)
SPPC3 Agent's Fees (purchase provision)
SPPC4 Special Charge (purchase provision)
SPPC5 Bank Interest (purchase provision)
SPPC6 Bank Charges (purchase provision)
SPPC7 Other
SPPC8 Other
SPPC9 Other
SHPVAR Shipment variance
SHPFIN Shipment final variance

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Purchase Order Shipments Guide 750

PO.SH.00 Shipments 750

About this guide

Shipment Administration staff

Have access to the Purchase Order and Accounts Payable modules

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© Copyright 2018 Pronto Software Limited. All rights reserved.

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PO.SH.10.00 About Shipments

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PO.SH.20.00 Sample data, exercises and examples

Prerequisite Setup Requirements

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PO.SH.20.20 Inventory Items

The items are set up as follows.

R1CUSHION EACH 0.10 0.05 EACH 1 10.00 5.00

R2CUSHION EACH 0.09 0.06 EACH 1 10.00 10.00

R3CUSHION EACH 0.08 0.07 EACH 1 10.00 5.00

R4CUSHION EACH 0.07 0.08 EACH 1 10.00 10.00

R5CUSHION EACH 0.06 0.90 EACH 1 10.00 0.00

 Weight and Volume

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2 From the above screen click Suppliers.

3 From the Inventory Maintenance screen click Whse.

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2 From the above screen click Suppliers.

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3 From the Inventory Maintenance screen click Whse.

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2 From the above screen click Suppliers.

From the Inventory Maintenance screen click Whse.

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2 From the above screen click Suppliers.

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From the Inventory Maintenance screen click Whse.

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2 From the above screen click Suppliers.

From the Inventory Maintenance screen click Whse.

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PO.SH.20.30 Purchase Order Creation

R1CUSHION 5.00 500.00 EACH 2500.00 50.00 25.00

R2CUSHION 10.00 1000.00 EACH 10000.00 90.00 60.00

R3CUSHION 15.00 1500.00 EACH 22500.00 120.00 105.00

R4CUSHION 20.00 2000.00 EACH 40000.00 140.00 160.00

R5CUSHION 2.50 250.00 CTN 625.00 15.00 225.00

TOTALS 5250.00 75625.00 415.00 575.00

Extended Price Purchased Quantity x Price (in supplier's currency).

Purchased Weight Purchased Quantity x Conversion Factor x Item Weight.

Purchased Volume Purchased Quantity x Item Volume

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Enter a new purchase order

2 The header screen will look like the following:

3 The Lines screen will look like the following:

5 Click Q for Quit.

6 Enter P for print in the Select Status field.

8 Select Print Order & Finish from the drop-down menu.

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