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Food Service POs for Commodity Processing

The Food Service Department creates a number of purchase orders for processing and delivery of USDA commodities. What is unusual is that these orders are really to two separate vendors - the processing vendor and delivery vendor. Yet when received, the total cost for processing and delivery must be included in the unit cost for the food item in Escape's warehouse item record.

Setting Up the Processing Vendor PO

The PO to the processing vendor has some special setup:

  1. Create a Standard Line Item PO
  2. Create line items for all processed items, with the TOTAL cost for each item, INCLUDING DELIVERY. Be sure to include the Escape stores item numbers in the line items.
  3. Enter one line item, with a NEGATIVE dollar amount, for the TOTAL delivery charge.
  4. Insure that the PO total matches the NET amount the processor will be paid.
  5. Process the PO in normal fashion.
  6. Receive the commodity items in the normal fashion. The unit cost will include delivery charges.

NOTE: Put the PO number for the delivery PO into the Info field or the line item that backs out the delivery charge.

Setting Up the Delivery Vendor PO

The PO to the delivery vendor can be a blanket PO, since no line items are to be received. The PO amount is the amount that will be paid to the delivery vendor.

NOTE: Put the PO number for the processing PO into the Info field or the blanket description.