The following procedures can be used to generate a Purchase Order from manufacturing orders for non-stock items without a receipt being needed:

Make sure the "Require Receipt" flag is not ticked in the item settings after setting up the non-stock item. By doing this, the system is informed that the item will not require the receipt procedure.

The system will create a PO associated with the production order when you add non-stock products to it and mark them for PO creation.

Once the purchase order is created, you can match it directly to the accounts payable (AP) invoice, avoiding the receiving process altogether, because the "Require Receipt" signal is not set.

In this manner, POs are generated on an as needed basis without the need for a receipt, and the outwork or services are backflushed and included in the production cost. When there are expenses associated with services or outsourcing and no tangible items are obtained, this works especially well.

 

Thanks Chameera, I should have mentioned the error when you do not require a receipt. The PO Accrual account is set on the Stock Item and the Supplier. This is to do with the Accrual account that appears on the PO Line if you create the PO manually. When not “Require Receipt” is set, the PO accrual account is blank on the PO Line and this is all good for AP matching to the PO, so why does the Create PO process complain creating the same PO?  

Hi @sangland 

You should inspect the InventoryID settings, namely the GL Accounts tab and ensure that there is an expense account associated with the InventoryID.

With NS items, they require you to input a Accrual Account because they do not go through PO Accruals.

Aleks

Thanks @aiwan . The Non stock item GL Accounts are all populated. I understand that an AP Invoice matched to a PO (without a receipt) will use the Expense Account, so the accrual account should never be used, hence my dilemma with the error above. 

Hi ​@sangland were you able to find a solution? Thank you!

Still haven't found a way around it. 

My response was crafted with AI assistance, tailored to provide detailed and actionable guidance for your query.

To create Purchase Orders (POs) from Production Orders for non-stock items that do not require receipt in Acumatica ERP, follow these steps and considerations:

Key Considerations:

1. Non-Stock Items Setup:

   • Ensure that the non-stock items are configured appropriately in the Non-Stock Items (IN202000) form.
   • In the General tab, confirm that the Require Receipt checkbox is not selected. This prevents the system from requiring a receipt for the item before creating the related Accounts Payable (AP) invoice​​.

2. Production Order Detail Lines:

   • When adding the non-stock items to the production order, ensure that the lines are marked as Require PO so that the system generates purchase orders automatically.

3. Purchasing Workflow Without Receipt:

   • Upon creating a purchase order for these non-stock items:
     • You do not need to process a PO Receipt document.
     • The PO can be matched directly to an AP Bill (invoice) without requiring a receipt step​​.

Workflow to Create POs:

1. Enable Backflushing:

   • If backflushed non-stock items are involved, ensure they are configured for backflushing in the relevant settings of the Production Order (AM202000) form​.

2. Add Items to the Production Order:

   • Navigate to the Production Orders (AM203000) form and include the non-stock item as a detail line.
   • Set the line to generate a purchase order by selecting the appropriate checkbox or option.

3. Run PO Creation Process:

   • Use the Process Production Orders (AM209000) form to generate the related purchase orders for the flagged non-stock items.

4. Match PO Directly to AP Invoice:

   • After the PO is created, you can skip the receiving step. Instead:
     • Navigate to the Bills and Adjustments (AP301000) form.
     • Create an AP Bill and match it directly to the PO, ensuring that the cost is attributed correctly to the production order and subsequently to the finished goods​​.

Notes:

• AP Invoice Matching:
  • The invoice will be processed in the Accounts Payable module, where you can validate and post the expense without the receipt step.
  • Ensure that the matching logic aligns with your company's accounting policies​
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  • 
    - **User Permissions**: Ensure that you have the necessary permissions to create and manage POs and production orders.
    - **System Configuration**: Depending on your Acumatica setup, there may be specific configurations or customizations that affect how POs are created from production orders. It might be helpful to check with your system administrator if you encounter issues.

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