Setting Up IC Order Processing To Streamline Buying And Selling Inventory Between Related GP Companies

 

Buying and selling inventory between related GP companies can be time-consuming when it comes to having to manually create POP and SOP documents in the buying company and the selling company.  IC Order Processing, aka POPSOP, helps to automate the creation of related SOP and POP documents, whether in a single GP company or across multiple GP companies.  

 

There are several ways that the POPSOP process can be initiated but all of them result in a purchase order being created and printed and released.  The release of the purchase order in the buying company will automatically generate a sales order in the selling company.  When that sales order is fulfilled and transferred to an invoice, it will automatically create a purchase order receipt back in the buying company.

 

When it comes time to settle up between the buying and selling companies, the user can create a manual payment in the buying company and apply the payment to the IC Order Processing invoices and, once the payment is posted, it will create a cash receipt in the selling company.  The diagram below shows the basic flow of the POPSOP process, and there are multiple layers of automation that can be configured in the setup window.  For example, POPSOP can be configured to automatically post the purchase order receipt or to automatically transfer the sales order in the selling company to an invoice.

 

 

Setting up POPSOP is not technically difficult.  It requires a specific vendor – customer relationship that will be set up and, if desired, site relationships can be predefined as well.  Mostly, though, POPSOP requires that the inventory module is set up in each company.  The item numbers will need to either be consistent across both companies, as in the screenshot below,

 

 

or the vendor item number in the buying company must be the same as the inventory item number in the selling company.  

 

 

Additionally, the following inventory setups must be completed:

  • price lists in both companies;
  • the POPSOP vendor(s) must have access to the items;
  • a default site must be set in the Sales Order Processing Setup window in the selling company;
  • if using multicurrency, the currencies must be enabled for the items and the price lists need to include any required non-functional currencies

Once all of the inventory setups have been done, a new vendor must be created in the buying company and a new customer must be created in the selling company.  In the IC Order Processing Trading Relationships Setup window (GP>>Tools>>Setup>>Company>>IC Order Processing>>Order Processing Trading Relationships Setup) in the buying company, we will link the vendor in the buying company with the customer in the selling company.  

 

 

When this relationship is set up, each time a purchase order in the buying company is created and printed (released) for this vendor, IC Order Processing will automatically create a sales order in the selling company using the predefined customer.  

 

If there are multiple sites in either the buying or selling company and we want to specify that when a certain site is used on the purchase order, the sales order will pull inventory from the specified site in the selling company.  In the screenshot below of the Purchase To Sales Site Relationship Setup window (GP>>Tools>>Setup>>Company>>IC Order Processing>>Purchase To Sales Site Relationship Setup), when the purchase order in the buying company uses site Aquilae, the inventory will be pulled from the Derby site in the selling company.

 

 

 

Please see our other upcoming POPSOP blog posts to walk through the different ways to initiate a POPSOP process and to learn more about the settings in the POPSOP Setup window

The POPSOP manual is also available on our website at POPSOP MANUAL