A buyout is when you fulfill a sale that would otherwise be lost, by purchasing the item from a nearby supplier for immediate delivery. It is similar to a special order item, but for the customer there is an urgent need for the item, and you want to provide a high level of service, as though the item is in stock. Typically, an item sold as a buyout is picked up by the store's delivery person and delivered with the customer's normal shipment.
During a POS transaction, an item is posted and availability is automatically checked by the system. If the item is found to be not in file, not stocked, or has insufficient quantity, the clerk has the option to sell the item as a special order or as a buyout. Selling the item as a buyout is similar to selling the item as a special order, but there are fewer steps involved in the process.
The following highlights the buyout process:
At POS, start an Order transaction.
Post items to the order as you normally do. For any buyout items, post the item with the buyout code. The clerk has the option to adjust the price and cost of the item. Typically this would be higher if the item is not purchased from the primary vendor. Buyout items are considered to be filled (not on backorder). Quantities (on hand, available, committed, etc.) do not change. A buyout is treated by the system as a lost sale.
Complete and release the order for picking, shipping and/or invoicing. The pick ticket and packing slip print buyout items with an indicator code. The invoice doesn't include the buyout code.
The delivery driver (or other designated person) uses the pick ticket or packing slip to purchase the buyout items. This person would know where to source the buyout items.
The delivery driver delivers the buyout items to the customer.
Purchasing and payment for buyout items from the source (buyout supplier) is handled manually. Typically, buyout items are signed for as on-account, or may be paid for using cash. Invoices from the source are paid without a PO reference since no PO is created.
Before posting buyout items at POS, you must first complete some configuration and setup procedures. Click the related topics button below to get started.