You can set up specific information for the stages to be used in a Purchase Type. For example, the sequence the stages are processed in, and the document format to be used.
From the Action menu within Purchase Types Setup, select Purchase Stage.
The form contains the following fields: Purchase Transaction Type and Short Heading
These fields are automatically populated from the current Purchase Type Setup record, and cannot be amended.
Stage

The required purchasing stage.
Sequence

The purchasing stage which must have been completed before this stage can be allowed. This can be set to either another mandatory stage defined for this Purchase Type, or to No Specified Sequence meaning that it is not a requirement for this stage to follow another particular stage. You can set up parallel stages by defining the same stage twice. Certain rules to the sequence apply: Order Confirmation must follow Order Entry; Inspection must follow Goods Receipt. However, they do not have to follow immediately.
Document Format Code
The document format to be applied to this stage. For example, the document format that has been set up for a purchase order. See Setting up Document Formats for more information. A document can be produced for any stage.
Movement Type
The required Movement Type to be applied to this purchasing stage.
If a Movement Type is specified then an actual inventory movement takes place at this stage. If Movement Type codes are specified for the Purchase Type but there is not one for the entry stage, when the transaction is entered an anticipated movement is created. This anticipated movement is available for allocation if you have Examine Projected Free Inventory set on the Inventory Business Setup. This Movement Type must be a receipt or a transfer, that is, both issue and receipt.
Only one receipt type movement can be specified for a Purchase Type. Multiple transfer type movements can be specified. When processing a purchase transaction through its stages an inventory receipt must occur before any transfers. Therefore, transfer type movements can only be specified on stages that occur in sequence after a receipt type movement.
If a Purchase Type has no Movement Type codes against its stages, no inventory updates are performed.

Note: It is not recommended that inventory is updated at the order entry stage. It is recommended that the movement type is associated with stages after order entry, such as order confirmation, GRN Entry, GRN Inspection, etc. By having inventory updates at the order entry stage, various parts of the functionality are not allowed to perform, such as costing, and any data entered cannot be amended.