Purchase order lines for OAN products now tied to orders

The processing of EDI 855 Purchase Order Acknowledgement documents when used in conjunction with a vendor-managed inventory (VMI) program was enhanced. These improvements were made:

  • Purchase order lines for order-as-needed (OAN) stock and nonstock products are now tied to lines on sales orders, warehouse transfers, and VA orders that are in the Ordered or Picked (Stages 1-2) stages.

    Depending on your workflow, purchase order lines are created on new or existing purchase orders when EDI 855 PO Acknowledgements are received. The PO lines are first tied to sales order lines for OAN products, including lines with open kit or Value Add components. If additional OAN products are available based on the product quantity in the EDI 855 document, the purchase order lines are then tied to lines on warehouse transfers and Value Add orders.

    Ties are applied using first in, first out (FIFO) methodology, based on the oldest entered date. Ties are created when a purchase order reaches the Acknowledged (Stage 3) stage. Typically, a purchase order is placed in Stage 3 if the EDI 855 document is received without error.

    You can set up and activate the OE and PO Tie Notification event in SA Event Manager Event Setup to notify users when a tie is created for a sales order line.

  • The purchase order line price of an OAN product can be changed to the lowest contract cost of the product on a sales order.

    The PO line price can be changed from the price in the EDI 855 document to the lowest contract cost for the product. The lowest contract cost is obtained from any sales order line that meets this criteria:

    • The sales order is in Stage 1-Ordered or Stage-2 Picked.
    • A contract number is specified on the sale order line.

    The price on the purchase order line is changed when the purchase order reaches Stage 3-Acknowledged.

In support of this enhancement, these line-level informational messages are displayed on the Transaction Detail page for the EDI 855 document in the EDI Electronic Transaction Control Center (ETCC):

  • PO Line Tie Created - XXX

    The message includes a numerical value that represents the number of times that the PO line is tied to a sales order or warehouse transfer line. Information about the tied document is also displayed including the type of order, the order number, and the tied order number line.

  • Price Updated With Lowest Contract Price

    The transaction value associated with this message shows the contract number.

Feature activation

To update purchase order lines with the lowest contract cost, select the new Use Lowest Contract Price for VMI OAN Product option on Vendor Setup-eCommerce records for your VMI vendors. To enable purchase order ties for OAN products, verify that the required EDI 855 and EDI 852 setups have been performed. No additional activation is required.

See the Infor CloudSuite Distribution Setup and Administration Guide for EDI.