Create and Release Planned Purchase Order

This document describes how to work with planned purchase orders and how to release them to purchase orders.

Outcome

The following topics are described:

Uses

After a planned purchase order is released, a purchase order is created with the values from the proposal.

How the system is affected

Planned purchase orders are stored in the MPOPLP table.

Before you start

Basic settings for the purchase flow must be entered according to Basic Settings for the Purchase Flow.

Follow these steps

Work with planned purchase order

  1. Start 'Planned Purchase Order. Open' (PPS170), the B panel.

    • Panel sequence

      E = Delivery date, quantity, price etc.

      F = Delivery terms, manufacturer etc.

      G = Other information, for example, a representative price

    • View, Sorting order, Sorting options

      The views, sorting options and sorting orders are user defined in order to get a good presentation of the proposals. There are some predefined sorting options such as options 10, 20, 30, 40 and 50 which are created automatically using the existing logical files. These sorting options are connected to sorting orders 01, 20, 30, 40 and 50.

      By working with user-defined sorting options the sorting orders can aggregate information on flexible levels. For example, you can aggregate all the planned purchase orders to a special supplier and display this in only one line. How to create user defined information view is described in:

      Manage Sorting Orders

      Manage Views

    • Status – planned order

      A purchase order proposal can, for example, be created from MRP and a purchase requisition as described earlier. The status of the planned PO will be 10 or more,

      If we have failed to set some data that the system needs (for example the purchase price), the order line will also show up here even if the system is set to create a purchase order immediately. If this is the case, the line will have status 00 and a warning message.

    • Options

      6 = Print - Starts 'Output. Select Media' (MNS212)

      11 = Release line – Release the planed PO. The status is raised to 60 = Released to create PO. An auto job converts all released planned order lines to purchase orders. This can also be done manually by pressing F14 (Create PO).

      12 = Release supplier - All planned PO for this selected supplier will be released.

      14 = Item/Warehouse – Starts 'On hand. Display Summarized per Item/Whs' (MMS200/V)

      15 = Material plan – Starts 'Material Plan. Open' (MMS080)

      16 = PO – Starts 'Purchase Order. Open' (PPS200)

      17 = Purchase statistics – Starts 'Purchase Statistics. Display' (PPS450)

      18 = Suppliers – Starts 'Supplier. Open' (CRS620)

      19 = Close to orders - Gives information about items close to their reorder point. Starts 'Availability. Display Items close to RoP' (MMS215)

      20 = Subcontract select – Is used for procurement subcontracting .Here you can change operations and material in the subcontracting. Starts 'Planned PO. Select Subcontracting' (PPS177)

      21 = Charges – Starts 'Planend PO. Connect Charges' (PPS172)

      22 = Attributes values – Starts 'Attribute Value. Connect to' (ATS101)

      30 = Calculate sales prices -

      31 = Simulate sales price

      32 = CO line – Starts

      33 = Milestone chain – Starts 'Milestone Chain. Open' (CRS096)

      39 = Pre allocation – Starts 'Pre-allocation. Performed Detailed' (MWS121)

      40 = DO – Starts 'DO/RO. Open' (MMS100)

      41 = Aggregated lines

  2. Open the (PPS171/E) panel. Many of the fields on this panel are defaulted from the supplier, item or the supplier/item file and can be changed manually.

    Origin (Generation reference)

    The Origin field indicates where the planned order is generated from. For example, 23 mean that the proposal is generated from a normal customer order.

    Our reference number

    If a valid agreement exists on the supplier, this agreement number will be displayed in this field together with the code 1, meaning agreement number.

    Warning message

    If something is wrong or missing on the planned order, a warning message is displayed. The field help (F1) gives information about the warning codes.

    For example, A means that the supplier is missing in the supplier file. A warning message with a letter indicates that this error has to be corrected before proceeding.

    After correction, F16 (Check errors) can be used and the warning message field will be updated.

    Purchase order number

    A purchase order number can be generated for the planned order at this level. Press F20 (Generate PO number) and a purchase order number will be displayed behind the order proposal number. When the planned order is released, the created purchase order will use this number as the purchase order number.

    Planning policy

    The planning policy is defaulted from 'Item. Connect Warehouse' (MMS002).

  3. Open the (PPS171/F) panel. Many of the fields in this panel are defaulted from the supplier, item or the supplier/item file. The user can change the proposed values.

    Signature

    For control reasons, a signature might be needed to be able to release the planned purchase order. This is controlled by the authorization check parameter in 'Purchase Order Type. Open' (PPS095).

    Requisition by

    This field contains information on which user ordered or required the planned purchase order line. By pressing F9 (responsible info) more information about this user is presented (PPS171/H). This information might be useful to the planner or buyer.

    Reference order number

    The field indicates a relationship between processes or between processes and superior orders. The reference order number is always related to a reference order category.

    For example, a purchase order line can be related to a customer order number indicating the customer order which led to a direct purchase. Similarly, a purchase order line can be related to a project number or manufacturing order.

    Delivery terms, Payment terms, Goods rec method, etc.

    The terms entered on this panel, that is, payment terms, delivery terms and so on, will be copied over to the purchase order after the release.

  4. Open the (PPS171/G) panel. Some of the fields in this panel are defaulted from the supplier, item or the supplier/item file. The user can change the proposed values.

    Update material plan

    This field indicates whether the order proposal will be shown in 'Material Plan. Open' (MMS080). The parameter is defaulted from 'Purchase Order type. Open' (PPS095/F). However, items with no inventory accounting are always defaulted to 0.

Manually create planned purchase order

  1. Open 'Planned Purchase Order. Open' (PPS170). Open the A panel.

    A planned purchase order can be registered manually by using the A panel and specifying the warehouse and item number.

    Fields from 'Item. Open' (MMS001), 'Supplier. Connect Item' (PPS040), and the Supplier files (CRS620-CRS624) will be defaulted on the E, F, and G panels.

Release planned purchase order

  1. To release a planned purchase order, all warning messages for errors or stops must be handled. After correction, F16 on the E panel can be used and the warning message field will then be updated.

  2. Automatically release planned PO to PO

    If a planned purchase order should automatically be released to a purchase order, you must specify the following settings:

    • 'Planning Policy. Open' (MMS037), parameter '022 Default status - planned orders AM = A1' (release and reschedule in the order). If planned orders with action message A1 should be released automatically, you must set this parameter to 60='Released order'.
    • (MMS037), parameter 025-'Default status - planned orders when AM=A2' (release order). If planned orders with action message A2 should be released automatically, you must set this parameter to 60='Order released'.
    • 'Item. Connect Warehouse' (MMS002/E), the 'Planning policy' field. You must connect a planning policy to the item/warehouse with the settings above (60='Order released').
  3. Manually release one planned PO to one PO

    Select the planned purchase order to be released and press option 11='Release Line'.

  4. When you exit (PPS170) by pressing F3 or Close, 'Purchase Order. Create from Planned' (PPS913) will open. Here, you must specify the fields and press Enter to create a purchase order from the planned purchase order.

  5. Manually release all planned POs, belonging to one supplier, to one PO

    Select one planned purchase order for the supplier and then select option 12='Release Supplier'.

  6. When you exit (PPS170) by pressing F3 or Close, (PPS913) will open. Here, you must specify the fields and press Enter to create a PO from the planned PO.

  7. Manually release a number of planned POs, belonging to one supplier, to one PO

    Select the planned purchase orders to be released for the supplier and press option 11='Release Line'.

    The 'Co-Sorting Identity Order Proposal' Field

    Use this field if you want to separate planned POs for one supplier. For example, if drawings should be attached to a certain planned PO line, you want this to be a separate PO for his supplier.

  8. Specify a code (AA for example) for the planned POs that should be created as separate POs for this supplier. Select option 11, and they will be released as separate POs.

    If you select option 12, they will be released as separate POs and the rest of the planned POs for this supplier will be released as one PO.

    (When you create purchase inquiry, this field is used in the opposite way. Select all planned purchase inquiries to be released to one purchase inquiry. See documentation about Purchase Inquiry).

  9. When you exit (PPS170) by pressing F3 or Close, (PPS913) will open. Here, you must specify the fields and press Enter to create a PO from the planned PO.

    • It is possible to consolidate the release of planned purchase orders to one or more purchase orders. See the document Purchase Order Consolidation Group for further information.

Print planned purchase order

  1. The planned purchase order is printed by using option 6 =Print from 'Planned Purchase Order. Open' (PPS170/B) or you can start 'Planned Purchase Order. Print' (PPS590) and print out from there.

Display planned PO in material plan

  1. Start 'Material Plan. Open' (MMS080/B). Select planned purchase orders to be displayed by filling in '250' in the 'Order category' field. 25 means purchase order and 0 means planned order.

    Both the planned purchase order number and the supplier number are also displayed on the panel.

Parameters to set

Program ID/Panel Field The field indicates …
(CRS165/B9 Number series type …a number series type. For the planned purchase order use number series 36.
(MMS037/E) 005 Default status PO

…the default purchase order status records should be assigned as a planned order.

The valid alternatives are:10 = Preliminary - The purchase order should be completed before being printed.15 = Ready for printout - The purchase order is immediately ready for printing.

The purchase order will be assigned the above status if is not changed in (PPS170).

(MMS037/E) 022 Default status - planned orders AM = A1

…the status to be assigned to automatically created planned orders with AM=A1.

If planned orders with action message A1 should be released automatically, you must set this parameter to 60 = Released order.

(MMS037/E) 025 Default status - planned orders AM = A2

…the status to be assigned to automatically created planned orders with AM=A2.

If the status value is set to 60, a purchase order will be created directly from the planned purchase order.

The following status levels are available:

10=Planned order

20=Firm planned order

30=Firm planned order

40=Firm planned order

50=Firm planned order

60=Released order

If planned orders with action message A2 should be released automatically, you must set this parameter to 60 = Released order.

(MMS037/H) 300 Amount limit to release planned orders

the amount limit for automatically created purchase orders.

If the order proposal line exceeds this amount, it will remain a proposal with status 05. Otherwise a purchase order will be created automatically.

(PPS095/G) 200 Should PO-proposal get a warning if std-price=0

… whether a planned purchase order should get a warning message 98 if standard price equals 0.

This is important when the standard price is used for creation of the financial transactions in the goods receiving flow, with the condition that the inventory accounting method for the item is 1 (standard cost).

  340 Multiple warehouses per PO

… whether it is possible to enter purchase order lines with different warehouses for the same purchase order.

If alternative 1 = Yes, is entered, order type parameter 341 should also be set to 1.

  341 Multiple delivery addresses per PO … whether it is possible to use lines that represent different delivery addresses for the same purchase order.
  350 Consolidation fence - PO

… the number of calendar days that checks time allowances for the release of a planned purchase order.

The number of days between the different order lines' delivery dates must be lower than the number of days entered here.

This enables you to split purchase orders that contain lines whose delivery dates differs a lot in time. If the field is blank, no check on the delivery dates is made.

  370 Warning - dely date within lead time … if a warning should be given on a planned purchase order if the requested delivery time is earlier than the delivery date according to the lead time.
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