Creating a Purchase Order in the Customer Order Flow

This document explains the buy-to-order process, that is how to create a purchase order in the customer order flow without disrupting normal customer order entry. It also explains how you can monitor changes on the customer order/purchase order and how to release planned purchase orders during the order entry process.

You can use the buy-to-order function when the customer orders an item that is not normally kept in stock and therefore must be purchased from another supplier.


A purchase order is created during customer order entry. The ordered goods are distributed to the customer either from your stock or directly from the supplier. When goods are delivered and reported in M3, an invoice is created and sent to the customer.

Before you start

Follow these steps

  1. Entering a Customer Order with a Purchase Order

    When you receive an order for an item that you do not normally have in stock, begin by handling it the same way as a normal customer order and specify all necessary information in the order header in 'Customer Order. Open' (OIS100). In 'Customer Order. Open Lines' (OIS101/B), which is started from (OIS100), select the item to be purchased from your item file.

    When specifying items to be purchased on the order line, predefined settings will provide two options:

    • 'Customer Order. Acquire Sales Item' (OIS145/F) is started automatically, in which you can add or change information about the item. When you end (OIS145) by pressing F17=Update, you will return to the order lines where you can specify new items if required. A purchase order is created automatically when you end (OIS101/B).
    • A purchase order is created directly without starting (OIS145/F). A message from the system informs you that a purchase order is created automatically.
  2. Managing Advance Invoices

    When the customer is required to pay for goods in advance, either partially or in full, an advance invoice can be created in 'Customer Order. Invoice in Advance' (OIS105) which is started from (OIS100).

  3. Releasing Planned Purchase Orders

    After a planned purchase order is created, it is released in 'Planned Purchase Order. Open' (PPS170), and a purchase order is created. The release can be performed either manually or automatically.

    You can release a planned purchase order manually; by selecting option 21=Release in 'Customer Order. Open' (OIS100/B).

  4. Monitoring Changes on Customer Orders/Purchase Orders

    While processing a customer order and a purchase order you might need to make changes on quantities, delivery dates and/or prices, for example. You can follow up the customer order and purchase order and make necessary changes.

    You can follow up customer orders in 'Customer Order. Open Toolbox' (OIS300) and 'Customer Order. Open Line Toolbox' (OIS301) and purchase orders in 'Purchase Order. Display Lines' (PPS220).

  5. Informing Customers about Changes

    When order delivery is delayed or when price has changed, it is important to inform the customer. Most common is to do this directly through telephone or fax, but in the case of a delayed delivery you can choose to send a letter using 'Customer Order. Print Delivery Time Changes' (OIS610).

  6. Distributing and Invoicing

    When an item is acquired, goods are distributed to the customer and the customer order is invoiced. Note that a purchase order invoice may be received and approved either before or after the customer order is delivered and invoiced.

    For more information about how to manage planned purchase orders and purchase orders, refer to the procurement process documentation.

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