| Purchase OrdersYou can create and modify purchase orders for
purchasing goods. For example, if you run out of inventory, you can perform the
purchase order procedure to replenish stocks. You can also use the purchase
order procedure to purchase, for example, services. After confirmation, a
purchase order is a legal obligation to supply items according to certain terms
and conditions, including specific prices and discounts. After an order is processed, the information is used by
different departments in the company, such as planning, production,
distribution, finance, purchasing, and marketing. The normal purchase order procedure includes the creation,
approval, printing, release to warehousing, receipt, payment, and processing of
purchase orders. To reduce the number of purchase orders and obtain the best
available prices and discounts, you can commingle purchase orders. Commingling
enables you to group various purchase orders that originate from different
sources into a single purchase order. You can use additional information fields to specify additional
information on purchase orders. These fields are used throughout the process.
For example, they are used in the project contract, the purchase order, the
warehouse order, and the receipt process in Warehousing. On a sales order or service order, you can indicate whether you
want the sold goods to be directly delivered. In case
of a direct delivery, a sales order or service order results in a purchase
order. Because the buy-from business partner delivers the goods directly to the
sold-to business partner, Warehousing is not involved. To fulfill an existing sales order for which no inventory is
available, you can take inbound goods immediately from the receipt location to
the staging location for issue. To initiate this process, you must generate a cross-docking order. To call off customer furnished materials required by a production order to produce a customer
item, you can use purchase orders of the Customer Furnished Materials type. If a final receipt is made for a purchase order (detail) line
and only a part of the goods or none of the goods are received, a backorder is created. Backorders can be manually or
automatically confirmed. You can print reminders to inform business partners of undelivered
purchase orders. Occasionally, during the receipt process, the quantity received
does not match the packing slip quantity. If suppliers ship less
than what is on their packing slips, claim notes can be printed. A return order is a purchase order on which returned shipments
are reported. A return order can contain negative amounts only. With a purchase
return order, you can return inventory units or rejected goods to the supplier.
Usually, these goods are rejected during inspection. You can print purchase invoices to compare the data in your
system with the data (invoices) you get from the buy-from business partner. You can use purchase order history to track creations and
modifications to purchase orders. You can keep certain information after the
original purchase order is removed. You can use consigned inventory, for which inventory ownership and
storage are handled by different parties, and choose between a basic or
extended consignment setup. Supplier stage payments enable customers to pay suppliers
before or after the ordered goods are actually received for a purchase order.
The payments are spread over a period of time and the amounts must be paid to
the supplier on specific dates. The purchase order item's invoice flow is
separated from its goods flow. Freight is the package that handles transportation
requirements. If Procurement is responsible for the transportation of
goods and must consequently collect goods from a supplier, you can generate a freight order from the purchase order. With Depot Repair and Field Service you can maintain, repair,
or upgrade parts. An integration is available between Service and Procurement to buy
parts or to subcontract the maintenance,
repair, or upgrade. You can link a price stage to a purchase order line. The blocking definition that is linked to the price stage determines the phase at
which the purchase order must be blocked or a signaling message must be
displayed. If global trade compliance is applicable for import documents, purchase orders are
validated to ensure that the import compliance information is valid and the
required licenses are available. If payment is to be made through a letter of credit (L/C), an import or domestic purchase letter of credit must be
linked to a purchase order or purchase order line. If order blocking is enabled, purchase orders and purchase
order lines can be blocked. Consequently, the order procedure cannot continue
until the block is released. To identify costs, demand, and supply for a project, you can
peg project costs for purchase order lines. You can use change requests to update purchase orders in a controlled manner after their
initial approval or printing. If this functionality is applicable for purchase
orders, a change request is required to update the purchase order and its
related data. You can copy existing purchase orders to new ones from the
actual orders or the order history.
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