Purchase orders - additional processes

To have a proper insight in all procurement costs, not only the purchase price, but also landed costs can be linked to a purchase order.

You can define additional information fields. The additional information from the purchase order is transferred to the inbound and receipt documents in Warehousing. For more information, refer to Additional information fields in Procurement.

You can use the Archive and Delete Purchase Orders (tdpur4224m000) session to delete, archive, or archive and delete purchase order- and purchase order line-data

If order blocking is enabled, purchase orders and purchase order lines can be blocked.

Purchase orders and lines can be manually blocked, or are automatically blocked because of a compliance check failure.

For more information, refer to Blocking purchase orders.

For more information, refer to Changing prices or discounts after receipt or consumption.

If you want 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 the Copy Purchase Order (tdpur4201s000) session to copy existing purchase orders to new purchase orders. You can copy from the actual orders or from the order history.

For more information, refer to Copying purchase orders.

Freight is the package that handles transportation requirements. Because Procurement is sometimes responsible for the transportation of goods and must consequently collect goods from a supplier, you can generate a freight order from the purchase order. If the transportation of goods is not the supplier's responsibility, the supplier must know on what date the goods must be ready. Therefore, you must consider the planned load date in the purchase order as the shipment date; when to pick up the goods from the supplier.

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.

In both cases, a purchase order must be generated to buy parts or to procure subcontracting.

If only a part of the goods or none of the goods listed on a purchase order are received, backorders can be created.

For more information, refer to Purchase backorders.

A return order is a purchase order on which returned shipments are reported. A return order can include only negative amounts. With a purchase return order, you can return inventory units ( Return Inventory), or rejected goods ( Return Rejects) to the supplier.

Purchase orders of the Return Rejects order type are always generated from Warehousing to return quarantine inventory.

For more information, refer to Purchase return orders.

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.

For more information, refer to Import compliance for purchase orders.

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.

An order or order line linked to a letter of credit can only be approved if it is linked to an approved letter of credit. To be released, the order or order line must be linked to a letter of credit with status Issued, which expresses that the issuing bank issued the letter of credit to the advising bank.

For more information, refer to Letter of credit and Import letter of credit procedure.

If the Material Pricing in Procurement check box is selected in the Material Price Parameters (tcmpr0100m000) session, after setting up the material pricing master data, LN can retrieve material price information and calculate material prices for a purchase order line.

Linked material price information can be viewed in the Material Price Information (tcmpr1600m000) session.

For more information, refer to Material price information – purchase orders.

Occasionally, during the receipt process, the quantity received does not match with the packing slip quantity. If suppliers ship less than what is on their packing slip, a claim note can be printed in the Print Claims (tdpur4420m000) session.

An optional step in the purchase order procedure is to print purchase invoices in the Print Purchase Invoices (tdpur4404m000) session. These invoices are used to compare the data in your system with the data (invoices) you get from the buy-from business partner.

You can use the Print Purchase Order Reminders (tdpur4403m000) session to print a reminder to advise a business partner of undelivered purchase orders.

Project costs can be pegged to purchase orders. If the item on the purchase order requires a peg, a peg distribution must be linked to the purchase order. In a peg distribution, the required quantity of the parent business object is distributed across distribution lines for combinations of project/budget, project element and/or project activity. For example, if a distribution is used to peg the ordered quantity on a purchase order line, the goods are purchased for and the costs are booked to these projects, elements, and activities.

For more information, refer to Project pegging in Procurement.

If price changes are made to a purchase contract or to an item because of price renegotiations, the retrobilling functionality can be used to re-invoice previously invoiced items for purchase orders. Price differences are handled through price change advice lines, which are based on the purchase payable receipts of the order. After approving and processing a price change advice line, an additional (retro-active) payable receipt line is generated for the order.

For more information, refer to Retrobilling in Procurement.

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.

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.

Supplier stage payments can be useful for items with characteristics such as long lead, high value, much engineering, and a fixed price. The stage payments can include the dates and events for which the supplier must complete specific tasks before receipt of any goods, such as providing design documents or test results.

For more information, refer to Supplier stage payments.

If you want 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.

For more information, refer to Static cross-docking.

In Procurement, various purchase documents for subcontracting can be created. To start the subcontracting process, a purchase order is required.

For more information, refer to Subcontracting in Procurement.

You can use change requests to update purchase orders (and related data) in a controlled manner after their initial approval or printing. Only one open change request can be applicable at a time for a purchase order. A new change request can be created only after a previous revision was processed or canceled.

For more information, refer to Change requests - overview.

If you want to use consigned inventory in the purchase order procedure, you can specify how consigned inventory is handled.

For more information, refer to Consignment in Sales and Procurement.

To enable customers or their suppliers to furnish the materials that are required to produce a specific customer item, you can implement Customer Furnished Materials. Based on the demand from a sales order, a purchase order of the Customer Furnished Materials type is generated by the order plan. This purchase order is used to call off the customer furnished materials that are needed by the production order to produce the customer item. The purchase order inherits the demand peg of the demand order.

For more information, refer to Customer furnished materials in Sales and Procurement.

You can use price stages to categorize the price based on the phase of the price-negotiation process. As long as the price is not final, price stages are used to allow the continuation of the order process, but to restrict the activities that you can perform during this process. The blocking definition that is linked to the price stage determines the phase at which the purchase order line must be blocked or a signaling message must be displayed.

For more information, refer to Price stages - overview.