Purchase orders - additional processes

Adding landed costs to purchase orders

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.

For more information, refer to:

• Landed costs – overview
• Landed costs – orders

Additional information fields

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.

Archiving and deleting purchase orders

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

Blocking purchase orders

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.

Changing prices and discounts after receipt or consumption

• After receipt

  In the Change Price and Discounts after Receipt (tdpur4122m000) session, you can change prices and discounts after the goods are received.

• After consumption

  In the Change Price and Discounts after Receipt (tdpur4122m000) session and the Change Price and Discounts of Purchase Payable Receipts (tdpur4132m000) session, you can change prices and discounts after the goods are consumed.

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

Commingling purchase orders

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.

For more information, refer to:

• Overview of purchase order commingling
• Commingling purchase orders

Copying purchase orders

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.

Generating freight orders from 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.

The integration between Freight and Procurement includes these topics:

• Integration freight order control and procurement

  During the planning and execution of a freight order, its status often changes. If Procurement is responsible for creating the freight order, the progress of the shipment and loads can be exchanged and information can be shared between Freight and Procurement.

• Integration freight invoicing and purchase invoicing

  The freight rate that you must pay to the carrier, is called freight costs. You can invoice your business partner for the freight costs based on:

  • Freight Costs
  • Freight Costs (Update Allowed)
  • Client Rates

For more information, refer to:

• Integration Freight Order Control and Procurement
• Integration freight invoicing and purchase invoicing

Generating purchase orders from work orders or service orders

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.

The following depot repair and field service processes are supported:

• Purchasing additional parts
• Purchasing subcontracting activities

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

For more information, refer to:

• Purchasing additional parts
• Service subcontracting in Procurement

Handling backorders

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

The following can result in a backorder:

• The received quantity of the purchase order line is less than the ordered quantity at the time of delivery date.
• The received quantity of the goods is (partially) rejected during inspection.
• The received quantity is equal to the ordered quantity, but the user changes the back order quantity from zero into a higher value.

For more information, refer to Purchase backorders.

Handling return orders

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.

Import compliance for purchase 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.

Letters of credit 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.

Material prices on purchase orders

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.

Printing claims

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.

Printing purchase invoices

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.

Printing reminders

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

Project pegging

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.

Retrobilling purchase orders

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.

Specifying direct delivery orders

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.

For more information, refer to:

• Direct delivery sales orders
• Direct delivery service orders

Specifying supplier stage payments

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.

Static cross-docking

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.

Subcontracting

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

These types of subcontracting are available:

• Operation subcontracting
• Item subcontracting
• Unplanned subcontracting
• Service subcontracting

For more information, refer to Subcontracting in Procurement.

Using change requests

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.

Using consigned inventory

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.

Using customer furnished materials

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.

Using price stages

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.