Setting up Purchase Order

Depending on your business needs, you might also need to set up the Purchase Order application. This procedure outlines the information you must define in Purchase Order, if you are going to set it up.

The information you define includes setting up purchase order codes. Purchase order codes can be assigned to the requesting location and the requisition.

Set up Purchase Order

Access Buyer (PO04.1) and define the buyer structure.
Access Freight Terms (PO06.1) and define the freight terms to determine who pays for the freight and the method of payment. Examples include COD, collect, and prepay.

Ensure you define the default freight terms code you assigned to the company. This freight terms code is used as the default code if one is not assigned at the vendor level.
Access PO Vendor (PO10.1) and specify Electronic Data Interchange (EDI) as your PO Vendor Issue Method if your company is issuing purchase orders through EDI. EDI is a method of transmitting data electronically. For example, you can use EDI to transmit purchase orders, advance ship notices, and invoices.
Access Ship Terms (PO02.1) and define the ship terms to specify when the buyer or seller takes possession of the merchandise and at what point in the shipment.
Access Vendor Item (PO13.1) and define these:
- Contact information
- Issue methods for original and revised purchase orders
- Shipping terms and methods
- Purchase limits and tolerances
Access Comment Codes (PO12.1) and define comment codes and the attachments that are assigned. Comment codes can be assigned to headers, trailers, or individual lines on orders.

For more information, see the Purchase Order User Guide.