Create, Release, and Display Purchase Order

Outcome

The processes described in this document enables you to:

• Automatically create a purchase order from a planned purchase order
• Manually create a purchase order from a planned purchase order
• Register and change a purchase order header
• Register and change purchase order lines
• Print purchase order documents and release a purchase order automatically or manually
• Display a purchase order

Before you start

• Specify basic settings for the purchase flow according to .
• Specify settings for planned purchase order according to Create and Release Planned Purchase Order.
• Specify settings for the purchase order according to Settings for Purchase Order.

Create PO from planned PO

• Automatically create PO from planned PO

  If a planned purchase order should automatically be released to a purchase order, you must specify these settings:

  • 'Planning Policy. Open' (MMS037), parameter '022=Default status - planned orders when AM=A1' (Release and reschedule in the order). If planned orders with action message A1 should be released automatically, you must set this parameter to '60=Released order'.
  • 'Planning Policy. Open' (MMS037), parameter '025=Default status - planned orders when AM=A2' (Release order). If planned orders with action message A2 should be released automatically, you must set this parameter to '60=Released order'.
  • 'Item. Connect Warehouse' (MMS002/E), the 'Planning policy' field. You must connect a planning policy for the item/warehouse with the settings above '60=Released order'.
• Manually create PO from planned PO

  For manual creation of a purchase order from a planned purchase order, see Release Planned Purchase Order in Create and Release Planned Purchase Order .

Register/Change PO header

1. Start 'Purchase Order. Open' (PPS200). Open the P panel and specify the panel sequence. Press Enter.

   The panel sequence is EFGU1H in the text below.

2. Open the A panel. New purchase orders are always manually specified on the A panel.

3. When specifying a new purchase order, some of the fields in the A panel must be specified. The order must be connected to a supplier and a requested delivery date (the need date) must be specified.

   Specify the 'Purchase organization' field. It is a mandatory step, if this field is available.

   If no order type is specified, the value from 'Supplier. Define Purchase & Financial' (CRS624/E) becomes the default.

4. The panel sequence determines the panels to go through when placing a new order.

   A standard setup for the sequence, both for the header and lines, can be defined in 'PO Type. Open' (PPS095).

5. If no PO number is manually written, a purchase order number will automatically be retrieved from the number series specified in 'PO Type. Open' (PPS095).

6. Select 'Create'.

   • (PPS200/E)

     The E panel contains data mostly defaulted from the supplier. The values can be changed manually on each order. If the purchase order is created from a planned purchase order, the values will be copied from the proposal.

     • 'Final destination' is your goods receiving destination. This address is set in 'Internal Address. Open' (CRS235) and will be printed on the external documents.
     • 'Language code' determines the language in which the external documents are printed. The language codes are set in 'Language. Open' (CRS010).
     • If the telephone order field is marked, a text is printed on the order document, indicating that this order has been placed over the telephone.
     • 'Harbor/airport' indicates the ID of the harbor or airport. It is needed for reporting purposes in trade statistics. This information is only relevant for exports or imports where the goods do not pass any customs office at the border.
     • 'Purchase organization' indicates the organization, for which the purchase order is created. Purchase order lines can be created for warehouses that are connected to the purchase organization of the purchase order head in 'Purchase Organization. Connect Warehouse' (PPS199). The field is not editable. The field is only available if use of purchase organization for planning is activated on (CRS780/H).
   • (PPS200/F)

     The F panel displays the agent, payment, and currency terms.

     • Media profile - A media controlling object that is used as a filter in the media control table (CRS945). See .
     • 'Delivery terms' - Some delivery terms require a delivery text (example: loading port if FOB is used). This text can be specified in the open line under delivery terms or can be collected from 'Supplier. Connect Delivery Term Text' (PPS014) which is accessed from 'Supplier. Define Purchase & Financial' (CRS624).
     • Signature - If authorization is needed, the authorization code is specified in the signature field.
     • 'Currency terms' and 'Agreed rate' are used for orders in foreign currencies. If currency terms are used on the order, M3 Business Engine will use the agreed rate instead of the exchange rate for the conversion from foreign to local currency.
   • (PPS200/G)

     The G panel displays different address fields. The address fields are opened for changes by activating the 'Chg adr' box, followed by Enter.

     • 'Suppliers address' is proposed from 'Supplier. Connect Addresses' (CRS622). The others - 'Our Invoice address', 'Via address' and 'Final destination' - are proposed from 'Internal Address. Open' (CRS235).
   • (PPS200/U)

     The U panel displays the user-defined fields. The settings for these fields are defined in 'User-Defined Fields. Open' (CMS082).

Register/Change PO lines

The order lines are specified in 'Purchase Order. Open Lines' (PPS201). A new panel sequence for the line is used. The panel sequence used in this description is EIFGU.

• (PPS201/P)

  There are some fields on the parameter panel (PPS201/P) that control the flow.

  • The first 'panel sequence' is valid when specifying a new order (options 1, 2, or 11 from (PPS200)).
  • The second 'panel sequence' is valid when displaying the order (option 5 from (PPS200)).
  • 'Entry option' enables different ways to register an order. For example, entry option 3 opens a full-screen entry so that you can specify several order lines at a time. Entry option 4 works together with the 'Full-screen option' and 'Check sequence' fields. With these fields, you can specify order lines in a matrix form or a list view. The matrix form is appropriate to use, for example, in the fashion industry. To use this form, alias numbers must be created for the items in 'Item. Connect Alias Numbers' (MMS025).
  • 'Repair/subcontracting' parameter opens up extra fields used for purchase order categories '60=Repair' and '70=Subcontracting'. The fields are 'Lot no', Service' and 'Service process'.
• (PPS201/B)

  'Item number' and 'order quantity' must be specified. 'Units and 'prices' will automatically be retrieved from an agreement (PPS100), the item/supplier (PPS040) or the item master file (MMS001) if registered in any of these fields.

• (PPS201/E)
  • 'Our reference number' can either refer to an agreement number (1), an inquiry number (2), or a supplier quotation number (3). If a valid agreement exists in 'Purchase Agreement. Open' (PPS100), the agreement number will be retrieved automatically together with prices and conditions. If the agreement number says "9999998" the agreement is a general agreement, that is, a price is given in the item/supplier master. The Agreement documentation contains more information about agreements.
  • 'Reference order number' - If the purchase order is created from another order, for example, a customer order generates the purchase order, the 'Reference order number' field will be filled in with the customer order number, line and a reference order category.
  • 'Revision number' is a way to keep track of changes made on the order. 'Revision Control. Open' (CRS340) is accessed by selecting "Option 14" from 'Purchase Order. Open' (PPS200/B). In this program, a revision number, date, and a text describing why the revision is done is defined. Using a revision number enables you to print only revised lines on a purchase order.
  • 'Recipient' - The content of the Recipient field is written on the detailed goods receiving document and can be used to inform the inventory staff who the goods are aimed for. You can also predefine the content of the field in 'PO Type. Open' (PPS095).
  • 'Requested delivery date' - If the requested delivery date is too soon relative to the lead time, a warning is displayed if the setting is correct in 'PO Type. Open' (PPS095).
  • These types of discounts can be specified or defaulted:
    • Discount 1: Discount from the supplier master
    • Discount 2: Discount from the agreement header
    • Discount 3: Discount from the agreement line
  • 'Price text' - In M3 Business Engine, it is required to put in a price on each order line, but you can specify a price text instead of a price on the order line. This can be the case if the price of the purchased item is unknown and refers to, for example, a sample or a new article. This text is specified in a table behind the price text field in 'Purchase Price. Enter text' (CRS060).
  • F11='Account Entry', will open the accounting string to be able to put in a manual account on a specific order line. This is commonly used for purchase on items that are not inventory accounted, where a cost account is used instead of the inventory account.
• (PPS201/I)

  The I panel is for information purposes and includes reference details such as planned order number, requisition by, cost center, and accounting control object.

• (PPS201/F)
  'Goods receiving method' - determines the steps in the receiving flow that will be taken for the specific order line, and is defined in (PPS345). The field is automatically retrieved from these places in the following order:

  1. 'Supplier. Connect Item' (PPS040/E)
  2. 'Item. Open' (MMS001/F)
  3. 'Purchase Order Type. Open' (PPS095/E)

  'Packaging' - an identity that shows how the item in the order line must be packed when it is shipped from the supplier. This is defined in 'Packaging. Open' (MMS050).

  'Update material plan' - if the order quantities must update the material plan, select the 'Update material plan' parameter. The normal setting is to always have this parameter selected.

  'Representative price' - displays how the price was specified: (1) manually or (2) from an agreement. The representative price code can also be set to zero if, for example, an item is purchased at an abnormal price. This means that the price should not have an effect on the history analysis. It also determines whether the given price should update the price in the item/supplier file.

  'Part of order total discount' - determines whether the order line should be included in the total for the entire purchase order, which is the basis for the order total discount.

• (PPS201/G)

  The G panel is for information purposes and includes the confirmed purchase order details.

• (PPS201/U)

  The U panel displays the user-defined fields. The settings for these fields are defined in 'User-Defined Fields. Open' (CMS082).

Summary for the complete PO

The (PPS200/H) panel is a summary picture of the complete order.

• 'Total order discount' - If a total order discount exists, this will be calculated and displayed in the panel. You can adjust the total order discount.
• You can also specify a total order discount instead of the suggested percentage discount. The total order cost, net order value minus order discount, can also be adjusted.
• F14='Order total discounts' and F15='Charge limits', display the different limits at which discounts and charges are activated. This can be used to see whether a greater purchase quantity will give a better price due to the charge limits.

  Charges can be divided into these categories:

  • Service charges
  • Freight charges
  • Minimum order value
  • Minimum order line value
• If a minimum limit value exists and is not reached, a warning message will be displayed (when leaving this screen) that the value is not exceeded. This function can be activated on 'PO Type. Open' (PPS095/H), parameter 330.

Print PO documents and release PO

A purchase order can be released automatically or manually. A purchase order is released when the purchase order document is printed (status '20 -Document printed').

• If a purchase order automatically should be raised to status '20 - Document printed', you must specify these settings:
  • 'Planning Policy. Open' (MMS037), parameter 005='Default status PO' must be set to status '15 - Ready for printout'. The purchase order is immediately ready for printing.
  • 'PO Type. Open' (PPS095), parameter '710=Automatic printouts of PO documents', you must select the check box if you want the purchase order to be automatically released.
• If a purchase order should be raised manually, follow these steps:

  1. On the (PPS200/B) panel, select the function key F14='Print documents'. 'Purchase Order. Print Documents' (PPS600) is started.

     You can also start (PPS600) from the menu tree.

  2. Define some settings by pressing F13 to display the P panel.

     The permanent layout of the document is controlled by parameter '030=Document variant – PO' in 'PO Type. Open' (PPS095). If that field is left blank, a standard document is printed.

  3. Select the E panel as the opening panel and adjust the date format.

     The panel sequence cannot be changed. It must be set to EF.

  4. Define the field selection, cursor position, and whether From/To values should be required. Press Enter.

     In the field selection, decide which field headings and field contents to display and whether editing is allowed.

  5. The E panel is now displayed. Orders can be selected for printing by the PO number range fields or by specific order numbers by using the open fields at the bottom of the screen.

     The status on the purchase order must be at least 15 to be able to print out the document. After printing, the status will be 20.

Display PO

'Purchase Order. Open' (PPS200) can be used to follow up existing orders, for example, orders that have been created automatically or released planned purchase orders.

Information about order lines can be accessed from 'Purchase Order. Display Lines' (PPS220).

(PPS220) has many different inquires, and you can make your own information views. See .

Parameters to set