Confirmation, Delivery Advice and Transport Notification for PO

This document explains how you report confirmation, delivery advice and transport notification for a purchase order (PO). Confirmation and/or delivery advice can be sent from the supplier or shipper during the delivery of goods from the supplier to your plant. This occurs after you have sent the PO to the supplier and before you have received the goods. With the help of the information in the confirmation and delivery advice, you can be assured of an exact delivery date for the ordered goods.

The confirmation and delivery advice contains transport information and important dates. You log the reported information as a transaction and the status of the PO is automatically raised. The status of a PO reflects its progress in this flow. Note: It is possible to use the status development only without logging transactions. However, this process document and the related instruction documents start from the fact that you wish to log the transactions.

Note: The reporting of confirmation and delivery advice can also be performed in 'Purchase Order. Display Lines' (PPS220) on a detailed or aggregated level. You can also monitor the status development for POs in this program.

Outcome

You have monitored the different steps of the delivery of your PO goods on their way to your plant. You have updated information about the transport; you know when and how the goods will be delivered. You also know about, for example, the bill of lading and the packing slip number.

The material plan is updated according to what transport agreements you have with the supplier. If transport lead time and goods responsibility have been specified, these will influence the dates presented.

You register the ordered goods as received in 'Purchase Order. Receive Goods' (PPS300).

It is possible to reverse the logging of confirmation, shipment advice and/or transport notification in 'Purchase Order. Display Line Trans' (PPS330).

The following files are updated:

  • Planning overview (MITPLO)
  • PO lines (MPLINE)
  • PO line transaction (MPLIND).

Before you start

A PO must have been created. See Create, Release, and Display Purchase Order.

Shipment advice and transport notification

This model shows the use of shipment advice and transport notification:

A is called shipment advice in M3. The supplier sends information about when the goods are shipped from the plant and how the goods will be transported. The goods are sent either directly to goods receiving or are sent via a terminal.

B is called transport notification in M3. If the goods are sent via a terminal, the receiver is informed of when and how the goods leave the via terminal by the use of transport notification.

Activity description

Note:  The reporting methods listed here are optional and can be used independently of one another. They may also be used in a flow as three different steps.

You receive the delivery advice from the supplier by fax or letter, for example. Then you manually enter the information into the system. If the reporting is done automatically, such as by using EDI communications, you should not use the programs mentioned in this document. The status code connected to the PO will then automatically be raised to the respective level.

  1. Report confirmation of PO

    Report that the supplier has confirmed the PO, which means that the goods will be delivered. The supplier might have made changes, however, regarding delivery date, quantity, price and/or discount, which you report into the program. In some cases you have to split an order to have, for example, two deliveries instead of one.

    Normally after this activity, the status of the PO is 35=Purchase price and delivery date confirmed and approved. If order data have been changed, one of the following status codes may be used: 31=Delivery date confirmed, 32=Purchase price confirmed, 33=Purchase price and delivery date confirmed but not approved.

    You report confirmation in 'Purchase Order. Confirm' (PPS250).

  2. Report shipment advice for PO

    Report that the supplier has advised the goods for shipment. The supplier may also have sent information about the transport, such as whether a transport via terminal will be used and the packaging of the goods. This includes, for example, shipment date, advised quantity, forwarding agent, bill of lading, delivery note number, and carrier name. You report the information into the program.

    After this activity, the status of the PO is 40=Shipment advised.

    You report shipment advice in 'Purchase Order. Advise Shipment' (PPS260).

  3. Report transport notification

    Report that a shipper has notified your goods for transportation, which means that the goods have been sent from the via terminal. You may also have received transport and packaging information that you report into the program. This includes, for example, shipment date, forwarding agent, delivery note number, carrier name and arrival date.

    After this activity, the status of the PO is 45=Notified for transportation.

    You report transport notification in 'Purchase Order. Notify Transportation' (PPS270).

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