Managing Internal Purchase Orders for Internal Rental
A purchase order with a supplier defined with supplier type 7-'Internal' in 'Supplier. Open' (CRS620) is an internal purchase order.
The purchase order must also be created with an order type configured with order category 80 and parameter 795 set to 2 or 3, to be valid for internal rental.
An internal PO cannot be created from a PO proposal or using PO batch order entry. It must be created manually using 'Purchase Order. Open' (PPS200).
Creation of internal PO
When a PO is created with order category 80, 'Purchase Order. Update Loan' (PPS216) is displayed automatically as part of the panel sequence when you open a purchase order line.
In (PPS216) you can specify the serial number and return date.
If a serial number is specified, this is as a default set to the related internal agreement line, when this is created. If no serial number is specified manually in (PPS216) this is updated automatically when the internal rental agreement line is delivered. The serial number in (PPS216) is set as default in 'Purchase Order. Receive Goods' (PPS300).
If a return date is specified in (PPS216), this is as a default set as the valid to date on the related internal agreement line, when that is created. If no return date is specified, the valid to date on the internal rental agreement line is according to the return period set on the customer or the rental agreement order type.
Print internal PO
It is a mandatory step to print an internal PO.
- PO type category is 80-' Loan'
- Parameter 795 on PO type is set to 2 or 3
- Supplier is defined as type 7-'Iinternal.
If the internal rental agreement is not created as expected, see Managing Internal Rental Agreements for troubleshooting.
Each purchase order number is always connected to one internal rental agreement.
'Active Supply Chain. Display' (MWS150) is used to view the relationship between the internal rental agreement and the purchase order. Related option 45 'Supply Chain' is available both on the PO header and line, and it opens (MWS150).
Update or delete internal PO line
After a purchase order has been printed, changes to existing purchase order lines or header will not automatically update the internal rental agreement, even if the purchase order is reprinted.
However, if a new line is added to the purchase order and a copy is printed, a new line is added to the internal rental agreement.
It is also not possible to delete a PO line in status 20. If a line should be deleted, it must be done from the internal rental agreement. Deleting the internal rental agreement line sets the PO line to status 99-'Purchase order deleted'.
When the internal rental agreement has been activated and the PO has been confirmed, you can no longer delete the internal rental agreement line without first deleting the record created during PO confirmation in 'Purchase Order. Display Line Trans' (PPS330). Because there is now also a subline connected to the PO line, this subline must also be deleted.
When the internal rental agreement has been activated and the PO has been confirmed, you can no longer add any new lines to the PO.
PO confirmation and price retrieval
When the related internal rental agreement is activated, a PO subline is created for each PO line if the PO type is configured to do so and the PO is confirmed by setting the status to 35-'Confirmed'. For more information, see Managing Internal Rental Agreements.
The PO line is used for the goods receipt of the actual equipment and the subline is used for invoice matching of the reoccurring invoices sent by the owning division. The price on the PO main line is therefore not relevant and can be set to zero during PO line creation. If not already done, the price is set to zero when the PO line is confirmed.
If the PO type is configured to create a subline, this subline retrieves the period price from the related internal rental agreement line.
If the PO type is configured for Right of Use scenario, a financial agreement must be manually created in 'Financial Agreement. Open' (AGS100) including information of the price. No subline is created.
The quantity of the subline is retrieved from the internal rental agreement line, field 'No of periods'. This is calculated based on the agreement period and rate type and should indicate how many invoices that are expected from the owning division. For more information, see Managing Internal Rental Agreements. There you can also find a description on how the subline quantity is calculated and how it can be updated.