Freight Purchase Orders

Limitations

You cannot enter purchase orders manually using an order type with order category 90 ('Freight').

Before you start

Refer to these documents:

• See Basic Settings for Freight Cost and Freight Cost Calculation
• See Manage Freight Cost Calculation
• See Settings for Freight Cost Distribution
• See Manage Freight Cost Distribution

Settings for freight purchase orders

• The 'Included in freight cost on PO trans' check box sets whether the freight cost amount is included when freight purchase transactions are generated. If this setting is enabled for the freight agreement header in (PPS100), all the elements in the model will have the same setup. If it is enabled for freight cost element level in (PPS105), it will only apply to that specific freight cost element.
• The 'Included in PO to third-party forwarder' check box sets whether the sum of the specific freight cost element should generate freight purchase transactions against the third-party forwarder (instead of against the main forwarding agent). In this case, the cost of this element will not be included in the freight purchase transaction against the main forwarding agent.
• The 'Third party forwarder' on (PPS105) sets which forwarding agent is used if a purchase-generating cost is paid to a forwarding agent other than the main forwarding agent from the freight agreement. When a freight purchase transaction is generated for the main forwarding agent, a freight purchase transaction will also be generated for a third-party forwarding agent using the same settings as for the main forwarding agent.
  Note: There can only be one third-party forwarder in a freight cost element of a freight costing model.
• In (DRS025), the following settings are available:
  • On transportation service, an item number need to be selected. This item number is the objectification of the freight service and it needs to be a non-stock item.
  • On 'Purchase transaction level', you need to set the next manual function that must be performed for the freight purchase transaction when it is created.
  • On the 'Auto create freight at PO distribution', selecting the check box sets whether the creation of freight purchase transactions is done automatically when the freight cost is distributed, or not.
  • The 'Freight PO type' is used at creation of freight purchase transactions. The selected purchase order type must be connected to purchase order category 90 (Freight).

Settings for freight purchase order on the purchase order batch origin

In order to get purchase order created from the freight purchase transaction, a batch origin must be set in the field 'Batch origin - freight' in 'Settings - Purchasing' (CRS780). The batch origin is created in 'Purchase Order Batch Origin. Open' (PPS090).

• The parameter '20 – level of automation – PO batch' sets whether the purchase orders created via the batch entry (PPS370) will stop in status 20 and wait for manual processing of the records, or if the purchase orders will be processed automatically to status 90 (unless errors are detected).
• Exceptions for the batch origin can be set per batch origin and supplier in 'PO Batch Origin. Connect Exceptions' (PPS091). It is reached via related option '11 - Exceptions'.

Settings for freight purchase order on the freight PO type

In 'Purchase Order Type. Open' (PPS095), there are a few fields that can be set depending on how automatic freight purchase flow is desired.

• The parameter '360 – PO status – auto confirmation' determines the stage at which a purchase order should be assigned a confirmed status. On this parameter, the alternative '2 – Yes. Confirmed status assigned automatically after PO is released' is specific for freight purchase orders.
• The parameter '660 – Auto goods receipt' allows to perform automatic goods receipt. Purchase order status will be changed to '75-Put-away complete'.

Manage freight purchase orders

The freight purchase order can be initiated manually in (DRS500) or automatically created.

• To create the freight purchase automatically, the 'Auto create freight at PO distribution' check box must be selected in (DRS025).
• To initiate the fright purchase manually, use function key F19='Create Freight PO' in the freight cost toolbox (DRS500). This is only possible when the freight cost header status is 50 ('Distributed').
  Note: To create a purchase transaction, the field 'Purchase transaction level' in (DRS025) must not be set to alternative 0. In this case, creation of freight purchase transactions is permitted.

  To display the freight purchase transaction, use function key F21='Created Freight PO' in (DRS500). This opens (PPS500).

(PPS500) displays the record for the created freight purchase transaction, which shows status 10 ('Record created') if no automatic creation has occurred. For automatic creation of the purchase order, the 'Purchase transaction level' field in (DRS025) must be set to 1 (Freight purchase transactions are automatically released from (PPS500) to create PO via PO batch entry.)

To create the purchase order manually in (PPS500), the 'Purchase transaction level' field in (DRS025) must be set to 2 (Release freight purchase transactions manually from (PPS500)). Then either function key F14='Update PO' or related option 9='Update' is used in (PPS500). The freight purchase record status is then set to 90 ('Purchase order created').

To create a purchase order batch, open 'Purchase Order Batch. Open' (PPS370). In (PPS370), a PO batch order has been created and is in status '20 – Order entry completed'; if not, the purchase order is automatically processed. Use related option '30 - Process' and the status is set to '90 – Transferred, no errors'. After this, the freight purchase order will exist as a purchase order in (PPS200). If the prerequisites in 'Purchase Order Type. Open' (PPS095) are set for a manual flow, the statuses are '15/15 – Ready for printout'. You can now handle the freight purchase order as a usual purchase order.