Define Settings for the Buy-to-Order Process

… the status assigned to planned purchase orders when they are created from customer orders with line type 1 and line type 2. Line type 1 designates delivery from own inventory and line type 2 direct deliveries from supplier to customer.

The valid alternatives are:

20, 30, 40, 50, 55 = Manually defined status codes

60 = Purchase orders can be created.

Note that a planned purchase order is assigned the status specified in this field when customer order entry is completed. While entry is in progress, a planned purchase order is always assigned status 20 regardless of what is specified in this field.

… whether to retrieve the final status for planned purchase orders from the valid planning policy for each combination of item and warehouse. If there is no item/warehouse combination, or if this value is zero, the final status entered in the status field will apply; see description above.

… how overshipped purchase orders for normal items and/or for extended catalog items (ECI) are processed when the purchase orders are connected directly to customer order lines.

The valid alternatives are:

0 = Overshipped quantity does not change the CO, but is made available for other requirements when saved.

1 = Overshipped quantity updates the CO so that the customer receives more than what is ordered.

… whether the cost price for customer order lines with line type 2 (direct deliveries) and average priced items is updated when the supplier invoice line is approved.

0 = No, updated from purchase price in purchase order during shipment advice (PPS260) or goods receipt (PPS300)

1 = No, updated from purchase price in purchase order during goods receipt (PPS300)

2 = Yes, updated from invoiced price when the supplier invoice line is approved (APS100).

Alternative 0: The customer order can be invoiced after shipment advice or goods receipt. If shipment advice is not done, then goods receipt releases the customer order for invoicing.

Alternative 1: The customer order can be invoiced after goods receipt.

Alternative 2: The customer order can be invoiced after the supplier invoice line is approved.

… the method that controls the goods receiving flow for purchase order lines connected to customer order lines with line type 2.

The default goods receiving method is retrieved from one of four sources determined according to the following order of priority:

1 = Acquisition parameters

2 = Combination of item and supplier

3 = Item

4 = Purchase order type.

Note that the parameter 'Direct put-away' must be selected in 'Goods Receiving Method. Open' (PPS345).

… if customer order lines that are order initiated with a direct delivery from the supplier to the customer (line type 2) are to be included in the material plan and consume forecasts.

If the parameter is activated, the customer order line is displayed in the material plan. However, it does not have any effect on the projected on-hand balance or the cumulative ATP.

… a line type used during customer order entry. If only one line type may be managed according to the order type parameter, the line type is displayed here.

The valid alternatives are:

0 = Normal order line

1 = An order line that creates a purchase order. Delivery is made from stock.

2 = A purchase order is created for the order line, with delivery address according to the customer order. Direct delivery from supplier to customer.

This parameter functions in combination with the parameter 'Line type' on 'CO Type. Update Field Selection' (OIS014/J) to facilitate customer order line entry.

Example: If delivery is to only take place from the company's own stock you can select 1 for 'Default line type' on (OIS010/G) and 0 or 1 for 'Line type,' then you do not need to enter these values during customer order line entry.

Note that if you want to be able to enter both normal items and items to be purchased on your customer order the 'Default line type' field must be changeable-that is, the 'Line type' field on (OIS014/J) must be set to 2.

… whether order-initiated items should always create a purchase order. This functions together with 'Automatic release' (see description below).

Note that if this field is not selected, or if basic data required to create a planned purchase order is missing, the acquisition panel on 'Customer Order. Acquire Sales Item' (OIS145/F) is always displayed.

If this field is selected, (OIS145/F) will not be displayed. Instead a message will appear on the screen informing you that a planned purchase order has been created automatically.

… whether planned purchase orders are to be manually or automatically released after customer order entry.

When released, a planned purchase order created for a customer order is assigned the status specified in 'Settings - Acquisition' (CRS723). Manual release can also be performed by selecting option 21=Release in 'Customer Order. Open' (OIS100).

… whether a new cost price is to be entered upon delivery.

The valid alternatives are:

0 = The cost price is retrieved or entered manually during customer order entry.

1 = A new cost price for each customer order line is retrieved upon delivery. This applies only if it is greater than zero. Otherwise the cost price retrieved or entered manually during customer order entry applies.

If the retrieved or manually-entered cost price applies, two entries are created in inventory accounts. The first is a cost price change for the quantity that is to be delivered. The second is delivery to the customer at the cost price applicable for the order line.

Example:

When the order was entered, the cost price for item A100 was zero. A cost price of 525 was therefore entered. Upon delivery of the ordered quantity, ten, the cost price is still zero.

The following entries will be made in the accounts:

1. A cost price change of USD 525 for 10 units of A100, that is, a sum of USD 5,250

2. Delivery to customer at a value of 10*USD 525, that is, a sum of USD 5,250.

For line type 2 (direct deliveries) the cost price will be updated when performing goods receipt in 'Purchase Orders. Receive Goods' (PPS300) or invoice reporting in (ARS100). This is controlled by 'Invoice check' in (CRS723). See description above.

… whether the customer order type allows advance invoicing.

Customer orders that are invoiced in advance are not partially invoiced in connection with partial deliveries. Final invoicing occurs at final delivery. However, partial deliveries may take place as usual.

… whether an advance invoice is to be created automatically during customer order entry.

The valid alternatives are:

0 = No

1 = Yes, if the customer order line has a reference number

2 = Yes, if the customer order line has a reference number and the item is an ECI (item category 11) or a non-coded item (item category 12).

… whether the document purchase order (document number 105) is included in the document class.

Document classes on the purchase order document determine which text blocks are to be copied from the customer order line to the purchase order line during the buy-to-order process.

There are five document classes processed by M3. Each document can be included in one or more classes. The document classes are user-defined.

… the identity of a costing model for sales prices.

Costing models can be connected to different price lists and are used to calculate basic prices and order-dependent prices. Costing models are defined in 'Sales Costing Model. Open' (OIS022).

… the default value for the preliminary price code on the customer order line for line type 1 and line type 2. The preliminary price code on the customer order line determines whether the sales price on a customer order line is preliminary.

Customer order lines with preliminary price marking will not be invoiced until the marking has been removed.

The valid alternatives are:

0 = The sales price is not preliminary.

1 = The sales price is preliminary.

2 = The sales price is preliminary.

3 = The sales price is preliminary.

Alternative 1: The preliminary price marking will automatically be set to 0 (final price) if sales price calculation is performed from:

'Planned Purchase Order. Open' (PPS170)

'Purchase Order. Open Line' (PPS201)

'Purchase Order. Confirm' (PPS250)

'Supplier Invoice. Record' (APS100)

'CO Delivery. Recalculate Preliminary Price' (OIS156).

Alternative 2: The preliminary price marking will automatically be set to 0 (final price) if sales price calculation is performed from:

'Supplier Invoice. Record' (APS100)

'CO Delivery. Recalculate Preliminary Price' (OIS156).

Alternative 3: The only way to remove preliminary price marking is to change the order line.

… the rounding-off category to be used. The rounding off category defines how the dynamically calculated sales price is to be rounded off.

For example, you might want sales prices higher than SEK 1,000 to be rounded off to the nearest crown. The rounding-off category determines the rounding-off rules.

The valid alternatives are:

00 = General (if nothing else is defined)

40 = Customer invoice totals (COP, SOP)

41–44 = Customer invoice totals (COP)

45 = Manual invoices (ARL)

46 = Interest invoices (ARL)

47 = Sales of fixed assets (FAS)

48 = Reminder charge (ARL)

50-59 = Price list calculations (COP)

70-79 = Budget entry (BUD)

80 = Net pay (PAY)

81–89 = Transaction amount (PAY).

… the exchange rate type. Rate type is mandatory information when maintaining exchange rates. The rate type is also connected to customers, suppliers, price lists, year-end and budget procedures.

The valid alternatives are:

01 = Variable rate

02–99 = May be used optionally.

When calculating a sales price, you need a calculation base, which can be a cost price, purchase price or a sales price from another price list. When the calculation base has a currency code other than the sales price to be calculated, you need to know what rules to apply when converting the calculation base from one currency to another. These rules are determined by the exchange rate type and are defined in 'Exchange Rate Type. Open' (CRS056).

… the sales price list used as a basis for calculating a current price list. This is used only when the current price list uses a costing model based on a price list.

Example:

If you have entered a costing model for sales price on 'Item. Connect Facility' (MMS003/F) with calculation base 6 (basic price from a sales price list other than the one entered in this field), then the price list entered in (OIS330) will be used as the basis for dynamic price calculation.

… the costing type which is used to distinguish different types of product costing.

When cost price is used as the calculation base for dynamic price calculation, you need to specify what costing type to be used. For example, costing type can be product cost, simulated cost, standard cost and so on.

Nine costing types can be defined in 'Costing Type. Open' (PCS005). Costing rates and markups are specified for each costing type and date.