Proposed Purchase Orders

Proposed Purchase Orders (PPO) for the parts that are published to negotiate terms between the supplier and the customer. A Discrete Purchase Order (DPO) during the negotiation process is considered as PPO. The PPO is changed to DPO, only if you approve the terms proposed by the supplier.

Note: For a specific PPO, you can:
  • Select the deliver to address of the location to which parts are to be delivered
  • Define more than one 'Deliver To' address for a specific ship to address on the Maintain Deliver To page in the Application Setup module.
  • Specify the name of the customer contact (planner) associated with the order.
  • Ship To is also displayed for the DPO line, to facilitate the shipment of a part to multiple locations.

PPO Highlighting

The application highlights the PPO line for which the supplier has modified the required date, quantity, or the unit price, when negotiating a PO or PPO. The value modified by the supplier is also highlighted. You can rest the pointer on the field that is highlighted, to review the values prior to the modification. The original value, last changed and the current value for the field are displayed in a tooltip.

The application also highlights the Schedule for which the supplier has modified the required date, quantity, or the unit price. You can review the supplier proposed changes to the schedule line on the Schedule tab in the Line Item Detail page.

You can also review the modifications to the PPO on the History tab in the Line Item Detail page.

PPO Auto Accept

The Auto Accept PPO functionality allows you to automatically accept the PPO on negotiated terms with the supplier by defining the tolerance limits. Using this functionality, you can eliminate the manual process of accepting the changes proposed by the supplier.

This functionality is enabled only if the Buyer Auto Accept check box is selected on the Customer Profile page.

You can define the tolerances for the delivery date, the quantity, and the price on the Customer Profile page or the Part Group Information page.

Note: 
  • The tolerances defined for the part group are considered as the precedence over the tolerances defined on the Customer Profiles page.
  • You can also define the PPO tolerances for all facilities and a specific facility.

During the PPO negotiation, if the supplier recommends a change to the delivery date, quantity or the price, and the recommended value is within the threshold limit, the application accepts the changes recommended by the supplier and the PPO is processed.

Once the PPO is approved and/or auto accepted, the status of the PPO is changed to ERP Acknowledge Pending and the information is updated in the ERP. An acknowledgment is received in Supplier Exchange and the status of the PPO changes to Approved. Simultaneously, the corresponding Discrete PO is updated.