Discrete purchase orders
A Discrete (standard) Purchase Order (DPO) is a one-time contract between a customer and a supplier. A customer can raise the demand for goods or services. When the supplier agrees to fulfill this demand with mutually agreed terms and conditions, the contract is established.
DPOs include header information and line item details and optionally schedules against a line item. The DPO also provides information about the terms and conditions of the transaction, quantity due, required date, price, and associated costs.
A supplier can place quantities on backorder, if orders are not shipped by the PO date, based on the configuration you have set. You can enable the suppliers to accept or reject DPOs at either the line item or header (all line items) level. When the supplier ships against the DPO line items, the quantity in the line item is fulfilled and the status of the DPO changes to Closed.
Backorder Integration
When an Advance Ship Notice (ASN) corresponding to the purchase order (PO) line is received for partial requirements, the PO BOD received from integrated ERP creates a new schedule of type Backorder. A backorder schedule is created only if:
- ASN received contains partial requirements of the PO line.
- ASN contains partial requirements associated with the schedule on the PO line.