Entering PO terms and conditions

This page allows you to enter the payment terms and conditions for the parts to be purchased. Tell me more.

Select the Edit “Terms & Conditions” link at the bottom of the “Create Purchase Order” or “Edit Purchase Order” page.

The “Edit Terms & Conditions” page appears.

The system displays the following:

Date Format

The format in which tfhe date fields are displayed in this page. This format is displayed from the "User Preferences" component based on the login user ID. In case the format is not defined, the system displays the date format from the “Enterprise Modeling” component by default.

The system displays the following in the “PO Details” group box.

Purchase Order #	The number identifying the purchase order.
Amendment #	The number identifying the purchase order which is amended.
Supplier Name	The supplier against whom the purchase order is raised.
PO Status	The status of the purchase order. You cannot modify details in this page, if the status is “Open”, “Amended” or “Under Amendment”, and a good receipt document is raised for the purchase order.

Note: You cannot modify the terms and conditions of a purchase order, if the goods receipt associated with PO is frozen for acceptance and is in “Inspected” status.

Enter the following in the “General Terms Agreement Details” group box:

GTA Reference #	The number identifying the general terms agreement details. (Alphanumeric 40).
Ref. Document Date	The date on which the reference document was raised. (Date format).
GTA Remarks	Additional information pertaining to GTA. (Alphanumeric 255).

Enter the following in the “Payment Terms” group box, to enter the details of the payment terms.

Advance Payable

Use the drop-down list box to indicate whether advance payment must be made or not. Mandatory. The system provides the options “Yes” and “No”. The system sets this field to “No” by default.

Advance Payable By Date

The date by which the advance payment must be made. (Date format).

Note: Ensure that “Advance Payable By Date” field is not left blank if "Advance Payable" field is set as “Yes”.

Advance Percent	The percentage of the advance payment to be made. (Decimal).
Note: If “Advance percent” field is not blank, then ensure that it is greater than zero and less than 100.
Advance Percent On	Use the drop-down list box to indicate if the advance percent is applicable on "Total" or "Basic" value.
	"Basic Value” indicates the percent is applicable on the basic value of the document.
	"Total Value" indicates that the percent includes Basic Value and taxes, charges or discount. The system sets the field to blank by default.
Note: If “Advance percent” field is not blank, then ensure that “Advance Percent On” field is also not left blank.
Advance Payable	The actual amount payable. If you have specified a percent in the "Advance Percent" field, the system calculates the advance payable amount. (Decimal).
Advance Tolerance Percent	The tolerance percent on the advance payable percent. (Decimal).
The system displays the following:
Advance Paid	Displays the amount paid in advance
Enter the following:
Invoice At	Location at which the invoice against this PO will be raised.
Pay Term	The code identifying the payment term (Alphanumeric, 25). Mandatory. The payment term code must have been defined in the “Create Pay Term” activity of the “Pay Term” business component. However, if the purchase order relates to a group company, the pay term must be valid in the group company.
	Help facility available.

Note: By default, the “Pay Term” field is set to the “Pay Term” identified for the supplier in the "Supplier" business component.

Payment Priority	Use the drop-down list box to select the priority of the payment. The system lists “High”, “Normal” and “Low” as options. The system sets “Normal” by default.
Payment Mode	Use the drop-down list box to specify the mode in which the payment must be made. The payment modes available are “Check”, “Demand Draft”, “Cash”, "Credit Card" and “Pay Order”. The system displays “Check” by default.

Note: By default the “Payment Mode” field is set to the “Payment Mode” identified for the supplier in the "Supplier" business component.

DD Charges Borne By

Use the drop-down list box to assign the DD charges borne by, as "Supplier” or "Self".

Forward Cover Applicable	Indicates whether the forward cover is applicable at the time of invoicing /payment, when the PO currency is different from base currency.
Note: The system defaults the Forward Cover Applicable field to “No”, if the “Forward Cover Applicable” option in the “Company Parameters Setup” component in the Finance Setup BPC is set t “No”. Note: You must specify the Forward Cover Applicable as “Yes”, if the PO currency is different from the Base currency. Select “No”, if the PO Type is “Customer Goods”, “PBH” or “PBH-Exchange”.
Forward Cover Rate	Indicates the applicable foreign currency exchange rate at the time of invoicing/payment, if the “Forward Cover Applicable” is set as “Yes”.(Numeric-28).
Note: The forward cover rate is mandatory, if you have selected “Yes” in the Forward Cover Applicable field. Note: The forward cover rate that you specify becomes the exchange rate of the purchase order.
Pay to Supplier #	The code identifying the supplier to whom the payment has to be made (Alphanumeric, 45). Mandatory. The supplier code must have been mapped to the organization unit from where the purchase order is raised. Similarly, pay to supplier # for the supplier must be established in the group company. if the purchase order is being created for a group company.
	Help facility available.

Note: By default the “Pay to Supplier #” field is set to the “Pay to Supplier” identified for the supplier in the "Supplier" business component. The system ensures that the “Pay to Supplier #” is not in “Hold Pay” operational status.

Pay To Supplier Address ID	Use the drop down list box to select the supplier address ID. Mandatory. The system displays the list of address Ids that are already defined in the ”Supplier” business component. Similarly, pay to supplier address # for the supplier must be established in the group company. if the purchase order is being created for a group company
The system displays the following:
Pay To Supplier Address	The address of the supplier to whom the payment is to be made.
Enter the following field:
Payment Notes	Additional notes regarding the payment. (Alphanumeric, 2000).

Enter the following in the “Packaging and Shipping Terms” group box. Data entry in the following fields is optional.

Packaging Code	Use the drop-down list box to select the packaging terms for the item. The system lists all the “Active” packaging codes defined in the “Maintaining Packaging Codes” activity of the “Logistics Common Master” business component. If no prior value exists, the system sets the packaging code of the supplier as defined in the “Register Supplier” activity of the “Supplier” business component by default.
Delivery To Code	A unique code identifying the shipping destination. The system lists all the delivery codes that are mapped against the “Supplier #” in the “Manage Delivery Address Info for Supplier” activity of the “Supplier” component. Delivery codes would be defaulted based on the order priority selected. If order priority is left blank then all delivery codes pertaining to that supplier would be retrieved defaulting with blank
Packaging Notes	Any note regarding the packaging. (Alphanumeric, 2000).
INCO Term	Use the drop-down list box to select the International Commercial Term. The system lists the INCO term codes that are in "Active" status, as defined in the “Logistics Common Master” business component. The system leaves the field blank by default.
Ship By	Use the drop-down list box to select the mode of shipment for the parts. The system lists all the shipping modes as defined in the “Maintain Shipping Method Codes” activity of the “Logistics Common Master” business component. If no prior value exists, the system sets the shipment mode of the supplier as defined in the “Register Supplier” activity of the “Supplier” business component by default. However, if the shipment mode is not specified for the supplier, it is mandatory that you select the shipment mode for the purchase order.
Port Of Departure	The location from where the items are shipped. (Alphanumeric, 32).
Delivery Point	The place or the location where the items must be delivered (Alphanumeric, 255).
Carrier / Agency #	Use the drop down list box to select the carrier / agency. The system lists the carrier / agency codes as defined in “Logistics Common Master” business component that are in “Active” status.
Shipping Payment	Use the drop-down list box to select the shipping payment method for the item. The system lists all the “Active” payment methods defined in the “Maintain Shipping Cost Codes” activity of the “Logistics Common Master” business component. If no prior value exists, the system sets the shipping payment mode of the supplier as defined in the “Register Supplier” activity of the “Supplier” business component by default. However, if the shipping payment is not specified for the supplier, it is mandatory that you select the shipping payment for the purchase order.
Ship Partial	Use the drop-down list box to specify whether partial delivery of the item is allowed or not. The options available are “Yes” and “No”. The system displays “No” by default.
Transshipment	Transshipment is deviating the specified and agreed logistics route for the consignment to be brought in. If the transshipment is set to "Yes", then additional cost of transportation has to be borne by the buyer. Use the drop-down list box to specify “Yes” or “No”. The system displays “No” by default.
Shipping Notes	Any additional information pertaining to the shipping of the items. (Alphanumeric, 2000).

Enter the following in the “Core Return Exchange Terms” group box.

RMA #

The Returned Material Authorization (RMA) number for goods returned to the supplier.

The RMA # is mandatory, if you are to specify the RMA date.

RMA Date

The date of the Returned Material Authorization (RMA) for goods returned to the supplier.

Return Core to Supplier Address ID

Use the drop-down list box to select the supplier address ID for return of main core parts in the purchase order.

By default, this field displays the supplier address ID with the highest priority.

The system displays the following.

Return Core to Supplier Address

The location address for the supplier address ID to which the main core parts in the purchase order must be returned/dispatched.

Enter the following in the “Insurance Terms” group box:

Insurance Terms	Use the drop-down list box to select the conditions, which could prevail for claiming the insurance. The system lists the insurance terms codes that are in "Active" status, as defined in the “Logistics Common Master” business component. The system displays blank by default.
Insurance Liability	Use the drop-down list box to indicate who should bear the insurance amount. The system displays the following options:
	Self – Indicates that the buyer has to bear the insurance amount.
	Supplier's – Indicates that the supplier has to bear the insurance amount.
	None – Indicates that the insurance liability is not applicable.
Insurance Amount	The total insurance amount to be borne for the part (Decimal).

Enter the following in the “Special Warranty Terms” group box:

Under Warranty?	Use the drop-down list box to indicate if warranty is applicable on the document or not. Select “Yes” to indicate that the warranty is applicable else select “No”. The system sets the field to “No” by default. The system ensures that any of the “Warranty Duration”, “Flight Hours”, or “Flight Cycles” field is entered, if “Under Warranty” is set as “Yes”.
Warranty Basis	Use the drop-down list box to indicate if warranty basis is applicable on “Calendar”, “Usage” or “Both”.
Reference Agreement #	The unique number identifying the reference agreement for the warranty.Note that the Ref. Agreement # is mandatory, if the “Ref. Agreement Date” is entered.
Warranty Begins On	Use the drop-down list box to specify the date from which the warranty is applicable. The system displays the following options: Installation Date – Indicates that the warranty begins from the date of installation. Receipt Date – Indicates that the warranty begins from the receipt date. This field is mandatory, if “Under Warranty” is selected as “Yes”. The system leaves the field blank by default. If any of the above options are saved, the system displays the saved option by default.
Warranty Duration	Use the drop-down list box to specify the duration till which the warranty is applicable. The system lists the options, “Years”, “Months”, and “Days”. Enter the warranty duration value in the field next to the drop-down list box. This field is mandatory, if “Under Warranty” is selected as “Yes” and if “Warranty Basis” is selected as “Calendar” or “Both”. The system leaves the field blank by default. If any of the above options are saved, the system displays the saved option by default.
Flight Hours	The total time between the take off and the landing of the flight (Time Format). This field is mandatory, if “Under Warranty” is selected as “Yes” The system ensures that the value entered in this field is not negative or zero. The system fetches and displays the UOM as defined in the "Aircraft” business component. If Flight Hours entered is in decimal, the system ensures that the Flight Hour UOM, as set in the “Aircraft” business component allows fractional values.
Flight Cycles	The number of times the flight takes off and lands, considering each take off and landing as one cycle. This field is mandatory, if “Under Warranty” is selected as “Yes”. The system ensures that the value entered in this field is not negative or zero. The system fetches and displays the UOM as defined in the “Aircraft” business component. If Flight Cycle entered is in decimal, the system ensures that the Flight Cycle UOM as set in the ”Aircraft” business component allows fractional values. Note: The system mandates entry of either Flight Cycles or Flight Hours if the Warranty basis has been selected as “Usage” or “Both”.
Terms and References	The terms and conditions pertaining to warranty.

Click the “Edit Terms & Conditions” pushbutton, to store the terms and conditions entered for the purchase order.

The payment terms can be modified even for an authorized PO.

Note: This action is workflow-enabled. Notification messages can be sent and you can configure further processing of this document in the "Workflow Management" business component.

The system stores the login id of the user and the current server date as the last modified date and updates the time stamp.
If the PO type is other than “Dropship”, the schedule quantity is equal to the order quantity, schedule dates are later than the current date, and the “Pay Term” and “Pay to Supplier” are in “Active” status, the system performs the following:

Changes the “PO Status” to “Amended”, if the current status is "Open", "Amended", "Under Amendment" or "Returned” (with Amendment Number greater than zero). Else, the “PO Status” is changed to “Under Amendment”.
Changes the “PO Status” to “Fresh”, if the current status is “Draft”, “Fresh” or “Returned” (with Amendment number as zero). Else, the “PO Status” is changed to “Draft”.
Increments the amendment number by 1, if the current status is "Open".

If the “PO Type” is “Dropship” and the Dropship addresses are available for all records in the multiline, the system performs the following:

Changes the “PO Status” to “Amended”, if the current status is "Open", "Amended", "Under Amendment" or "Returned” (with Amendment number greater than zero). Else, the “PO Status” is changed to “Under Amendment”.
Changes the “PO Status” to “Fresh”, if the current status is “Draft”, “Fresh” or “Returned” (with Amendment number as zero). Else, the “PO Status” is changed to “Draft”.

If the “PO Status” changes from “Open” to “Amended”, the system stores the history of the changed document and changes the status of the amended document to “Revised”.

Note: On click of “Edit Terms and conditions” pushbutton, if the PO status is "Open" or "Closed" and if user modifies any information other than Pay Term & Forward cover rate, then the modified information is saved and PO status is updated as “Amended” by incrementing the amendment no by 1, only if the Option setting "Amendment of Purchase Order?" in the “Purchase Setting Options” activity is set as '1' (Any changes made to an authorized PO) or "blank".

If the option setting in the “Purchase Setting Options” activity is set as '2' (Only when Qty, Cost or Value is changed in the PO), then the modified information is saved and the PO status remains the same status as it was earlier (i.e. Open or closed).

To proceed, carry out the following

Select the ”Edit Schedule & Distribution” link at the bottom of the page, to enter the supply details of the part.
Select the “Edit Part TCD Details” link at the bottom of the page, to add tax, charges and discount for the parts belonging to the PO.
Select the “Edit Document TCD Details” link at the bottom of the page, to add tax, charges and discount for the entire purchase order.
Select the “Edit Inspection Details” link at the bottom of the page, to enter the inspection details.
Select the “Authorize Purchase Order” link to authorize the purchase order.
Select the “Generate PO Report” link to generate the purchase order report for purchase orders in ‘Open’ status.
Select the “Maintain Additional Shipment Information” link to record the additional shipment details of the Carrier / Agency # to the purchase order.

Entering PO terms and conditions – An overview

This page allows you to enter the payment terms and conditions for the parts to be purchased. In case the purchase order has been amended, the system displays the amendment number of the purchase order. The payment terms like the mode in which the payment has to be made and the details of the supplier to whom the payment has to be made, can be entered in this page. You can also specify the insurance details like insurance amount, the person who has to bear the insurance amount, for the items to be purchased.

The delivery terms such as the International Commercial Term (INCO), mode of transport, the location where the parts must be delivered and instructions regarding the packaging can also be recorded.

What you can do in this page

Specify the mode of payment for the transaction

Specify the person who is liable for the insurance amount

Specify who is liable for transshipment charges

Specify whether partial delivery of parts is allowed

Specify the mode of payment for the transaction

You can specify the mode in which the payment has to be made for the parts procurement.

Set the “Payment Mode” field to “Cheque”, if the mode of payment for the transaction is cheque.
Set the “Payment Mode” field to “Demand Draft”, if the mode of payment for the transaction is demand draft.
Set the “Payment Mode” field to “Cash”, if the mode of payment for the transaction is cash.
Set the “Payment Mode” field to “Pay Order”, if the mode of payment for the transaction is pay order.

Specify the person who is liable for the insurance amount

Set the “Insurance Liability” field to “Self”, if the buyer is liable for the insurance amount.
Set the “Insurance Liability” field to “Supplier's”, if the supplier is liable for the insurance amount.
Set the “Insurance Liability” field to “None”, if no one is liable for the insurance amount.

Specify who is liable for transshipment charges

Transshipment is the deviation from the specified and agreed logistics route for the consignment. Additional costs are involved due to transshipment. You can specify whether the additional cost needs to be borne by the buyer, in case of transshipment.

Set the “Transshipment” field to “Yes”, if the additional cost needs to be borne by the buyer.
Set the “Transshipment” field to “No”, if the additional cost is not borne by the buyer.

Specify whether partial delivery of parts is allowed

Set the “Ship Partial” to “Yes”, if you wish to allow partial delivery of items.
Set the “Ship Partial” to “No”, if you do not wish to allow partial delivery of items.