Create Purchase Order – A summary of the activity

This activity allows you to create a purchase order (PO). PO acts as an agreement with supplier for procurement of materials as per requirement. Purchase orders are created for the procurement of parts. PO acts as a base document for the Goods Receipt processing, invoicing verification and subsequent process for the payment processing. PO can be raised in many ways. The PO can be raised based on a purchase request, quotation, or a purchase order on hand, or without any reference to a purchase request.

Part Details captured while raising the PO

The part needs to be ordered along with the cost, quantity, schedule type and the receiving organization unit, at the time of raising a PO. The additional part details such as whether alternate part number is allowed or not and the type of inspection to be carried out for the parts are also captured in this page.

The system generates the line number for each part sequentially at the time of raising the PO. For each line item of the PO with multiple delivery types, you can define different need dates and warehouses.

Matching Type

Invoice matching is the comparison of the quantity and the values of goods available at different points in time during the procurement process. The quantity ordered, the quantity received or the quantity accepted is matched with the quantity invoiced, to ensure that payment is made for the proper quantity and value of items. This activity also allows you to specify the matching type. The various matching types available are  “Four way at PO” and “Four way at GR”.

Getting familiar with the pages inside

What you can do in this activity

Enter purchase order details

Specify terms and conditions for the purchase order

Record schedule and distribution details

Enter tax, charge and discount details at the part and document level

Modify inspection details for the purchase order

Enter shipment details for the part

Modify the user-defined details

Modify reference document details for the purchase order

Enter purchase order details

You can copy details from an existing purchase order, or manually enter all the details pertaining to a purchase order.

• Use the “Create Purchase Order” page, to enter PO details and part details for the purchase order.

Specify terms and conditions for the purchase order

You can enter the payment terms and conditions, insurance details and delivery terms and conditions for the parts to be purchased.

• Use the “Edit Terms & Conditions” page, to specify the terms and conditions for the purchase order.

Record schedule and distribution details

You can enter the delivery schedule for those line items whose schedule type is multiple. You can enter the various supply dates and the quantity of parts that needs to be supplied. You can also enter the warehouses where the parts need to be delivered.

• Use the “Edit Schedule & Distribution” page, to specify the delivery schedule for the parts in the purchase order.

Enter tax, charge and discount details at the part and document level

You can enter the TCD details such as the duty, sales tax, discount and freight charges for the various parts in the purchase order. You can enter the details for all those tax, charge and discounts which are effective as on the purchase order date. You can also enter the TCD details for the purchase order as a whole. The TCD values affect the PO either positively or negatively.

• Use the “Edit Part TCD Details” page, to specify the tax, charge and discount details for the various parts in the purhcase order.

• Use the “Edit Document TCD Details” page, to specify the tax, charge and discount details for the purchase order as a whole.

Modify inspection details for the purchase order

You can modify the quantitative and qualitative attribute values for the part.

• Use the “Edit Inspection Details” page, to modify the quality attribute for the parts.

Enter shipment details for the part

You can enter the shipment details such as the company, name, contact person, phone, fax and email address to where the goods has to be delivered.

• Use the “Edit DropShip Details” page, to specify the shipment details of the part.

Modify the user-defined details

You can modify the user-defined details of the purchase order.

• Use the “Edit User Defined Details” page, to modify the user defined details of the purchase order.

Modify reference document details for the purchase order

You can modify the reference document details of the purchase order such as the document type, document number and file name.

• Use the “Edit References” page, to modify the reference documents for the purchase order.