Creating Purchase Orders

All purchase orders are maintained online.  The system allows a three-step process:  entering the purchase order information, entering the item information including pricing, and releasing the purchase order.  When the purchase order is released, an option allows you to decide whether to print the purchase order document immediately, at the end of the day (batch processing for all pending purchase orders), or not at all (hold indefinitely).  Since all purchase order data remains on the system until they are manually closed and deleted by a file reorganization function, purchase orders may be reprinted and reviewed anytime.

Note:    The Purchase Order Maintenance conversation allows you a great deal of flexibility in moving between screens through the use of command keys.  The procedures that follow illustrate only one of the many possible screen flows.  If a command key is displayed at the bottom of the screen, it may be pressed to display (and process) the screen indicated.

There are two ways to create purchase orders:

·     Purchase orders can be created manually through the Purchase Order Maintenance conversation.  This conversation is used to add, release, change, close, and reopen purchase orders.  In this conversation, you will specify vendor information, part information, and the requisition number (if one is being covered).

·     Purchase orders can be created automatically to cover requisitions that are generated as a result of using the Remote Sourcing component of Computer Integrated Distribution.  In this case, a customer's sales order is being remotely sourced by a sales office and they create a purchase order to send to their vendor.  For more information about how requisitions (and subsequent purchase orders) are generated for remote sourcing, see the Remote Sourcing key concept in the Order Processing User Manual.

When entering purchase orders, you are required to specify the purchase order type, the vendor, and the part.  You will also need order amounts/quantities, required dates, and shipping information.  However, if you specify a requisition to be covered by the purchase order, the associated quantity, due date, and related comment information will default.

Manual Purchase Order Entry

1.   Choose the Purchase Order option.  The Purchase Order Maintenance Function Select screen is displayed.

2.   Fill in the purchase order number and vendor number.

·     If you are using automatic numbering, leave the Purchase Order Number field blank, since the system will automatically assign the next available number.

If desired, fill in the part number (you can also enter it on the Line Detail screen).

3.   Choose option 1 - Add a Purchase Order.  Press the Enter key.  The Vendor Information screen is displayed.

Entering Vendor Information

1.   The Vendor Information screen displays default data for purchase order type, order type, order date, buyer, vendor name and address, and ship-to name and address.  Any of these fields may be changed.  The bill-to name and address are for display only and cannot be changed.

2.   Enter your buyer code if a buyer was not defaulted from the vendor selected.  If the purchase order will be valid for only a certain period, enter the effectivity date and expiration date.  If you wish to compare blanket purchase order releases to a target amount, enter the global target amount.

3.   Fill in the print mode field to determine when you wish the purchase order document to be printed:

·     Enter the code for "release immediately" if you wish the purchase order to be printed immediately following the release transaction.

·     Enter the code for "release at end of day" for all purchase orders you wish to print in batch at the end of the day.

·     Enter the code for "hold indefinitely" if you do not need a hard copy of the purchase order, or if you wish to print it at some later date.  Through the Change function explained below, you can later change the print mode to either "release immediately" or "release at end of day."

Note:    The print mode field may also be defaulted from the Purchasing System Defaults-1 record (category 491) on the Reference File.

4.   Press the Enter key.  The Order Information screen is displayed.

Entering Order Information

1.   The Order Information screen displays default data for the currency code, FOB code, freight terms, shipping instructions, acknowledgment status, payment type, and credit terms.  Any of these fields may be changed.

2.   If you wish to enter comments for the purchase order as a whole, enter Y in the comments field.  If operating in a non-VAT environment and amounts on the purchase order are to be taxed, enter the appropriate tax code and tax amount or percent.

3.   Press the Enter key.

If a valid part number was entered on the Function Select screen, the Line Detail screen is displayed.  Otherwise, if the part number is blank or invalid, the Add Line screen is displayed.

Entering Detail Information

1.   The line number defaults to the next available line number.  The line status defaults to O (open).  If a part number was entered on the original Function Select screen, that part number and its description, unit of measure, and conversion factor are displayed.  Other defaults are displayed.  Any of these fields can be changed.

2.   Fill in the remaining fields.

·     If a quotation is to be used for pricing, fill in the quotation number (F14 - Display Quotation can be pressed to search through a list of quotations for the item/vendor relationship) and enter a line target quantity.  Leave the unit cost field blank; the system will automatically calculate this value.

·     If a quotation is not used for pricing, fill in the unit cost.  The quotation number and line target quantity fields must be left blank.

·     If the purchase order line will be valid only for a certain period, fill in the effectivity and expiration dates.

·     Fill in the maximum line quantity.  This value will be compared to the sum of the release quantities; if a release exceeds this value, an error message will be displayed.

·     In a VAT environment, enter the VAT code.  In a non-VAT environment, if the item is to be taxed, enter Y; else, enter N.

·     If the purchase order is for reference items (part type = 5), enter the requesting department code.  If a non-reference part is being ordered, the requesting department field is not displayed.

3.   Press the Enter key.

·     If comments are to be entered, the Line Comment screen is displayed.  Type in the comments and the appropriate print codes.  Up to 99 comment lines may be entered.  Press the Enter key.

The Release screen is displayed.

Entering Comments

1.   On the header or line comment screens, up to 99 comment lines may be entered.  Enter the comments and the required print code for each line.

2.   Press the Enter key to post the comments.

Releasing Purchase Orders

1.   Choose the Purchase Order option.  The Purchase Order Maintenance Function Select screen is displayed.

2.   Enter the number of the purchase order to be released.  If you know which line you are releasing, enter the line number as well.

3.   Choose option 2 - Change a Purchase Order.  Press the Enter key.  If only an order number was entered, the Recap screen is displayed.  If both an order number and a line number were entered, the Line Detail screen is displayed.

4.   If the Recap screen is displayed, choose the line to be released by entering an X in the Select column and press F16 - Display Releases.  The Release screen is displayed.

If the Line Detail screen is displayed, press the Enter key.  The Release screen is displayed.

5.   The current line number and part information are displayed on the header portion of the Release screen.  You may enter up to 999 release lines for this purchase order line.

6.   Enter the due date or dock date.

·     The due date is the date on which the part must be available in the warehouse.  The dock date is the date by which the vendor must deliver.  If only the due date is entered, the dock date is calculated by offsetting it by the dock-to-stock leadtime (the number of days required for counting and/or quality control).

7.   Enter the release quantity.

8.   Non-Phantom Orders:  If this release is being used to cover a requisition, enter the requisition number and requisition line number (a list of requisitions for the part may be displayed by pressing F16 - Display Requisitions; each requisition selected will be displayed on the Release screen as a separate release line).  If you wish to record a date promised by the vendor, enter it in the promised date field.  If you wish the release to be printed on the purchase order form, enter Y in the release message field.  You may calculate the quantity received after entering releases by pressing F20 - Calculate Balance.

      Phantom Orders:  Enter the number of the manufacturing order this purchase order will cover in the reference order number field.  Enter the operation number and operation line number for the covered phantom order.  (A list of manufacturing orders for the part may be displayed by pressing F16 - Display Orders; each order line selected will be displayed on the Release screen as a separate release line.)  If you wish to record a date promised by the vendor, enter it in the promised date field.  If you wish the release to be printed on the purchase order form, enter Y in the release message field.

9.   Press the Enter key.  The Recap screen is redisplayed.