Handle Electronic Purchase Order Confirmation
Explanation
It is possible to receive a purchase order confirmation via EDI or MHS (ORDRSP
message). If you have set automatic approval for the EDI/MHS messages from the
supplier, the purchase order will be confirmed automatically once the message
has been received, i.e., the status of the purchase order changes to Confirmed.
Otherwise, you must manually approve the confirmation in the
Incoming
Purchase Order Confirmation page. If the quantity on an existing
purchase order line (with manual peggings connected) has been reduced, you will
be notified to modify the peggings before the purchase order can be approved.
Prerequisites
- A purchase order header and at least one order line must have been entered
and saved.
- You should have received a purchase order confirmation from the supplier.
- For automatic approval, you must first set up the supplier to have the messages automatically approved.
System Effects
- The purchase order is confirmed and receives the Confirmed status. The
purchase order is ready to continue in the workflow.
- If automatic replication is enabled for the
supplier, the approved changes will be propagated to any existing pegged
demand order, according to the replication logic. Examples of changes that
trigger a replication are cancellation, quantity change, date changes,
delivery information changes when the pegged order line is a direct
delivery.
- If the confirmations are received with differences, then those changes
will be registered either directly on the purchase order or in a purchase
order change order. A purchase order change order will be created, marked with the
Confirmation Change Order option, if the purchase order
is in one of the following situations:
- Changes are enforced to be processed via a purchase order change
order (defined in the settings on the site and supplier).
- A purchase order change order has previously been used for the
purchase order (all changes for that specific purchase order need to be
processed via a purchase order change order).
- The purchase order is authorized and changes are not allowed after
authorization (defined by the authorization rule).
- If changes are allowed after authorization but the purchase order
maximum authorized amount is exceeded due to the changes, then the incoming
purchase order confirmation will be stopped and the Create Confirmation
Change Order option will be enabled in the Incoming Purchase Order
Change Order page.
- If a new purchase order line has been included by the supplier and
received via purchase order confirmation, then a purchase order change order
is created, marked with the Confirmation Change Order option, to
include the new purchase order line.
- If a purchase order confirmation line is received with a Not
Confirmed supplier response, then the corresponding purchase order
line will remain in Released status even after approval.
Note: When the purchase order is updated from a confirmation change
order, a new revision will not be created.