Enter Purchase Order Line

Explanation

A purchase order (PO) is comprised of an order header and one or more order lines. Once the header has the Planned status, you can create purchase order lines.

The parts entered on the Purchase Order/Part Lines tab must have been entered as purchase parts. For purchase parts without part numbers, i.e., no-number parts, use the Purchase Order/No Part Lines tab.

If you want to view a purchase price comparison, you can do so as soon as the part number is entered. Select the line and click Price Comparison. In the dialog that opens, enter the purchase quantity that you want to use for the price comparison.

If the purchase order line is connected to a customer order, you can view the customer order information by selecting the line and then clicking Component Customer Order. This would apply if you want to send parts to a supplier (on a customer order) to make it possible for the supplier to manufacture the parts you have ordered (on a purchase order). Customer orders are also used for external service orders and purchase exchange orders, which allow you to send a part to a supplier for maintenance, repair services, or for exchange.

When project connections exist, if a project ID is specified on the Order Details tab, new purchase order lines must be connected to that project. When a project ID is not specified on the PO header, a new purchase order line can be connected to a project which has the Project Unique Procurement option enabled in the Project Setup Parameters page, only if other PO lines are not connected to any other projects.

New purchase order lines cannot be entered for purchase orders which are in the Released state, if the purchase order has a project defined in the Order Details tab. But new purchase order lines can be created through requisition lines.

For non-inventory purchase part lines to be included in intrastat reporting, the Intrastat Affected option needs to be enabled. This option can be selected manually without having a customs statistic number or a purchase group in the part line. The customs statistic number will be fetched from the purchase group relevant to the part while enabling the Intrastat Affected option, or it can also be entered manually after enabling the Intrastat Affected option. It is possible to generate the intrastat report even if you do not have a value for net weight but it is a must to have a value for the Customs Statistic Number field.

When the quantity or the date on the purchase order has been changed, it is possible to replicate this change to a dynamic order processing (DOP) order. When you update the Quantity/Planned Receipt Date field on a purchase order line, the Replicate Changes dialog will be opened. However, the Send Change Request option will have no effect and even if it is selected, will not apply to DOP.
If you want to update the Revised Quantity Due/Revised Due Date field on the connected DOP order, click Yes. 
Note: If more than one supply order is connected to a current DOP order, a message will appear and no replication will be done. An alarm entry will also be created.
If you click No, an alarm will be created to reflect the quantity/date mismatch.

When creating a purchase order line:

• If the over delivery tolerance for that particular part has not been entered on the Purchase Part page, the tolerance percentage will be taken from the relevant purchase group connected to it.
• Where the over delivery tolerance is specified for both the purchase part and the connected purchase group, the value defined for the purchase part is considered.
• If a PO is created via a purchase requisition (PR) the value specified for the PR will be retrieved.
• The over delivery tolerance can be manually entered in the PO.
• It is possible to change the specified over delivery tolerance percentage in the PO. 

Note: If you enter additional cost amounts directly on the Additional Cost Net/Curr or Additional Cost Gross/Curr field, you will not be allowed to enter additional cost details using additional cost types command.

When a purchase order line is created for the receipt of customer-owned parts, the connection between supplier and customer is referenced by the system to set a default owning customer to the line, if available. You may need to enter or modify the owning customer in the Owner field before saving the purchase order line. If the customer part acquisition values are handled for the customer, the unit price from the purchase order line may be used as an initial estimated part acquisition value, depending on the acquisition value level that is used.

For external repair orders, you need to enter additional information. Note: Purchase orders for external service require the selection of the order code 6 (External Service Order) in the purchase order header.

1. In the External Service Type field, enter the applicable service type or select it from the List of Values.
2. The full name of the external service type appears automatically in the Service Description field.
3. In the Serial No field, enter the serial number of the part to be sent out for external service if it is serial-tracked.
4. In the Lot Batch No field, enter the lot/batch number of the part to be sent out for external service if it is lot/batch-tracked.
5. Save the record.

Note: If you would like to obtain a supplier loan before sending the repair part to the supplier, you need to continue in this page. Refer to the Supplier Loan activity description, which is part of the Enter Purchase Order flow.

• Click Supply Chain Order Analysis to see pegged customer orders, shop orders, DOP orders and connected inter-site orders.

 

Prerequisites

• The purchase order header must have been entered and saved.
• The purchase part must have been entered.
• The Acquisition Type of the purchase part must have be set as Purchase Only or Purchase and Rental
• Assortment structures must be defined if you want to refer to assortments when entering part numbers.
• Normally, supply chain parameters must have been defined for the supply chain relation so that the correct delivery information is retrieved to the purchase order line. For external suppliers, define the parameters in the Supplier to Site Supply Chain Parameters page. For internal suppliers, define the parameters in the Site to Site Supply Chain Parameters page.
• If you want to specify a condition code for the part, it must have been enabled on the General tab of the Part page. This feature is available only for lot/batch and serial tracked parts.
• If a delivery pattern is to be used, this must have been set up in the system.
• If the charge/no-charge (component part) function is to be used, this must have been set up in the system.
• If the self-billing function is to be used, this must have been set up on the supplier.
• For the purchase order line to inherit warranty data, the warranty data must first exist for the supplier connected purchase part.
• If the purchase part line is to be used to order services from a contractor, the Contractor option should be enabled for the part. When an order line is entered using this part the Contractor option will be enabled automatically.
• If a technical coordinator is to be used, the coordinator details must have been entered as a technical coordinator in the Technical Coordinators page.

For external repair orders, several other prerequisites apply:

• The purchase part must have been defined as a sales part in the Purchase Part or Supplier for Purchase Part page.
• The supplier must have been defined as a customer in the Supplier or Supplier for Purchase Part page.
• A default receive case for the supplier-part relationship should have been defined on the Inspection Info tab of the Supplier for Purchase Part page. (Note: You can also specify the applicable receive case later on in the process when you record the arrival of the returned service part.)
• The external service types must have been defined in the External Service Types page.
• A price for each external service type must have been defined on the External Service Prices tab of the Supplier for Purchase Part page.
• The purchase component method for the site, defined on the Procurement tab of the Site/Sales and Procurement page, must have been set to Customer Order, which makes the charge/no-charge function available.

For Intrastat collection - the following prerequisites apply:

• The Intrastat Affected option must be enabled in order to enable the Net Weight and Customs Statistic Number fields.

System Effects

• As a result of this activity, an order line will be entered. The order line receives the Released status.
• When you manually enter a purchase order line with the same demand site as the purchase order header demand site, and a supply chain relation is established, the system will retrieve the ship via code from the first item it finds. A specified ship via code can be found in the following items: (1) supplier agreement, (2) supply chain parameter exceptions, (3) purchase order header. If the demand site differs from the purchase order header, the system retrieves the ship via code from the first item in the following list: (1) supplier agreement, (2) supply chain parameter exceptions, (3) supply chain parameters, (4) inherited from the purchase order header.
• When you save a purchase order line, a message will be displayed if a standard cost is missing for the inventory part. If this occurs, enter an estimated material cost on the Inventory Part/Misc Part Info tab. You might also calculate a standard cost by using IFS/Costing.
• The system checks to see whether a purchase agreement for this particular part or supplier assortment exists, if it is set for the combination of the purchase part and its supplier or within the supplier hierarchy. If such a purchase agreement does exist, the agreed terms (price, discount, and additional cost) are retrieved from the applicable purchase agreement. If more than one valid purchase agreement exists, the one with the highest priority will be used and if several agreements have the same priority, the one with the latest supplier agreement date will be retrieved.
• The system checks to see which ownership type is typically used when receiving this part from the supplier, in the setup for the supplier for purchase part. This parameter indicates to the system whether the parts should be handled as company-owned, consignment, customer-owned, or supplier-loaned parts when receiving these parts from this specific supplier.
• If the charge/no-charge (component part) function is activated, the order code is Purchased and a product structure in IFS/Manufacturing Standards is created with child parts. The component parts are automatically retrieved and displayed in the Purchase Order Line Components page.
• When you need to create an external repair order to send a part to a supplier for maintenance or repair service or for exchange, you can do so with a no-charge customer order.
• If you try to reduce the quantity, change the planned receipt date, change the condition code, or change the ownership and owner on an existing purchase order line with manual peggings connected, you will be notified to modify the peggings first.
• When the purchase order line is created, it inherits any default supplier warranty types defined for the supplier-connected purchase part.
• When the Self-Billing option is enabled for the supplier, the parameter is set as default on each purchase order line that is entered with this supplier.
• If you use a centralized purchasing process, the system checks to see whether the entered site on the line (i.e., the demand site) is the same as the site on the header (i.e., the purchasing site).If the sites are different, the system will validate the demand site’s centralized basic data with the site date and set Centralized Order label to Purchase Order header and Part Pricing label as Demand Site or Purchasing site in Order details tab. If the demand site does not have centralized basic data, part pricing will be purchasing site. If Ignore Default Taxes is defined as Yes for the site, then no default taxes will be added to the purchase order line. If header and line sites do not belong to the same financial company, any pre-posting information saved on the header will not be inherited by the line.
• If you are using a delivery pattern and if the purchase order line is manually entered, the system moves the wanted delivery date if the entered date does not fall on a delivery day. The wanted delivery date should be modified to fit the delivery days with the following logic:

1. If the wanted delivery date falls on a day which is a delivery day, the system keeps the desired receipt date.
2. If the wanted delivery date is not on a delivery day, it is replaced with the previous working day.
3. If the new wanted delivery date is not on a delivery day, go to step 2.

• If the purchase part used has the Contractor option enabled, the order line will also be updated as a contractor order.
• The Destination Warehouse ID on an order line will automatically add line Site’s default value if a Default Remote Warehouse for Purchasing Flows is defined in Site > Shipment Management.

Pages

Purchase Order

Activity Diagrams

Enter Purchase Order
Enter Purchase Order, Basic Flow