Convert to Purchase Order

Explanation

A purchase requisition can be converted to a purchase order by selecting Requisition to Order in the Convert/Transfer command group. Note that all the requisition lines to be converted must be selected.

When you convert a requisition to a purchase order, you have three options: you can let the system add requisition lines to the first available purchase order(s), add requisition lines to a given purchase order, or create a new purchase order. However, if no appropriate purchase order exists, the system creates a new purchase order. You can only choose between creating a new order, or letting the system automatically pick which existing order should be used when the requisition has several lines with different suppliers.

• Auto Select: The system adds the requisition lines to the first available orders. If no appropriate purchase order exists, a new one is created.
• Add to Order: If the requisition lines have the same supplier and a proper purchase order exists, they will be displayed in the lower part of the page. Select the line of the purchase order to which you want to add the requisition line. In the Purchase Order No field, the number of the selected purchase order will be displayed. Click Add to Order.
• Create New: A new purchase order is created. If you want to you can enter a purchase order number in the Purchase Order No field, and the purchase order will be created with this number. When you are handling several suppliers, a purchase order is created for each supplier. If you enter a purchase order number in the Purchase Order No field, this number will be used for the last line in the requisition. For the other lines the system will create the numbers.

Note that if a purchase order change order exists for the purchase order to which you are trying to add the requisition line, the line will instead be added to the change order and then when the change order is processed, the changes will update the purchase order. The status of the purchase requisition line will then be updated to Change Order Created and then go to PO Created when the change order is processed.

Requisitions created from the customer order module are directly related to a specific customer order. A purchase from a customer order can concern two different supply codes: Purchase Order Direct and Purchase Order Transit.

When converting purchase requisition lines to a purchase order, lines with similar values for the Use Price Incl Tax option are grouped into one purchase order. If there are two requisition lines with different values for the Use Price Incl Tax option, then two separate purchase orders are created for each line. In the requisition to order parameters dialog, existing purchase orders are filtered using the value specified for the Use Price Incl Tax option. If you select a purchase requisition line with the Use Price Incl Tax option selected, and try to convert that to a purchase order, then the requisition to order parameter dialog shows only existing purchase orders with the Use Price Incl Tax option selected, and vice versa. If you select multiple purchase requisition lines with different values for the Use Price Incl Tax option and try to convert that to a purchase order, the requisition to order parameter dialog does not show any existing purchase orders.

Note: When you work with several suppliers, you can only choose between letting the system automatically select appropriate purchase orders, or creating new purchase orders.

Prerequisites

• The purchase requisition must have been released, and the lines requiring authorization must have been authorized.
• A supplier must have been indicated.
• You must have entered a coordinator in the Coordinators page. The coordinator may be connected to your user ID. The connection is made in Sites per User  page.
• A buyer must have been entered on the Procurement Basic Data/Buyers page.
• Normally, supply chain parameters should be defined for the supply chain relation. For external suppliers, this can be done in the Supplier to Site Supply Chain Parameters page, and for internal suppliers this can be done in the Site to Site Supply Chain Parameters page.

System Effects

• The selected purchase requisition lines are converted into a purchase order. The requisition lines are added to an existing purchase order, or a new purchase order is created. The status on the requisition header is updated from Released or Authorized to Closed when all the requisition lines are converted. The requisition line status is updated to PO Created.
• When you convert a requisition into a purchase order, all the information entered for the requisition is copied to the purchase order. This includes internal destinations and any notes tied to the requisition. The supplier and site are retrieved from the requisition line. The tax code(s), the tax structure and the value for the Use Price Incl Tax option is retrieved from the part purchase requisition or no part purchase requisition line.
• If the demand site is the same as in the header and supply chain relations have been established, the ship via code for a purchase requisition line is retrieved in the following order: (1) If the purchase requisition originates from a customer order, the ship via code is inherited from the customer order line, (2) the supplier agreement, (3) the supply chain parameter exceptions, and (4) the header.
• If the demand site differs from the header, the ship via code is retrieved in the following order: (1) If the purchase requisition originates from a customer order, the ship via code is inherited from the customer order line, (2) the supplier agreement, (3) the supply chain parameter exceptions, (4) the supply chain parameters, and (5) the header.
• The technical coordinator is also retrieved from the requisition line. The supplier contact is copied to the purchase order if the requisition line is not added to an existing purchase order. The order code is taken from the requisition header. For purchase parts, inventory or non-inventory registered, the price information is retrieved from the supplier of the purchase part relationship. (For no-number parts, you must specify a price when entering the requisition). If the requisition line is an exchange line, all the information entered about the exchange component is copied to the purchase order.  
• When using a delivery pattern, to convert requisition lines to purchase order lines, 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 wanted receipt date.
2. If the wanted delivery date is not on a delivery day, replace it 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 order line is created from a project-connected purchase requisition line, the project connection will be inherited by the purchase order line.
• The system determines whether the consignment stock should be used to set up the supplier for purchase parts.
• If procurement clause phrases are generated for the purchase requisition line, connections are regenerated for the purchase order line created.
• If procurement clauses phrases of the purchase requisition line are manually created or edited, same connections are made for the purchase order line created.

Pages

Purchase Requisition
Purchase Requisition Lines

Activity Diagrams

Convert Purchase Requisition to Purchase Order