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.