po - day 3
TRANSCRIPT
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Target Group
Purchase department
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Introduction
Contents
Creating POs
Printing of POs
Changing or canceling POs
Purchasing information
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Course Objectives
Create a new PO
Make changes to existing POPrinting a PO
To navigate through purchasing
information system
At the conclusion of this course, you will beable to:
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Purchase order
Definition
Formal request or instruction from a purchasing
organization to a vendor or a plant to supply or
provide a certain quantity of goods or services at orby a certain point in time.
Structure
Header
items
Additional data
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Creating a Purchase order
Automatically from PR
Set automatic PO indicator for material andvendor
Maintain Purchasing info recordMaintain source list
Fixed vendor
PR from MRP or Manually created PRAssign manually or automatically
Process the assigned PR to create PO
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Create PO - Manually
Manually creating a PO
With reference to PR
Select the PRs
Select the items from PR
Copy the items in to PO
Enter the vendor
Enter the prices and pricing conditions Requirement tracking number
Update the info record if reqd
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Create PO
With reference to RFQ
Select RFQ
Select the items
Copy the selected items in to PO Enter the Price and pricing conditions
Update the info record if reqd.
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Create PO
With out any reference
In this case you need to enter
Vendor code
Delivery date Item category
Account assignment category (if reqd)
Requirement tracking number
Order type ( NB For std purchase order)
Plant
Storage location
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Creating a PO (contd)
Important terms in POVendor
For creating a PO you need to enter vendor code
Vendor master should exist for this purpose if you dont want to maintain all the details for a
vendor you can create a one time vendor
Item category
Standard Subcontracting
service
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Create PO (Contd)
Account assignment category
Specification of the account assignment objects that arecharged in the case of a purchase order for a material thatis intended for direct usage or consumption.
Examples
Asset
Production order
Cost center
Types of account assignment
Single account assignment
Multiple account assignment
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Create PO (contd)
Delivery date
Date format
Day format
Week format Month format
Delivery date entered here is only expected delivery
date
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Create PO (Contd)
Example for units of measure in PO
Order quantity 24
Order unit Box
Gross price per unit $10
Order price unit (number) 1
Order price unit (of measure) kg
Conversion factor 24 boxes 1 kg
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Create PO (Contd)
Conditions
This component enables you to store pricing stipulationsagreed with the vendor
Examples are applicable discounts or surcharges, or
stipulations regarding the payment of freight costs in thesystem.
There are three kinds of price in Purchasing:
Gross price
Price without taking any possiblediscounts and surcharges into account
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Create PO (Contd)
Net price
Price taking any applicable discounts andsurcharges into account
Effective price
Net price after deduction of cash discount,with allowance for any miscellaneousprovisions, delivery costs, and non-deductible taxes.
Terms of Payment Example
Within 14 days 2% discount
Within 30 days due net
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Create PO (Contd)
Inco terms
Incoterms are internationally-recognized terms
of delivery reflecting the standards set by the
International Chamber of Commerce (ICC). Example
FOB - Free On Board. This means that the buyer hasto bear all costs and risks of loss of or damage to thegoods from that point.
You can specify Incoterms for an order item that differfrom those in the PO header.
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Creating PO from outline
agreement
In the initial screen for Create PO,
Select theOutline agreement and items
Copy the items in PO
In the item overview screen
Enter the quantityIf the quantity exceeds the target quantity
system gives a warning
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Texts in PO
Header texts
Header note
Pricing types
Dead lines Terms of delivery
Shipping instructions
Terms of payments warranties
Penalties for breach of contract
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Confirmations from the
Viewpoint of IM
When you post goods receipts, there are several
ways of finding the associated purchase orders.
Enter the PO number
If you establish a link via the PO number itself,the relationship is unique
i.e. one goods receipt (GR) against one purchase
order
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Releasing the PO
Release Procedure for External PurchasingDocuments
External purchasing documents (i.e. purchasingdocuments other than requisitions) are released atheader level.
Item-by-item release is not possible.
These documents can only be released using therelease procedure with classification.
Release Conditions
The release conditions determine the releasestrategy in accordance with which a PO is to bereleased.
If a PO does not meet the conditions for a release strategy, it
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Release procedure
Release Strategy
The release strategy defines the approval process for
purchasing documents.
The strategy specifies the release codes necessaryand the sequence in which releases have to be
effected.
A maximum of eight release codes can be defined.
The assignment of the release strategy to a
purchasing document is based on the release
conditions.
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Release procedure
Release Code
Definition
The release code is a two-character ID allowing a person to
release (clear, or approve) an external purchasingdocument.
Who may work with which release codes is basicallycontrolled via a system of authorizations.
Release Prerequisites The release prerequisites indicate the sequence in
which PO must be approved via the release codes.
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Printing a PO
Menu path
Purchase order -> Header -> Messages
Data required
Output type Medium
Communication method Select the printer
Further Data Repeat output
Change output
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Changing and blocking POs
If you change a PO after it has been sent to thevendor, a change document is generated that canbe sent to the vendor.
This tells the vendor what you have changed.
If the goods have already been delivered, then thechanges you can make to the PO are limited.
For example, you cannot change the quantity to
one that is less than the quantity delivered. If the invoice has been received or the goods have
been paid for, and your intended change affects theprice, the change will be ineffective.
You can display the PO history for an item to
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Purchasing information
List displays
List of POs for a vendor or for a range of vendors This gives the details of the purchase order like still to be
delivered, still to be invoiced etc.
List of POs for a material or for a range of materials List of POs for a account assignment
List of POs for a requirement tracking number
Reporting
General analyses
Order value analyses
Subcontracting stocks per vendor
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Purchasing information
Material
Purchasing values
Purchasing quantities
On time delivery Qty reliability
Frequencies
Vendor
Material group
Purchasing group