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 Order 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 Order 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, right-click, and then click Price Comparison. In the dialog box 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, right-clicking, 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.

For non-inventory purchase part lines to be included in intrastat reporting, the Intrastat Affected check box needs to be selected. This check box 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 selecting the Intrastat Affected check box, or it can also be entered manually after selecting the Intrastat Affected check box.

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 box will be opened. However, the Send Change Request check box 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 window, 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. 

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 window. For internal suppliers, define the parameters in the Site to Site Supply Chain Parameters window.
• If you want to specify a condition code for the part, it must have been enabled on the General tab of the Part window. 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 check box should be selected in the part. When an order line is entered using this part the Contractor check box will be selected automatically.
• If a technical coordinator is to be used, the coordinator details must have been entered as a technical coordinator on the Technical Coordinators tab of the Inventory Basic Data window.

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 window.
• The supplier must have been defined as a customer in the Supplier or Supplier for Purchase Part window.
• A default receive case for the supplier-part relationship should have been defined on the Inspection Info tab of the Supplier for Purchase Part window. (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 on the External Service Types tab of the Procurement Basic Data window.
• A price for each external service type must have been defined on the External Service Prices tab of the Supplier for Purchase Part window.
• The purchase component method for the site, defined on the Sites tab of the Parameters for Distribution and Manufacturing window, 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 check box must be selected 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. 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 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 windows.
• 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 check box is selected 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 select the Central Order check box on the order header. If those 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 company tax regime is VAT or Mixed and the part is taxable, the default tax code will be obtained from the supplier for purchase part. If only the Taxable check box is selected, a tax code of the type Calculated VAT (for EC Suppliers) or No VAT (for Import Suppliers) must be specified. If both the Pay Tax check box and the Taxable check box are selected, tax codes of the type VAT must be specified.
• If the company tax regime is Sales and the part is taxable, and if the Pay Tax check box is selected, the tax code is retrieved based on the ship-from (supplier) or the ship-to (company) address for domestic suppliers.
• If both the Pay Tax check box and the Taxable check box are selected, based on the amounts exclusive of tax fields, the amounts inclusive of tax are automatically calculated and displayed in the respective fields.
• If the purchase part used has the Contractor check box selected, the order line will also be updated as a contractor order.

Window

Purchase Order

Related Window Descriptions

Purchase Order
Purchase Order/Part Order Lines

Procedure

1. In the Purchase Order window click the Part Order Lines tab, and then click New.
2. In the Part No field, enter the part number of the part you intend to order.
3. If the part you want to enter belongs to an assortment, you can also look up its number by selecting the line, right-clicking and then clicking Parts by Assortment and Site Cluster.
4. In the Quantity field, specify the quantity needed.
5. Save when completed.

Note: When project connections exist, if a project ID is specified under the Misc Order Info 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 check box selected in the Project Details window, 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 Misc Order Info tab. But new purchase order lines can be created through requisition lines.

Optional steps (remember to save your entries):

• Among other things, you can manually change the values in the Condition Code, Price/Currency, Price/Base, Discount, and Inspection Code fields if desired.
• Specify an additional cost per purchase order line in the Additional Cost Net/Curr or Additional Cost Gross/Curr field.

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 via the right-mouse button menu.

• Enter the planned date of arrival in the Planned Delivery Date field, the wanted delivery date in the Wanted Delivery Date field, and the promised delivery date in the Promised Delivery Date field.
• If IFS/Invoice is installed, the default value for the invoicing supplier will be the value stated on the purchase order header. If you use a centralized purchasing process and the site on the line does not belong to the same financial company as the purchasing site, the default invoicing supplier is retrieved from the supplier. However, it is possible to choose another one if appropriate.
• Specify or change the technical coordinator; you can use the List of Values. If a technical coordinator has been entered for the purchase part (or inventory part), this technical coordinator will appear by default on the purchase order.
• Optionally, if tax is charged on a charge line, select the Pay Tax check box and the Part Taxable check box. If the company tax regime is VAT or Mixed, specify a value in the Tax Code field. If the company tax regime is Sales Tax, specify a value in the Order Line Taxes window. To access this window select the row, right-click and point to Order Line Details and then click Order Line Taxes.
• You can change the purchase payment type, if necessary, for this particular purchase order in the Purchase Payment Type field.
• Indicate that the purchase is an exchange purchase by selecting the Exchange Item check box.
• If you use centralized purchasing, you might want to change the site that is going to receive the parts in the Site field.

Optional steps related to intrastat reporting;

• Select the Intrastat Affected check box and the customs statistic number and the description will be fetched from the purchase group relevant to the part if it exists.
• Select the customs statistic number from the List of Values, or enter a value manually in the Customs Statistic Number field. The corresponding description will then be fetched into the Customs Stat Desc field.
• A value for the intrastat conversion factor needs to be entered if the customs statistics number has a relevant customs unit of measure. This involves manual calculation.

Note: 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 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 window. Refer to the Supplier Loan activity description, which is part of the Enter Purchase Order flow.

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