Generate Dedicated PO Overview

Procedurally, the Sales Order is entered (with stock back ordered) and a Purchase Order is generated as a by-product. The Purchasing department examines the Purchase Order, makes any required modifications (shipping instructions, pricing, etc) and issues the Purchase Order to the supplier. If the PO Qty is increased, then the Sales Order Quantity will also be increased when the PO is received. Back orders with associated dedicated Purchase Orders are linked behind the scene and are skipped by the normal back order release program Release Backorders (OE61) or Manual Allocation Override (OM30) if other Purchase Orders are received. Instead, the release happens when the dedicated Purchase Order is received in Enter Receipts/In-Transits (PO60) or Receive In-Transit to Stock (PO63). This means the back order attached to the dedicated PO is released ahead of any other back orders being released by OE61, therefore preserving that stock for the appropriate Sales Order.

The operator can generate Purchase Orders for all lines or just back ordered lines on the Sales Order.

The Purchase Order is generated based on the Product's primary supplier information. If there is no primary supplier flagged, then that Product will be skipped (no Purchase Order will be generated).

Each Purchase Order is tagged with the corresponding Sales Order number to provide a visual cross-reference when the goods are received. The PO Receiver Inquiry/Print (PO43) receiving document provides space to write in an override stock location and references the Sales Order number for each product; the Customer name is printed at the bottom of the document. PO60 allows for entry of the override stock location, which in turn prints on the picking slip for the released back order. This is useful if the Products for these types of receipts are shelved in a quick-pick section of the warehouse instead of in their normal bin locations.

You can review the Purchase Orders dedicated to a Sales Order in OE45-More Header Info window.

If using Order Management, Sales Orders linked to dedicated Purchase Orders are not included in the IC45-C5 folder display.

You can link a Purchase Order to a Sales Order after the fact using the Link current PO to a Sales Order button in Create Purchase Orders (PO40). You can remove a link using the same button or by deleting either the Sales Order or Purchase Order.

The Order Entry operator may use this feature without being granted access to PO40-Create Purchase Orders thereby allowing the process to be monitored and approved by the Purchasing department.

Changes to PO Quantity Notes:

• If the Order Quantity on the PO is increased, when the PO is received the Order Quantity on the associated Sales Order will also be increased. The philosophy is you are bringing in this stock for a specific Sales Order. For example, a Customer orders 20, Purchasing raises the quantity to 24 on the PO; when the PO is received, the quantities on the Sales Order change to: ORD=24 B/O=0 SHIP=24.

• If the Order Quantity on the PO is decreased (in PO40), when the PO is received the difference will be left on back order on the associated Sales Order; there is no dedicated PO remaining to satisfy that back order. For example, a Customer orders 26; Purchasing lowers the quantity to 24 on the PO; when the PO is received the quantities on the Sales Order change to ORD=26 B/O=2 SHIP=24. There is no outstanding PO for the 2 units on back order.

• If the Quantity Received in PO60 is less than the Order Quantity on the PO and the remainder is left outstanding on the PO, then the difference will be left on back order on the Sales Order as well. The dedicated PO link still remains. For example, a Customer orders 24; Purchasing orders 24 but only 12 are received and the remaining 12 are not cancelled. The quantities on the Sales Order change to ORD=24 B/O=12 SHIP=12. The link between the original PO and the back order still remains for the 12 units not yet received.