2 Overview to Purchase Order Entry

This chapter contains these topics:

2.1 Objectives

  • To enter, change, and print purchase orders

  • To understand the difference between purchase order header information and purchase order detail information

  • To learn about the multiple tools available for entering purchase order information

  • To create purchase orders using multi-currency

  • To cancel purchase order information

  • To understand commitments and to locate commitment information

  • To understand budget checking and to locate budget information

  • To enter and release budget holds

  • To understand the different methods of printing purchase orders

  • To print purchase order information

2.2 About Purchase Order Entry

Each time you want to order goods or services, you must enter a purchase order. You enter purchase orders to specify details about the goods or services you are ordering, to indicate the supplier from whom you are ordering, and to specify other pertinent information about the order.

A purchase order consists of two parts:

  • Header information - general information that relates to the entire order, such as the supplier, order dates, and so forth

  • Detail information - line-by-line details about the items or services you want to order, such as item numbers, quantities, costs, and so forth

You can enter header information and detail information separately. Depending on the volume of orders you have and the amount of header information you need to enter, you use processing options to choose one of the following methods to enter purchase orders:

  • Enter header information first, followed by detail information.

  • Enter detail information only, allowing the system to apply limited default values for header information.

Several tools are available to help you create purchase orders. These tools allow you to generate multiple purchase orders at the same time, locate item and supplier information, and so forth.

You can have the system check purchase orders to verify that costs do not exceed budget limits. You can place an order on hold if it exceeds budget, or for any other reason. After you generate purchase orders, you can make changes to the orders and print the orders.

Purchase order entry includes the following tasks:

  • Entering purchase order header information

  • Entering purchase order detail information

  • Working with special order entry features

  • Working with commitments and encumbrances

  • Working with budgets

  • Working with orders on hold

  • Printing purchase orders

  • Reviewing purchase order information

The system maintains header and detail information in two separate files:

  • Purchase Order Header file (F4301)

  • Purchase Order Detail file (F4311)

2.2.1 Files and Journal Entries

The following are the primary files updated during the purchase order entry process:

  • F4301 - P.O. Header

  • F4311 - P.O. Detail

  • F43199 - Purchasing Ledger (if Order Activity Rules have "Y" in the Ledger field or if tracking commitments and encumbrances)

  • F41021 - Item Location File (if purchasing stock items)

Journal entries are not created at the time of purchase order entry.

2.2.2 Before You Begin

  • Verify that item master information (P4101) and item branch/plant information (P41026) is set up for each of your inventory items.

  • Verify that branch/plant constants (P41204) are set up for each of your business units or branches.

  • Set up order activity rules (P40204) and order line types (P40205).

  • Set up default location and printer information (P400951) for your terminal or user profile (optional).

  • Set up address book records (P01051) for all suppliers.

  • Set up supplier master information (P01054) and procurement instructions (P4306) for each supplier and ship-to address.