Understanding Purchase Order Generation

You can have the system generate purchase orders for stock and nonstock items. You can have the system suggest the items and quantities to order. The system bases ordering suggestions on current demand (sales backorders) or historical demand (sales history). You can review the suggestions to determine whether to generate the purchase order for the item and quantity. You can also change the suggestions before generating the order.

The system will not enable you to generate purchase orders if certain combinations of data exist. Some invalid combinations of data include:

• A supplier and a nonstock item.

• A buyer and a nonstock item.

• An item that uses only a second purchasing code.

• A supplier and buyer.

The system displays an error message if the data combination is invalid.

The PO Generator program (P43011) also contains zero reorder point functionality, which the system uses to calculate the reorder point for an item when the inventory level of the item is equal to zero. For example, you would reorder an item if the item is not in stock.

To enable zero reorder point functionality, you use the Item Branch program (P41026) to select the appropriate option for additional system information, and then you complete the Order Policy Code and Value Order Policy fields. Assuming that you enter a value of 0 in the Order Policy Code field, the value in the Value Order Policy field determines how the PO Generator program works. When the Value Order Policy field contains a value of:

• 0, the system generates purchase orders normally.

• 1, the system overrides the value in the Reorder Point Input field with a value of 0.

• 2, then the system disables the rows in the detail area when you are working with the PO Generator program.