Considerations for Purchase Order Distributions

A purchase order distribution specifies how the purchase order schedule is to be charged to the organization.

The purchase order Distributions tab or page is used to enter distribution information for purchase order schedules or to view distributions that were automatically created for you. You can enter multiple distributions per schedule.

What Happens When You Save Distribution Information

Enter the purchasing accounts. When you save your changes in this window, the application automatically creates the following accounts for each distribution:

• PO Charge Account: the account to charge for the cost of this item in the purchasing business unit

• PO Accrual Account: the payables accrual account in the purchasing business unit

• PO Variance Account: the invoice price variance account in the purchasing business unit