Planned Purchase Order

Planned PO

For Planned PO first we’ll create a PO with type as Planned Purchase Order, then we’ll create a releases against it. Navigate to Purchase Orders > Purchase Orders & give details as shown below

Note that the price of Item did not changed based upon the quantity ordered

Click on Shipments tab & give any one of Promised Date or Need-By Date

Now click on Terms Tab & give details as shown below

Note that Amount Limit has to be greater than or equal to Amount Agreed. But in our PO form there is no field as amount agreed. So this point is not valid over here.

Now Approve the PO.

Next step is to create releases.

In order for a release to be approved following conditions should be fulfilled

1.)   The sum total of all the release quantity should not be greater than ordered quantity

2.)   Sum total of release amount should be less than agreement amount limit.

3.)   Each release amount should be greater than minimum release amount at line level & also header level

4.)   We can create PO only within effective dates of planned PO

In order to create releases, Navigate to Purchase Orders > Releases & give details as shown below

Save the record & approve it

These details can be checked in PO in Agreement Tab

Now if we want to overwrite the price while creating Releases, we can go to Price Reference tab of PO & check Allow Price override checkbox

The item cost can be modified only till the value we give in Price limit field of PO.

Create another Release to check this. Give details as shown below

Save & approve the record 

Contract Purchase Order

Purchase Orders

Purchase Orders are of 4 types

1.)   Standard PO

2.)   Planned PO

3.)   Blanket PO

4.)   Contract PO

Below mentioned table shows the actual usages of all of them

Note the following points

1.)   For planned PO, we’ll create Purchase Release. It will determine quantity & delivery schedule. Here validation is done based on quantity & PO total.

2.)   For Blanket PO, we’ll create Blanket Release. It will also determine quantity & delivery schedule. Here validation will be done based upon agreement amount.   

3.)   For Contract PO, a standard PO needs to be created

Update Approval groups with the details of new documents. Navigate to Setup > Approvals > Approvals Assignments & give details as shown below

& save the record

We’ll start with creating contract PO

1.)   Steps to create contract PO: Navigate to Purchase Orders > Purchase Orders. Give details as shown below

Click on Terms & give details as shown below

Kindly note that Amount agreed is used for approvals (In our case, it will go for 1^st level of approval). Whereas amount limit is used for Purchases.

Optionally you can add attachments to the contract which will be having actual Contract given by customers

Save the record & click on Approve. Once approved, the status of document will change to Approved

Against this contract, we’ll create a standard PO so navigate to Purchase Orders > Purchase Orders

Give details as shown below

Give contract details in Reference Documents Tab

Click on Shipments Tab & give Need By date

Save the record & click on Approve.

The status of this standard PO will change to Approved

Now query for contract PO. We can see that the Released amount is now 100K. we can make purchases for 50K more