Overview

Purchase orders are created based on demand of other orders. Additional data that is not provided by the demand must be filled in manually in the purchase order.

Conversion options allow single and multiple purchase orders to be created with the full or partial fulfillment of the reference document demand.

Procurement strategies for vendors are applied when you generate purchase orders. The demand allocation by the supply method helps to equally distribute purchase orders between vendors. Special agreements with vendors need to be considered, such as FTL/FCL only, min/max quantities, multiple products to bundle, and other.

Generating demand-driven purchase orders is a standard process in all procurement scenarios.

Generate demand-driven purchase orders flowchart

Paths

How to generate demand-driven purchase orders

1. Go to Warehouse and delivery and then click Demand-driven orders under Demand fulfillment. In the Supply source type field, select Purchase.

2. Set additional filters to view specific demand data. By default, you can view fields available in a simplified set of filters.

3. Click Custom filters to enable more filters.

4. Go to the Step 2 of 6. Customize procurement strategy page.

5. Select a Procurement strategy that is related to the purchase manager's area of responsibility.

6. Go to the Step 3 of 6. Inventory level control page. The system will automatically:

• Show the demand to procure in accordance with min/max settings.
• Preset the quantity of materials (see the To order column).
• Show the key min/max settings, such as Balance, Minimum inventory, Maximum inventory, and other.

To skip this step, clear the selection and click Next.

7. Go to the Step 4 of 6. Select the demand page. The system will automatically:

• Fill the demand to procure in accordance with sales, transfer, and production orders.
• Preset the quantity of materials and show reference documents.
• Recalculate and round the purchasing UOM and quantity in accordance with the order package options and the minimum delivery lot (see the To order column).

8. Drill down to the business transaction to check the item, the quantity, and the requested dates.

9. Select check boxes to choose lines to purchase.

10. Edit the quantity.

11. Fill vendors using the workplace:

• Open the menu to choose a vendor for the line (the Source of supply field).
• The system will display a list of vendors with registered prices and a delivery history.
• Analyze the transaction history and the delivery statistics.
• Select an appropriate vendor for the line.

12. Align Delivery dates with special tools for changing data in batch mode.

13. Go to the Step 5 of 6. Order preview and editing page.

The system will automatically:

• Fill the demand selected at the previous steps.
• Group the demand by default Procurement strategy, Vendor, Terms of purchase, and Warehouse.

14. Check and edit:

• Procurement strategy
• Vendor
• Terms of purchase
• Warehouse
• Purchasing package and quantity

15. Go to the Step 6 of 6. Confirmation of created orders page. The system will automatically:

• Create purchase orders.
• Fill data from the demand.
• Leave a comment confirming that the purchase order is created in the application.
• Try to post the document and set the Pending approval status (if there is enough information to post the document without errors).
• Otherwise, save the purchase order as a draft to fill and post it afterwards.

How to specify terms for purchase orders and submit them for approval

See how to Specify terms for purchase orders and submit them for approval.