Entering Purchase Orders—Exercises

IMPORTANT
If you are a student, it is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Basic Data Setup

Purchased Inventory Part

Purpose: The purpose of this exercise is to create the purchase part by entering it as an inventory part. The purchase part is automatically created when entering the inventory part.

Windows:
Inventory Part

  1. Enter an inventory part with the part number XX-58-100, replacing XX with your initials, and the description Racing Wheels.
  2. Enter yourself as planner.
  3. Use PCS as the unit of measure.
  4. Use 100 USD as the estimated material cost.
  5. It is advisable to enter default locations (arrival, quality assurance, and picking location) for the inventory part.

General exercise for Purchased Inventory Part

Purchase Part

Purpose: The purpose of this exercise is to enter a non-inventory registered purchase part, e.g., a service.

Windows:
Purchase Part

  1. Enter a purchase part with the part number XX-98-101, replacing XX with your initials, and the description Wheel Balancing Service.
  2. Use Hour as the purchase unit of measure.

General exercise for Purchase Part

Supplier

Purpose: The purpose of this exercise is to enter the supplier of the part that has the identified requirement.

Windows:
Supplier

  1. Enter the British tire supplier XX-170, replacing XX with your initials. In the Name field, enter Dunlop.
  2. In the General tab, use English as the default language.
  3. In the Address/Purchase Address Info tab, right-click and then click Supply Chain Matrix for Supplier.
  4. In the To Demand Site tab, enter CIF (Cost Insurance Freight) as delivery term, 30 (Road Transport) as the ship-via code, external transport lead time 2, and internal transport lead time 1.
  5. Save and go back to the Supplier window.
  6. In the Invoice/General tab, use USD as the currency.
  7. In the Purchase/General tab, enter yourself as buyer. Use USD as the currency.

General exercise for Supplier
General exercise for Setting Up Supplier-to-Site Supply Chain Parameters for Trading

Supplier for Purchase Part

Purpose: The purpose of this exercise is to connect your purchase parts to the supplier.

Windows:
Supplier for Purchase Part

  1. Enter a new combination of purchase part XX-58-100 and supplier XX-170. The price should be 100 USD.
  2. Enter a new combination of purchase part XX-98-101 and supplier XX-170. The price should be 50 USD.

General exercise for Supplier for Purchase Part

Main Exercises

Purpose: The purpose of these exercises is to show how to enter purchase orders.

Windows:
Purchase Order

To prepare for the upcoming Grand Prix, which takes place in two months, you are checking the racing equipment. You realize that IFS Racing needs to buy 20 racing wheels. The racing wheels will be stored in your warehouse.

IFS Racing also needs to buy wheel balancing service on the cars. This must be done within two weeks.

The welding machine has worked for several years. However, to be fully prepared for the Grand Prix, you will purchase a new one. The purchase will include both installation and a service kit.

Hint: If you will continue with the lesson for handling the purchase order, write down your purchase order number.

Enter Purchase Order for Standard Parts

  1. Open the Purchase Order window.
  2. Create a new record (F5) for the purchase order header.
  3. Enter your supplier XX-170, replacing XX with your initials. Enter a receipt date two weeks ahead from today's date.
  4. Save (F12). Write down the purchase order number.
  5. Order 20 racing wheels by entering a part order line for part XX-58-100 (replacing XX with your initials). Set the order line receipt date one month ahead.
  6. Save (F12).
  7. Order five hours of wheel balancing services by entering a part order line for part XX-98-101 (replacing XX with your initials). Set the order line receipt date two weeks ahead from today's date.
  8. Save (F12).

Note: The status of the header will become Planned. The status of the entered lines will become Released.

Enter Purchase Order for Part Ordered One Time Only

  1. Open the Purchase Order window.
  2. If you have done the previous exercise for standard parts, query for that purchase order. If you have not yet done so, create a purchase order header and save your entry.
  3. Click the No Part Order Lines tab.
  4. Create a new record (F5).
  5. Enter one no part order line for the welding machine and one for the service kit. Use PCS as the unit of measure and enter adequate prices.
  6. Save (F12).
  7. Enter a no part order line for the installation. Use Hour as the unit of measure and enter an adequate price for the installation. The installation will take five hours.
  8. Save (F12).
  9. Add a technical specification of the service kit by using the text processing functionality. Do this by selecting the appropriate line. Right-click on the line and then click Text Processing. Enter the text and then click OK.
  10. Save (F12).
  11. The Wanted Delivery Date should be two weeks ahead for all three lines. Adjust your dates and save your changes (F12).

Copy a Purchase Order

  1. Open the Purchase Order window.
  2. Populate or query for one of your purchase orders.
  3. Right-click in the window header and then click Copy Order to enter a new purchase order.
  4. In the window that appears, enter your supplier and receipt date.
  5. Analyze the purchase order you entered.