Handling Purchase Orders—Exercises

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

Required Data

Entering Purchase Orders

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below. When you have done the required date, you should have two identical purchase orders with both part and no-part order lines, and one purchase order with only no-part order lines.

1. Enter the purchase order header. Enter supplier XX-170 (replacing XX with your initials) and a receipt date two weeks ahead from today's date.
2. Enter five purchase order lines with the following information:

Part Order Lines

No-Part Order Lines

*You should enter a technical specification for the service kit.

Note: Replace XX with your initials.

3. Write down the purchase order number.
4. Copy the purchase order. Do not specify any order number or supplier. Enter a delivery date two weeks from today's date. Write down the purchase order number.
5. Copy the purchase order again. Do not specify any order number or supplier. Enter a delivery date two weeks from today's date. Write down the purchase order number.
6. Copy the purchase order once more. Do not specify any order number or supplier. Enter a delivery date two weeks from today's date. Remove the part order lines. Write down the purchase order number.

General exercise for Entering Purchase Orders.

Main Exercise

Purpose: The purpose of these exercises is to show how purchase orders can be handled.

Windows:
Purchase Order

Process Whole Purchase Order

1. Open the Purchase Order window.
2. Query for your first purchase order.
3. Release the purchase order by right-clicking the header and selecting Release.
4. Print the purchase order by right-clicking the header and selecting Print Order. Analyze the printout by using preview.
5. The supplier informs you that they can deliver without any differences. Confirm the purchase order by right-clicking in the header and then clicking Confirm.
6. Receive the no-part order lines by selecting the lines, and right-clicking on the order lines and then clicking Receipt.

Confirm with Differences

1. Open the Purchase Order window.
2. Query for your second purchase order.
3. Print a order work copy by right-clicking in the header and then clicking Print Order Work Copy. Analyze the printout by using preview.
4. Release the purchase order.
5. Print the purchase order by right-clicking in the header and then clicking Print Order. Analyze the printout by using preview. What are the differences between the order printout and the order work copy printout?
6. The supplier informs you that they cannot deliver on time. The delivery will take place one week later than you have ordered. You are accepting this condition. Right-click in the header and then click Confirm Order Lines with Differences to register the promised delivery date.
7. Analyze the dates on the order lines.
8. Receive the no-part order lines by selecting the lines, and right-clicking in the order lines and then clicking Receipt.

Confirm with Differences via Change Order

1. Open the Purchase Order window.
2. Query for your third purchase order.
3. Release the purchase order.
4. Create a purchase order change order by right-clicking, pointing to Change Order and then clicking Create Change Order.
5. Change the value in the New Qty field to 25 in the first part order line of the change order.
6. Right-click on the header and then click Release to release the change order.
7. Right-click on the header and then click Update Purchase Order to update the purchase order. On the warning message that appears, click OK to allow the update.
8. The supplier informs you that they cannot deliver the full quantity but will deliver a quantity less than the required amount. You accept this condition. Right-click on the purchase order header and notice that the Confirm Order Lines with Differences option is no longer enabled.

Note: The Confirm Order Lines with Differences option is not enabled in this instance, due to the purchase order already being updated by a change order. Thereafter, the purchase order cannot be modified directly and instead should be modified via a purchase order change order. Similarly, this right mouse button option will not be enabled when changes are enforced to be processed via a purchase order change order (defined in the Site/Supplier tab) and when the purchase order is authorized and changes are not allowed after authorization (if the authorization rule is set to not allow changes after authorization).

9. Use the Confirm with Differences via Change Order right mouse button option to register the agreed changes in the quantity. On the warning message that appears, click OK to allow a confirmation change order to be created.
10. Notice that the Pending Change Order check box is selected in the purchase order header. You can directly open the related change order by right-clicking, pointing to Change Order and then clicking Change Order.
11. Notice that the Confirmation Change Order check box is selected and the change order is in the Released status. Observe the values in the New Qty column.
12. Update the purchase order by right-clicking on the header and then clicking Update Purchase Order. On the warning message that appears, click OK to allow the update.
13. Analyze the status of the purchase order header and purchase order lines.

Release, Confirm, and Receive

1. Open the Purchase Order window.
2. Query for your fourth purchase order (the one in which you removed the part order lines).
3. Release the purchase order.
4. Print the purchase order by right-clicking in the header and then clicking Print Order. Analyze the printout by using preview.
5. The supplier informs you that they can deliver without any differences. Confirm the purchase order by right-clicking in the header and then clicking Confirm.
6. Receive the purchase order by right-clicking on the order lines and then clicking Receipt.