Convert Purchase Requisition to Purchase Order

Explanation

A purchase requisition can be converted to a purchase order by selecting Requisition to Order in the Operations menu. Note that all the requisition lines to be converted must be selected.

When you convert a requisition to a purchase order, you have three options: you can let the system add requisition lines to the first available purchase order(s), add requisition lines to a given purchase order, or create a new purchase order. However, if no appropriate purchase order exists, the system creates a new purchase order. You can only choose between creating a new order, or letting the system automatically pick which existing order should be used when the requisition has several lines with different suppliers.

Note that if a purchase order change order exists for the purchase order to which you are trying to add the requisition line, the line will instead be added to the change order and then when the change order is processed, the changes will update the purchase order. The status of the purchase requisition line will then be updated to Change Order Created and then go to PO Created when the change order is processed.

Requisitions created from the customer order module are directly related to a specific customer order. A purchase from a customer order can concern two different supply codes: Purchase Order Direct and Purchase Order Transit.

Unique purchase orders will be created for requisition lines connected to projects which have the Project Unique Procurement check box selected in the Misc Order Info tab. These requisition lines cannot be connected to purchase orders which have a different project ID specified in the purchase order header, or if the purchase order contains lines connected to projects which are different from the one specified on the requisition line.

Prerequisites

• The purchase requisition must have been released, and the lines requiring authorization must have been authorized.
• A supplier must have been indicated.
• You must have entered a coordinator in the Coordinators window. The coordinator may be connected to your user ID. The connection is made in Sites per User  window.
• A buyer must have been entered on the Procurement Basic Data/Buyers tab.
• Normally, supply chain parameters should be defined for the supply chain relation. For external suppliers, this can be done in the Supplier to Site Supply Chain Parameters window, and for internal suppliers this can be done in the Site to Site Supply Chain Parameters window.

System Effects

• The selected purchase requisition lines are converted into a purchase order. The requisition lines are added to an existing purchase order, or a new purchase order is created. The status on the requisition header is updated from Released or Authorized to Closed when all the requisition lines are converted. The requisition line status is updated to PO Created.
• When you convert a requisition into a purchase order, all the information entered for the requisition is copied to the purchase order. This includes internal destinations and any notes tied to the requisition. The supplier and site are retrieved from the requisition line. If the company tax regime is VAT, the tax code applicable to the no-part will be retrieved from the requisition line.
• If the demand site is the same as in the header and supply chain relations have been established, the ship via code for a purchase requisition line is retrieved in the following order: (1) If the purchase requisition originates from a customer order, the ship via code is inherited from the customer order line, (2) the supplier agreement, (3) the supply chain parameter exceptions, and (4) the header.
• If the demand site differs from the header, the ship via code is retrieved in the following order: (1) If the purchase requisition originates from a customer order, the ship via code is inherited from the customer order line, (2) the supplier agreement, (3) the supply chain parameter exceptions, (4) the supply chain parameters, and (5) the header.
• The technical coordinator is also retrieved from the requisition line. The supplier contact is copied to the purchase order if the requisition line is not added to an existing purchase order. The order code is taken from the requisition header. For purchase parts, inventory or non-inventory registered, the price information is retrieved from the supplier of the purchase part relationship. (For no-number parts, you must specify a price when entering the requisition). If the requisition line is an exchange line, all the information entered about the exchange component is copied to the purchase order.  
• When using a delivery pattern, to convert requisition lines to purchase order lines, the wanted delivery date should be modified to fit the delivery days with the following logic:

1. If the wanted delivery date falls on a day which is a delivery day, the system keeps the wanted receipt date.
2. If the wanted delivery date is not on a delivery day, replace it with the previous working day.
3. If the new, wanted delivery date is not on a delivery day, go to step 2.

• If the purchase order line is created from a project-connected purchase requisition line, the project connection will be inherited by the purchase order line.
• The system determines whether the consignment stock should be used to set up the supplier for purchase parts.
• If the purchase order comes from an outside operation, the purchase order number is entered on the Report Shop Order Operations/Subcontract tab.

Window

Purchase Requisition
Purchase Requisition Lines

Related Window Descriptions

Requisition To Order Parameters
Purchase Requisition
Purchase Requisition/Part Requisition Lines
Purchase Requisition/No Part Requisition Lines
Purchase Requisition Lines

Procedure

1. Populate or query for the appropriate requisition.
2. Select the requisition lines you want.
3. Select Requisition to Order in the Operations menu; the Requisition to Order Parameters dialog box will open.
4. The coordinator appears automatically if the coordinator is connected to your user ID; otherwise, you must manually select a coordinator by using the List of Values. The default coordinator can be changed.
5. The buyer is retrieved from the purchase part; if a buyer is not connected to the purchase part, it is retrieved from the supplier. However, if you are working with several suppliers on the requisition, a buyer is not indicated by default. Either use the list to manually indicate a buyer, or select the Use Default Buyer Code from Supplier check box. You can use these options even if a default buyer appears automatically.
6. Depending on the conditions, you can choose from the following three options.

• Auto Select: The system adds the requisition lines to the first available orders. If no appropriate purchase order exists, a new one is created.
• Add to Order: If the requisition lines have the same supplier and a proper purchase order exists, they will be displayed in the lower part of the window. Select the line of the purchase order to which you want to add the requisition line. In the Purchase Order No field, the number of the selected purchase order will be displayed. Click Add to Order.
• Create New: A new purchase order is created. If you want to you can enter a purchase order number in the Purchase Order No field, and the purchase order will be created with this number. When you are handling several suppliers, a purchase order is created for each supplier. If you enter a purchase order number in the Purchase Order No field, this number will be used for the last line in the requisition. For the other lines the system will create the numbers.

7. A message appears indicating the purchase order number. Click OK to confirm, and the purchase order(s) will be created.

Note: When you work with several suppliers, you can only choose between letting the system automatically select appropriate purchase orders, or creating new purchase orders.