Topic overview

This article describes the role that purchase order types play in the processing of purchase orders. You will receive information about the default values and settings for purchase orders stored in the purchase order types as well as their effects on the processing and further processing of purchase orders.

Definitions of terms

Purchase order

A purchase order is a request to a supplier to perform services or deliver goods at a specified time. A purchase order may contain information about the item, price, quantity, delivery date, terms of payment and delivery, and the delivery address. Purchase orders can be referenced to purchasing RFQs in the system and therefore be part of a voucher references chain.

Purchase order types

Purchase order types identify purchase orders. They contain defaults and settings for purchase orders. The settings control checks and calculations for the purchase orders of this type and influence the further processing of the orders in downstream vouchers.

Purchase order types

The purchase order type is also used to define the type of purchase order. Each purchase order type is assigned to exactly one of the following order categories:

• Order – orders with this type are all “standard” purchase orders
• Consignment order – consignment orders are used to supply consignment warehouses.

The special features described below apply to consignment orders.

Consignment orders

From a procurement perspective, a consignment warehouse is a warehouse for external goods that are not part of the company’s own stock but may be used. Only when the goods are actually used, i.e. when they are removed from the warehouse, do they have to be paid for.

You enter a consignment agreement using a supplier contract of the Consignment category. When entering a consignment order, the system always automatically attempts to determine a suitable and released contract line item with the criteria Supplier, Item and Warehouse. If required, you can manually change the contract line item found to another suitable value. This relationship between the items has no direct relevance to the process, but is only a check at the start of the process (goods receipt with purchase order) as to whether a consignment agreement even exists with the supplier for the requested item.

The price is only determined at the time of withdrawal, i.e. at the time of delivery in distribution or at the time of use in production. If there is no current agreement at this time, the price according to the last valid contract line item is used.

As the prices at the time of receipt are not relevant, no prices are used in purchase orders of the Consignment order category.

Application description

Purchase order types are used to identify purchase orders. They also contain default values and settings for purchase orders of this type.

The application consists of an identification pane and a work pane.

Identification pane

• Type – the unique identification of the purchase order type is entered in the Type field. It is freely selectable. For systems with several organizations in particular, it is advisable to enter a number range in the Purchase order type number range field in the Customizing application, Purchasing function, Number ranges sub-function. If a number range is stored for the purchasing organization selected in the title bar, the next number resulting from this is suggested when a new type is created. The identification of the type is used to find the correct purchase order type in further applications and queries, e.g., to assign the correct type to a purchase order and thereby adopt certain default values and settings.
• Description – the description serves as an additional identification feature. It can consist of freely selectable text. Enter a meaningful and, if possible, unambiguous description to facilitate the search.

• Category – select an order category that is assigned to all purchase orders that use this purchase order type. The following order categories can be used:
  • Order
  • Consignment order

  The category can no longer be changed if the order type is already used in a purchase order.

• Creation status – the creation status defines the general status for new purchase orders of this type. You can choose between Released and In process.

See also the article Actions: Release, block, and complete voucher or line items.

• Number range – a number range is selected in the purchase order type, with the help of which the system automatically generates a number for new purchase orders according to a specific pattern. Further information can be found in the article Number ranges.
• Purchase order document number range – in this field, select a number range for the purchase order documents that are generated from the purchase orders of this type. The system uses this number range to automatically generate a number for new purchase orders documents according to a specific pattern.
• Confirmation number range – if required, select a number range in this field for the order confirmations that have been received for orders of this type. The system uses this number range to automatically generate a number for new order confirmations according to a specific pattern.
• Automatic contract selection – automatic contract selection is a function that checks whether a valid contract line item exists for the order line item when each order line item is entered and then creates a contract release order with voucher reference if necessary. In this field, select whether this should be checked automatically when entering new order line items. The selection made is transferred to the order line item in the purchase order as a default value and is a prerequisite for automatic contract line item assignment.

Work pane

The work pane of the application contains the main fields and functions for entering default values that should apply to purchase orders. The fields and functions are grouped under tabs, which are described in the following sections:

• Delivery data tab
• Invoice data tab

Delivery data tab

• Warehouse – the warehouse in this field indicates the receipts warehouse to which the ordered items are to be delivered. Select an existing warehouse in the system as the receipts warehouse. If no warehouse is entered in this field, it is taken as a default value from the partner master data of the delivery partner in the order. If no warehouse is entered there either, the warehouse stored in the Customizing application, Purchasing function for the purchasing organization is used as the receipts warehouse. If the warehouse is also missing there, no warehouse can be proposed in the order.

• Default warehouse – this field is used to specify whether or under what conditions the warehouse should be suggested. The selected option is used as the default value when the order basis is entered. This setting can also be changed for each order line item. Choose between the following options:
  • Always use default – the Always use default setting redetermines the warehouse whenever a value relevant to the default value determination, such as the delivery partner or the item, changes. This also happens if, for example, a different warehouse has been entered manually.
  • Insert defaults if empty – the Insert defaults if empty setting applies the same rules as the Always use default setting. However, the current warehouse is never changed automatically. The default value is only entered if there is no warehouse at the relevant time.
  • No default – if the No default setting is selected, no default value for the warehouse is determined from the master data. Use this setting if you always want to specify the warehouse manually in each order line item.

• Delivery term – delivery terms describe agreements between the buyer and seller. They may be used to specify the type of delivery and the place of fulfillment, for example, Free home delivery or Personal pickup.
  Select a delivery term to be adopted as a default value in new purchase orders of a given type.
  If an INCO term is included as a delivery term, you must specify a location reference.
• Shipping terms – shipping terms describe the manner in which the items are transported, for example, via freight forwarder, courier, or mail. Select a shipping term to be adopted as a default value in the purchase orders of a given type.
• Preferred date calculation – a preferred date can be entered in a purchase order. The default value is the date on which the purchase order is entered. You can use this field to move the preferred date into the future by entering a number of days.
  Enter the number of days to be used for the calculation of the preferred date. During the calculation, the specified company calendar is taken into account and, if necessary, the calculated date is set to the next working day and proposed in the purchase order.
  If you enter zero days, the date on which the purchase order is created is suggested.
• Inventory owners origin – the inventory owner is the legal owner of an item stock. This information is used to determine in whose item stock, for example, a receipt is posted. This field is used to specify how the inventory owner is to be determined.
  Select one of the following options:
  • Delivery recipient firm
  • Purchasing organization firm
  • Supplier

The selected setting serves as a default value for orders of this type and can be changed there for the Order category until the first line item is entered.

• Delivery order type for external delivery – if you want to use purchase orders of a given type, for example, to have a supplier deliver directly to a customer or their delivery recipient, then enter a delivery order type of the External delivery category in this field. The specified delivery order type is used to create the corresponding delivery orders.

• Delivery status update external third-party order – for purchase orders of a given type that are used as part of an external drop shipment, use this field to define how the delivered quantity and therefore the delivery status of the purchase orders are updated. Choose between the following options:
  • By posting of the supplier invoice of the supplier – the delivered quantity and the delivery status are updated when the supplier invoice is posted. The delivered quantity and delivery status are also updated in the purchase order when the supplier invoice is canceled.
  • By reporting of the delivery order line items – the delivery status is updated based on the delivered quantity specified in the delivery order when the external delivery is completed. The delivered quantity and the delivery status of the associated sales orders are also updated based on the specification.

  You can change the selection if no purchase order of a given type exists. The field is not available for purchase order types of the Consignment order category.

• Delivery order type for return of goods – if you also want to return goods to your suppliers with the purchase orders of a given type, enter a delivery order type of the Return of goods category in the field Delivery order type for return of goods. The specified delivery order type is used to generate delivery orders for the return of goods from the purchase order. If this specification is missing, the delivery order type stored in the Delivery order type field in the Purchasing main function, Returns of goods sub-function in the Customizing application is used.
• Generate return delivery order for special inventory – a special inventory combines stock quantities that are intended for certain processes (e.g., returns) without having to be assigned to a demand origin. Inventory that is marked as special inventory is not available for other business processes, such as sales, production, and distribution processes. If you activate this function, return delivery orders can be generated for the special inventory. The selected setting is a default value for purchase order line items.

• Reservation exclusion – use this field to define when line items that cover a demand are excluded from the automatic reservation. Select the following options if required:
  • General status “In process” – select this option to exclude line items with the status In process from the automatic reservation. Automatic reservation is only carried out once the line item has been released.
  • General status “Blocked” – select this option to allow line items to be taken into account by the automatic reservation only after they have been ordered as demand coverage.
  • Order status “Not ordered” – if you select this option, line items are only taken into account by the automatic reservation as demand coverage after receipt of the order confirmation.
  • Confirmation status “Not confirmed” – select this option to exclude from the automatic reservation line items that have the general status Blocked or the confirmation status Rejected or Confirmation in progress.

  If you do not select any of these options, (None) will appear in the field. In this case, the reservation exclusion is ignored. Released purchase order line items are always taken into account by the automatic reservation.

  Changing this setting affects newly entered line items. Existing demand data and reservations are only updated with the next relevant change to the voucher line item.

  Note

  This field is only visible if the Reservations function is activated for the active OLTP client in the Customizing application.
• Reservation category for returns – use this field to specify how the quantities for returns are to be reserved. Choose between the following options:
  • Manual
  • Automatically without reservation term
  Note

  In the inventory management master data of an item, it is defined which reservation category is used for it. If the According to voucher type setting option is selected for a given item, the setting from the voucher type is used. In addition, the reservation category can be determined in the item master data for each item-warehouse combination. The According to voucher type setting setting is also offered for this and the reservation category from the voucher type is only used for this definition.
  Note

  This field is only visible if the Reservations function is activated for the active OLTP client in the Customizing application.
• Origin of binding unit – this field is used to specify where the setting for the binding unit is taken from. The selected entry is a default value for purchase orders of a given type. Choose between the following options:
  • Item – with this option, you use the setting for the binding unit from the item master data
  • Manual – use this option to define an individual setting for the binding unit

Invoice data tab

• Price origin – use the Price origin field to specify where the data for price determination in the purchase order comes from. The defined price origin is also important for changing the invoicing terms via the corresponding action. Select one of the following options:
  • Price list
  • Manual
  • Price list, manual

In this way, you define what should normally apply in new purchase orders of a given type. This default value can be changed in the purchase order.
Selecting Price list, manual has the following effect: If no price can be found for an order line item in the price list, the system automatically changes the price origin of this line item to Manual.

• Transaction type account classification – enter a transaction type account classification that is used as a default value for vouchers of a given type. Transaction type account classifications are used for account determination. A transaction type account classification can be used to assign an account to a group of vouchers in the Account assignments application.

Customizing

You can define a number range in the Purchase order type number range field in the Customizing application, Purchasing function, Number ranges sub-function. If a number range has been defined for the selected purchasing organization, the next number resulting from this is proposed when a type is entered.

The Consignment order category is only available if the Multiple inventory owners setting is activated for the active OLTP client in the Inventory Management function.

The Reservation exclusion and Reservation category for returns fields are only visible if the Reservations function is activated for the active OLTP client.

The Origin of binding unit field is only visible if the Manage inventory in logistic units function is activated for the active OLTP client.

Business entities

The following business entity is relevant for the Purchase order types application, which you use, for example, to

• Assign authorizations,
• Set up activity definitions
• Import or export data

Purchase order type: com.cisag.app.purchasing.obj.PurchaseOrderType

The business entity belongs to the following business entity group:

Purchasing voucher data: com.cisag.app.purchasing.OrderData

Authorizations

Authorizations can be assigned both using the authorization roles and by assigning an organization. The authorization concept can be found in the technical article Authorizations.

Special capabilities

There are no special capabilities for the Purchase order types application.

Organizational assignments

If the Content-based authorizations function is activated in the Customizing application, the Purchase order types application is only displayed to a person if they have been assigned an organization in the partner master data that is integrated into at least one of the following organizational structures:

• Purchasing

The Purchase order types application includes the Authorizations table. For a person to be able to use a purchase order type, they must be assigned to at least one organization in the partner master data that has been entered in the Authorizations table for the respective purchase order type.

Further information on the Authorizations table and a comprehensive overview of the content-based authorizations can be found in the Content-based authorizations article.

Special features

There are no special features for the Purchase order types application.

Authorizations for business partners

The Purchase order types application is not released for business partners.