Canceling Backorders
You can cancel backorders in two ways:
• At the time of receipt
• In purchase order maintenance, which is more time consuming
What is the difference?
• Enabling cancellation at receipt is easier, but allows the operator to cancel any quantities
Setup Implications
• To allow cancellation at receipt, set Cancel Backorders in Purchasing Control to Yes
See
Cancel Backorders for details.
Overshipments
You limit acceptance of over shipments in two ways:
1 Through a tolerance percentage, limiting them, for example, to 5%
2 Through a tolerance cost, limiting it, for example, to $100.00
The two tolerances work together so that the receipt has to be acceptable by both criteria:
• With POs, the system gives you a hard error and you cannot receive if both criteria are not met
• With supplier schedules, if criteria are not met the system gives you a warning only, allowing you to receive in excess of tolerance
Setup Implications
• Set values in the Tolerance Percent and Tolerance Cost field in Purchasing Control
• If over tolerance, you can also change the PO quantity and then receive
Pricing Tables
Pricing Tables allow you to store extra pricing structure for items for these reasons:
• Prices in other than the base currency
• Prices for different units of measure, such as a better price for a case than for a unit
• Discounts at different quantity levels
• Prices calculated as a percentage markup over GL cost
Why Consider?
• Refines your pricing and saves money
• Speeds up PO maintenance and reduces purchase price variance errors
Setup Implications
• Associate price lists with suppliers and set up defaults for purchase orders
See Training Guide: List and Discount Table Pricing for details.
Inspection and Review
• Do you have a Vendor Certification Program?
• Are inspection items available for allocations?
• Do you have multiple inspection locations?
• Are you using the Quality Management module?
• Are you using the Compliance module?
Setup Implications
• Set Purchasing Control Inspection Location field to the default inspection location
• In Item Inventory Data Maintenance you can set the PO Receipt status to a code established in Inventory Status Code Maintenance
• In Item Planning Maintenance, set Inspection to Yes and enter an inspection lead time
Subcontracting
Subcontracting allows you to:
• Track manufacturing operations performed by suppliers
What is the impact on purchasing?
• Purchase order line items of type S must refer to operation and work order
