Distribution Requirements Planning > Introduction to DRP > Purchase Orders and Sales Orders
  
Purchase Orders and Sales Orders
You can use purchase orders and sales orders instead of intersite requests and distribution orders. At the receiving site, enter purchase orders or supplier schedules instead of intersite requests. At the supply site, enter sales orders or customer schedules instead of distribution orders. DRP still creates intersite requests, but deletes them when it sees purchase orders satisfying the projected requirements.
You should use purchase and sales orders instead of intersite requests and distribution orders if:
Base currencies differ between sites.
Taxes need to be calculated and recognized in the general ledger.
To use intersite purchase and sales orders, set up procedural controls to ensure that sales orders at source sites mirror purchase orders at receipt sites. Also, enter the inventory site codes for the customer and supplier address codes.
There are two drawbacks to using purchase and sales orders instead of intersite requests and distribution orders:
There are no in-transit inventory records.
There is little or no data for transportation planning, which normally uses load information from intersite requests.