PO Process Flow

A purchase order is a formal request to a vendor to supply certain goods or services under certain conditions. The user will create Purchase Order with reference to a quotation or a contract. A purchase order is mandatory in the SAP system to facilitate goods receipt, and AL-Nukaly has to compulsorily create the same in SAP henceforth.

 During creation of the Purchase order the vendor details e.g. Vendor Address, Payment Terms, Inco terms will be copied from the vendor master.  For a particular transaction if the Payment Terms and incondition term are different from the vendor master, the same can be changed in the Purchase order.

 Purchase orders would be created in AL-Nukaly after receiving the manifest or other source document in applicable case. Purchase Orders created with reference to a open contract are called as Release orders. One purchase order can be created for all branches taking into consideration of delivery date, quantity and delivery address in the PO. In this case the other branches can also plan for sales according to the delivery date mention in the purchase order.  The typical calculations based on thumb-rule would be entered at juncture, and the actual values captured subsequently in the PO prior to carrying out Goods Receipt.