PO Requisition Creation

Purchase Order Requisitions are created automatically by the system as vendor shipment and special order sales order lines are created or edited in the Sales Order Entry program.  The Requisitions that are created for vendor shipment and special order sales order lines are tied to specific sales order lines and they can be modified but not deleted.

PO Requisitions can also be created automatically by running the PO Recommendations report.  The PO Recommendations report is used to create requisitions for the items that are needed in each warehouse based on the current quantities and reorder information for each item in each warehouse.  The requisitions created with the PO Recommendations report are used to complete orders that are fulfilled using the warehouse replenishment method.

Since the Sales Order Entry program and the PO Recommendations report create purchase order requisitions automatically, the system also calculates the price for each requisition automatically.  The logic used by the system for calculating foreign currency purchasing prices differs from the logic that is used when calculating PO prices in local currency (this logic is covered in detail in the PO Pricing Logic section of this document).

The Logic used to calculate the price for a foreign currency requisition line as follows.

•      The system determines the default vendor for the item from the Inventory or Warehouse record for the item.

•      If the requisition line is being created by the sales order processing system (the requisition is being created for a specific sales order line), the system checks to see if an AIC (additional information comment) exists for the sales order line.  An AIC comment can be used during sales order entry to specify the vendor to be used when purchasing for a specific sales order line.  If an AIC comment exists for the sales order line, the system will use the vendor specified in the AIC comment for the requisition being processed.  This step is not performed by the system when requisitions are created using the PO Recommendations report.

•      Once the correct vendor for the requisition has been determined, the system looks in the Vendor file to determine the default currency for the vendor, and it locates the QVL record for the vendor, item and currency combination being processed (if there is one).  The inventory record for the item is also available at this point.

•      The system checks to see if there is already a requisition for the sales order line (vendor shipment and special order sales order lines only).  If there is an existing requisition for the sales order line and the vendor and the currency in the requisition match the current vendor and currency, the system updates the quantity, the price, and the price source in the existing requisition line.  The system also updates the date fields in the PO requisition based on the information for the item in the QVL record for the item (if it exists) or in the inventory record for the item.

•      If there is no existing requisition line for the sales order line being processed, or if the requisition being created is not tied to a sales order (i.e. it is being created by running the PO Recommendations report), the system creates a new requisition line for the item/vendor/currency combination.  The system also calculates the price for the requisition using the “Target Cost” logic.

•      When the vendor being used for the requisition has a foreign currency set as the default currency, the system checks the following price sources to determine the target cost for the vendor, item, quantity and currency being processed.

•      Active special cost records for the vendor, item, currency, and quantity being processed.  The date range in the special cost record is also checked.  There can be multiple special cost records for a single vendor, item and currency, to handle things like quantity breaks (lower price for qty 5 than for qty1).

•      A QVL record for the vendor, the inventory item, and the default vendor currency.  Only one QVL record can exist for each item/vendor combination.  If a QVL record is found, the QVL foreign currency cost is used in the target cost calculation for the PO line and the price source in the line is set to QVL (to indicate it was obtained from the QVL record for the item).  If no QVL price is found, the system defaults the price of the requisition line to 999999 and the Price Source to INV.  Note: As mentioned earlier, the system does not try to convert your inventory cost information to the requisition currency when processing foreign currency requisition lines.  The PO default cost logic that is used by the Target Cost calculation is not used when you are processing a requisition in foreign currency.

•      If the above does not apply (there is no special cost or QVL record for the item, currency and vendor being ordered), the system will create the requisition line using the default vendor for the item, the default currency for the vendor, and a price of 999999.00.  The price source in the requisition line should be set to INV (this price source and a foreign currency in the PO requisition indicate that a valid foreign currency price was not found when the PO requisition was created.