A Purchase Order is a document used to order product from a vendor. Purchase orders can be created manually using the Purchase Order Entry program or they can be created automatically from PO requisitions in the PO Requisition Management program. Purchase orders can also be edited or deleted after creation. Purchase Order documents are assigned a purchase order type of “P” (purchase order), and they are used when purchasing warehouse, special order, or vendor ship items from a vendor. Purchase Order documents are also used when you transfer inventory quantities between your facilities using the IFT (Inter-Facility Transfer) system.
As purchase orders for inventory items are entered into the system the On Order Qty for the items in the Inventory Master file is adjusted where appropriate, and the expected arrival date for the item is updated to reflect the date that the next inbound shipment is expected. Other inventory information is also updated as appropriate (the last purchase price, etc). The information that is updated by the system when each purchase order is placed is based on whether the item is stocking or nonstocking and the processing option being used for the sales and purchase order line.
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