Purchase orders are the only documents which are basis for product receipts and vendor invoices in procurement. Other documents in purchasing are used in business processes that prepare to create a purchase order.
Purchase agreements provide the option to register and follow up on blanket orders. A blanket order is a purchase order which a customer places with its supplier to allow multiple delivery dates over a period of time, often negotiated to take advantage of predetermined pricing.
You can create a purchase agreement Procurement and sourcing/Purchase agreement/purchase agreement. The field Default commitment in the dialog determines the level of the agreement:
- Product quantity commitment – product number and quantity
- Product value commitment – product number and value
- Product category value commitment – value of a product category
- Value commitment – total value for a vendor
The Effective date (start date of the contract) and Expiration date (end date) in the dialog are used as defualt for agreement lines. Press Ok to create header. Once completed the agreement lines you can confirm the agreement.
A release order is a purchase order that receives a discount because it is associated with a contract (purchase agreement). In order to create a release order, select a purchase agreement and click Purchase agreement/New/release order.
A purchase requisition is an internal document which asks the purchasing department to supply particular goods or services. Unlike planned orders, purchase requisitions are created manually.
Before you can transfer a purchase requisition to a purchase order, an approval workflow has to be completed (Procurement and sourcing/Setup/procurement and sourcing workflow).
You can create a purchase requisition in Procurement and sourcing/purchase requisitions/All purchase requisitions. The initial status is Draft. When you click Workflow/submit, the status goes In review. After approved the status changes to Approved. If approved, you can release a purchase requisition to a purchase order from Procurement and sourcing/Purchase requisitions/Approved purchase requsitions processing/release approved purchase requisitions.
A request for quotation (RFQ) is an external document which asks vendors to submit a quotation (a proposed price for the supplier’s goods or services based on certain conditions).
One request for quotation can include multiple vendors. If you accept a quotation you can transfer it to a purchase order.