Suggestions on how to handle 1 lot orders?

[Former Member]

We use SRM and have activated the Extended Classic config. We are running into issues when we order by a "1 lot" type of scenario. An example of a 1 lot order is: buying 100 computers at $2000 a piece, but when we negotiate with the vendor, we have to send the PO with a quantity of 1 with the price of $200,000. The vendor is one of our XML vendors and the PO must be created that way or it will not process correctly in the vendor system. So that is the initial requirement. The issues that we now have is that the vendor will partially invoice us. So in this example, we may get 4 invoices and when they invoice us, even though it is a partial invoice, they still invoice us at a quantity of 1 for each invoice. This causes GR/IR and blocked invoice issues.

Do you have any suggestions on how we might create a PO for 1 lot orders, that still requires a goods receipt, and allows for multiple partial invoices that each have a quantity of 1 that will not cause GR/IR or blocked invoice issues?

We thought about setting up a limit PO, but our limit POs do not require a goods receipt.

I'd appreciate any advice or feedback on how people currently handle 1 lot orders,

Cindy

[Former Member]

Cindy,

You may want to investigate SRM Limit orders for this type of scenario.

Create a PO for 1off at £10,000

Enter GR for each invoice received

Process the Invoice against the PO

Qty is not relevant in this type of PO only the values.

You can do as many GR's as you want up to the limit of the PO

Reagrds

Allen Brooks

[Former Member]

Thanks for your suggestion. We've been told that Limit POs should not have a goods receipt but it sounds like you have worked with them where they still can. I don't think we have configured the Limit POs that we are using correctly. I'm hearing quite a few complaints about them. By chance, would you be able to point me to how to configure them correctly in SRM so I can share that with our Supply Chain team?

Cindy

[former_member183819]

Hi

In SRM , if the user has a PURCHASER role like SAP_BBP_STAL_PURCHASER so that he can create a limit shopping cart for unplanned purchases -with value limit and validity period i.e BBPSC01 transaction.

there might be link create limit item .

once you click it takes you to create a limit shopping card .

you can describe and select a right product category.

you have option for Good receipt and Invoice or Invoice only.

br

muthu

[Former Member]

Thanks for the additional information. I'll give this a try and see if it meets all the user needs.

Cindy

[Former Member]

Hi. It might get messy, but you can GR decimal places.

On the example you gave there were 100 computers represented by a quantity of 1, so 1 computer would be 0.01. If you receive 4 computers you could GR 0.04, then you could enter the invocie as 0.04.

Failing that do you have alternative UOMs set up?

You could create a new UOM called LOT.

Then you could order 1 lot and enter in the PO that 1 lot = 100 each.

The price for 1 lot can be $20000, then if you GR 4 each the system should do the conversion for you.

Regards,

Dave.

[Former Member]

Thanks for your suggestions. We plan to experiment with the decimal places in the goods receipt but that doesn't address when the vendor still invoices for a full qty of 1 even though in reality it isn't (we are moving to electronic invoicing - so we need to find an automated solution)

I like your idea of creating a UOM and doing a conversion, but I'm not sure how feasible that is. Wouldn't that require many UOM's since a lot could mean different conversions pending upon the contract?? I'll try to bring in some additional resources to help experiment with this option and see if the business thinks this may be feasible.

Thanks again!

Cindy

[former_member206968]

Hi,

If you know how many EA are there in 1 Lot, then you can maintain prices in contract as $20000 per 1000EA and then create order for 1000 EA. So the PO value remains at 20000 but you have 1000 quantity to receive. This way you can receive partially and do partial invoicing, however vendor would need to put the actual nos. in EA for every partial invoice.

Regards,

Sanjeev

[Former Member]

Yeah, that's the issue. The vendor just invoices us 1 lot even though it may not be for the full 1 lot. Crazy,eh? Thanks for the additional info.

Cindy