PO when creating SO

[Former Member]

Hi,

My understanding is a PO is when raised you want to buy something.

When creating a Sales order, why is a PO involved?

regards

Tom

[Former Member · Accepted solution]

Dear Tom,

The scenario is used in third-party sales.Means ur customer places an order to u and u place an order to a vendor.In that case the system automatically creates a PO.

Regards,

Ramesh.

[Former Member · Accepted solution]

Hi Ramesh,

what i meant was , why a PO information is entered when creating a SO.

Is it just to record what is the customer's own PO used to make the purchase?

Is it a must to enter PO of customer when creating SO?

regards

Tom

Edited by: fourminutes tom on Nov 26, 2010 2:38 PM

[reazuddin_md · Accepted solution]

Dear Tom,

Sorry for misunderstanding your requirement.

PO number & PO date is just for informatioin,but important to the customer, This will be the reference to the business & easy to contact to the customer's purchasing department. With this number they can easily identify what are the goods & when they required.

You can pass this info to Billing & then invoice output. While inwarding the goods/ invoice receipt wrt: PO or GR document they can identify the procurement.

Whether this info is required or nto , depends on business, if the business doesnt want this info to be captured, you can very well removed these fields from the Header incompletion procedure.

Hope this helps you.

Regards,

Reazuddin MD

[Former Member]

hi,

this is to inform you that,

My understanding is a PO is when raised you want to buy something.

yes you are right. but if you want to purchse only.

When creating a Sales order, why is a PO involved?

for THIRD PARTY SALES

for INDIVIDAL PURCHASE ORDERS

for All types of NTRA & INTER COMPANY STO'S

etc....

hope this clears your issue.

regards,

balajia

[reazuddin_md]

Hi,

Apart from the existing business, client will do the Trading also to meet the customer requirements.

But business doesnt want to hold the stock nor maintain inventory. Whenver customer requires the goods, business will procure the goods & based on Customer request, either business recommends the vendor to issue the goods directly to customer or issue to the plant , then client issue to Customer.

In such cases, client will raise the PR automatically based on Customer demand which will convert into PO.

Hope it adds info

Regards,

Reazuddin MD

[Former Member]

PO in sales order means your customer place purchase order to you,let's say your customer want to buy products from you,then he/she needs to place purchase order in her/his system,then the po shows in your SO is the number which shows his/her system of PO,hope it helps.