<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/integrations/PurOrd" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Business process - Purchase Order</Title>
		<Keyword><Level1>Business process</Level1>
			<Level2>Purchase Order</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>During the purchase order process, SSA ERP creates the integration transactions and financial postings described in the following example.</Paragraph>
		<ExampleSection><SectionTitle>Example transaction</SectionTitle>
			<TABLE border="1"><THEAD><TR><TH>Example</TH>
						<TH>Purchase order data</TH>
					</TR>
				</THEAD>
				<TBODY><TR><TD>Item</TD>
						<TD>standard purchased item</TD>
					</TR>
					<TR><TD>FTP valuation</TD>
						<TD>2 items at $100 = $ 200.00</TD>
					</TR>
					<TR><TD>Purchase order</TD>
						<TD>2 items at $110 = $ 220.00</TD>
					</TR>
					<TR><TD>Item receipt surcharge</TD>
						<TD>2 items at 10% = $ 22.00</TD>
					</TR>
					<TR><TD>Warehouse receipt surcharge</TD>
						<TD>2 items at $3 = $ 6.00</TD>
					</TR>
					<TR><TD>Purchase invoice</TD>
						<TD>2 items at $120 = $ 240.00</TD>
					</TR>
					<TR><TD>Tax</TD>
						<TD>10%</TD>
					</TR>
					<TR><TD>Assumption</TD>
						<TD>transaction types with <GUIRef href="" role="manual">Negative Amounts Allowed</GUIRef> = No</TD>
					</TR>
				</TBODY>
			</TABLE>
		</ExampleSection>
	</GeneralSection>
	<ProcedureSection><SectionTitle>The Purchase Order transactions</SectionTitle>
		<Steps><Step><StepTitle>Approve the purchase order line</StepTitle>
				<Paragraph><Emphasis>Note:</Emphasis> The <GUIRef href="" role="manual">Purchase Order / On Order</GUIRef> transaction is only created if the <GUIRef href="" role="manual">Create Financial Economics Stock Transaction</GUIRef> parameter is <GUIRef href="" role="manual">Order Price</GUIRef> in the <GUIRef href="" role="manual">Purchase Parameters (tdpur0100m000)</GUIRef> session.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">IDT 10001060 Purchase Order / On Order</TH>
						</TR>
						<TR><TH width="59">Debit/ Credit</TH>
							<TH width="221">Ledger account</TH>
							<TH width="74">Amount</TH>
							<TH width="194">Reconciliation group</TH>
						</TR>
						<TR><TD width="59">Debit</TD>
							<TD width="221">Goods to be Received</TD>
							<TD width="74" align="right">$ 220.00</TD>
							<TD width="194">Commitments 1</TD>
						</TR>
						<TR><TD width="59">Credit</TD>
							<TD width="221">Purchase Commitments</TD>
							<TD width="74" align="right">$ 220.00</TD>
							<TD width="194">Commitments 2</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Confirm receipt of the goods</StepTitle>
				<Paragraph><Emphasis>Note:</Emphasis> The <GUIRef href="" role="manual">Purchase Order / On Order</GUIRef> transaction is only created if the <GUIRef href="" role="manual" Update="No">Log Financial Economic Transactions</GUIRef> parameter is <GUIRef href="" role="manual">Order Price</GUIRef> in the <GUIRef href="" role="manual">Purchase Parameters (tdpur0100m000)</GUIRef> session.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" align="left" width="560">IDT 10001060 Purchase Order / On Order</TH>
						</TR>
						<TR><TH width="64">Debit/ Credit</TH>
							<TH width="216">Ledger account</TH>
							<TH width="71">Amount</TH>
							<TH width="197">Reconciliation group</TH>
						</TR>
						<TR><TD width="64">Debit</TD>
							<TD width="216">Purchase Commitments</TD>
							<TD width="71" align="right">$ 220.00</TD>
							<TD width="197">Commitments 2</TD>
						</TR>
						<TR><TD width="64">Credit</TD>
							<TD width="216">Goods to be Received</TD>
							<TD width="71" align="right">$ 220.00</TD>
							<TD width="197">Commitments 1</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" valign="top" width="560">IDT 10001074 Purchase Order / Receipt</TH>
						</TR>
						<TR><TH width="64">Debit/ Credit</TH>
							<TH width="216">Ledger account</TH>
							<TH width="75">Amount</TH>
							<TH width="193">Reconciliation group</TH>
						</TR>
						<TR><TD width="64">Debit</TD>
							<TD width="216">Interim Transit - General</TD>
							<TD width="75" align="right">$ 220.00</TD>
							<TD width="193">Interim Transit 1</TD>
						</TR>
						<TR><TD width="64">Credit</TD>
							<TD width="216">Invoice Accrual - Purchase Order Receipt</TD>
							<TD width="75" align="right">$ 220.00</TD>
							<TD width="193">Invoice Accrual 3</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">IDT 10061074 Warehouse Receipt / Receipt</TH>
						</TR>
						<TR><TH width="68">Debit/ Credit</TH>
							<TH width="216">Ledger account</TH>
							<TH width="86">Amount</TH>
							<TH width="189">Reconciliation group</TH>
						</TR>
						<TR><TD width="68">Debit</TD>
							<TD width="216">Material</TD>
							<TD width="86" align="right">$ 220.00</TD>
							<TD width="189">Inventory 1</TD>
						</TR>
						<TR><TD width="68">Credit</TD>
							<TD width="216">Interim Transit - General</TD>
							<TD width="86" align="right">$ 220.00</TD>
							<TD width="189">Interim Transit 1</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">IDT 10061056 Warehouse Receipt / Item Surcharge Receipt</TH>
						</TR>
						<TR><TH width="69">Debit/ Credit</TH>
							<TH width="213">Ledger account</TH>
							<TH width="85">Amount</TH>
							<TH width="182">Reconciliation group</TH>
						</TR>
						<TR><TD width="69">Debit</TD>
							<TD width="213">Material</TD>
							<TD width="85" align="right">$ 22.00</TD>
							<TD width="182">Inventory 1</TD>
						</TR>
						<TR><TD width="69">Credit</TD>
							<TD width="213">Covered Surcharges</TD>
							<TD width="85" align="right">$ 22.00</TD>
							<TD width="182">End Account 732</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">IDT 10061121 Warehouse Receipt / Warehouse Surcharge Receipt</TH>
						</TR>
						<TR><TH width="70">Debit/ Credit</TH>
							<TH width="214">Ledger account</TH>
							<TH width="86">Amount</TH>
							<TH width="179">Reconciliation group</TH>
						</TR>
						<TR><TD width="70">Debit</TD>
							<TD width="214">Material</TD>
							<TD width="86" align="right">$ 6.00</TD>
							<TD width="179">Inventory 1</TD>
						</TR>
						<TR><TD width="70">Credit</TD>
							<TD width="214">Covered Surcharges</TD>
							<TD width="86" align="right">$ 6.00</TD>
							<TD width="179">End Account 737</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph><Emphasis>Note:</Emphasis> The <GUIRef href="" role="manual">Warehouse Receipt / FTP Result</GUIRef> transaction is only created if the valuation method of the item in the warehouse is <Link href="/baanerp/wh/glossary/glossary#000319" role="glossary">fixed transfer price (FTP)</Link>.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">IDT 10061067 Warehouse Receipt / FTP Result</TH>
						</TR>
						<TR><TH width="73">Debit/ Credit</TH>
							<TH width="223">Ledger account</TH>
							<TH width="88">Amount</TH>
							<TH width="174">Reconciliation group</TH>
						</TR>
						<TR><TD width="73">Debit</TD>
							<TD width="223">FTP Result</TD>
							<TD width="88" align="right">$ 22.00</TD>
							<TD width="174">End Account 731</TD>
						</TR>
						<TR><TD width="73">Credit</TD>
							<TD width="223">Material</TD>
							<TD width="88" align="right">$ 22.00</TD>
							<TD width="174">Inventory 1</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Register the purchase invoice</StepTitle>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">Open Entry (no integration transaction)</TH>
						</TR>
						<TR><TH width="73">Debit/ Credit</TH>
							<TH width="224">Ledger account</TH>
							<TH width="94">Amount</TH>
							<TH width="167">Reconciliation group</TH>
						</TR>
						<TR><TD width="73">Debit</TD>
							<TD width="224">Registered Purchase Invoices</TD>
							<TD width="94" align="right">$ 240.00</TD>
							<TD width="167">not applicable</TD>
						</TR>
						<TR><TD width="73">Debit</TD>
							<TD width="224">Tax Receivable</TD>
							<TD width="94" align="right">$ 24.00</TD>
							<TD width="167">not applicable</TD>
						</TR>
						<TR><TD width="73">Credit</TD>
							<TD width="224">Accounts Payable</TD>
							<TD width="94" align="right">$ 264.00</TD>
							<TD width="167">not applicable</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Approve the purchase invoice</StepTitle>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">Approval Document (no integration transaction)</TH>
						</TR>
						<TR><TH width="72">Debit/ Credit</TH>
							<TH width="225">Ledger account</TH>
							<TH width="100">Amount</TH>
							<TH width="161">Reconciliation group</TH>
						</TR>
						<TR><TD width="72">Debit</TD>
							<TD width="225">Invoice Accrual - Purchase Order Receipt</TD>
							<TD width="100" align="right">$ 240.00</TD>
							<TD width="161">Invoice Accrual 3</TD>
						</TR>
						<TR><TD width="72">Credit</TD>
							<TD width="225">Registered Purchase Invoices</TD>
							<TD width="100" align="right">$ 240.00</TD>
							<TD width="161">not applicable</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">IDT 10001065 Purchase Order / Price Variance</TH>
						</TR>
						<TR><TH width="72">Debit/ Credit</TH>
							<TH width="225">Ledger account</TH>
							<TH width="105">Amount</TH>
							<TH width="156">Reconciliation group</TH>
						</TR>
						<TR><TD width="72">Debit</TD>
							<TD width="225">Interim Variance - Purchase &amp; Production</TD>
							<TD width="105" align="right">$ 20.00</TD>
							<TD width="156">Interim Variance 1</TD>
						</TR>
						<TR><TD width="72">Credit</TD>
							<TD width="225">Invoice Accrual - Purchase Order Receipt</TD>
							<TD width="105" align="right">$ 20.00</TD>
							<TD width="156">Invoice Accrual 3</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Pay the purchase invoice</StepTitle>
				<TABLE border="1" width="80%"><TBODY><TR><TH colspan="4" width="560">Payment (no integration transaction)</TH>
						</TR>
						<TR><TH width="77">Debit/ Credit</TH>
							<TH width="219">Ledger account</TH>
							<TH width="110">Amount</TH>
							<TH width="152">Reconciliation group</TH>
						</TR>
						<TR><TD width="77">Debit</TD>
							<TD width="219">Accounts Payable</TD>
							<TD width="110" align="right">$ 264.00</TD>
							<TD width="152">not applicable</TD>
						</TR>
						<TR><TD width="77">Credit</TD>
							<TD width="219">Bank</TD>
							<TD width="110" align="right">$ 264.00</TD>
							<TD width="152">not applicable</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
		</Steps>
	</ProcedureSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tf/integrations/10001_lst" role="manual">Integration document types - Purchase Order</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/integrations/10061_lst" role="manual">Integration document types - Warehouse Receipt</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
