<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/td/onlinemanual/000040" xml:lang="en">
   <Header>
      <Title>Purchase order procedure</Title>
      <Keyword type="header" order="d1e1598239">
         <Level1>Purchase order</Level1>
         <Level2>procedure</Level2>
      </Keyword>
   </Header>
   <AimSection ID="aim_procurement_order_procedure">
      <Paragraph>The purchase order procedure covers the complete administrative
		procedure for purchasing goods or services.</Paragraph>
   </AimSection>
   <GeneralSection>
      <ProcedureSection>
         <ProcIntro>
            <Paragraph>The procedure includes the following steps:</Paragraph>
         </ProcIntro>
         <Steps>
            <Step>
               <StepTitle>To create purchase orders</StepTitle>
               <List>
                  <ListIntro>Purchase orders can be created as follows in the <Link href="/baanerp/td/pur/tdpur4100m900" role="session">Purchase Order - Lines (tdpur4100m900)</Link> session:</ListIntro>
                  <ListItem>Automatically, from a variety of sources, such as <GUIRef href="/baanerp/td/domains/pur.corg#mrp" role="option">EP</GUIRef>, <GUIRef href="/baanerp/td/domains/pur.corg#sls" role="option">Sales</GUIRef>, <GUIRef href="/baanerp/td/domains/pur.corg#sma" role="option">Service</GUIRef>,
				  and so on</ListItem>
                  <ListItem>Copied from an existing order in the <Link href="/baanerp/td/pur/tdpur4201s000" role="session">Copy Purchase Order (tdpur4201s000)</Link> session</ListItem>
                  <ListItem>Manually</ListItem>
               </List>
            </Step>
            <Step>
               <StepTitle>To approve purchase orders</StepTitle>
               <Paragraph>After purchase orders are created, purchase order approval
				is a mandatory step in the purchase order procedure. The execution of the order
				procedure activities can start when a user approves the order.</Paragraph>
               <Paragraph>For more information, refer to <Link href="/baanerp/td/onlinemanual/000415" role="manual">Purchase order approval</Link>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>To print purchase orders</StepTitle>
               <Paragraph>After the order is registered and approved, you can print
				the purchase order and send it to the buy-from business partner as
				confirmation. The <GUIRef href="/baanerp/td/pur/tdpur4401m000" role="session">Print Purchase Orders (tdpur4401m000)</GUIRef> session is only
				mandatory if you communicate the purchase order to the buy-from business
				partner by mail or by <Link href="/baanerp/tc/glossary/glossary#000066" role="glossary" Update="No">electronic data interchange (EDI)</Link>. If you use
				the phone to communicate purchase orders, this step is optional.</Paragraph>
               <Paragraph>After the purchase order is printed, you can still modify
				the purchase order.</Paragraph>
            </Step>
            <Step>
               <StepTitle>To release purchase orders to <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>
               </StepTitle>
               <Paragraph>After the buy-from business partner is informed about the
				purchase order and the purchase order is approved, you can release the purchase
				order to <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef> in the <GUIRef href="/baanerp/td/pur/tdpur4246m000" role="session">Release Purchase Orders to Warehousing (tdpur4246m000)</GUIRef>. As a result, the warehousing
				department is informed about the goods to be expected.</Paragraph>
               <Paragraph>When purchase orders are released to the warehouse,
				several activities are triggered in <GUIRef href="/baanerp/wh/inh" role="module">Warehouse Orders</GUIRef>,
				starting with warehouse order creation in the <GUIRef href="/baanerp/wh/inh/whinh2100m000" role="session">Warehousing Orders (whinh2100m000)</GUIRef> session. The activities in <GUIRef href="/baanerp/wh/inh" role="module">Warehouse Orders</GUIRef> depend
				on the warehouse order type that is linked to the purchase order type. You must
				first link activities to a <Link href="/baanerp/wh/glossary/glossary#000007" role="glossary">warehousing procedure</Link> in the <GUIRef href="/baanerp/wh/inh/whinh0106m000" role="session">Activities by Procedure (whinh0106m000)</GUIRef> session. You can link a warehousing
				procedure to a warehousing order type in the <GUIRef href="/baanerp/wh/inh/whinh0110m000" role="session">Warehousing Order Types (whinh0110m000)</GUIRef> session, after which you can link the warehousing
				order type to a purchase order type in the <GUIRef href="/baanerp/td/pur/tdpur0194m000" role="session">Purchase Order Types (tdpur0194m000)</GUIRef> session.</Paragraph>
               <Paragraph>It is not mandatory to release purchase orders for cost
				items and service items to <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>. This depends on the setting of the <Link href="/baanerp/td/ipu/tdipu0101m000#tdipu001.retw" role="formfield">Release to Warehouse</Link> check box in the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session. Direct deliveries are never released to
				warehousing.</Paragraph>
            </Step>
            <Step>
               <StepTitle>To receive the purchased goods</StepTitle>
               <List>
                  <ListIntro>You can record the receipts of purchased
				  goods:</ListIntro>
                  <ListItem>In <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef> if the purchase order is released to <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>. The
				  receipt procedure is covered by the inbound procedure and the inspection
				  procedure in <GUIRef href="/baanerp/wh/inh" role="module" Update="No">Inventory Handling (INH)</GUIRef>. For more information, refer to <Link href="/baanerp/wh/onlinemanual/000383" role="manual">Receipt and inspection procedures</Link>. <List>
                        <ListIntro>When receipts are recorded in <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>, the
						receipt data is reported back to <GUIRef href="/baanerp/procurement" role="package">Procurement</GUIRef>. You
						can view this data in the following sessions:</ListIntro>
                        <ListItem>
                           <GUIRef href="/baanerp/td/pur/tdpur4531m000" role="session">Purchase Orders - Receipt Overview (tdpur4531m000)</GUIRef>
                        </ListItem>
                        <ListItem>
                           <GUIRef href="/baanerp/td/pur/tdpur4106m000" role="session">Purchase Receipts (tdpur4106m000)</GUIRef>
                        </ListItem>
                     </List>
                  </ListItem>
                  <ListItem>In <GUIRef href="/baanerp/procurement" role="package">Procurement</GUIRef> for non-inventory items that are not
				  released to <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>. You can record the deliveries in the <Link href="/baanerp/td/pur/tdpur4106m000" role="session">Purchase Receipts (tdpur4106m000)</Link> session.</ListItem>
               </List>
               <Paragraph>After a receipt is confirmed in the <GUIRef href="/baanerp/td/pur/tdpur4106m000" role="session">Purchase Receipts (tdpur4106m000)</GUIRef> session, you can no longer change the receipt data in
				this session. However, you can still change specific receipt data in the <Link href="/baanerp/td/pur/tdpur4106s100" role="session">Correct Purchase Receipt (tdpur4106s100)</Link> session.</Paragraph>
               <Paragraph>When the goods are
				received, the prices and discounts of the goods may be changed. Use the <Link href="/baanerp/td/pur/tdpur4122m000" role="session">Change Price and Discounts after Receipt (tdpur4122m000)</Link> session to maintain prices and discounts.</Paragraph>
            </Step>
            <Step>
               <StepTitle>To pay for the purchased goods</StepTitle>
               <Paragraph>To manage the payment of the purchased goods, you must use <GUIRef href="/baanerp/tf/acp" role="module" Update="No">Accounts Payable (ACP)</GUIRef>. You can only carry out this process if the <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef> package is
				implemented. For more information, refer to <Link href="/baanerp/tf/onlinemanual/000104" role="manual">Processing purchase invoices</Link>.</Paragraph>
               <Paragraph>In the purchase order procedure, the business partner does
				not need to send an invoice. Instead, you can use <Link href="/baanerp/tf/glossary/glossary#000008" role="glossary" Update="No">self billing</Link> to automatically generate
				invoices for the purchased goods.</Paragraph>
               <List>
                  <ListIntro>Self billing is typically used if you have:</ListIntro>
                  <ListItem>A contract with the business partner for the price of
				  the goods you are buying.</ListItem>
                  <ListItem>An agreement with the business partner that you will pay
				  for the goods without receiving an invoice for them.</ListItem>
               </List>
               <List>
                  <ListIntro>Self billing is controlled by the following fields in
				  the <GUIRef href="/baanerp/td/pur/tdpur4100m000" role="session">Purchase Orders (tdpur4100m000)</GUIRef>/ <GUIRef href="/baanerp/td/pur/tdpur4101m000" role="session">Purchase Order Lines (tdpur4101m000)</GUIRef> session:</ListIntro>
                  <ListItemHead>
                     <GUIRef href="/baanerp/td/pur/tdpur4100m000#tdpur400.sbim" role="manual">Self-Billing</GUIRef>
                  </ListItemHead>
                  <ListItem>If you select this check box, an invoice can be
				  generated for each order line receipt. In the financial company to which the
				  purchase office is linked, you can select the order lines and generate the
				  invoices in the <GUIRef href="/baanerp/tf/acp/tfacp2290m000" role="session">Generate Self-Billing Purchase Invoices (tfacp2290m000)</GUIRef> session.</ListItem>
                  <ListItemHead>
                     <GUIRef href="/baanerp/td/pur/tdpur4101m000#tdpur401.paft" role="manual">Invoice after</GUIRef>
                  </ListItemHead>
                  <ListItem> 
                     <List>
                        <ListIntro>This field can be set to one of the
						following:</ListIntro>
                        <ListItemHead>
                           <GUIRef href="/baanerp/tc/domains/paft#approval" role="option">Inspection</GUIRef>
                        </ListItemHead>
                        <ListItem>Self-billed invoices can only be created for the
						total approved received quantity, after all inspections have been finished for
						a particular receipt.</ListItem>
                        <ListItemHead>
                           <GUIRef href="/baanerp/tc/domains/paft#receipts" role="option">Receipt</GUIRef>
                        </ListItemHead>
                        <ListItem>A self-billed invoice can be immediately created for
						the total received quantity. If, after inspection, some quantity is rejected,
						in the <GUIRef href="/baanerp/tf/acp/tfacp2290m000" role="session">Generate Self-Billing Purchase Invoices (tfacp2290m000)</GUIRef> session, an
						invoice is created for the rejected quantity. This invoice contains a negative
						quantity.</ListItem>
                     </List>
                  </ListItem>
               </List>
               <Paragraph>For more information, refer to <Link href="/baanerp/tf/onlinemanual/000008" role="manual">Self billing</Link>.</Paragraph>
            </Step>
            <Step>
               <StepTitle>To process purchase orders</StepTitle>
               <Paragraph>At the end of the purchase order procedure, all purchase
				orders must be processed in the <Link href="/baanerp/td/pur/tdpur4223m000" role="session">Process Delivered Purchase Orders (tdpur4223m000)</Link> session. The processed purchase orders are transferred from the regular
				database to the history database.</Paragraph>
               <Paragraph>For more information, refer to <Link href="/baanerp/td/onlinemanual/000021" role="manual">Purchase order/schedule history</Link>.</Paragraph>
            </Step>
         </Steps>
      </ProcedureSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000415" role="manual">Purchase order approval</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000383" role="manual">Receipt and inspection procedures</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000104" role="manual">Processing purchase invoices</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000008" role="manual">Self billing</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000012" role="manual">To process purchase orders/schedules</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000021" role="manual">Purchase order/schedule history</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000007" role="manual">Overview of purchase order handling</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>