How Purchase Orders are Structured?

There are a number of implications that need to be understood by all authorized users who approve any organization’s purchase orders. Every approved purchase order transmitted to suppliers has purchase order terms and conditions.

The Purchase Order application is broken down into four processes: setup, creating and issuing purchase orders, receiving goods, and posting to the general ledger.

While setting up the Purchase Order application, you must consider the purchasing needs of your central reporting structure. Specifically, you need to determine pricing needs, buyer groups, vendor groups, and cost defaulting hierarchies.

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Purchase order header and Purchase order lines

When you create a purchase order, you enter the header and then assign lines to the header. The lines contain the specific item information for the order.

Using Infor, you can specify a purchase order header and purchase order lines on one screen. This session enables you to quickly enter the most important information for an order.

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The information in the purchase order header (PO header) is applicable to the entire purchase order document.

In the header you enter the company, buyer, vendor, ship to location, and delivery date, etc. After you create the header, each line that you add in the order line section is assigned to the header information specified above.

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A purchase order line (PO line) contains order information about a specific item. Each line must contain the item number, quantity, unit of measure, and unit cost. In addition, you have the option to add a delivery date and ship to location to a particular line if it is different than what you specified in the header.

Each purchase order line (PO line) can also contain more detailed information about a particular item. Such detail can include item size and colour, as well as line-specific cost information such as line tax and other add-on costs.

After you have created the purchase order and added it to the Purchase Order application, you can add other header and line options such as add-on cost spread.