Difference between revisions of "Purchase order"

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A purchase order is a '''one sided declaration''' of a customer towards a supplier.  
[[File:Purchasing Process.png|thumb|Purchasing order contracting process]]A purchase order is a '''one sided declaration''' of a customer towards a supplier, which requires a contract to exist to be legally binding for the customer and the supplier side.    


== Structure ==
== Purchase orders in the b-op network ==
Each purchase order has the same structure containing a header and one or multiple positions. The '''header''' holds information, which regulates general information like target supplier and holds status information. On '''position''' and '''subposition''' level the information on the products to purchase and the delivery requirements are defined. For more information please read up the [[Dev:Purchase order processing|purchase order processing]] article.
When transmitted to a supplier by the [[Dev:B-Op supply chain network connector|B-Op supply chain network connector]], a purchase order is transformed within the b-op network to a [[Customer Order|customer order]].  


== Interaction with suppliers / Contracting ==
Before a purchase order is created by the customer, the contracting phase is started, which means that customer and suppliers exchange offers until a mutual agreement is found ([[Purchasing contract|purchase contract]]).


<u>Purchase order with contract reference (master contract based purchase order)</u>


Once this [[Purchasing contract|purchase contract]] exists, a purchase order can be filed from the customer to the supplier with a reference to this contract. In this case, the supplier's digital only checks if the [[Customer Order|customer order]] positions and conditions adhere to the contract and can auto-approve it.


The processing of a purchase order typically has these phases:


* Contracting / Negotiation phase
<u>Purchase order without contract reference (Individual purchase order)</u>
* Creation
* Fulfillment phase


Detailed information on purchase order processing can be found in [[Dev:Purchasing contract negotiation process|this article]].
Purchase orders can also be filed to the supplier without a contract reference. In this case the positions and conditions of the purchase contract are considered to bear a purchasing contract proposal. The purchase order is showing a [[Customer Order|customer order]] on the supplier side, which is subject to approval on the customer side. Once approved by the supplier, the system automatically forms a purchasing contract and links the purchase order and the customer order to this contract.


== Creation ==
For more information please read up the [[Dev:Purchase order processing|purchase order processing]] article.
There are two ways of purchase order creation:


* '''Individual purchase order''' - once a buyer and a seller have finalized their negotiations through the [[Dev:Purchasing contract negotiation process|purchasing contract negotiation process]] an agreement has been reached, a [[purchasing contract]] is created.
== Structure ==
* '''master contract based purchase order''' - the contract has been prenegotiated and the purchase order is directly created based on it, so no [[Dev:Purchasing contract negotiation process|negotiation phase]] is required.
Each purchase order has the same structure containing a header and one or multiple positions. The '''header''' holds information, which regulates general information like target supplier and holds status information. On '''position''' and '''subposition''' level the information on the products to purchase and the [[Dev:Delivery plan|delivery requirements]] are defined.  
 
The purchase order is the business object on the customer side, the [[Customer Order|customer order]] is the business object on the supplier side. They are bound together through the [[Dev:B-Op supply chain network connector|B-Op supply chain network connector]] in the b-op network, if both parties have their [[Digital|b-op digitals]] and they share enough trust.
 
== Processing ==


For more information please read up the [[Dev:Purchase order processing|purchase order processing]] article.
== Related Articles ==
== Related Articles ==


Revision as of 17:00, 4 November 2023

Purchasing order contracting process

A purchase order is a one sided declaration of a customer towards a supplier, which requires a contract to exist to be legally binding for the customer and the supplier side.

Purchase orders in the b-op network

When transmitted to a supplier by the B-Op supply chain network connector, a purchase order is transformed within the b-op network to a customer order.

Interaction with suppliers / Contracting

Before a purchase order is created by the customer, the contracting phase is started, which means that customer and suppliers exchange offers until a mutual agreement is found (purchase contract).

Purchase order with contract reference (master contract based purchase order)

Once this purchase contract exists, a purchase order can be filed from the customer to the supplier with a reference to this contract. In this case, the supplier's digital only checks if the customer order positions and conditions adhere to the contract and can auto-approve it.


Purchase order without contract reference (Individual purchase order)

Purchase orders can also be filed to the supplier without a contract reference. In this case the positions and conditions of the purchase contract are considered to bear a purchasing contract proposal. The purchase order is showing a customer order on the supplier side, which is subject to approval on the customer side. Once approved by the supplier, the system automatically forms a purchasing contract and links the purchase order and the customer order to this contract.

For more information please read up the purchase order processing article.

Structure

Each purchase order has the same structure containing a header and one or multiple positions. The header holds information, which regulates general information like target supplier and holds status information. On position and subposition level the information on the products to purchase and the delivery requirements are defined.

For more information please read up the purchase order processing article.

Related Articles

Related development articles

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