What are the different types of Purchase Orders supported, and how are they used?
There are a couple different types of Purchase Orders.
Purchase Orders: A Purchase Order (PO) is a legal document issued by the company to a supplier detailing the specific types, quantities, prices and time frames for products and/or services. The user will create a PO with line items that will detail what is being purchased from the supplier.
Subcontract Purchase Orders: Subcontract Purchase Orders are used for subcontractor suppliers to provide a service on a portion of a project or build. The subcontract purchase order will define the effectivity date of the subcontract services and the scope of work that the subcontractor must perform.
There are also a few different Subtypes of Purchase Orders. The Subtype on a purchase order controls how purchase orders are processed. Currently, the system generates the Subtype on a purchase order for three different scenarios: Dropship, Replacement, and Value Only. Purchase Order Subtypes will be blank for standard purchase orders. The following are details on the different subtypes and how the system will populate the subtypes.
Dropship: This purchase order was created by a drop-ship Sales Order or stand-alone drop-ship purchase order. This subtype will be set when one of the purchase order lines has enabled the drop-ship indicator on the line. When one line of a purchase order has opted into being a drop-ship line then all lines on the purchase order must be drop-shipped.
Replacement: This purchase order was created from a Purchase Order Return that was marked as replacement. Purchase Orders with this subtype are created with $0 prices and validations against Supplier Item Relationships for quantity and pricing are not done.
Value Only: This purchase order can be launched from the menu by clicking on the menu item Value Only Purchase Order or Value Only Subcontract Purchase Order. Orders with this subtype can be created without defining a quantity or unit of measure for each detail. Items that exist on this purchase order must but nonstock or freeform items. To utilize this subtype, the customer will have to set the Default Unit Of Measure setting in procurement settings for the company. Invoice matching against these types of purchase orders will only match against the total price defined and never take quantity into account.