Purchase Ordering {FPMO2}

The creation and maintenance of orders are discussed in this manual.

Purchase Order  Document Types

• This is not a mandatory document for documents higher up in the hierarchy, except where the ITS Store or Library subsystem is used.
• Can be used centralised and de-centralised.
• Each document can handle any number of items irrespective if they are defined or not defined items. 
• Defined items can be General, Stock or Library Items.
• Three (3) financing methods are available on orders namely Quantity.Distribution, Percentage Distribution and Cost Distribution.
  
• The financing method refers the basis on which an expense will be distributed if more than one cost centre carries the cost of the expense.
• Budget control can be performed.
•  Once budget control has been performed and the budget indicator on a line of a document is sufficient or forced the funds of the probable expense are reserved by the Commitment generated.
• Cancel commitments are be done by the system when an orderis invoiced or cancelled.

Order Menu Options

• Access to the option FPMO2-1 on Update level {USERS-2,3}.  
• Document Security
• The first level is Access Restrictions on Document Type {FCSM-4}
• To process orders the user must be linked to PM Access Restrictions.
• The Access restrictions for this option are:
  

•  The area within which a user maintains Orders and or apporves is dependent on the permissions given to the user; refer the Finance Permissions Operational Manual.

• Transaction Types for Request Events {FCSO-7}
• The users have no control over the Transaction type in this option, it is maintained by the program.  Transaction Types must be defined on option {FCSO-7} for the following events.
  

• Foreign Currencies {FCSO-21}
• Set the Type of exchange rate in Block 1.for the PM subsystem.
• Maintain the rates in Blocks 2 and 3.
• Process sequence 2 frequently.
  

• Change and Cancellation/Complete Reasons {FPMC-8}

• Create at least one reason code for Change, Cancel and Complete. This code will be used in Block 3 of this option.


• System Operational Definitions {FCSM-1b2}
  
• For Order System Operational Definitions, refer to the  System Operational Definitions manual.

• PM Subsystem Cycle. {FCSM-2}

• A user in this option must ALWAYS validate that the PM current cycle is correct before processing any documents.
  

• A Standing Order is created is the same way as the Order ( Document Type = 'O') and all attributes of a Orders applies to the Standing Orders.
• The only difference between the Order and Standing Order is the way a standing order is handled at PM Year End.  At PM Year End the Standing Order outstanding commitment will be carried forward and each Original Item will be duplicated for delivery in the next year.
• These new Item Records are updateable by the user.  This update process, to bring the item in line with the New Year's specifications, must be done by the user before the first unit is received.
• If the delivery of an item was cancelled in the old year, the user should delete (discontinue) the new Item Record. Item Records that were deleted  (discontinued ) will not be carried forward (duplicated for delivery in the next year) in future PM Year Ends.
• New items can be added to the Standing Order provided that the new items has not already been received.