Managing Purchase Orders
Objective
After completing this lesson, you will be able to describe the process of managing purchase orders
Business Use Case Process Flow
Splitting purchase orders
In addition to different suppliers and the item types, you might also configure your system to allow separate purchase orders for different Ship to Locations, Contracts, PCard orders or Accounting information.
Sending orders to suppliers
Change, Cancel or Close PO
Once a PO has been generated SAP Ariba has functionality that allows a user to Change, Cancel or Close the order.
Change Orders
A change order is a revision to a purchase order that has been sent to a supplier. The change creates a new version by modifying the originating requisition that created the PO. The original version is rendered obsolete to ensure the supplier fulfills and invoices the correct version.
Cancel Orders
A cancel order is a request to stop the supplier from fulfilling a purchase order that has already been sent but is no longer needed. The cancel option also modifies the original requisition by deleting all line items. The cancel option modifies the original requisition by deleting all line items, but can be used to request a cancellation of only certain selected line items.
Close Order
POs can be closed if no further activity is expected for them, even if the order has not been completely fulfilled. In addition to preventing incorrect invoicing, closing POs allows the creation of more-accurate PO reports. POs can be closed for change, receiving, invoicing, or all actions, and can automatically be closed after having had no activity for a defined period of time. Closed POs can also be reopened at any time.
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