Purchase order confirmations are a way to gain formal confirmation from your trading partners that they have received your order. Order confirmations may contain useful information such as the delivery date or notice that the item is backordered. Trading Partners can also "Partially Confirm" or "Reject" the Order, providing you the information you need to make informed business decisions about the materials you need.
When considering changes to the baseline settings for Order Confirmations, think about the following questions:
- Do order confirmations drive existing workflows, or will they in the future? Are they required?
- How do you handle partially confirmed and backordered items?
- How are price increases managed?
- Will you allow trading partners to increase quantity to reduce the unit price?
- How do you handle orders that need to be changed or cancelled?
Learn more about key purchase order confirmation rules and how they function.
- Allow Suppliers to send Order Confirmations for Material Orders
If your organization does not allow order confirmations for material orders, "Uncheck" to disable this rule.
- Allow Suppliers to send Order Confirmations for Service Orders.
If your organization does not allow order confirmations for service orders, "uncheck" to disable this rule.
- Require Suppliers to create an Order Confirmation for the PO before creating an Invoice.
It is not recommended to enable this rule because it will create a barrier to Invoicing, however, if you require Trading Partners to provide Order Confirmations for Material Orders, "Check" to enable this rule. Enabling this rule will require the Trading Partners to submit at least one Order Confirmation against a Purchase Order, otherwise a network error will be generated during Invoicing.
- Send Suppliers an automatic reminder of Unconfirmed Orders after a specified number of days.
You can choose to send Trading Partners up to three automatic reminders for Orders that are unconfirmed after the specified number of days from the Order date. Enter specified number of days if you would like to enable this rule.
- Allow Suppliers to reject quantities for material Orders at the line item level in Order Confirmations.
- No - If selected, Trading Partners cannot reject material line items.
- Partially (Recommended) - If selected, Trading Partners can specify a quantity to reject for material line items.
- Fully - If selected, Trading Partners can only fully reject material line items.
- Apply line item quantity tolerance to Order Confirmations.
SAP recommends setting this to at least 10% to allow flexibility to your Trading Partners.
- Apply line item unit price tolerance to Order Confirmations.SAP recommends setting this to at least 10% to allow flexibility to your Trading Partners.