Concepts Tasks Settings Purchase Order Creation Rules Purchase demand comes from work order tasks and requisitions. You can also create a purchase order from scratch. When the purchase demand comes from work order tasks and requisitions, APM uses business rules, the status of the purchase order, and purchase order properties to determine whether or not the line can be added to an existing purchase order. If no existing purchase order is appropriate, APM will create a new purchase order and add a PO line for the purchase demand. Business Rules The procurement business rules, which you configure when you first implement the procurement system in APM, detail the conditions under which a purchase order line can be added to an existing purchase order. You can select any or all of the following conditions: • The buyer must be the buyer identified on the resource • The FOB point must be the default FOB point identified on the supplier • The freight term must be the default freight term identified on the supplier • The payment term must be the default payment term identified on the supplier • The shipping mode must be the default shipping mode identified on the supplier Purchase Order Status The status of a purchase order determines whether or not a PO line can be added. The purchase order must be open, not approved, and not printed. Purchase Order Properties The properties of a purchase order need to match the PO line you want to add. The PO line and purchase order must have the same supplier, the purchase order must have been created today, and its cost distribution must be at the line level. To set up the procurement business rules for your site, see **Setting up Policies for Adding Demand to Purchase Orders.
