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Session Id :
Supply chain | Supply Chain Management, Commerce
Answered

Enforcing minimum order value for planned purchases

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Posted on by 2

Hi,

I want a minimum order value to be defined for POs and apply the same when master planning generates planned purchases. Is this possible to achieve?

I can see the option in Purchase agreement to define the minimum release amount, but master planning doesn't seem to be looking at it. I have enabled the flag in master planning parameter to consider purchase agreements. Please advise.

Regards,

Sreehari.

I have the same question (0)
  • qianwang Profile Picture
    7,168 on at

    Hi Sreehari,

    Could you elaborate on your specific requirement?

    The purchase agreement would be been displayed when you confirm the planned order. You can see it in purchase order line when click the ‘update line’. If the line amount on the order is outside the range, it will display a message but not prevent you from using the agreement.

    If you need to control the quantities, try setting it in default order setting for related items.

    Regards,

    QianQW

  • Sreehari Profile Picture
    2 on at

    Thank you QianQW.

    Do you mean, the purchase agreement will effect only after PO is created? Any way to apply it for planned POs?

    As you suggested, I linked the agreement to the PO by clicking in 'Update lines' but Min value was not applied. I have used "Product value commitment" in the agreement. Is that the right option to use?

    Regards,

    Sreehari.

  • Verified answer
    qianwang Profile Picture
    7,168 on at

    Hi Sreehari,

    Yes, the purchase agreement will effect only after the PO is created. And there is no way to apply a purchase agreement to a planned PO.

    What is the meaning of  'Min value was not applied'?

    If you mean that the value of 'Minimum release amount' is not displayed in the purchase order line, it is because the purchase agreement only controls the range value of the net amount.

    If you mean that the  amount is below the min value, but the system still allows you to save and confirm PO. Please check if there is a prompt message popping up. It only reminds you but not prevent you from using the agreement. This is standard behavior.

    Regards,

    QianQw

  • Sreehari Profile Picture
    2 on at

    Thanks QianQW.

    I am getting the pop up message when I manually create a PO. But when a PO is created from planned order, the same message is not shown even after linking the order line to the purchase agreement.

    Regards,

    Sreehari.

  • qianwang Profile Picture
    7,168 on at

    Hi Sreehari,

    Are the same the two purchase agreements? if no, could you show the screenshot of the purchase agreement? If yes, which version are you using?

    In normal, you don't need to link the purchase agreement to PO line mannually after firm the planned PO, if you enable the button 'find purchase agreement' in Master planning parameters.

    Regards,

    QianQW

  • Guy Terry Profile Picture
    28,924 Moderator on at

    Hi,

    I do not believe that you can configure Master planning to consider a minimum order value, when proposing the quantites of multiple items to purchase from a vendor.

  • Sreehari Profile Picture
    2 on at

    Hi QianQW,

    You are right. The purchase agreement is already linked when PO is created from planned order. I am getting the warning message when PO is saved.

    Regards,

    Sreehari.

  • Sreehari Profile Picture
    2 on at

    Thank you Guy for confirming.

    Based on discussions with QianQW, I have arrived at the same conclusion, but good to get a confirmation from another informed source.

    Regards,

    Sreehari.

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