Purchase order accuracy - ERP Tools

Purchase order accuracy is necessary for the manufacturing planners to know when the raw materials will be available to release the required manufacturing orders. If items are purchased and then distributed to customers,having accurate purchasing information allows the ATP and CTP functions to accurately project when a customer may expect an order. The process to validate purchase orders is very similar to the process to validate work orders and sales orders. This is an ongoing operation where the problem orders will quickly rise to the top as past due. Similar to the process for customer demand,examine the first page of a purchase order listing by due date. This page will typically hold the problems that must be resolved. Once this first page is resolved,the overall accuracy of the information will improve drastically. Continue to work through the report one page at a time until the first purchase order is an order that is valid and due sometime in the future. This process must be ongoing to ensure that all orders remain valid. This may be a surprise to some people,but it is not possible to turn back the hands of time to order or receive parts. Therefore,all purchase orders should have an expected delivery date that is sometime in the future. Realizing that not all suppliers are on time with all deliveries,means that this process must be under constant review to ensure that valid due dates are being fed into the system initially and maintained with the passage of time.


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