Specify Terms and Conditions for the items

Specify Terms And Conditions

This page allows you to specify the terms and conditions for the items in the Purchase Order. Tell me more

Select the “Specify Terms And Conditions” link at the bottom of the “Create Direct Purchase Order” page.

The “Specify Terms And Condition” page appears.

The system displays the status of the Purchase order.

The system displays the following in the PO Details information tab:

PO No.	Unique identification number of the Purchase Order with which it is referred.
Amendment No.	Unique identification number of the Amendment document. The Amendment document is created whenever any modifications are done to the existing document. This is a post approval document.
Type	The type of the Purchase Order is displayed in this field. There are different types of Purchase Orders namely General, Capital, Dropship, and Consignment.
Supplier Code	Code/Identifier of the supplier who supplies goods for the Purchase Order.
Name	Name of the Supplier who supplies the goods for the Purchase order.

Enter the following field in the PO Details group box:

Pay To ID

Use the drop down list box to select the address id of the supplier to which the payments to be made.

Enter the following field in the Payment and Insurance Details:

GR Option	Use the drop down list box to select the “Yes” or “No” option. This specifies whether a GR has to be generated with this document or not.
Pay to Supplier	Use the drop down list to select the code/identifier of the supplier to whom the payment is going to be made.

The system displays the following fields:

Name

Name of the supplier to whom the payment is going to be made.

Enter the following:

Advance Payable	The Amount that is paid as an advance is mentioned. (Numeric).
Advance Tolerance%	The Percentage of the tolerance given for the advance amount is mentioned. (Numeric).

The system displays the following fields:

Advance Paid

The Advance amount that is already paid for the items is displayed in this field.

Enter the following:

Insurance Liability	Use the drop down list to select the whether the buyer or the supplier pays the insurance amount. There are four kinds of liability, which are None, Us (Company), Supplier, Supplier-charged to Us (Company).
Insurance Amount	The total amount insured for the items is specified in this field. (Numeric).
Insurance Term	Use the drop down list box to select the type of the insurance, which will be handled for the items.
Invoice At	Use the drop down list box to select the Organizational unit in which invoice is created.
Invoice Before GR	Use the drop down list box to select whether the Invoice can be generated before Goods Receipt or not. In such case the Invoice refers to the Pre-GR acknowledged qty and not the GR Received or Accepted qty.
Auto Invoicing	Use the drop down list box to select whether Automatic generation of invoices should be enabled or disabled. The Auto Invoice generation event is based even on the Matching Type.
Pay Term	The Terms and conditions pertained to the payment made for the items. (Alphanumeric, 15).
LC/BG Applicable	Use the drop-down list box to indicate whether LC/BG is applicable for this purchase order. The combo is loaded with options “LC”, “BG”, “LC & BG” and None. The system by default displays “None” on launch of the page.
Pay Mode	Use the drop down list box to select the mode in which the payment is made. The combo is loaded with options, based on the selection of LC/BG Applicable combo.

Note: If LC/BG Applicable is chosen as ‘LC’ or ‘LC& BG’, then Pay Mode combo will be loaded only with ‘LC’. For other values, Pay Mode combo will be loaded with all the pay modes defined.

DD Charges Borne By

Use the drop down list box to select whether the demand draft charges will be borne by the buyer or by the supplier.

Enter the following field in the Shipping and Delivery Details:

INCO Terms	Use the drop down list box to select the corresponding International Commercial terms to be associated with the items.
INCO Place	The Place in which the International corporation terms are incorporated. (Alphanumeric, 40).
Transhipment	Use the drop down list to select whether transshipment of goods are allowed or not.
Mode of Transportation	Use the drop down list to select the mode in which the items are delivered to the buyer.
Carrier	Use the drop down list to select a carrier to carry the goods from the Supplier’s place. .
Ship Partial	Use the drop down list to select whether partial shipment of items is allowed or not.
Packing Remarks	The Buyer or the Supplier can enter his valid comments regarding the packing done to the items. If certain goods are to be handled with care or other kinds of restrictions, it can be mentioned in this remarks section. (Alphanumeric, 510).
Shipping Remarks	The Buyer or the Supplier can enter his valid comments regarding the shipping done to the items. It can be regarding the insurance or any other shipping related detail. (Alphanumeric, 510).

Enter the following fields in the “LC Details” group box:

LC No.	The number identifying the LC (Letter of Credit) document. (Alphanumeric, 30).
LC Amount	The LC amount (Decimal).
LC Date of Issue	The date of issue of LC (Date format).
LC Date of Expiry	The date of expiry of LC (Date format).

The system displays the following fields in the “Item Details” information tab:

Item Code	The Unique code or identifier of the item for which the purchase order is created. This appears as a hyperlink and can be accessed to view the item related details page.
Variant	Variant code is associated with the Item code present in the activity.
Description	Description stating the name/identifier of the variant associated with the item.

Enter the following fields:

Inspection Type	Use the drop down list to select the type of the inspection. There are three types namely:
.	Self – Indicates that the Item will be Inspected by the person who receives them
	By 3^rd Party - Indicates that the Item will be Inspected by an external agency .
	None – Indicates that no inspection is required for the Items at the time of delivery.
Matching Type	Use the drop-down list box to specify the type of matching to be done. The quantity ordered, the quantity received or the quantity accepted is matched with the quantity invoiced, to ensure that payment is made for the proper quantity and value of the items. The following are the various matching types available:
	Two Way – This is selected when the invoice quantity and value must be matched with the ordered quantity and value. When Two way matching is specified, Invoicing can be done referring the quantity in the Approved PO.
	Three way at PO – This is selected when the invoice tolerance is checked at the total purchase order quantity and amount, against all GRs and not on the individual GR received quantity and amount.
	Three way at GR – This is selected when the invoice tolerance is checked with the individual GR received quantity and amount, and not on the total PO quantity and amount.
	Four way at PO – This is selected when the invoice tolerance is checked at the total PO Accepted quantity and amount, and not on the individual GR Accepted quantity and amount.
	Four way at GR – This is when the tolerance is checked with the individual GR Accepted quantity and amount, and not on the total PO quantity and amount.
Tolerance Type	Use the drop-down list box to specify the tolerance type. The tolerance types available are “Value”, “Quantity” or “Both”. The upper and lower limit within which the quantity or the basic value received can vary. The tolerance limit affects the basic value of the purchase order either positively or negatively.
Positive Tolerance (%)	The tolerance percentage must be positive and less than 100. (Numeric). For example, if the tolerance limit defined for an item is 2%, and the vendor invoices for 101.5 tons of the items against the 100 tons ordered. Now the Invoice would be closed without any further payment for the balance 1.5 tons, which is an additional portion of the ordered quantity.
Negative Tolerance (%)	The tolerance percentage must be negative and less than 100. (Numeric). For example, if the tolerance limit defined for an item is 2%, and the vendor invoices for 98.5 tons of the items against the 100 tons ordered. Now the invoice would be closed without any further payment for the balance 1.5 tons, which is a negligible portion of the ordered quantity.
Positive Receipt Tolerance (%)	The tolerance percentage must be positive and less than 100. (Numeric). For example, if the tolerance limit defined for an item is 2%, and the vendor dispatches 101.5 tons of the items against the 100 tons ordered. Now the PO would be closed without any further follow-up for the balance 1.5 tons, which is an additional portion of the ordered quantity
Negative Receipt Tolerance (%)	The tolerance percentage must be negative and less than 100. (Numeric). For example, if the tolerance limit defined for an item is 2%, and the vendor dispatches 98.5 tons of the items against the 100 tons ordered. Now the PO would be closed without any further follow-up for the balance 1.5 tons, which is a negligible portion of the ordered quantity.
Consignment Rule	Use the drop down list box to select the shipment rule, which can be Consumption or Break lot. This is applicable for only Consignment type PO.
Supplier Item Ref	The Reference number of the supplier’s item. (Alphanumeric, 32).
Supplier Item Desc	Description stating the nature of the supplier’s item. (Alphanumeric, 150).

Click the “Specify Terms and Condition” push button to specify the terms and conditions pertained to the items.
Click the “Approve PO” push button to apply as well as approve the terms and conditions specified in this page.

The system saves the Terms and Conditions.

To proceed, carry out the following

Select the “Specify Tax/Charge/Discount” link at the bottom of the page to specify the information regarding Taxes, Charges, and Discounts.
Select the “Specify Quality Details” link at the bottom of the page to specify the quality pertained details of the items.
Select the “Specify Budget Details” link at the bottom of the page to specify the budget oriented details.
Select the “Specify Dropship Address” link at the bottom of the page to state the buyer’s address to which the goods are directly supplied when the Purchase Order type is Dropship.
Select the “Specify PO-PR Coverage” link at the bottom of the page to state the coverage details of the Purchase order and the Purchase Request..
Select the “Specify PO-SO Coverage” link at the bottom of the page to state the coverage details of the Purchase order and the Sale Order.
Select the "Specify Order - LC Mapping" link at the bottom of the page to specify the mapping details of Purchase Order and LC.
Select the “Specify Order-BG Mapping” link at the bottom of the page to specify the bank guarantee for the order.
Select the "Intercompany Order" link at the bottom of the page to save the sale order details.

Specify Terms And Conditions- An Overview

This page allows you to enter the payment terms and conditions for the items to be purchased. In case the purchase order has been amended, the system displays the amendment number of the purchase order. The payment terms like the mode in which the payment has to be made and the details of the supplier to whom the payment has to be made, can be specified in this page. You can also specify the insurance details like insurance amount, the person who has to bear the insurance amount, for the items to be purchased.

The delivery terms such as the International Commercial Term (INCOTERM), mode of transport, the location where the items must be delivered and instructions regarding the packaging can also be recorded.