This blog post is intended to learn about the different stages of a purchase order in the purchase lifecycle in SAP Business ByDesign. A purchase order can go through various stages of the purchase lifecycle.
Let’s learn about this life cycle and its meaning through the following flowchart:
1) In Preparation– If the purchase order status is In Preparation, the goods and services receipt has not yet been posted, but the individual materials exist. which means the order has not been placed. it is in draft mode.
2) In Approval- Depending on the approval settings in your solution, the purchase order may need to be approved by a relevant person. The approver can accept or reject the purchase order or send it back to you for revision.
3) Not Yet Acknowledged– The status of the purchase order is Not yet Acknowledged if the
- Purchase order (PO) is not yet acknowledged if there is no confirmation from a supplier to deliver specified quantities of product
- Purchase Order Acknowledgment Expected flag is selected and no acknowledgment has been made yet.
- If this is not required, you can Purchase Order Acknowledgment Expected flag when creating Purchase Order.
4) Sent- The status of the purchase order is Sent if PO is sent to the supplier and Purchase Order Acknowledgment Expected flag is not selected while ordering. In addition, when the purchase order is approved and accepted by the relevant person and sent to the supplier.
5) Acknowledgment received- A purchase order (PO) acknowledgment is a confirmation from a supplier to deliver specified quantities of products at specified prices within specified times.
- With this response, the supplier can accept the terms and conditions of the purchase order, propose changes to aspects of the purchase order, or reject the purchase order)
- After acknowledgment is done by the Supplier, the status will change to Acknowledgement received.
6) Follow-Up Document Created- When the goods and services receipt or the invoice is posted, the status of the corresponding purchase order changes to the Follow-Up Document Created.
7) Finished- Once all items are completely delivered and invoiced or a buyer finishes them manually, the purchase order status changes to Finished. In simple terms this means that the Invoice is posted successfully, the system sends the goods and services receipt to Supplier Invoicing for invoice verification, exception handling, and payment processes.
Conclusion: This is how you have multiple stages of a purchase order in the purchasing lifecycle in SAP Business ByDesign, from “In preparation” to “Finished” status.
Depending on your status, you may be able to take the necessary actions to proceed with your purchase order as described above.
I hope this blog was helpful. Thanks for reading!