PO conversion
Unlike planned jobs where all the OK checkboxes must be selected prior to conversion, you can partially select and convert planned POs, most typically by supplier. After each set of OK checkboxes is selected, click the Convert button. All selected planned POs with a PO Qty amount will be converted into actual POs, consolidated into a single, multi-line PO for each supplier.
WARNING: Never bypass planned PO conversion by setting the PO Qty to zero, which postpones PO creation until the next MRP run. A planned PO must be converted immediately to avoid introducing late dates into the master schedule. Never delay conversion because it defeats the “just in time” nature of the master schedule.
Verify and update supplier prices before PO conversion
To ensure the integrity of the costing system, always verify and update supplier prices before converting planned POs. The planned POs screen within MRP is optimized for pricing maintenance with the ability to create and update supplier price records and present review notes for special pricing instructions. The costing system depends on realistic PO prices because when a purchased item is received, its inventory cost is updated by the PO cost and is the cost basis for subsequent job issue transactions. The PO invoicing process often occurs well after actual receipt and has no retroactive effect on receipt costs or inventory costs.
After your MRP Session is complete - Mass update your Estimated Purchased Costs based on Default Supplier Price
If you update any prices during MRP PO Generartion, after your complete your MRP session, you should go to the BOM>Estimated Purchase Costs screen and Mass Replace estimated costs using the Default Supplier Price. You should then go to the BOM>Cost Rollup screen and perform a batch rollup and apply the changes to your NEW status Jobs. This will update the MRP Jobs that created the demand for the POs and keep your job estimated costs more in line with your expectations.
Review actual POs and send to supplier
After PO conversion is completed, the next step is to go to the Purchase Orders screen to make a final review of each newly created PO. After each PO has been reviewed, send it to the supplier.
Augment POs manually if needed
Each set of POs generated by MRP represents a minimum action profile of the items that must be ordered immediately to meet item required dates. After a PO has been generated by MRP, you may wish to augment the PO manually within the Purchase Orders screen to accommodate special situations. For example, if you wish to fill a truck or container to reduce unit shipping costs, you may wish to increase item quantities or add items that will be needed in the future. Or, if you have a minimum volume level commitment with a supplier, you may wish to increase quantities or add items to meet your volume level.
