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What is the link between Purchase orde and sales order?

Discussion in 'Oracle SCM & Manufacturing' started by krish, Nov 28, 2011.

  1. krish

    krish Active Member

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    What is the link between Purchase order and sales order?
  2. Sadik

    Sadik Community Moderator Forum Guru

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    In what context?

    Typically if you are buying something from a vendor, your company creates an order of items it wants to buy, called the Purchase order and sends to the vendor. If your company is a seller / Manufacturer, once it has received an order or list of items that a customer wants to buy, you company will create a sales order, listing those items and the customer details.

    krish likes this.
  3. Ramji

    Ramji Forum Guru

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    Sadik and Kris,

    In the real world there can be a request from within your company for goods or services, especially say when an organization has a central Purchasing Department (Like in most Public sector entities).
    An internal sales order originates
    from an employee or from another process as a requisition, such as inventory or
    manufacturing, and becomes an internal sales order when the information is transferred
    from Purchasing to Order Management. Also known as internal requisition or purchase

    Oracle Purchasing uses Order Import to transfer requisitions for internally sourced
    products to Order Management. Once imported, the internal sales orders are processed
    similar to regular sales orders.

    Note: You can create requisitions (with same number) in two different operating units.

    You can partially or fully cancel the line quantities on internal sales orders.
    You can make the following attribute changes after an internal sales order has been generated:
    Update Scheduled Shipment Date
    Decrement order line quantity
    Note: If you cancel an internal sales order, order line, or backordered order line that is linked to an internal requisition, manually cancel the internal requisition. The order cancelProcessing issues a reminder.

    The attached Document will explain the link between PO and SO in R12

    Attached Files: