Discussion in 'Oracle SCM & Manufacturing' started by krish, Nov 28, 2011.
What is the link between Purchase order and sales order?
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.
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