Buyer Places Purchase Order

Ideas to incorporate:

• Purchase based on Requirements
• Purchase based on manual/external planning

• None!

Dependencies

• Product Marketer Maintains Product Information

...

If this is the first time a product has been ordered from a supplier: Buyer makes arrangement with Manufacturer or Distributor (acting as Supplier) to supply the product. Buyer agrees with Supplier on payment terms (pay in advance, pay on delivery (COD), or credit (billing account) with net payment period). Buyer records initial supplier information for product.

Buyer creates Purchase Order for a single Supplier based on existing Requirements or on manual/external planning. Buyer approves purchase order.

Buyer places an order with the given Supplier. Supplier tells Buyer one or more estimated ship dates and Buyer records those dates.
If the payment term is pay in advance Buyer notifies Accountant who immediately sends payment to Supplier places initial order for product.