Creating Purchase Orders 

Use

When you create a purchase order involving chain liability, you need to enter the dates on which the work is due to start and finish, together with the number of hours to be worked. You enter this information so that, when you run report Document flow of purchase order line items, the system can compare and check the consistency of subsequent invoices related to this purchase order.

Additionally, if you are posting a proportion of the invoice to your sub-contractor’s blocked account, you enter the percentage of the line items that is to go on wages. This enables the system to propose the amount to be posted to the blocked account. For more information, see Posting to a Blocked Account.

Prerequisites

You have defined the general percentage rate for blocked account postings through Customizing activity Defining Chain Liability Methods.

Procedure

You create your purchase order as usual using Purchasing (MM-PUR). Additionally, for each material line item, enter the required data in the chain-liability specific fields on the Chain Liability tab page, as follows:

·        The date on which the work is due to begin in field Start date

·        The date on which the work is due to finish in field End date

·        The percentage of each vendor line item that is to go on wages in field Percent

·        The working time, in hours, in field Hours.

These chain-liability specific fields are only available when you process purchase orders in the following transactions:

·        ME21N (Create Purchase Order)

·        ME22N (Change Purchase Order)

·        ME23N (Display Purchase Order)