Purchase-to-Order (PTO) Procurement 

Use

You use this function for ordering a product from one or several vendors for one particular customer. In contrast to mass orders for the general market, the product in the purchase-to-order is especially designed for the customer so that it cannot be sold to other customers.

A customer places an order X1 with a company A. The company A does not manufacture these goods internally. So, they will procure these goods from company B and then supply it to their customer.

Similar to the processes of make-to-order production  and third-party order processing a purchase requisition assigned to the sales order item is created for each order item. The purchase requisition cannot therefore satisfy other requirements. In AFS these processes are processed at item level. That means that a purchase order item is assigned to a sales order item.

Features

Sales Order

When creating an order, you process purchase-to-orders via the selection (or assignment) of corresponding item category and schedule line category. AFS no longer supports the old set up behavior and functionality of item categories JPT2 (valuated without CO) and JPT3 (valuated with CO). TAB is used as the default item category. Item categories JPT2 and JPT3 can be used with TAB Customizing. The AFS MRP will no longer plan for PTO sales order items in AFS. The creation or change of purchase requisitions and their assignments are done via sales order.

The following are the differences when compared to the previous AFS release:

·        The standard item category TAB will be the default PTO item category.

·        There is a change in logic in the Purchase-To-Order handling. In the previous AFS releases (1.0D, 2.5B, 3.0B), MRP used to create the stock proposals, but as of now sales orders directly creates purchase requisitions (PR). When there is a change in the sales order, the PRs get updated automatically.

·        You can enter duplicate dimensions in PTO with AFS materials, meaning that at item level the dimensions need not be unique.

Allocation Run
In Purchase-To-Order processing, it is not mandatory to carry out an allocation run.