5 Replies Latest reply on May 17, 2012 11:48 AM by Mahendra

    Purchase order structure

    YourNameHere
      Hi,
      I have a task which has a very small touchpoint to EBS purchasing so I am trying to learn a bit more about PO's, their structure etc.
      I'm fine with the concept of the PO Header and PO Lines, however what I don't really understand is "Distributions", ""Shipments" and "Releases".

      Firstly, what do they represent? Ie, what is a PO Distribution? I believe releases are for receiving against? What about shipments? Are these created when a supplier ships items, when it's received etc???

      Sorry for being vague but I haven't had any experience in this business area before.

      Thanks
        • 1. Re: Purchase order structure
          User315731
          Hello,
          Shipments:
          This will specify the receiving Inventory Organization,their Location, required quantity and need by date for receiving the Purchased Items against this PO.

          Distributions:
          This is primarily used for accounting purpose.
          Also you can find the destination type(Shop floor or Expense or Inventory) requester and the receving sub-inventory.If PO is auto-created from requisition then you can find the requisition number.If you use any Oracle Projects you can find the project number and Task number against this PO.

          Basically, you can find more information in these shipments and distributions.

          Releases:
          Blanket Agreement and Planned PO's are agreement documents.
          you specify only agreed amounts and other required parametres.
          you receive the actual items in their respective releases.

          All the information in PO Headers,PO Lines,Shipments,Distributions form a complete PO.

          Please go thru the Purchasing User/Implementation manual or even Oracle Help for more information.

          Thanks
          -Arif.
          • 2. Re: Purchase order structure
            YourNameHere
            Hi,
            Thanks for the info, that certainly helps. Just have a few more questions as it is the distributions that I am looking at really, do you have one distribution per line? And what does it actually represent (ie, it is linking a line to an account combination or something like that?)

            thanks
            • 3. Re: Purchase order structure
              User315731
              Hi,
              You can either have one distribution line agaist a single shipment or multiple distributions against a single shipment.
              Ex:-If you have 100qty in a sinlge shipment, you can break the qty in different subinventories as per your inventory Org structure.
              so that while receiving you can receive in different subinventories.

              yes, you are correct. You can view all the distributed information(accounting,buyer,subinventory,requisition) for this PO.

              Thanks
              -Arif.
              • 4. Re: Purchase order structure
                YourNameHere
                OK thanks, so just to check my understanding then...

                * You have a PO header which can have one or more lines, a line for each item.
                * You create a shipment when you need to request stock on a blanket PO, the shipment holds information such as the receiving subinventory etc.
                * A distribution is linked to a shipment and holds information about the shipment such as the account combination


                If the above is correct then I think the only thing which I'm still unsure of is the difference between a shipment and a release? Or are they effectively the same thing?

                Thank-you again for your help.
                • 5. Re: Purchase order structure
                  Mahendra
                  Check the notes from oracle user guide...you should be able to figure it out : )

                  http://docs.oracle.com/cd/E18727_01/doc.121/e13410/T446883T443953.htm#4021650

                  Mahendra