Demand and purchasing

A customer order records the customer, order date, required date and status. Each customer order line supplies item, quantity and unit price for the customer demand. A purchase order holds supplier, order date, due date and status, while each supplier order line records item, ordered quantity, received quantity and unit cost. The party record identifies each counterparty as a customer or supplier and holds their contact information.

These records give Production Planner a demand and supply reference when preparing work orders. The production release workflow requires an approved linked order. Agree who approves supplier commitments, who records receipt progress and how the planner compares those commitments with the component structure before the run.

• Customer demand. Link each customer order line to its customer order header and the intended item record. Required date is a customer commitment to consider alongside the work order’s planned start and planned end during release preparation.
• Supplier commitment. Keep supplier order lines attached to the correct purchase order. Ordered quantity and received quantity show line progress; a Sent header alone is insufficient evidence that a component has arrived.
• Commercial authority. Manager reviews and approves the customer and supplier commitments. Sending an approved supplier order and recording a real receipt are later operating events whose evidence the team must agree.

Choose who creates parties and verifies party type before orders are entered. Decide who approves customer and supplier commitments, who sends purchase orders and who maintains received quantity. During setup, configure the approval actions and the sending and receipt updates, with permissions for their named owners. Rehearse the decisions with the actual planner and Manager accounts.

Agree how order quantities become production plans. Production Planner compares the planned product and quantity with the customer order lines during the pilot. Review a demand change with Manager before using a different commitment for the run. Keep the customer required date visible while agreeing the planned production window. Choose an external accounting source for invoices and payments rather than treating unit price or unit cost as a posted financial entry.

Prepare a demonstration customer order for an assembly and add a line for the assembly. Leave the header Draft and attempt to release a linked work order. The production guard should block release because the order is not Approved. Use Manager’s approval, then retry with an available resource and a feasible production window.

For a component purchase, create a supplier order with ordered quantity larger than the first delivery’s received quantity. Keep the outstanding quantity visible in the line comparison even if staff have updated the header. Ask the responsible person to explain when Received status is justified and how a later delivery will be recorded. Finally, inspect the stock source separately: reconcile the actual receipt with the stock owner, and keep supplier payment evidence in the accounting source.

• Open customer orders — Customer commitments before completion or cancellation.
• Supplier commitments — Draft, approved and sent supplier work with its due date.
• Work order release inbox — Draft production plans that depend on order authority.

Use order and supply preparation for commitment decisions and production to quality release for execution. Review the boundary with connected systems.