Type of Changes Generally After Release of PO

What is an Amendment in PO and how it is done?

What type of changes generally comes after release of a PO?

Once a purchase order is released, the vendor is required to execute the order as per terms of order as defined in it. 

However at times it is seen that there could be changes which might have taken place after the PO was released. This could be both from from Vendor side as well as the buyer side. Some typical changes could be :

Buyer side :

1. The qty ordered need to be increased.
2. The buyer need the material earlier than the delivery date specified.
3. The payment term need changes as buyer is not able to provide certain documents.
4. Buyer would like to add some more conditions.
5. The description need some additional information etc.

Vendor side :

1. The price no more valid as the order was released after the quotation validity expired.
2. The vendor is facing shortage of raw material and he wants the delivery schedule to be changed.
3. Vendor is offering some alternate materials or different make.
4. The payment term is no more acceptable as the prices have been revised.  etc, etc...

In all such cases fresh communications are exchanged between the two parties and changes are made as per mutually agreed terms. In SAP the changes like qty, price, delivery date, payment term, pricing conditions etc can be tracked as changes in the document. 

SAP does not have PO amendment but some companies are developing different layout for their orders based on above changes.

SAP MM Tips by : Sushanta Ghosh

See also
Contract, Pipeline, Third-Party, Subcontract, Consignment

Get help for your SAP MM problems
SAP MM Forums - Do you have a SAP MM Question?

SAP MM Books
SAP Material Management Certification, Interview and Configuration Reference Books

SAP Material Management Tips
SAP MM Configuration Tips and Materials Management Discussion Forum

Main Index
SAP ERP Modules, Basis, ABAP and Other IMG Stuff

All the site contents are Copyright © www.erpgreat.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies.  The site www.erpgreat.com is in no way affiliated with SAP AG.
Every effort is made to ensure the content integrity.  Information used on this site is at your own risk.
 The content on this site may not be reproduced or redistributed without the express written permission of
www.erpgreat.com or the content authors.