|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
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
5. The description need some additional
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
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