The calculations that generate order quantities for a Suggested Purchase Order (P/O) are driven by the vendor target in Buy Line or Super Buy Line Maintenance.
When specifying the vendor target for a buy line or super buy line, you need to specify the following:
The unit of measurement (UOM) on which the target is based.
The amount associated with the target.
The percentage discount the vendor gives you when your purchase order meets the target.
To specify a vendor target:
From the Purchase > Maintenance menu, select Buy Line Maintenance.
In the Buy Line ID field, enter the buy line for which you want to specify the vendor target.
From the Information menu, select Target Basis to display the Buy Line Target Maintenance window.
In the Branch or Territory field, enter the branch or territory ID for which you want to specify a vendor target.
In the Target Type field, select one of the following:
|
Target |
Description |
|
Dollar amount |
The target in dollars. Each item in the buy line must have a valid dollar amount assigned. To use the system default cost basis and currency, as defined in Control Maintenance, leave the fields blank. The Target Base window prompts for the Global Basis and Currency fields to use for creating a Suggested P/O. This is the default. |
|
Weight |
The target in pounds. Each item in the buy line must have a valid weight assigned. |
|
Pieces |
The whole number of items. Each item in the buy line must have a valid number of pieces assigned. |
|
Load factor |
The target in cubic feet. Each item in the buy line must have a valid load factor assigned because you need to know how much space a full buy line requires to decide how the buy line ships. |
|
Days supply |
The number of days supply. Each item in the buy line must have a valid days supply amount assigned. This entry overrides the line buy order cycle value. We recommend using Days Supply when establishing a new buy line only and the system has no history to gauge an order cycle. |
In the Target field, enter the quantity (corresponding to the target unit in the preceding field) required to meet the vendor target. For example, if the target unit is dollars, enter the dollar amount of the target. Enter targets in whole units. For example, enter dollar targets as whole dollars, with no pennies.
In the Discount % field, enter a number representing the percentage discount the vendor gives you when your purchase order meets the target amount.
Repeat step 4 and 5 for the Level #2 area. The settings for Level #2 can be used when running the Suggested P/O Report.
In the Target Basis field, indicate the target base you want to use, such as DFLT-COST.
In the Currency field, indicate if a specific currency is used.
See Also: