Purchase Orders Overview
The purchasing team has the responsibility to ensure that we have enough (or more) stock to supply the open or issued work orders. Tiga displays this in the Discrepancy column. The “Purchasing” team looks for these items and creates a regular purchase order (PO).
Discrepancies in WOLI
While a regular PO is linked to a WO, POs for the following cases aren’t:
To forward purchased items from FUSA to import warehouses in Indonesia (PO Shipment).
To ship instrument, consumables, or replenishing items to the Support - FUSA warehouse.
To order items that are actually in stock but have a lower quality than expected.
To order urgently needed items. For such items, already ordered using a PO, a new PO can be created for a vendor that can offer faster lead time.
To replace import PO when an international vendor sends purchased items to Indonesia, but requires a switch to local shipment due to shipping policy or mistake. This PO is needed to ship the item between cities in Indonesia.
To receive replacement items from vendors and returned instruments from customers or “Support” team.
Purchase Order Process
Each purchase order is assigned a status which shows the PO’s actual progress, from creating a PO to purchasing items to delivering those items to a warehouse.
Purchase Order Flowchart
Draft — There will be some adjustments in the PO. The Draft PO needs to be reviewed for approval.
Multi — It is the default PO status that enables download. Same as Draft, a Multi needs to be reviewed for approval.
Tip
The purchasing team can only create one PO for one supplier with the possibility of differentiating the status in case the lead time for each item is different. If a requester needs some items in the PO faster than the rest, it is possible to create two separate POs for the same supplier with different statuses, Draft and Multi.
Ready for Approval — All PO requirements are complete. When a Draft/Multi’s status changes to Ready for Approval, approvers will receive a TIGA-generated notification email. An assignee from the “Purchasing” team will review most POs. POs for more than IDR 50,000,000 and POs going through bidding require finance controller approval. Meanwhile, the purchasing manager will approve POs with the following conditions:
Transfer in advance/cash on delivery payment term.
USD 1,000 or IDR 5,000,000 total amount.
PO for a tax-exempt supplier.
Suppliers without a corporate bank account requiring transfer payment to a personal bank account.
Note
Draft, Multi, Ready for Approval, Not Approved, and Approved purchase orders can be edited or revised. For more information, see Editing Records.
An approved PO requires revision if:
There are changes in the delivery, lead time, prices, or stock of the items from the vendor, OR
The requesters cancel the approved PO or change the request.
Approved — A PO has been approved. The purchasing team will receive automatic email notifications regarding the PO approval.
Sent — All requested goods and printed POs are ready to deliver to the export and import division, accounting division, warehouse, and requesters. TIGA will send a notification email to the “Purchase Order” group.
Closed — The PO process is completed, and all ordered items are delivered to the warehouse. Requesters will receive email notifications when the PO is Closed.
Auto Multi WO — This action automatically searches WOs with Open to Buy, or Issued status and categorizes all items according to the preferred suppliers. This action can be done when the PO’s status is Draft/Multi. Read more, Auto-Multi WO.
An unapproved PO will go through the following statuses:
Not Approved — If a PO is not approved, the approver will inform the assignee of the cause.
Revised —This shows that a PO is being revised. Once the revision is finished, the status needs to be changed to Ready for Approval. Read more about revising PO.
Purchase Order Priority
The Purchase Orders window offers two available Priority options, Engineering and Standard, to accommodate shipment priority. The Engineering option is prioritized and processed immediately for engineers who need parts quickly from FUSA.
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