Standing PO/Standing Sales Order

Hey
Hopefully this is a no brainer, but is there a way to keep a PO “open” even if all lines are received? Similarly, is there a way to keep the sales order open if all the lines have been shipped?

We have a business requirement to utilize a standing monthly or quarterly PO and add/receive lines against it when needed. I know I can re-open the PO but not sure if there’s a way to keep it open

Not very elegant but I would think the easiest way would be to create the first line as something you don’t actually intend to ship/receive. Like Qty 1, zero dollar unit price, make the description “this is a standing PO for Jan 2019 electrical bin stock.” Then when you create the PO for March, go close the one from January.

The way we used to do this back in the olden days of MRP/ERP systems was to create the order/line for a really large quantity… all scheduled for a way-off future date… then as the customer gave us releases, we would schedule the quantity. the order would remain open.
You can do the same with E10… but simply don’t “Firm” the release. as you schedule new releases, you leave some remaining on the unfirm release. as long as there is quantity remaining, it will not close the release, line OR the order.

Thanks guys, much appreciated! Gives me something to think about.
Scenario
Both we and the supplier are using E10.

In the scenario, we create a PO only when the supplier creates the part/lot. The supplier lets us know the part/lot has been created and is cleared to be distributed and that’s the trigger for us to create the PO. The PO will be variable based on what the supplier created. The PO is organized by 1 line per lot (lot is our smallest unit of organization and every shipment is tied to a specific lot number), so a single PO could have 4 lines with 2 unique part numbers and 4 unique lots. The unique lots are on the 1st release of each line.

The supplier cannot guarantee if the part/lot will be made or when it will be ready to be brought into inventory, due to the nature of our businesses.

Next, we send the PO to the supplier. The supplier creates a sales order to us with their sales order being organized by 1 line per part, 1 release per line, with potentially multiple lots picked per release based on the part qty required. The picking of the lots signals distribution to create a customer shipment and “ship” the order to a customer owned site in their ERP (I think, unless they are doing it differently now then when we designed this).

Distribution sends us back the Pack Num as confirmation of shipment and we receive the PO on that pack num, bringing the electronic stock into our system.
Problem
The problem I’m trying to solve is there is a bottleneck at the step of sending the PO to the supplier and the supplier creating the sales order, due to the organization of the supplier. This particular scenario is considered a “contract customer” scenario, so instead of customer service consuming the PO, the PO is send to the contract customer mgr. who may or may not be at their desk and able to process the sales order. The nature of the business is very time sensitive, so timing is critical to ensure success.
One suggestion brought up was to have a standing monthly/quarterly PO (from us) so that the supplier did not have to create a new sales order each time. I’m not sure this solves the issue due to the issue that they would still need to either create new releases on that sales order and/or re-open/update the existing sales order.

Sorry for the wall of text, but I’d appreciate any insight on solving this business problem :slight_smile:

Tim, How would way-off in the future dated sales order drive the manufacture demand. My sales team has but in 100,000 pieces of Part A with a need by date of 1-8-2021 (yes 2021) to be released in smaller releases during the year as requested by the customer. While this sales order creates unfirmed jobs these jobs don’t show on a planners workbench, because they are so far into the future (we look ahead last day of the month + 2 months). I’ve added Min/Max with lot sizes which break this 100K into smaller chunks but still they do not show in the planners workbench. Also, as a point of reference, the sales order are marked Firm Release, which I think needs not be firm releases. So my question is “How can I get the Min/Max quantities to drive job demand within the time frame of the planners workbench?” BTW, This also really affects my buyers, as they look way-out into the future as well and are trying to fill my warehouse with inventory I won’t need for months!!! Thanks for any help you can provide… Bob

The far off date is to keep the demand from being picked up by MRP or PO Suggs.
You would add new releases to the order line, with a real need by date for the qtys required. Then MRP and PO Suggs will process for just those qtys on the new release.

What about my Min/Max quantities being satisfied?

If you had a part with a Min of 1000, a QOH of 900, and no open PO’s for the part, then a PO Suggestion would be created the next time PO Suggestions was run.

If you had a part with a Min of 1000, a QOH of 1100, and no open PO’s for the part, then a PO Suggestion would be created only when a time phase analysis determines you’d drop below the Min. For example, if a demand existed for 200 of that part, to be need 4 weeks from now, and the part has a 2 week lead time, the PO Suggestions would be created for a PO need 2 weeks from now.

Does the same hold true for manufactured parts with a min/max? I have a min of 1000 with an QOH of 0, with a LT of 2 weeks and a required ship date of 52 weeks from today. So in 50 weeks I’d get a unfirmed job for 1000?

We don’t use MRP, so I’m only guessing here …

I’m pretty sure that the MIN value means what you want on hand at any time, regardless of actual demand.

So if you have a manufactured part with a MIN set to 1000, and a current QOH of zero, then I think it would generate a job to make 1000.

If you had a QOH of 1100, with a lead time of 2 weeks, and a demand for 200 (needed in 5 weeks), then a job for 100 to be completed 3 weeks from now would be created.

That’s the way I understand it.

The best thing to do is experiment in your test company.