Define purchase order terms to use in purchase order activities. Various suppliers might have different types of purchase terms. The system has five predefined types of purchase order terms. You can also edit purchase order terms as necessary.
For example, select Freight Terms as the type for an individual purchase order term. This purchase order term appears in the Freight Terms lookup on the Suppliers form. Set up the individual codes for each of these types of order terms:
|
Term |
Description |
|---|---|
|
OB (Free On Board) point (FOB) |
Define where to take possession of an item such as a receiving dock. |
|
Freight terms (FRTR) |
Establish how different freight charges are paid and who pays them. |
|
Payment terms (PAY) |
Specify how a supplier is paid for a purchase such as COD. |
|
Payment method (PYMT) |
Specify what method is used to pay the supplier. |
|
Ship via (SHIP) |
Define how the supplier ships an item such as overnight, regular mail, etc. |
To define purchase order terms:
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Select Purchasing > Setup > PO Terms.
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Click New Record.
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Specify this information:
Organization - Specify the organization to which the purchase order term belongs if you use multi-organization security.
PO Term - Specify a unique code identifying the purchase order term, and then specify a description of the purchase order term in the adjacent field.
Type - Select the type of purchase order term.
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Click Save Record.