Do you know how to set up the Purchase Order Expiry days for a supplier or set of suppliers in bulk at HQ?

Do you know how to set up the Purchase Order Expiry days for a supplier or set of suppliers in bulk at HQ?

Purchase Order Expiry is the date on which the Purchase Order will get expired & it will be unavailable in the system for further use.


Setting Purchase Order (PO) Expiry Days for a supplier in ERP refers to defining the time duration within which the purchase order sent to the supplier is valid. Once the expiry date is reached, the PO becomes invalid, and the supplier cannot deliver the goods mentioned in it.

The purpose of setting PO expiry days is to ensure that the supplier delivers the goods within a specified time frame. This helps to avoid delays in the delivery of goods, reduce the risk of stockouts, and minimize the impact on the retailer's inventory and sales.

Some benefits of setting PO expiry days for a supplier in ERP include:

Ensures timely delivery: By setting a PO expiry date, retailers can ensure that suppliers deliver the goods within a specified time frame, which helps to reduce the risk of stockouts and ensures that the business operations run smoothly.

Improves inventory management: Setting a PO expiry date allows retailers to manage their inventory more effectively. They can track the delivery of goods and ensure that they have enough stock to meet customer demand.

Reduces the risk of errors: Setting a PO expiry date helps to reduce errors and mistakes in the procurement process. Retailers can ensure that they receive the goods they ordered within the specified time frame and avoid any disputes with the supplier.

Enhances supplier relationships: By setting a PO expiry date, retailers can build better relationships with their suppliers. They can communicate their expectations clearly and ensure that their suppliers meet their delivery commitments.

Overall, setting Purchase Order Expiry Days for a supplier in ERP helps retailers to manage their inventory, reduce the risk of stockouts, improve supplier relationships, and ensure that business operations run smoothly.

 

Benefits:
The benefits of setting Purchase Order Expiry days for a supplier in ERP include:

Improved supplier performance: By setting a purchase order expiry date, suppliers are incentivized to fulfill orders in a timely manner to avoid cancellation. This can improve supplier performance and ensure timely delivery of goods.

Efficient inventory management: Purchase Order Expiry days help to ensure that inventory levels are maintained at an optimal level. By setting an expiry date, retailers can avoid overstocking or stockouts, and plan inventory replenishment effectively.

Increased cost savings: Purchase Order Expiry days can help to reduce waste and improve cost savings. By setting a date, retailers can avoid holding onto excess inventory that may become obsolete or outdated, which can result in waste and increased costs.

Better cash flow management: Purchase Order Expiry days can help retailers to manage their cash flow more effectively. By avoiding overstocking or stockouts, retailers can avoid tying up capital in excess inventory or missing out on sales opportunities due to stockouts.

Overall, setting Purchase Order Expiry days for a supplier in ERP can help retailers to improve supplier performance, manage inventory more efficiently, reduce waste and costs, and improve cash flow management.

Using Purchase Order Expiry, we can restrict a Purchase Order to be converted after the defined days. The Purchase Order will be expired, and you cannot convert that Purchase Order into Purchase Invoice.

 

Used Case Scenario:

Suppose you set the PO Expiry Date as 20-12-2022, when the current date reaches 21-12-2022, the system will not allow you to convert the Purchase Order to Purchase Invoice.

 

To set up the Purchase Order Expiry Days for a single supplier, follow the steps below:

Step 1: Go to MDM > Contact Master Management > Contact Master

 



Step 2: Click on the pencil icon under the Update column.

*** Note: You can search by using Select Master radio buttons and other advance search options available on the screen.

 

 

Step 3: Go to Supplier Tab and locate PO Expiry Day(s) and put the desired date there.


Step 4: Click on Update button to apply changes.


 

 

 

To Update the PO Expiry Day(s) in a bulk, do the following steps:

Step 1: Go to MDM > Contact Master Management > Contact Master Bulk Update.

 

Step 2: Select Supplier from the Choose Applicability dropdown.


 

Step 3: Click on Columns button to open the column selection screen.


 

Step 4: Check whether the PO Expiry Day(s) is active or not. If not, activate it.


 

Step 5: Now locate the PO Expiry Day(s) column and put the desired days there. You can copy and paste the values across the column by just pressing Ctrl + C for copy and Ctrl + V for paste.


Step 6: Click on the Save button to make the changes.

 

 

*** Note: If the PO Expiry Day(s) options is not visible in the contact master, do the following steps to activate the same:

 

Step 1: Go to Admin > Configuration > Masters.


 

Step 2: Choose SUPPLIER from the Choose Master dropdown.


Step 3: Locate PO Expiry Day(s) and put a tick on the check box.


Step 4: Click on Save Configuration to make the changes.


 

Conclusion:

With the help of Purchase Order Expiry Days we can restrict the Purchase Invoice to be made after the expiry days passed. This will help restrict duplicate Purchase Orders.  

 


The advantages of setting Purchase Order Expiry days for a supplier in ERP include:

Improved order accuracy: By setting a Purchase Order Expiry days for a supplier in ERP, the system will automatically cancel any orders that have not been confirmed by the supplier before the expiry date. This ensures that only accurate and up-to-date orders are processed, reducing the risk of errors or discrepancies.

Better supplier performance: Setting a Purchase Order Expiry days for a supplier in ERP can help to improve supplier performance by ensuring that they respond to orders in a timely manner. This can help to avoid delays and ensure that orders are fulfilled on time.

Reduced inventory holding costs: By automatically canceling orders that have not been confirmed by the supplier, setting a Purchase Order Expiry days for a supplier in ERP can help to reduce inventory holding costs. This ensures that retailers do not hold excess inventory that is not needed.

Improved supply chain visibility: Setting a Purchase Order Expiry days for a supplier in ERP can help to improve supply chain visibility by providing real-time information on the status of orders. This can help retailers to better manage their inventory and avoid stockouts.

Increased efficiency: By automating the process of canceling orders that have not been confirmed by the supplier, setting a Purchase Order Expiry days for a supplier in ERP can help to increase efficiency and reduce manual workload. This frees up time for retailers to focus on more strategic tasks.

Overall, setting a Purchase Order Expiry days for a supplier in ERP can help retailers to improve order accuracy, supplier performance, inventory management, supply chain visibility, and operational efficiency.

 

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