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Quantum VS Help: Purchasing |
The date fields in a Purchase Order's header and order lines can be amended as the order progresses - see Purchase Order Date Fields And Supplier Delivery/Shipping Targets.
Differences between actual and target dates in the Purchase Order, and between the 'target' date and the actual date of goods receipt, can be examined retrospectively to assess how well the Supplier/shipping company met their delivery/shipping targets.
The following examples show different scenarios of when, how and why Purchase Order date fields might be entered and updated.
Note: Date fields may be used in conjunction with Progress Notes to review Purchase Order progress. You may retrieve the Purchase Order from the Finder - see Finding Purchase Orders or Finding Purchase Order Lines.
Example 1:
The Expected Date and Expected Target dates can be used to compare actual order delivery dates with those which were agreed with the Supplier. This example shows how dates can be amended on the Purchase Order when a Supplier lets you down.
1. On January 1 a Purchase Order is raised with the Supplier 'Abbey Forest Products' to order 3 Products: Product X, Product Y and Product Z. Purchase Order dates default as follows:
The Document Date is 01/01/20XX.
The Expected Date in the Purchase Order header is calculated automatically by taking today's date and adding the default lead time (in days) from the Supplier record - 14 days in our example. The Expected Date is therefore 15/01/20XX.
The Expected Target, Ship Date and Ship Target dates in the Purchase Order header default to the Expected Date - 15/01/20XX.
All date fields for the Purchase Order lines default to those in the Purchase Order header.
Note: In examples 1 to 3 we will ignore the 'Ship' fields; i.e. leave them as the default settings. See example 4 for details of how these fields might be used.
2. At this stage, while the system assumes the Supplier can meet their default lead time of 14 days, you do not know this for definite. Therefore, later on January 1 you ring the Supplier to find out when they can supply the ordered items. They say that for these items a lead time of one month is required. Therefore you retrieve the Purchase Order and enter a new Expected Date and Expected Target date of 01/02/20XX in the Purchase Order header.
3. On January 31 you are expecting an imminent delivery so you ring the Supplier to ensure everything is on time. However, they tell you the order has been delayed by a week. Therefore you retrieve the Purchase Order and enter a new Expected Date of 08/02/XX to show the actual date on which you now expect to receive the goods. You leave the Expected Target date as 01/02/20XX to show that the Supplier has missed the mutually agreed target date.
In this scenario, assuming you subsequently received the delivery on February 8, analysis would show that the Supplier missed the agreed target delivery date (Expected Target) by 7 days.
Example 2:
This is a variation on Example 1 showing how the Expected Date and Expected Target dates can be amended when you, rather than the Supplier, delay the order.
1. The Purchase Order is raised and proceeds as in Example 1, stages 1 and 2.
2. On January 31 you are expecting an imminent delivery. However, your warehouse is full so you ring the Supplier to ask them to delay delivery by a week. Therefore you retrieve the Purchase Order and enter a new Expected Date of 08/02/XX to show the actual date on which you now expect to receive the goods. You also amend the Expected Target date to 08/02/20XX to show that the Supplier has not missed the mutually agreed target date, as you have effectively agreed a new Target date.
In this scenario, assuming you subsequently received the delivery on February 8, analysis would show that the Supplier met the agreed target delivery date (Expected Target).
Example 3:
This is a variation on Example 1 in which order lines are assigned different Expected and Expected Target dates.
1. The Purchase Order is raised as in Example 1, stage 1.
2. Again, while the system assumes the Supplier can meet their default lead time of 14 days, you do not know this for definite. Therefore, later on January 1 you ring the Supplier to find out when they can supply the ordered items. They say that for Product X and Product Y a lead time of one month is required. However, for Product Z a lead time of two months is required. Therefore you retrieve the Purchase Order and enter a new Expected Date and Expected Target date of 01/02/20XX in the Purchase Order header - the equivalent dates on all Purchase Order lines will default to the new dates entered in the header. You then amend the Expected Date and Expected Target date for Product Z only to 01/03/20XX .
3. On February 1, Product X arrives as agreed, but the Supplier says delivery of Product Y will be delayed until March 1. Therefore you retrieve the Purchase Order and enter a new Expected Date of 01/03/XX for Product Y only, to show the actual date on which you now expect to receive Product Y, but leave Product Y's Expected Target date as 01/02/20XX to indicate that the Supplier has missed the mutually agreed target date for Product Y.
In this scenario, assuming you subsequently received the delivery on February 8, analysis would show that the Supplier met the agreed target delivery date (Expected Target) for Product X and Product Z, but missed the agreed target delivery date (Expected Date) for Product Y by 28 days.
Example 4:
The Ship Date and Ship Target fields can be used to compare actual shipping dates with those which were pre-agreed with the Supplier (or potentially a third party shipping company, haulier, carriage firm etc.). This example shows how dates can be amended on the Purchase Order to use ship dates - and also amended if a Supplier/shipping company lets you down.
1. The Purchase Order is raised and proceeds as in Example 1, stages 1 and 2.
2. You require an additional guarantee that the goods will be delivered on time. Therefore you will monitor when the goods are to be shipped, to ensure this date is not missed. You know from discussions with the Supplier/shipping company that it is expected to take 7 days between the goods being 'shipped' to you actually receiving them. Therefore on January 1 you retrieve the Purchase Order and enter a new Ship Date and Ship Target date of 25/01/20XX in the Purchase Order header.
3. On January 24 you ring the Supplier/shipping company to ensure they can meet the agreed shipping date of January 25. However, they tell you that shipping has been delayed by 3 days. Therefore you retrieve the Purchase Order and enter a new Ship Date of 28/01/XX to show the actual date on which you now expect the goods to be shipped. You leave the Ship Target date as 25/01/20XX to show that the Supplier/shipping company has missed the mutually agreed target shipping date.
In this scenario, assuming you subsequently received the delivery on January 28, analysis would show that the Supplier/shipping company (i.e. whoever was responsible for shipping the goods) missed the agreed target shipping date (Ship Target) by 3 days.
Extending this example: The Ship Date and Ship Target date fields can be used in the same way as with the Expected Date and Expected Target dates in examples 2 and 3; i.e. there are scenarios in which: (i) you ask the Supplier/shipping company to delay shipping (similar to example 2), and (ii) order lines might be shipped on different dates and therefore different Ship Date and Ship Target dates must be entered on the Purchase Order lines (similar to example 3).
Note: Comparison of actual goods received dates with the Purchase Order Expected and Target dates could be done using Quantum VS myViewpoint or a similar application.
NEXT: Progress Notes