In a normal business scenario, purchase orders play an important role as it is a key part of any business process. A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.

Purchase orders are a critical element of the whole purchase cycle and production cycle.

Purchase orders are also called Supplier orders and it is used to control the purchasing of products and services from external suppliers. Purchase orders can be an essential part of enterprise resource planning system orders.

Companies use purchase orders for several reasons. Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers. They may also help a purchasing agent to manage incoming orders and pending orders. Sellers are also protected by POs in case of a buyer’s refusal to pay for goods or services.

 So the Purchase process involves purchase order followed by receipt and then invoice. So all the above processes which we discussed are an integral part of the Purchase cycle and without any of them the cycle may not be able to complete depending on the circumstances.

 In some business scenarios, there might be a situation where we want to give a user control of the minimum order amount, like if the minimum order amount is not reached for any particular supplier then we want to give a warning message or block the creation of the order itself.

 So in this blog we will show you the process which can help you to set up a minimum order amount and if the amount is not reached then how we can block order creation.

Steps to follow:

First, we need to set up a minimum order amount which can be set for any particular supplier on the ‘Commercial’ tab of supplier screen. The amount is expressed in folder management currency.

So, in order to block the control, we need to navigate to All -> Setup -> General Parameters and open the ‘AUZ’ group (i.e., Authorizations) of the ‘Purchase’ chapter. Kindly refer below screenshot for the same.

After opening the ‘AUZ’ group of ‘Purchase’ chapter, just change parameter POHMINAMT (i.e., Order min amount control) from ‘Warning’ to ‘Blocking’. Kindly refer below screenshot for the same.

So this parameter can be set to either folder wise or legislation wise or company wise whichever way is preferred we can set the same.

The parameter has only three values ‘No Control’, ‘Warning’ and ‘Blocking’ and below is the use of the same.

Blocking control: The order line or order cannot be created.

Warning: A warning message is displayed when creating or modifying an order line, and when creating or saving the order. This warning message stops the creation or modification and resumes the amount entry.

No control: The minimum order quantity is ignored and no message is displayed.

Note : In order entry, if an order line is loaded from the requirements consideration window, the warning message is not triggered on the order line, but when saving the order.

By the help of the above blog, we can set the minimum supplier order amount in X3.