Purchase Order Delivery Date

Finance and Operations/AX User Forum
1

Hi all,

i am opening this topic because i need help from you. I know there are several discussions in the web about the purchase order delivery date, but my question (i think) is a little bit larger.

Well, first of all, what does the “Purchase Delivery Date” means? when the material is ready at the supplier site or when the material is ready at our company site?

My first question is strictly related to this one: how can we correctly manage the transport lead time from supplier site to our site? how to manage this information in AX?

Any help\suggestion\documentation is really appreciated.

Thanks in advance,

ciao
Andrea

2

Purchase Delivery Date is the date the ordering company wants it delivered.
You include the transport lead time either within the lead time or you define it from the distribution setup within AX.

3

Thanks for your help.
Could you please explain me how to make transport time explicit? is there any kind of guide or setup manual?
What i think is: i tell to the supplier that i need the item A to be in my company on (for instance) 20/05. How can him schedule his production if he doesn’t know how much will it take to move the item to our site?

I hope my question is clear enough :slight_smile:
Again thanks,
Andrea

4

Technically that is the suppliers responsibility. If you need it for 20/05 and it takes them 10 days to make and 3 days to ship then they have to start on 07/05 to make your required date. They then also “Confirm” this depending upon your process. As the purchaser I tell the supplier when I want it, it should calculate the delivery date from the lead time they have given you (it is up to them if they include transport time or not). As the purchaser you do not control this, or indeed how they ship and absorb the costs (unless you pay for specific delivery methods of course).

You so not schedule the suppliers resources, factory, raw material flow etc. They do.

5

Thank you! Maybe as you said we can manage it with the lead time.

Is it possible to set up a lead time for item\supplier?
Is there any kind of advanced set up that could be done about transportation in AX?

Again thanks for your kindness.
Andrea

6

You setup lead time per item in the default order settings or site specific settings. There is also the ability to add it to the trade agreement to make it supplier/item specific.

The transportation is under Inventory Management >> Setup >> Distribution >> Transport. However this is your shipping outbound, the shipping you control Transportation that is the responsibility of the supplier is not considered because it is the responsibility of the supplier to resource and plan to meet your requirements. If it existed you could not plan to it because you do not control the supplier.

7

Hi all,
Setting the lead time, time for transport etc. for each item/supplier in your data base is only useful when you make planning. Then your planning will calculate these when it prompts that you need to order certain items.
Purchase Delivery Date of a purchase order firstly depends on the Delivery Terms in your Contract/Agreement with the seller (Incoterms 2010 or later).
If you have contracted delivery exworks the Delivery Date means the date when the goods will be ready ( packed ) in the vendor`s warehouse/
If you have contracted FOB delivery , then the Delivery Date is the one on which the vendor places the goods “on board” the vessel ( ship) .This concerns transport by sea. If Truck are used the Incoterms defines FOT ( Free on Truck), which means the date when the vendor loads the goods on the truck to drive it to you.
If you have contracted.
If in your contract the terms of Delivery are DAP (Delivered at place) - the place agreed on might be your warehouse. Then the Delivery Date will be the date on which you receive the goods.

8

Do you happen to know of any way to have the load delivery date flow down to the PO level and update the PO delivery date? When trying to use the transportation module, I had a case where the load delivery date was after the PO delivery date. I can update the PO delivery date manually, but I would like to have it update automatically based on the load delivery date.