In a vendor managed inventory (VMI) relationship, the system converts an incoming 855 P/O Acknowledgment into an open purchase order.
When creating a purchase order from an 855 VMI P/O Acknowledgment, the system can use the line item prices from the 855 the vendor sends or prices from system matrixes or price sheets. To determine which method the system uses, enter Y or N in the Use Partner's Pricing on VMI Orders field on the EDI Add'l Doc Info screen.
Regardless of which pricing method you select for creating the order, the system compares the prices on the 855 to your system prices for each line item. You can designate an allowed variance for line item prices in the Allowed Pricing Variance% field in Vendor Maintenance. The system does one of the following:
If line item price differences exist and they fall within your allowed variance, the system creates the open order.
If line item price differences exist and they exceed your allowed variance or you have not specified an allowed variance, the system places the order in the Remote Order Entry Review Queue with a Bid status.
For example, set the Allowed Pricing Variance% field to P for percentage and enter 10.0 percent. If one or more line items vary by more than 10 percent, the order goes to the Remote Order Entry Review Queue with a Bid status and Price error. The Error Detail screen, viewed from the queue using the Error Detail hot key, shows the pricing discrepancies.
When creating a purchase order for an 855 VMI P/O Acknowledgement, the system adds the number of days defined in the Freight Days field on the Miscellaneous Vendor Information I screen for the vendor to the ship date and the required date of the purchase order.
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