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Framework order

What is advantage of framework order over non-stock type ?

Can I make limited contracts with non-stock type and by removing Goods Receipt indicator so that I can have the functionality similar to Framework order ?

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    author's profile photo Former Member
    Former Member
    Posted on Jan 18, 2008 at 03:44 PM

    Sure you can do that. but then better to create the frame work PO rather than contract

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 18, 2008 at 03:48 PM

    Hi

    Frame Work Order is like mini contract....

    Adv.of Frame work order:

    1)You can maintain validity period,

    2)You need not do GR....Directly you can post the invoice...

    3)You need not create Individual PO for low valued material....thus you can reduce the stationary costs...

    4)During LIV, you can maintain Tollerance Limit LA and LD....so that you can Control the Value and validity....

    If you compare with contract....Based on contract...every time you have to issue Release Orders.....In FO....you need not release Order evrey time...

    For FO,During LIV, you can maintain Tollerance Limit LA and LD....so that you can Control the Value and validity...where as for contract you cannot....

    Hope you have understood the adv.of FO....

    Reward if useful

    Regards

    S.Baskaran

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  • Posted on Jan 18, 2008 at 09:32 PM

    Framework Purchase Orders are usually used for Utility (electric, telephone etc.,)

    purchase payments.

    Each organization has to incur this utility payments. In order to track these payments, framework purchase orders are created for a specific period. Each utility company is created as a vendor. On a periodic basis (mostly monthly), bills are received from the utility company. These are directly entered in to the system by the invoice personnel in the accounts payable division referencing the framework purchase orders. Payments are made to these utility company based on the invoice posted.

    In case you wnat to release purchase orders for each month, you may have to maitain many purchase orders. In the case of framework, only one Purchase order per utility company for a specific period is maintained and tracked.

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