Uploading Renegotiated Prices

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Once final prices are confirmed by the Vendor, Purchasing Person has to upload Renegotiated prices in the System and inform Salesperson to update SO accordingly.

How to renegotiate a PO

Renegotiated POs are used to store the negotiated prices. The reason for splitting PO quoted from PO renegotiated is to differentiate the prices when they are used for reference. PO quoted from any order can be used as reference prices under any other SO. Renegotiated POs will be used as reference for the same Customer when it is needed by Sales Dept., to refer to final prices of previous orders.

Renegotiated POs are also used as the basis for another type of PO - PO Procurement Group (can also be referred to as 'PO Dropship'). PO Procurement Group is the type of PO that will become a confirmed order. POs Procurement Group are created by the System automatically on the basis of Renegotiated POs.

1. To provide negotiated prices to the Salesperson, Purchasing Person needs to create the PO that will become PO Renegotiated. The safest way to create PO Renegotiated is to use the button 'NEW RFQ' in the relevant PA. Follow the process described in Method # 1 section of 'Handling PO' SOP.
Note: An alternative way to create PO Renegotiated is to duplicate PO Quoted. However, this way is to be used ONLY if Purchasing Person is 100% sure that no order details have changed since PO Quoted was created. To duplicate a PO, locate it in the System, then click 'Action' -> 'Duplicate'. The new PO will have exact same details, Purchasing Person will then need to change 'Quote (pack)' or 'Quote (piece)' to reflect final negotiated prices.
2. Once PO is created and reflects final negotiated prices, click ‘RENEGOTIATE’ on top right of the screen.

3. Check the PO in Renegotiated stage. After PO is renegotiated, each product information becomes uneditable and PO is move to 'TO APPROVE' stage.
Note: The System will notify Purchasing Person with an error pop up, if there is a product line with CBM and printing fees to be considered.
4. When PO Renegotiated is in 'TO APPROVE' stage, it means that PO has to be approved by Purchasing Dept. Manager. Inform Purchasing Dept. Manager to check and approve renegotiated PO via chat message.
5. Purchasing Dept. Manager can either approve the PO or tell Purchasing Person that prices are too high. If prices are too high, go back to the Vendor to ask for lower prices, once lower prices are received edit the PO to change the prices.
6. Once PO is approved by Purchasing Dept. Manager, send a task to Salesperson to update SO with Renegotiated prices.

If PO is moved to Renegotiated stage by mistake or prematurely, Purchasing Person can roll back the stage by clicking 'CANCEL' and then 'SET TO DRAFT' to be able to make changes. Once the necessary changes are made, Purchasing Person must move it back to Renegotiated stage for Sales Dept. to be able to use it.

After PO Renegotiated is final, Salesperson will use it to update the SO. SO must always reflect the final and correct information, including final purchase prices. Once Salesperson adds Renegotiated prices and confirms SO, the System will automatically create PO Procurement Group that Purchasing Person can use to confirm the Purchase Order with the Vendors. The PO Procurement Group created by the System will have the right Vendors, and final prices according to PO Renegotiated. After POs Procurement Group are created, Purchasing Person needs to check the basic information and handle Purchase Contracts.

NOTE: If the quoted prices of the final Vendor were not uploaded previously, Purchasing Person must upload them first. Quoted prices must be the first prices quoted by the Vendor, and Renegotiated PO must contain final prices of the order. Both POs have to be uploaded in the System and tasks sent to Salesperson to update SO accordingly.

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