Create purchase orders from purchase contracts

Article • 6/4/2025 • 3 min read

Creating purchase orders from purchase contracts allows businesses to maintain compliance, reduce discrepancies, and increase accountability. This process minimizes error risk, strengthens vendor relationships, supports budget compliance, and ultimately improves the procurement workflow’s efficiency and cost-effectiveness.

You can create one or multiple purchase orders from a purchase contract based on the item number, vendor number, quantity, and quantity to receive. The following procedure describes how to perform this activity.

  1. Select the Search icon , enter Purchase Contracts, and then choose the related link.
    The Purchase Contracts list page opens.

  2. Select the preferred No.
    The Purchase Contract card page opens.

  3. On the action bar, select Process > Make Order.
    The Create Contract Orders page opens.

    • If the Vendor No. field value is blank on the Purchase Contract page, then you cannot select the Make Order action.
    • You cannot create a purchase order without defining the Qty. to Receive field value on the Purchase Contract page and when the Status field value is not set to Released.
    • If the Qty. to Receive field value exceeds the Contract Qty field value, the system displays an error or a warning message based on the setup. For more information, see Set up contract management.

  4. On the Options FastTab, fill in the below fields:

    FieldDescription
    Contract No.Specifies the contract number based on which the purchase orders will be created. It gets inherited from the purchase contract.
    No. of orders to createSpecifies the number of purchase orders you want to create based on the specified purchase contract.
    Exclude Lines with Zero Qty.Specifies whether you want to exclude the purchase contract line items with zero quantity while creating the associated purchase orders.

    You can choose any location on the purchase document if no location is specified on the purchase contract. However, if a location is specified on the purchase contract, you must use that specified location to proceed with contract.

You can also schedule a job queue by selecting the Schedule action and configuring the field values on the Schedule a Report page. The associated purchase orders are created.

These purchase orders inherit Qty., UOM, and Location Code from the associated Purchase Contract. You can change the Qty. and UOM field values as required when the related order is not linked to any contract. However, the Location Code field is not editable.

  • If the Unit of Measure (UoM) in a purchase order differs from the UoM in the associated purchase contract, the system will convert the Direct Unit Cost Excl. VAT field value.
  • When a purchase order is created with the same item and vendor details within the specified date range of the purchase contract, the system inherits the relevant details from the Contract Setup page.