Maximo Purchase Order Process

The Maximo Purchase Order (PO) process is a comprehensive workflow designed to manage procurement activities efficiently. Let's break down the steps involved in this process:

1. Creation of Purchase Requisition (PR):

Before a Purchase Order is created, a Purchase Requisition is typically generated. This document specifies the items, quantities, and services required. Maximo uses this information to streamline the approval workflow and ensure the accuracy of the order.

2. Approval of PR:

Once the PR is created, it goes through an approval process. The approvers verify budget alignment, necessity, and compliance with organizational policies before granting approval.

3. Conversion to Purchase Order:

After obtaining approval, the PR is converted into a PO. This document details supplier information, order specifics, delivery schedules, and payment terms. The PO acts as a binding contract between the buyer and supplier.

4. Supplier Selection:

Suppliers can be selected based on predefined criteria such as price, quality, and lead time. Maximo maintains a database of suppliers, facilitating quick and informed decision-making.

5. PO Approval:

Similar to the PR, the PO also undergoes an approval process. This step ensures that all terms and conditions are thoroughly reviewed and agreed upon by authorized personnel.

6. Order Dispatch:

Upon approval, the PO is dispatched to the supplier. This can be done electronically via email, EDI, or through a supplier portal. The supplier acknowledges receipt and begins processing the order.

7. Order Fulfillment and Receiving:

Once the supplier fulfills the order, the goods are received at the designated location. Maximo's receiving module allows users to log details such as item condition, quantity received, and any discrepancies.

8. Invoice Matching:

After successful receipt of goods, the supplier sends an invoice. Maximo matches the invoice with the PO and the receiving report to ensure consistency across documents. This three-way matching process is crucial for verifying that the billed amount corresponds to the received goods and the agreed-upon price.

9. Payment Processing:

Upon successful invoice matching, the payment process is initiated. Maximo integrates with financial systems to ensure timely and accurate payment to the supplier as per the agreed-upon terms.

10. Record Keeping and Auditing:

Finally, Maximo keeps a detailed record of all procurement activities. These records are crucial for audits, future references, and performance analysis. Compliance with organizational policies and regulatory requirements is ensured through comprehensive documentation.

The Maximo Purchase Order process thus ensures a seamless and efficient procurement workflow, minimizing errors and optimizing resource usage.