Purchase Order

The purchase order is an electronic document that is sent by the customer to the seller to request for supply of certain goods and services. It is the first official communication from the buyer, containing the details of the specific items required, their quantity and the prices agreed upon along with other details that may be required for the goods and services.

The purchase line orders contain the details of each of the items types ordered as well as the quantity of each item. Each type of commodity has a unique sales line number. Numerous purchase line orders can be contained in a single purchase order.

The purchase orders are used by the seller to prepare the items for shipment. The purchase orders are also important in providing the seller with information about the buyer to track sales records, authorise shipments and plan properly the shipment methods in line with the customer’s needs. This helps a business to grow and reach more customers by simplifying how you make sales. It makes it easier to make purchase orders and also improves the efficiency of the seller’s ability to account for stock and manage sales.

In the purchase orders, one is able to view and edit the existing purchase orders, create new ones and also import a new document from the existing documentation. When creating a new purchase order, the following steps are followed:

A Purchase Order can be created in following methods:

• From Purchase Order Tab (Record level)
• From the Sales Order Tab (Converting sales order into purchase order)
• From Stock Receiving Tab
• From Stock Dispatching Tab

Create Purchase orders from a Purchase Order Tab

 

Once you click the purchase orders tab, there are a variety of activities and information that you can access. On the page, you have the access to all purchase orders raised. The purchase order details can be viewed and edited accordingly.

1. Click on the “New” tab located on the top right corner of the purchase orders page.
2. Once you click the tab, you are required to choose the type of record that you want to fill, between the purchase order and the return to vendor document.
3. When creating a new order, you should choose the standard purchase order.

1. The details of the requesting organisation, including the employee placing the order and the approver.
2. The details of the items ordered, including the quantity, barcode numbers, the purchase order lines of each item and description of the order.
3. The form also includes a section for cost details, including the shipment costs and tax payable.
4. The order also requires the project the items are used in, the date for order approval and the contract with the vendor.
5. There are also details that cover the delivery information. This includes the address, expected delivery dates and invoice address.

The return to vendor option allows you, to fill in information about the items being returned and the reasons for the return.

1. The address information of the vendor and the buying organisation.
2. The master purchase order from which the Return to Vendor document is filled.
3. The quantity of the items being returned and the credit information.
4. It also covers the budget accounts related to the items.
5. The cost details of the RTV, including the tax details.
6. The contract information, project and revision number of the document.
7. The details of the expected delivery date, the invoice address as well as the date for cancellation.

Purchase Line Orders

The purchase order lines are located next to the purchase details of an existing purchase order. The purchase line orders are filled in the related tab next to the details of the purchase orders.

New purchase line items documentation can be filled by clicking the “new” tab on the right end of the page. Additionally, the existing purchase order line items can be easily edited, to account for the right quantity and details of the items to have.

In the same related section, there are links to fill other documents related to the purchase order, including the work orders, invoices and the contract, stock inward and outward line items, supplier payments among other details.

Fields to note:

Information Section
Field	Description
PO Name	It describes the name of the purchase order
Employee Requester	It defines the employee name who requests the work order
Final Approver	It describes the name of the employee who approves the Purchase order
Sales Order	It is the sales order related to the purchase order
Budget Account	It describes the name of the budget account
Master Purchase Order	It describes a purchase order which associates other purchase orders with it
Total Credit	Total credit of the PO
Count PO Line Items	Number of PO line items in the purchase order
Total Quantity	Total quantity of the products in the purchase order
Reconciled Quantity	Reconciled quantity with the products received in the inventory
Barcode	It describes the barcode specific to the work order
Vendor	It describes the name of the supplier
Status	It defines the purchase order status – Booked, Reconciled, Approved Etc.
Payment Terms	Payment of Supplier Invoices to be made after receipt of invoice.
Order Date	It specifies the order date of the purchase order
Order Amount	It gives the total amount of the purchase order without tax
Vendor Contact	Contact Name of the Vendor/supplier
Tax Amount	The Tax amount for the PO
Shipping Amount	Shipping amount for the PO
Total Amount	Total amount of the purchase order with tax amount
Organisation	It defines the name of the organisation/Account
Organisation Business Unit	It defines the Business Unit name of the Account/Organisation
Purchase Order Details Section
Cost Center	Account to which the purchase order is assigned
Approved Date	It describes the approved date of the work order
Programme	Programme the purchase order belongs to if any
Revision Date	If there is any revised date for the purchase order
Project	It describes the name of the project for which the work order is created
Vendor Contract	Vendor contract
Revision Number	If the purchase order is revised a Revision number is generated
Publication Date	It describes the date of the purchase order published
Cancel Date	Cancellation date of the PO if any
Delivery Details
Delivery Address	Delivery address for the purchase order goods
Vendor Address	Vendor/supplier address of the purchase order
Invoice Address	It describes the address to which the purchase order is invoiced
Actual Delivery Date	It gives the actual date when the purchase order goods were delivered
Expected Delivery Date	It tells the expected delivery date of the purchase order products
Price List	It describes the price of the products in the price book entry

The purchase orders are used by the seller to prepare the items for shipment. The purchase orders are also important in providing the seller with information about the buyer to track sales records, authorise shipments and plan properly the shipment methods in line with the customer’s needs. This helps a business to grow and reach more customers by simplifying how you make sales. It makes it easier to make purchase orders and also improves the efficiency of the seller’s ability to account for stock and manage sales.

1. Click on the Sales Order tab in the tab menu
2. Select the sales order that you would like to convert into a purchase order and click on the down arrow in the top right-hand corner of the page and select ‘Create Purchase Orders’ as shown below.                                                       
3. Fill in the purchase order detail section and the purchase order line items section, new purchase order line items can also be added along with the existing line items using ‘Add New’ button.
4. Click on ‘Save’ button which creates a new purchase order with a unique purchase order number

1. Click on the Stock Receiving tab and from the drop-down select Purchase Orders as shown below.                       2. To create a new purchase order, click on Purchase Order button located on the top right-hand corner of the page.

3. Fill in the purchase order detail section and the purchase order line items section. New Purchase order line items can be added using the ‘Add New’ button.
4. Click on ‘Save’ button which creates a new purchase order with a unique purchase order number.

Create purchase orders through a Stock Dispatching Tab

Creating the purchase orders through Stock Dispatching tab is a scenario where a user identifies that there are no stocks available of the requested products and also a purchase order can be created for the complete sales order.

1. Click on the Stock Dispatching tab in the menu
2. Select the sales orders of your interest and click on ‘Pick’ button

 

3. Select the line items for which the purchase order has to be created and click on ‘+ Purchase Order’ button on the top right of the page as shown below.

4. Fill in the purchase order details section

5. To add purchase order line items, click ‘Add New’ button and click ‘Save’ to create a new purchase order.