Purchase Orders

Create and manage purchase orders to procure goods from suppliers efficiently.

Overview

A Purchase Order (PO) is a document sent to a supplier to request goods or services.

It includes:

Items to be purchased
Quantity
Price
Delivery details

Why Use Purchase Orders?

Purchase orders help you:

Plan inventory purchases
Track incoming stock
Maintain supplier agreements
Control procurement process

Purchase Flow

Purchase Order is part of this flow:

Purchase Order → Purchase Receipt → Purchase Invoice → Payment

When to Create a Purchase Order?

Create a PO when:

Stock needs to be replenished
You want to place an order with supplier
You want to track incoming inventory

Create a Purchase Order

Go to Buying → Purchase Order
Click on Add New

Basic Details

Supplier

Select supplier
Supplier details auto-filled

Order Date

Date when PO is created

Expected Delivery Date

Planned delivery from supplier

Add Items

Click Add Row
Select item
Enter:

Quantity
UOM
Rate

Pricing

Rate can be:
- Auto-fetched from purchase price list
- Entered manually

Taxes & Charges

Apply taxes if applicable
Add additional charges (freight, handling)

Save and Submit

Click Save
Click Submit

What Happens After Submission?

PO is sent to supplier
Stock is expected (not yet received)
Order moves to receiving stage

Order Status

Draft → Not submitted
Submitted → Confirmed with supplier
To Receive → Pending receipt
Completed → Fully received
Cancelled → Order closed

Partial Receipt

You can receive items in parts.

Example:

Ordered: 100 units
Received: 60 units

Remaining can be received later.

Link to Stock

Purchase Order does not update stock.

Stock is updated only when:

Purchase Receipt is created

Manage Purchase Orders

You can:

Edit before submission
Cancel if required
Track order status

Best Practices

Verify supplier and pricing
Check item details carefully
Set correct delivery dates
Track pending orders regularly

Common Issues

Incorrect pricing → Check price list
Items not received → Verify supplier delivery
Stock not updated → Ensure purchase receipt created

Example

Supplier: Prosessed Imports

Items: Cheese Makhana (50 cartons)

Rate: $70 per carton

Why It Matters