What is a PO?
A PO (Purchase Order) is a request to the supplier to supply your branch or warehouse with inventory items.
What do I need to create a PO?
To create a PO, you need to select the branch/warehouse that will receive inventory items, the supplier you're requesting items from, and the inventory items that you want to order.
If an item is linked with the supplier:
The item quantity should be in supplier order unit.
The item quantity should be greater than or equal to the minimum order unit.
How is the cost calculated in POs?
The default cost for inventory items is set according the following:
- Fixed Order Unit Cost: if the item is linked to the supplier.
- Fixed Item Storage Unit Cost: if it's defined in the inventory item details.
- If both order unit cost and item fixed cost are not defined, you should enter the cost manually in the PO.
What are the statuses of a PO?
When you add the branch, supplier and items to the PO then it can be saved as draft (status changes to draft). While the PO is a draft, it can be edited by any user with authority. The PO then can be posted (status changed to pending) or deleted. When PO is posted it will be assigned a reference of the form POXXX. Both the creator and poster will be saved in the PO.
While the PO status is pending, users with authority can approve the PO (change status to approved) or decline it (change status to declined).
When a PO status is approved and the first purchasing is received, the PO status changes from approved to closed if you purchased all the quantity in the PO, otherwise the status changes to partially received.
What can I do with a Partially Received PO?
While the PO status is partially received, you can make more purchasing transactions for the remaining items in the PO.
The linked purchasing transactions cannot have quantity greater than the PO (You can't receive more than you requested) and cannot have items not included in the PO. Also, users are not allowed to change the cost in purchasing transactions generated from POs. The cost in the purchasing transaction should be calculated based on the cost in the PO.
If you'd like to change the cost in the PO, it will have to be a new PO, unless it is still in a draft status.
The PO status is changed to closed when you've purchased all the items or manually marked the PO as closed.
The business date of the POs is assigned when you change the status to approved or declined.