How Does Purchase Order Work

A purchase order (PO) is an official document a buyer sends to a seller when purchasing items. The purchase order specifies the cost and quantities of each item.

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To create a purchase order, add items, approve/reject a request and receive the goods follow these steps: (A hyperlink is available for each step, providing a detailed explanation for each step)

1. Creating Purchase Orders (Click here for more details).In addition, it is mandatory before creating the purchase orders to define the suppliers (Click here to learn how to create suppliers).

Purchase orders can be created in Foodics RMS easily.

2. Adding Items, quantity, and total cost per item to Purchase Orders (Click here for more details)

Add inventory items to a purchase order.

3. Submitting Purchase Orders for Review (Click Here for more details)

Users can submit a Purchase Order for review; only authorized users can approve the Purchase Order and finalize the transaction. (Click here to learn more about authorized users and roles)

4. Approving/Rejecting Purchase Orders (Click Here for more details)

The user can approve/reject purchase orders based on their authority to keep track of all transactions more efficiently.

In addition, in this step the supplier will receive an email after approving the purchase order as shown below.

5. Creating Purchasing Transactions from Purchase Orders (Click Here for more details)

The user can create a purchasing transaction and receive items from an approved purchase order. 

6. Receiving Items from purchasing transactions (Click Here for more details)

After completing a Purchasing transaction, the user can now update the transfer status and receive the items. The inventory level will increase for the branch receiving the goods.