Purchase Order Management streamlines procurement with template-based creation, receiving workflows, supplier integration, and purchase clearing reports. Maintain accurate inventory and track supplier performance.
Overview
The Purchase Order system provides:
- Template-based PO creation from existing orders
- PO status workflow (OPEN → PARTIALLY RECEIVED → FULLY RECEIVED → CLOSED)
- Material receiving with inventory and GL integration
- Supplier invoice entry and purchase clearing reports
- Print options (PO and receiving slip)
- Quick actions menu from search results
- Direct PO creation from supplier records
Creating Purchase Orders
1 Start New PO
Navigate to Purchasing → New Purchase Order or click ☰ menu from supplier detail → "Start new PO" (auto-fills supplier info).
2 Select Supplier
Choose supplier from lookup. System auto-fills contacts, addresses, payment terms, and delivery method.
3 Add Line Items
Add products with quantities and pricing. Enter expected delivery date and price validity period.
4 Additional Costs (Optional)
Add up to two additional cost items (freight, handling, etc.) with amounts.
5 Review and Save
Review totals and click Save. PO is created with OPEN status.
Generate PO from Template
Quickly create new purchase orders based on existing ones - perfect for recurring orders.
1 Open Existing PO
Search for and open the purchase order you want to use as a template.
2 Access Template Function
Click ☰ hamburger menu in PO detail → "Generate new PO from"
3 Pre-filled Data
New PO form opens with all supplier information, line items, quantities, and pricing pre-filled.
4 Review and Save
Review pre-filled data, make necessary changes, and save as new purchase order. Original template remains unchanged.
PO Status Workflow
| Status | Description | Actions Available |
|---|---|---|
| OPEN | New PO, nothing received yet | Edit, Delete, Receive, Print, Email |
| PARTIALLY RECEIVED | Some items received (shows 📦 PARTIAL badge) | Receive more items, Print, Email |
| FULLY RECEIVED | All items received | Print, Email, Close |
| CLOSED | PO closed manually or automatically | Print, Email, Generate new PO from |
📦 Received Materials Badge
PO search results show orange "📦 PARTIAL" badge next to status when some or all items have been received. This helps identify POs that may need follow-up.
Receiving Materials
1 Access Receive Screen
From PO detail, click ☰ menu → "Receive items" or use quick action from search results.
2 Enter Received Quantities
For each line item, enter the quantity received. Can receive partial quantities over multiple sessions.
3 Cost Verification
System uses PO line item costs for inventory valuation. Any cost variances should be noted.
4 Process Receiving
Click Save to process. System executes in single transaction:
- Inventory Update: Increases qty_on_floor and decreases qty_on_order
- GL Entries: DEBIT Inventory account, CREDIT Purchase Clearing account
- PO Status: Updates to PARTIALLY RECEIVED or FULLY RECEIVED
- Receiving Record: Creates audit trail entry
5 Variance Handling
If received quantities differ from ordered, system adjusts on-order qty and flags variance for review.
Supplier Invoice Entry Integration
Link supplier invoices to purchase orders for purchase clearing tracking:
- Navigate to Accounting → Enter Supplier Invoice
- Select PO to link invoice
- PO data auto-populates accounts and amounts
- System tracks PO cost vs. Invoice amount for clearing report
- DEBIT Purchase Clearing, CREDIT Accounts Payable
Purchase Clearing Report
Track PO receiving vs. invoicing to identify outstanding liabilities:
- Shows received materials not yet invoiced
- Shows invoiced amounts vs. received amounts
- Highlights variances requiring attention
- Critical for month-end accruals
Print & Email Options
Flexible print and email options with receiving slip.
Document Types
- Purchase Order (with prices): Full PO for supplier communication
- 📦 Receiving Slip (no prices): Warehouse document for receiving staff - no pricing information shown
- 📧 Email PDF: Opens email client with PO PDF attached
Print Modes
- Preview Mode: Opens print preview for manual printing/saving
- Direct Print: Sends directly to default printer (check option to enable)
Usage Examples
Email PO to Supplier: Uncheck "Purchase Order", check "📧 Email PDF", click Print
Print PO + Receiving Slip: Check both documents, click Print, two preview windows open
Quick Print Receiving Slip: Uncheck PO, check Receiving Slip + Direct Print
☰ Search Results Actions Menu
Perform common PO operations directly from search results.
Click ☰ menu in Actions column for:
- 📧 Email and Print: Send or print documents (all statuses)
- 📋 Generate New PO from: Use as template (all statuses)
- ✏️ Edit: Modify PO (OPEN status only)
- 🗑️ Delete: Remove PO (OPEN status only)
- 📦 Receive items: Process receiving (OPEN status only)
Editing Purchase Orders
Enhanced PO editing with improved interface.
- Delivery Method: Ship-To Address updates automatically based on delivery vs. pickup
- Additional Costs: Edit or add up to two charge types with amounts
- Dates: Update expected delivery date and price validity period
- Clean interface matches QOI edit forms
Best Practices
- Use templates for recurring supplier orders to save time
- Print receiving slips for warehouse staff to improve accuracy
- Receive materials promptly to maintain accurate on-order quantities
- Link invoices to POs for proper purchase clearing tracking
- Review purchase clearing report monthly for accrual accuracy
- Close fully received POs to keep active list clean
- Start POs from supplier detail to auto-fill information
- Document cost variances when receiving at different prices
Troubleshooting
Cannot Edit PO
Problem: Edit option not available.
Solution:
- Check PO status - only OPEN POs can be edited
- Closed or cancelled POs cannot be modified
- Partially received POs have limited editing (dates/costs only)
Receiving Updates Wrong Account
Problem: GL entries don't match expected accounts.
Solution:
- Verify Purchase Clearing account is configured in Chart of Accounts
- Check product GL account mappings
- Confirm inventory account setup in system configuration
Purchase Clearing Report Shows Variance
Problem: Received amount doesn't match invoice amount.
Solution:
- Review receiving records vs. supplier invoice
- Check for price changes between PO and invoice
- Verify all receipts were entered correctly
- Contact supplier if significant unexplained variance
Related Topics
- Supplier Management - Managing supplier records
- Inventory Management - Receiving impact on stock levels
- Accounts Payable - Supplier invoice entry