Purchase Order

A purchase order (PO) is a commercial document issued by the buyer to the seller, which indicates the types, quantities and agreed prices for products or services the seller will provide for the buyer.

Once the PO is sent to the supplier, then there is a legal offer to buy products or services. Acceptance of the PO by the seller is a one-off contract between the buyer and the seller, so no contract exists until the contract is accepted.

Usually, a PO is issued for goods or services over 3500 in value.

The Purchase Order Quick View screen allows you to set the status as “on order” and “received”, both of which affects stock control.

You can also use the Update GL button to post the accounting double entries for this transaction. This entry will be posted as a Purchase Entry under the Supplier module.

Purchase Order Quick View screen

(See below for 1, 2 & 3)

Order, Received and Update GL in Purchase Order

1. Order: This will mark the stock as being “On Order” in the Product Master, but the stock won’t be placed under “In Stock”. The “ORDER” word appears under the On Order column.

2. Received: If you select this, then stock in that PO will be received and entered into “In Stock”. This is selected when the delivery order is received from the supplier and the stock has been delivered. The “COMPLETE” word appears under the Delivered column.

1. This new window pops out after you select Received. Select the Delivery Order No from the DO that you received, and the date you received the goods.

2. Reference: This is picked up from the Delivery Order No that you’ve entered in the previous window

3. Received Date: This is picked up from the Received Date that you’ve entered in the previous window

4. Quantity: Select the quantity that you received

5. Warehouse: You need to set the warehouse under Default Settings in the Product Master (You cannot change the warehouse here)

6. Receive All: Shortcut to receive all stock in this PO

7. Delete Received History: After you have saved (but before you select Update GL), you can select Receive and select this to delete the receive history.

3. Update GL: The entry is posted under Purchase Entry in the Suppier module, which posts double entries to the selected GL codes. The checkbox under the Posted column is ticked after selecting this.

1. This new window pops out after you select Update GL.

Select the Supplier Invoice number from the invoice that you received, and the date you received the invoice.

2. After you select OK, the details are picked up in Purchase Entry in the Supplier module.

3. Select Save to save and post this entry to GL.

Note: You must select Order, before you can select Receive; and you must select Receive before you can select Update GL

Similarly, after you select Received, you cannot change/edit the On Order status. After you update GL, you cannot change the Received status. (You need to delete the Update GL tick or the Receive history before you can amend the Received status or the On Order status.)

Create new/edit purchase orders

Select New to create new purchase order and double click on each entry to edit their details.

Purchase Order tab

1. Select the supplier code and the addresses are selected automatically

2. The date on the PO that we received

3. GL Code: for the debit entry (usually this is a Purchases GL code under 6. Cost of Goods Sold). This is picked up when you select update GL

4. Global discount: To set a total discount for the entire transaction. (Don’t use with GST as the system doesn’t know which product code to allocate discount to)

Delivery Address tab

Unlike the Sales Order module, the delivery addresses here follow the addresses that you key in under Warehouse in the Stock Control module.

1. Change Delivery Address: The Warehouse Addresses new window will pop out to select the warehouse address.

2. You can enter additional supplier tel. no and the name of the person taking the order

Schedule Delivery tab

This is similar to the Schedule Delivery tab for Sales Order under the Sales Order module. This is to keep a record of the delivery date that is scheduled and the quantity to be delivered.

1. Select the arrow to view the product created in the sales order and its quantity

2. Scheduled delivery date: must be on or after order date (a message will pop out below if incorrect)

3. Quantity of goods to be delivered

4. Additional Details: Enter remarks about the scheduled delivery (this is different from Additional Details in Delivery Address)