A purchase order (PO) is what you send a vendor to order goods before they invoice you. Essentials plan and above.
#Creating a purchase order
Purchases → Purchase Orders → New purchase order:
- Vendor *, Order number (auto when blank), Reference (the vendor's quote number), Order date *, Payment terms (sets the expected date), Expected date (when you expect the goods).
- Line items — only items marked purchasable can be ordered. Quantity, rate, optional discount and tax. The totals show Subtotal, Discount, Tax, Adjustment and Total.
- Note and Terms & conditions print on the order.
- Attachments.
Click Create order. The PO is saved as a Draft.
#Opening and sending
- Open the PO and click Mark as Open (or Submit for approval first if an approval rule covers purchase orders — it opens automatically once approved).
- Send Mail or PDF to deliver it to the vendor.
The ⋯ menu offers Submit for approval, Revert to Draft, Close PO, Reopen, Edit purchase order and Delete purchase order.
#Receiving goods
When the goods arrive, record a goods receipt. It updates stock without creating a bill.
- On an open PO click Receive items.
- Set the Receipt date, the Warehouse the goods go into, and an optional Note.
- Each line shows Ordered, Received, Remaining, Receive now (pre-filled with the remainder — reduce it for a part delivery), Lots (a batch item's lot numbers and quantities, a serial item's serial numbers — section 10.11) and Unit cost. Lines left at zero are skipped.
- With a barcode scanner, click into the Click here, then scan barcode box and scan each item: every scan adds one to the matching line, capped at the remaining quantity. A serial number counts as its item. An unknown barcode offers to create the item.
- Click Record receipt. The PO's status and Received total update. All receipts are listed on the Goods receipts tab, where one recorded in error can be deleted.
- In a warehouse set to Receive first, then put away (section 10.14) the goods wait in the receiving bin, on hand but not for sale, and the tab shows Open putaway: the pre-filled bin move that shelves them.
#Drop-ship orders
A purchase order raised by a sales order line marked Supplier ships (Chapter 5.6) shows For order (the sales order), Ship to (the customer and their shipping address) and Shipped by supplier. It is issued, approved and billed like any other, but nothing arrives at your warehouse: instead of Receive items it offers Mark shipped by supplier (the date and a carrier reference), which delivers the sales order and marks the purchase order received. Its bill debits cost of goods sold rather than inventory and records no stock.
#Inspection on receipt
A received item that is inspected on receipt (Chapter 10.17) waits in the warehouse's quality bin with a pending inspection; it is put away once the inspection is accepted, and quarantined if rejected.
#Subcontracted orders
An order for work a vendor does on your components (Chapter 11.10): pick the Subcontract BOM on the form and the vendor and the product line at their rate fill in. Issuing it sends the components to the vendor's warehouse; Receive items consumes them there and brings the finished goods in at components + charge; the bill clears the charge. The page shows Components at the subcontractor with what is required, there, and consumed.
#Converting to a bill
When part or all of the order has been received and still needs billing, a Convert to Bill button appears. It opens a new bill pre-filled with the vendor and the lines still to bill (quantities, rates, tax and accounts carry over) and a banner naming the source PO. Review and save the bill. The PO's Billed total updates; convert again later for the remainder.
You can also start from the bill: New bill → Add lines from purchase orders lists the vendor's billable POs.