A Purchase Order is created to document a purchase of Inventory Products from a Vendor. This is a crucial step in making sure that your inventory counts are up-to-date so that all of the other processes down the line from seed to sale work like clockwork. In this article, you will learn how to create a Purchase Order.
To add a Purchase Order, follow the steps below:
- Step 1 - From the Purchasing Module, choose Purchase Orders Current and click the New button in the top navigation bar.
- Step 2 - In the Purchase Order detail window, fill in the following fields:
- Vendor - Choose an existing vendor from the drop down menu or add a new vendor.
- Purchase Status - Set the status for this purchase order. Typically, when creating a new purchase order, you will set the status to "Ordered", since you will have not yet received the Inventory Products from this order. Later, when you receive the Inventory Products, you can adjust the Purchase Status to "Received". If an employee is making a purchase order, they can mark it as "Quote" and the administrator must then "Approve" and mark it as "Ordered".
- Vender Invoice - Type the vendor's invoice number associated with this purchase, if applicable.
- Purchase Order -This field will auto-populate with a unique identifying number upon adding your first Inventory Product to the Purchase Order and cannot be edited.
- Approve - This is where the administrator marks "Approved" for a "Quote". If the administrator is making the Purchase Order, they must check this to be able to set the status to "Ordered".
- Order Cost Total - This field will auto-populate when items are ordered. This amount is based on the Order Unit Cost and the amount entered into the Order Qty fields.
- Received Cost Total - This field will auto-populate when items are received. This amount is based on the Received Unit Cost and Received Qty fields.
- Shipping - Enter the total shipping cost applied to this Purchase Order.
- Tax - Enter the total amount of tax applied to this Purchase Order.
- Total Due -Once you add Inventory Products to the Purchase Order, this field will automatically update to reflect the cost for all of the Inventory Products, plus shipping and tax.
- Dates Created, Approved, Ordered and Received - These fields will auto-populate with the dates each occur.
- Memo - This field can be used to notate any other information that should be included on the Purchase Order.
- Step 3 - Now it's time to start adding Inventory Products to the Purchase Order. To begin, click on the New button within the Products sub-tab. A new Product pop-up will appear.
- Step 4 - In the Product pop-up window, use the drop-down menu to search and select the desired Inventory Product in the Inventory Product field. If the Inventory Product will need to be converted to a new unit of measure, select or add a new unit conversion in the Unit Conversion field. Adjust the quantity of the Inventory Product you'll be purchasing in the Order Qty field. Once the Purchase Order has been marked received (Receiving a Purchase Order), the remaining fields will be able to be filled.
- Step 5 - Click the Save and Close or Save and New button to add more products on the pop-up window.
- Step 6 - Repeat steps 3-5 for all remaining Inventory Products in this Purchase Order.
- Step 7 - Click the Save or Save and Close button at the top of the screen.
You've done it! You've created a new purchase order!