Purchase Order
A Purchase Order is a binding contract with your Supplier that you promise to buy a set of items under given conditions.
1. Prerequisites
Before creating and using a Purchase Order, it is advised that you have the following first:
2. Create New Purchase Order:
A Purchase Order can be automatically created from a Material Request or Supplier Quotation.
Go to the Purchase Order list, click on Add Purchase Order.
Click Get Items From and select either Material Request or Supplier Quotation.
Items table will show the item details based on the Material Request or Supplier Quotation you choose.
Select the Supplier, required by date.
Set taxes.
Save and Submit.
2.1 Setting Warehouses
Set Target Warehouse: Optionally, you can set the default target Warehouse where the purchased Items will be delivered. This will be fetched into the Item table rows.
3. Features
3.1 Address and Contact
Select Supplier Address: The Supplier's billing address.
Select Shipping Address: The Supplier's shipping address from which they'll be sending the items.
Address, Shipping Address, Contact, Contact Email will be fetched if saved in the Supplier master.
For India:
Supplier and Company GSTIN: The GST Identification Number of your Supplier and your company.
Place of Supply: For GST, Place of Supply is necessary. It consists of the state's name and number.
3.4 The Items table
Scan Barcode: You can add Items in the Items table by scanning their barcodes if you have a barcode scanner.
Quantity and Rate: When you select the Item code, it's name, description, and UOM will be fetched.
Warehouse: The warehouse where the items will be delivered, will be auto-filled if 'Set Target Warehouse' was set in the Purchase Order.
A “Required By” date on each Item: If you are expecting part delivery, your Supplier will know how much quantity to deliver at which date. This will help you from preventing over-supply. It will also help you to track how well your Supplier is doing on timeliness.
3.5 After Submitting
You can do the following after submitting
Purchase Receipt
Purchase Invoice