What is a Purchase Order?

A Purchase Order (PO) is a write-up of goods and/or services procured from a vendor. Purchase Orders have no accounting impact until items are received or services are completed.

By recording Purchase Orders, you can effectively monitor the following:

1. Vendor's order details

2. Inventory items that need to be replenished

3. Received items

4. Pending items that are yet to be received

Item Receipts are generated from purchase orders after items are received, impacting the accounting general ledger (GL). These item receipts are then converted into Bills.

Purchase Orders can be created in multiple ways:

Create a new, individual Purchase Order

You can create a new purchase order from the "Purchase Order" module by providing the required details.

For more information on creating a new purchase order, read Creating Purchase Orders

Create the Purchase Order from the Sales Order

You can create the purchase order from the sales order in multiple ways:

• PO for All Items: To create a purchase order for all the Items of the sales order, go to Options > Copy > Copy To Purchase Order.

• PO for Selected Items: When only specific items require procurement, you can effortlessly generate a purchase order for these items. To create a purchase order for selected items, select the items in the sales order and go to Options > Copy > Copy Selected Lines To PO.

• Dropship PO: To create a dropship PO from the sales order, where items are shipped directly from the vendor to the customer, go to Options > Copy > Create Dropship PO.

• PO for Default Vendor: You can create a purchase order(s) by default vendor of the line items from the sales order. To do this, go to Options > Copy > Copy To PO(s) By Vendor.

• Transfer PO for All Items: To create a transfer purchase order for all the Items of the sales order, go to Options > Copy > Copy To Transfer Purchase Order.

• Transfer PO for Selected Items: To create a transfer purchase order for selected items, select the items and go to Options > Copy > Copy Selected Lines To TPO.

Create the Purchase Order from the Manufacturing Order

Manufacturing orders can also serve as a basis for creating purchase orders. To do that, go to Menu> Options > Create PO for Selected Lines.

Create the Purchase Order from the Short Inventory Planner module

You can create a PO from the Short Inventory Planner for the insufficient item(s).

To create a purchase order from the Short Inventory Planner(SIP), select the item(s) from the SIP module and go to Options > Create new PO

Create the purchase order from the Item Inventory Snapshot module

Purchase orders can also be created from the Item Inventory Snapshot module. To do that, select the item(s) from Item Inventory Snapshot and go to Options > Create new PO