Purchase Orders

Purchase orders manage formal procurement from suppliers with tracking, approval workflows, and receiving integration.

For detailed receiving procedures, see Receive Stock.

Understanding Purchase Orders

Screen components:

• Header: Supplier, ship-to/invoice-to locations, dates, payment terms, currency, and charges
• Line Items: Items, quantities, pricing, and package details
• Notes: Totals and internal notes; monetary header inputs like Discount %, Sales Tax %, Currency, Exchange Rate, Shipping, and Other Charges are reviewed here
• Delivery Schedule: Multiple delivery dates for staged receipts (optional; can be hidden by option)

Order Status:

The PO list can also expose a Job filter and a Todays Activity link, depending on configuration.

Creating Purchase Orders

Access: Orders → Purchasing → Purchase Orders → Add Purchase Order

Create the header:

1. On the Purchase Orders list, click Add Purchase Order.
2. Fill in required fields:
   • Supplier: Must be active; Non-Approved suppliers block order creation.
   • Requested Date: Expected delivery date.
   • Payment Terms, Ship Via: Default from the supplier when configured.
   • Order Type: Select Assets for capital asset purchases. Standard inventory POs use the default order type.
3. Optional header fields include Supplier Order, Supplier Attention, Job, Currency, Exchange Rate, Discount %, Sales Tax %, Shipping Charge, Other Charges, and Terms and Conditions.
4. Click Save.

Note: Buyer, Order Date, and some additional fields are only editable on an existing PO, not during initial creation.

Add line items:

1. Go to the Line Items tab and click Add Line.
2. Fill in fields:

3. Click Save after each line.

Review the Notes tab: Go to Notes to confirm sub-total, discount, tax, shipping, tariff, and other charges. These totals reflect header values entered during creation; edit the PO header to change them.

Supplier Catalog and Term Agreements in PO Context

When a supplier catalog entry exists for the item, the line auto-populates Unit Cost, UOM, and Supplier PN. Term agreements enforce contract pricing and can block expired agreement use on save.

• Supplier catalog maintenance: Orders → Purchasing → Suppliers’ Catalog
• Term agreement maintenance: System Lists → Shipping & Purchasing

Approval Workflows

When Admin Option 106 is enabled, purchase orders require approval before receiving.

Approval actions:

• Approve: Authorizes the order and validates the approver’s authorization limit against the order total.
• Sign Off: Separate approval-chain action when multi-level approval is configured.
• Revoke: Withdraws a previous approval.

Multi-level approval: Admin Option 191 separates PO creation and approval roles so requestors cannot approve their own orders.

List layout change: When approvals are active, the PO list can switch to an approvals-focused layout where the Lines column is replaced by Approved By. The exact layout depends on system configuration.

Authorization limits: If an order total exceeds the approver’s authorization limit, the system blocks the action and requires a higher-authority approver.

Receiving Against Purchase Orders

Workflow:

1. Open the purchase order, go to Line Items, and click Receive.
2. The receiving screen pre-populates supplier, warehouse, job, and line items.
3. Enter Date In for when the goods were physically received.
4. Assign warehouse locations for each line item.
5. Add serial or lot numbers for serialized items.
6. Adjust quantities if your configuration allows it.
7. If Admin Option 280 is enabled, a Create Backorder checkbox appears. Check it to generate a backorder PO for the remaining quantity, or leave it clear to skip that step.
8. Click Save, then Receive to finalize.
9. In the completion dialog:
   • Complete closes the PO.
   • Skip leaves it open for additional receipts.

Partial receipts update PO line status automatically. Over-receipts can raise warnings depending on configuration.

For mobile receiving, putaway lists, serialized-item detail, and label printing, see Receive Stock.

Returns and Corrections

Use Returns and Corrections to adjust a PO after receipt. They serve different purposes.

Returns

Use Returns when goods are physically going back to the supplier because of damage, quality issues, or over-shipment.

Access: Purchase Orders → Line Items → Returns

Workflow:

1. Open the purchase order and go to Line Items.
2. Click Returns.
3. Enter return quantities for eligible received lines.
4. Click Apply and confirm.

Returns remove stock from inventory and update PO line status. If stock was already moved or otherwise adjusted after receipt, the Returns page can open with no available lines.

Corrections

Use Corrections to fix receipt-entry mistakes without physically returning goods.

Access: Purchase Orders → Line Items → Corrections

Workflow:

1. Open the purchase order and go to Line Items.
2. Click Corrections.
3. Update the corrected quantities.
4. Click Apply and confirm.

Corrections modify receipt history with a lighter audit trail than Returns. For physical supplier returns, use Returns instead.

Re-Opening a Completed PO

The Re-Open button on the PO header restores a completed or canceled PO to an editable state. Re-Open requires the PO Corrections security permission. It is not a strict UI gate for reaching Returns or Corrections, but re-opening first is still the safer workflow when you need the PO back in an active state.

Supplier Management

Suppliers

Access: Orders → Purchasing → Suppliers → Add Supplier

Core fields include Company Name, Short ID, Contact, address details, phone/email, default Payment Terms, and default Ship Via. Additional fields can include Account Number, Discount %, Currency, PO Attention, and Supplier Logo.

Supplier status:

The Discontinued checkbox is separate from status. A discontinued supplier is excluded from lookups regardless of the selected status.

Supplier Catalog

Configure supplier-specific pricing, part numbers, UOM, and lead-time data used when creating PO lines.

Access: Orders → Purchasing → Suppliers’ Catalog → Add Supplier Catalog Entry

Term Agreements

Term agreements store supplier contract pricing with expiration validation.

Access: System Lists → Shipping & Purchasing → Term Agreements

Restocking Purchase Orders

Restocking POs generate purchase orders automatically from reorder points and demand analysis instead of manual line entry.

Access: Orders → Purchasing → Restocking POs

The restocking screen analyzes item levels by warehouse, suggests quantities and suppliers, and creates separate POs by supplier when you confirm the run.

For reorder settings, demand calculations, and the full restocking workflow, see Restocking.

Asset Purchase Orders

When you create a PO with Order Type: Assets, the system uses a separate asset-lines workflow instead of the standard inventory line flow.

Use this order type for capital equipment and other tracked assets that should not follow the normal inventory receipt path.

Utility Actions

The PO header can also expose attachment or preview actions and a PO-specific admin-options gear. These actions can vary by permission and configuration.

Admin Options

• Unit Price: Cost per unit (auto-populated from supplier catalog if configured)
• PO UOM: Purchase unit of measure
• PO Units: Quantity in purchase UOM (auto-calculated from UOM conversion)
• Package: Package type (box, carton, pallet, etc.)
• Supplier PN: Supplier’s part number for the item
• Terms: Link to term agreement for contract pricing (optional)

6. Click “Save” after adding each line item
7. Navigate to Notes/Totals tab to review:
   • Sub Total, Discount, Sales Tax, Shipping Charges, Other Charges
   • Terms and Conditions, PO Notes
8. Click “Save” to finalize order

Tips:

• Supplier catalog auto-populates pricing and supplier part numbers when configured
• Term agreements enforce contract pricing and expiration validation
• Line item notes copy to inventory remarks if Admin Option enabled
• Delivery schedule tab allows setting multiple delivery dates for staged receipts

Purchase Order Line Item Fields

Restocking PO Workflow

Generate automated purchase orders based on inventory needs and configured reorder levels.

Access: Orders → Purchasing → Restocking POs

If you are purchasing for active builds instead of general replenishment, also see Manufacturing Purchasing.

Workflow:

1. Navigate to Orders → Purchasing → Restocking POs
2. Select warehouse to analyze
3. Apply optional filters (supplier, category, cost center)
4. Click “Suggest” to generate recommendations
5. Review system analysis:
   • Items below reorder points (highlighted in red if missing supplier)
   • Available vs Expected quantities
   • Suggested Min levels from demand analysis
   • Calculated reorder quantities
6. Customize as needed:
   • Override suggested quantities
   • Select suppliers from dropdowns (required for red highlighted items)
   • Use “Select All” / “Deselect All” for bulk management
   • Use Demand Source when available to switch between sales-history and open-order demand views
7. Click “Create”
8. System creates separate POs for each supplier
9. Complete generated POs through standard purchasing workflow

Features:

• Historical demand analysis with configurable periods (Admin Option 32)
• Safety stock calculations using multiple methods (Admin Option 31)
• Order Multiple optimization
• Automatic supplier selection from item configuration
• Consolidated ordering across locations for better pricing

See Restocking for complete documentation on reorder level configuration and demand forecasting.

Approval Workflow Procedures

Standard Approval Process

When Admin Option 106 enabled, purchase orders require approval before receiving:

Workflow:

1. Requestor creates purchase order with all line items
2. Approver reviews order in Purchase Orders list
3. Approver clicks the order and “Approve” button
4. System validates approver authorization limit against order total
5. Order status changes to “Approved” and can be received
6. If order exceeds approver limit, error displays requiring higher authority

Approval Features:

• Authorization Limits: Approvers can only approve orders within their dollar limit
• Multi-Level Approval (Admin Option 191): Separates creation and approval roles
• Approval Revocation: Previously approved orders can have approval withdrawn
• Pending Status: Orders show “Pending Approval” until authorized

Receiving Procedures

Desktop Receiving

Standard receiving workflow with full location assignment and serial capture.

Workflow:

1. Navigate to Orders → Purchasing → Purchase Orders
2. Click three lines icon in Lines column or click the order
3. Go to Line Items tab
4. Click “Receive” button
5. System validates approval status (if required) and opens receiving screen
6. Receiving screen pre-populated with:
   • Warehouse from PO
   • Supplier information
   • Job ID (if assigned)
   • Line items with expected quantities
   • PO Receipt reason code (auto-assigned)
7. Assign locations for each line item:
   • Manually select warehouse locations
   • Or allow system to auto-assign from item defaults (done on save)
8. Review and adjust quantities as permitted by configuration
9. Add serial/lot numbers for serialized items
10. Click “Save” to review, then “Receive” to finalize
11. System asks to complete order:
    • Click “OK” if fully received or preserving partial state
    • Click “Cancel” if expecting additional deliveries

Features:

• Quantities may be editable or locked (Admin Options 94, 113)
• Partial receipts automatically update PO line status
• Over-receipts generate warnings but can proceed if allowed
• Unit costs default from PO line items
• Optionally auto-create backorders for remaining quantities (Admin Option 280)
• Serialized items automatically split into individual lines (configurable)
• Print putaway lists for warehouse staff
• Print labels for barcode operations

See Receive Stock for complete receiving documentation.

Mobile Receiving

Complete receiving operations on mobile devices for increased flexibility.

Workflow:

1. Login to Inventory Pro Mobile
2. Select warehouse
3. Navigate to Orders → View Purchase Orders
4. Select purchase order to receive
5. Check items being received
6. Click “Complete Order”
7. Click “Receive” to finalize transaction

Features:

• Barcode scanning for items, locations, and serials
• Real-time inventory updates
• Location assignment on warehouse floor
• Serial number capture

Returns and Corrections Procedures

Adjust purchase orders after receiving using two distinct methods with different audit trails.

Processing Returns

Process supplier returns for damaged items, quality issues, or receiving errors. Creates full audit trail linking return to original PO.

Access: Purchase Orders → Line Items → Returns

When to Use Returns:

• Physically returning items to supplier
• Damaged or defective goods
• Quality problems requiring supplier credit
• Partial order rejection

Workflow:

1. Navigate to Orders → Purchasing → Purchase Orders
2. Select purchase order with items to return
3. If order completed, click “Re-Open” button and confirm
4. Go to Line Items tab
5. Click “Returns” button
6. Return screen shows received items available for return
7. Enter return quantities (cannot exceed received quantities)
8. Click “Apply” button
9. Confirm changes or cancel to review
10. System issues inventory (removes from stock) and updates PO line status

Features:

• Automatically issues stock out of inventory
• Updates purchase order line status to reflect returns
• Tracks supplier credits and return authorizations
• Links return transactions to original PO for audit trail
• Uses PO Correction reason code (-8) for proper reporting
• Return quantities validated against received quantities

Effect: Reduces inventory quantities while maintaining complete transaction history and supplier credit tracking. Use this method instead of direct issues when returning to suppliers.

Processing Corrections

Fix data entry mistakes or receiving errors by directly adjusting historical receiving data. Limited audit trail.

Access: Purchase Orders → Line Items → Corrections

When to Use Corrections:

• Correcting data entry errors (received 8 instead of 6)
• Fixing quantity mistakes without physical return
• Adjusting historical receiving records

Workflow:

1. Navigate to purchase order and re-open if completed
2. Go to Line Items tab
3. Click “Corrections” button
4. Enter corrected quantities in Corrected Amount column
5. Click “Apply” and confirm
6. System adjusts inventory to reflect corrected quantities

Important: Corrections modify historical data with limited audit trail. Use carefully and document reasons externally. For physical returns to suppliers, use Returns method instead.

Effect: Adjusts inventory to reflect corrected quantities with limited audit trail. Use Returns method for supplier returns to maintain proper credit tracking.

Supplier Management Details

Suppliers List

Maintain supplier information including contacts, addresses, and payment terms.

Access: Orders → Purchasing → Suppliers

Supplier Information:

• Short ID: Supplier identifier (functions like Item ID for suppliers)
• Full Name: Complete supplier company name
• Contact Information: Phone, fax, email, website
• Address: Primary business address
• Payment Terms: Default payment terms for orders
• Supplier Status: Approved, Non-Approved, or Probation

Supplier Status:

• Approved: All users can order from this supplier
• Non-Approved: Supplier cannot be selected (for discontinued suppliers)
• Probation: Supplier can be selected but displays warning message (review notes before ordering)

Managing Suppliers:

1. Navigate to Orders → Purchasing → Suppliers
2. Click “Create New Supplier” or edit existing supplier (pencil icon)
3. Fill in supplier information
4. Set supplier status
5. Add notes for important information
6. Click “Save”

Supplier Catalog Management

Configure supplier-specific pricing, part numbers, and lead times for automated order creation.

Access: Orders → Purchasing → Suppliers’ Catalog

Catalog Features:

• Multiple suppliers per item with different pricing
• Supplier part number mapping
• Base pricing plus 5 price levels (L1-L5)
• Lead time tracking per supplier/item
• Package and UOM specifications
• Term agreement linkage

Setting Up Catalog Entries:

1. Navigate to Orders → Purchasing → Suppliers’ Catalog
2. Click “Add New Supplier Catalog Entry”
3. Select supplier and item ID
4. Enter supplier’s part number
5. Configure package, UOM, and term agreement
6. Set unit price and price levels
7. Enter lead days
8. Click “Save”

Integration:

• Purchase orders auto-populate pricing from catalog
• Supplier part numbers print on PO for supplier reference
• Lead times calculate expected delivery dates
• Price levels support tiered pricing structures

Term Agreement Management

Manage contract pricing with suppliers for specific items and timeframes.

Access: System Lists → Term Agreements

Term Agreement Setup:

1. Open System Lists and select Term Agreements
2. Click “Create New Term Agreement”
3. Enter term agreement identifier
4. Add description
5. Select supplier
6. Set expiration date
7. Click “Save”
8. Link items in Supplier Catalog with term agreement reference

Features:

• Contract pricing enforcement
• Expiration date validation
• Automatic alerts for expired agreements
• Integration with supplier catalog for item-specific pricing

Additional Features

Bulk Import

Import purchase orders from external systems or for data migration.

Access: Utilities → General → Import and Export → Purchase Order Import

Supported Data:

• Purchase order headers (orders, suppliers, dates)
• Line items with quantities and pricing
• Job assignments and delivery schedules
• Supporting documentation

Workflow:

1. Download Purchase Order template
2. Format data according to template
3. Include all required fields (order, supplier, items, quantities)
4. Upload file through import system
5. System validates and creates orders
6. Review imported orders in Purchase Orders list

See Import & Export for detailed import procedures.

Ship Via Management

Configure transportation methods for delivery tracking.

Access: Orders → Management → Ship Via List

Ship Via Types:

• Transportation modes (truck, rail, air, ocean)
• Specific containers (crates, pallets)
• Carrier services

Managing Ship Via:

1. Navigate to Orders → Management → Ship Via
2. Click “Create New Ship Via” or edit existing
3. Enter description
4. Check “Use in Lookups” to make selectable
5. Check “List Top” to display at top of selection lists
6. Click “Save”

Payment Terms

Define payment deadlines and discount structures for supplier orders.

Access: Orders → Management → Payment Terms

Payment Terms Configuration:

• Net Due in Days: Payment deadline
• Discount Percentage: Early payment discount
• Discount within Days: Days to qualify for discount
• Use in Lookups: Make term selectable
• List Top: Display at top of selection lists

Validation and Business Rules

Order Validation:

• Supplier must be active (not Non-Approved status)
• Items must exist in item master and be active
• Requested date cannot be in past (configurable)

Receiving Validation:

• Approval required before receiving (Admin Option 106)
• Items must be enabled for receiving warehouse (Admin Option 504)
• Over-receipts generate warnings (configurable to allow/prevent)
• Serial numbers required for serialized items

Pricing and Costs:

• Unit costs default from PO line items, supplier catalog, or item master
• Zero costs generate warnings but can proceed if approved
• Exchange rates support international supplier currency conversion

Status Rules:

• Cannot cancel orders with partial receipts
• Completed orders must be re-opened before corrections/returns
• Past due status automatic when beyond requested delivery date

Admin Options Reference

Key configuration options affecting purchase order operations:

Best Practices

Supplier and Catalog Management:

• Maintain accurate supplier information including contacts, payment terms, and status. Keep supplier catalogs current with pricing, part numbers, and lead times. Establish clear approval hierarchies with appropriate authorization limits. Review term agreements before expiration and renew contracts proactively. Update supplier status to Non-Approved or Probation when quality or delivery issues arise.

Order Processing:

• Process receipts promptly upon delivery to maintain inventory accuracy. Verify quantities and costs against purchase orders during receiving. Attach supporting documentation (packing slips, invoices) when available. Use appropriate reason codes for all receiving transactions. Review past due orders weekly and follow up with suppliers.

Cost Control and Analysis:

• Regularly review and validate pricing against market rates and contract agreements. Monitor order frequency and consolidate purchases for better pricing. Track supplier performance including delivery times, quality issues, and pricing accuracy. Use restocking POs for routine replenishment to optimize order quantities and reduce manual effort.

Troubleshooting

“Cannot receive - order requires approval”

• Problem: Attempting to receive unapproved purchase order (Admin Option 106 enabled)
• Solution: Have authorized approver review and approve order before receiving. Verify approver has sufficient authorization limit for order total
• Prevention: Establish clear approval workflows and communicate to all purchasing staff

“Item not allowed in warehouse”

• Problem: Item not enabled for receiving warehouse (Admin Option 504)
• Solution: Enable item in warehouse assignments or disable Admin Option 504 globally
• Prevention: Maintain accurate warehouse-item relationships before creating orders

“Missing supplier assignment” (Restocking POs)

• Problem: Items need restocking but no supplier assigned (highlighted in red)
• Solution: Assign preferred supplier in item master or reorder level configuration
• Prevention: Configure suppliers during item setup or reorder level maintenance

“Cannot cancel order”

• Problem: Attempting to cancel order with partial receipts
• Solution: Orders with receipts cannot be canceled. Use Returns to reverse received quantities if needed
• Prevention: Cancel orders before receiving begins, or use Returns for partial reversals

“Duplicate item on purchase order”

• Problem: Attempting to add same item twice (Admin Option 98 enabled)
• Solution: Update quantity on existing line instead of adding duplicate line
• Prevention: Review existing lines before adding new items

“Incorrect pricing on order”

• Problem: Unit prices don’t match expected supplier pricing
• Solution: Verify supplier catalog setup and term agreement configuration. Check price level settings
• Prevention: Maintain current supplier catalogs with accurate pricing

“Cannot modify completed order”

• Problem: Attempting to edit order marked as complete
• Solution: Click “Re-Open” button to return order to outstanding status, then make changes
• Prevention: Review orders carefully before completing, especially for staged deliveries

Key Reports

Access purchase order reports via Reports → [Search] or from the Purchase Orders screen.

Purchase Order List (Report 62): Summary of all purchase orders with supplier, order date, requested date, status, and total value. Filter by status, supplier, warehouse, date range, and buyer. Primary report for tracking all procurement activity.

Outstanding Purchase Orders (Report 68): Active orders awaiting receipt with line item details, expected quantities, and aging analysis. Shows past due orders requiring follow-up. Essential for managing open commitments and supplier communications.

Received Purchase Orders (Report 71): Complete receiving history showing what was received, when, by whom, and at what cost. Links receipts to original purchase orders for audit trail. Use for cost analysis and supplier performance evaluation.

Purchase Analysis by Supplier: Spending analysis showing total purchases by supplier over selected period. Identify top suppliers and spending patterns for negotiation leverage and consolidation opportunities.

Restocking Suggestions (Report 116): Recommended order quantities based on reorder points and demand analysis. Shows items needing replenishment with suggested quantities and suppliers.

All reports support filtering by date range, warehouse, supplier, buyer, status, and item. Export to Excel for further analysis.

Related Topics

• Receive Stock - Receiving procedures and workflows
• Mobile Receiving - Mobile receiving with barcode scanning
• Returns - Purchase order returns and corrections
• Purchasing Reports - Open POs, items to order, supplier performance
• Receiving Reports - Receipt history and intake reports
• Supplier Management - Supplier configuration and catalog setup
• Supplier Catalog - Managing supplier part numbers and pricing
• Supplier Reports - Supplier lists and catalog reports
• Appointments - Expected receipts without formal purchase orders
• Import & Export - Bulk data loading procedures