Purchase Orders
A purchase order (PO) is a formal document authorizing the purchase of goods from a supplier at agreed-upon prices and terms. It serves as a binding commitment between your organization and the supplier.
Creating a Purchase Order
To create a new purchase order:
- Navigate to Procurement > Purchase Orders in the sidebar.
- Click New Purchase Order.
- Fill in the order details:
- PO Number — A unique identifier (e.g., PO-2026-001).
- Supplier — Select the supplier from your active business partners.
- Warehouse — The destination warehouse for received goods.
- Order Date — The date the order is placed.
- Expected Delivery — When you expect the goods to arrive.
- Notes — Any notes visible to the supplier.
- Internal Notes — Notes visible only to your team.
- Click Create to save the PO in DRAFT status.
Managing PO Lines
Add the items you are ordering:
- Find your PO in the list and click the Lines action.
- Click Add Line for each item:
- Description — Item description.
- Quantity — How many to order.
- Unit Price — Price per unit.
- Line Total — Total cost for this line.
- Supplier SKU — The supplier’s product code (optional).
- Lines can be added, edited, or removed while the PO is in Draft status.
Purchase Order Lifecycle
| Status | Meaning | What you can do |
|---|---|---|
| Draft | Being prepared | Edit details and lines, submit for approval, or cancel |
| Pending Approval | Waiting for authorization | Approvers review and approve or reject |
| Approved | Authorized by all approvers | Send to supplier or cancel |
| Sent | Transmitted to supplier | Confirm supplier acknowledgment or cancel |
| Confirmed | Supplier acknowledged the order | Create goods receipts as deliveries arrive, or cancel |
| Partial | Some items received, others outstanding | Continue receiving goods, complete, or close |
| Completed | All items fully received | Close the order |
| Cancelled | Order voided | No further actions |
| Closed | Administratively closed | No further actions |
Approval Workflow
Purchase orders go through a multi-level approval process:
- While the PO is in Draft, click Submit and select the approver(s).
- Each approver receives the PO for review. They can:
- Approve — Authorize the order at their level. If all levels are approved, the PO moves to Approved status.
- Reject — Deny the order with a reason. The PO returns to Draft for revision, and all approval records are cleared.
- Delegate — Forward the approval to another user if they are unable to review it.
Sending and Confirming
Once approved:
- Click Send to Supplier to mark the PO as sent. This is typically done after emailing or otherwise transmitting the order to the supplier.
- When the supplier acknowledges the order, click Confirm to update the status.
Cancelling and Closing
- Cancel — Available at any stage before completion. Cancels all open and partial lines.
- Close — Available when the PO is Completed or Partial. Use this to write off any remaining undelivered balance and administratively close the order.
PO Summary
Click View Details on any purchase order to see a comprehensive summary including the order header, all line items with their received quantities, the approval history, and associated goods receipts.