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🛒 Purchase Orders

Streamline procurement with comprehensive purchase order management, supplier relationships, and automated workflows.

Overview

What are Purchase Orders?

Purchase Orders (POs) are formal documents that authorize suppliers to deliver goods or services at agreed prices and terms. They provide legal protection, cost control, and inventory planning while maintaining clear audit trails for all procurement activities.

The system automates PO workflows from creation through receiving, with built-in approval processes, supplier management, and integration with inventory management for seamless operations.

Key Benefits
• Automated approval workflows
• Supplier performance tracking
• Cost control and budget management
• Quality assurance and inspection
• Legal protection and compliance
• Automated inventory updates

Purchase Order Lifecycle

Every purchase order follows a structured lifecycle from creation to completion, ensuring proper controls and documentation at each stage

Draft
PO being prepared
Available Actions
Edit
Submit
Pending Approval
Awaiting approval
Available Actions
Approve
Reject
Approved
Ready to send to supplier
Available Actions
Send
Edit
Sent
Sent to supplier
Available Actions
Receive
Cancel
Partially Received
Some items received
Available Actions
Receive More
Close
Received
All items received
Available Actions
Invoice
Close
Closed
PO completed
Available Actions
View Only
Cancelled
PO cancelled
Available Actions
View Only

Core Features

  1. 🏢
    Supplier Management
    Comprehensive supplier database and relationship management
    Capabilities
    • Supplier contact information and terms
    • Performance tracking and ratings
    • Preferred supplier designation
    • Payment terms and credit limits
    • Delivery preferences and schedules
  2. ✅
    Approval Workflows
    Configurable approval processes based on amount and type
    Capabilities
    • Multi-level approval chains
    • Amount-based approval thresholds
    • Department-specific workflows
    • Emergency purchase procedures
    • Approval delegation and backup
  3. 💰
    Cost Management
    Track and control purchasing costs and budgets
    Capabilities
    • Budget tracking and variance analysis
    • Price comparison and history
    • Quantity discount calculations
    • Currency conversion for international suppliers
    • Total cost of ownership tracking
  4. 🔍
    Quality Control
    Ensure received goods meet quality standards
    Capabilities
    • Inspection checklists and criteria
    • Quality score tracking
    • Reject and return processing
    • Supplier quality performance
    • Compliance documentation

Purchase Order Workflow

Follow this standardized workflow to ensure consistent and efficient purchase order processing across your organization.
1. Create Purchase Order

Initiate a new purchase order

💡 Best Practice
Verify supplier information and pricing before submitting
Steps to Complete
1
Navigate to Inventory > Purchase Orders > New
2
Select supplier from database
3
Add items with quantities and prices
4
Set delivery location and date
5
Add terms, conditions, and notes
6
Save as draft or submit for approval

Review and approve the purchase order

💡 Best Practice
Large orders may require multiple approval levels
Steps to Complete
1
Manager reviews PO details
2
Verify budget and authorization
3
Check supplier and pricing
4
Approve or request changes
5
Add approval notes if needed

Transmit approved PO to supplier

💡 Best Practice
Always confirm supplier received and acknowledged the PO
Steps to Complete
1
Generate final PO document
2
Send via email or supplier portal
3
Confirm supplier receipt
4
Set expected delivery dates
5
Track order status with supplier

Process incoming deliveries

💡 Best Practice
Immediate quality inspection prevents later issues
Steps to Complete
1
Verify delivery against PO
2
Inspect items for quality and damage
3
Record received quantities
4
Update inventory levels
5
Handle discrepancies and returns
6
Close PO when complete

Receiving & Quality Control

Proper receiving procedures ensure accuracy, quality, and proper inventory management

Critical Receiving Requirements
Always verify deliveries against purchase orders and inspect for quality before accepting. Proper receiving procedures prevent costly errors and ensure inventory accuracy.
📋 Receiving Checklist
• Verify PO number and supplier
• Check quantities against delivery note
• Inspect for damage or defects
• Verify item descriptions and specifications
• Check expiration dates (if applicable)
• Document any discrepancies
🔍 Quality Control
• Follow inspection procedures
• Test functionality if required
• Verify compliance with specifications
• Take photos of damage or defects
• Reject non-conforming items
• Update supplier quality scores

Cost Control & Budgeting

Monitor and control purchasing costs with comprehensive budget tracking and analysis tools

📊 Budget Tracking
• Department budget allocation
• Real-time spending monitoring
• Budget variance alerts
• Spending trend analysis
💰 Price Management
• Historical price tracking
• Supplier price comparison
• Quantity discount calculation
• Market price analysis
📈 Cost Analysis
• Total cost of ownership
• Shipping and handling costs
• Currency conversion impact
• Cost center allocation

Best Practices

✅ Recommended Practices
• Always use POs for purchases over threshold
• Verify supplier information before ordering
• Include detailed specifications in POs
• Set realistic delivery dates and terms
• Follow up on delayed deliveries
• Maintain strong supplier relationships
❌ Common Mistakes
• Bypassing approval processes
• Not confirming supplier receipt of PO
• Accepting partial deliveries without justification
• Ignoring quality control procedures
• Not updating PO status promptly
• Failing to track supplier performance

Troubleshooting

Check approval workflow and notify the appropriate approver.
Verify who needs to approve the PO
Check if PO meets approval criteria
Contact the approver if needed
Review approval delegation settings
Handle delivery discrepancies through proper receiving procedures.
Document the actual received quantities
Contact supplier about discrepancies
Decide whether to accept partial delivery
Update PO status accordingly
Follow up with supplier and consider alternative sources.
Confirm supplier received the PO
Try alternative contact methods
Check supplier status and availability
Consider backup suppliers if urgent

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