The Procurement -> Purchase orders shows a list of all the purchase orders to your vendors and subcontractors.
The Procurement -> Purchase orders allows
- adding, editing, and updating of purchase orders,
- seeing the overview of all the orders,
- tracking progress by order status and payment status,
- searching and filtering purchase orders,
- exporting a list of purchase orders.
- Demo video: Purchasing management.
- Tips and tricks.
- Procurement FAQ.
- How to see low inventory alerts?
- How to see demand for materials from production or sales?
- How can purchase orders be automatically created?
- How to create several invoices per purchase order?
- How to send purchase orders to subcontractors?
- How to import a purchase order?
- Click Add to add a new purchase order (PO).
- Click Choose columns to choose which columns to display.
- Drag the columns to rearrange them.
- The table can be searched and filtered (see Usage tips for wildcards).
- Click Saved searches to save a search or use a saved search.
- Use the drop-down menu above the table to choose whether to show a list of "Purchase orders" or a list of all "Items" procured.
For each item, it is possible to set its critical low available quantity - the Reorder point parameter - in its details in Stock -> Items.
If the available stock of the item falls below its minimal available inventory (reorder point) level:
- The article's Available quantity at Stock -> Items will turn red.
- The Stock -> Critical on-hand and Procurement -> Critical on-hand report shows a list of procured items that need re-ordering.
- The Dashboard indicator Items below reorder point and Stock -> Critical on-hand report shows all items, including manufactured, that are below minimal inventory level.
It is possible to purchase items to fulfill the demand from manufacturing or customer orders in several ways:
- Via the Procurement -> Critical on-hand report, where all items are shown which are below reorder point quantity.
- Via the Procurement -> Requirements report, which shows all unbooked materials for Manufacturing Orders and Customer Orders by due dates and action dates for placing the Purchase Orders.
- Via the Procurement -> Forecasting, which allows calculating material requirements and action dates for Purchase Orders without creating Manufacturing Orders.
New POs can appear in the list when the Sales Manager chooses to automatically create POs for missing parts while booking products for the customer orders.
By default, one purchase order can be associated with one incoming invoice only.
For creating several invoices per purchase order, please go to Settings -> System Settings -> Software Settings and change Several invoices per PO to Yes.
After enabling this functionality:
- Invoices section appears at the bottom of the PO.
- For receiving the goods into stock the invoice must be entered.
After enabling this, it is not possible to add several invoices to pre-existing POs, if they already:
- have an invoice number,
- have payments entered,
- have been received, fully or partially.
There are two strategies for managing subcontracted operations:
- When the product is made fully by the subcontractor.
- When an operation during production is outsourced to a subcontractor.
If the product is made by a subcontractor solely
Then it is possible to create a Purchase Order for the final product at Procurement -> Purchase orders and consume raw materials without creating a Manufacturing Order.
The cost of the final product will include:
- both the PO line cost, and
- the cost of materials.
- When materials are shipped (picked from the stock), they are subtracted from inventory.
- When the PO is marked as received, final products are added to stock.
If the subcontractor's service is part of the in-house production process
Then it is possible to save the subcontractor as a vendor and assign an operation in the Routing to the vendor.
When the production is scheduled, that operation will be scheduled for the vendor, and it is possible to raise the Purchase Orders from the Manufacturing Order at Production planning -> Manufacturing orders.