User Manual

Purchase Orders

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.

Jump to:

  1. Tips and tricks.
  2. Procurement FAQ.
  3. How to send a Purchase Order to your vendor?
  4. How to report receiving items, incl. partial delivery?
  5. How to see low inventory alerts?
  6. How to see demand for materials from production or sales?
  7. How can Purchase Orders be automatically created?
  8. How to send purchase orders to subcontractors?

Tips and tricks

  • Click Add to add a new Purchase Order (PO).
  • Click Choose columns to choose which columns to display.
  • Drag the columns to rearrange them.
  • 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.
  • The table can be searched and filtered (see Usage tips for wildcards).

Low inventory alerts

For each item, it is possible to set its critical low available quantity - the Min. stock parameter - in its details in Stock -> Items.

If the available stock of the item falls below its minimal available inventory 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 procured items that need re-ordering.
  • The Dashboard indicator Min. stock and Stock -> Critical on-hand report show all items, including manufactured, that are below minimal inventory level.

Read: How to understand the inventory numbers? 

Purchasing for manufacturing or sales orders

It is possible to purchase items to fulfill demand from manufacturing or customer orders in several ways:

  1. Via the Procurement -> Critical on-hand report, where all items are shown which are below min. available quantity.
  2. 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.
  3. Via the Procurement -> Forecasting, which allows calculating material requirements and action dates for Purchase Orders without creating Manufacturing Orders.

Automatically created Purchase 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.

Read: How to check stock and book products for Customer Orders?

Managing subcontractors

It is possible to manage subcontracted services if the subcontracting functionality is turned on at Settings -> System settings -> Professional functions -> Subcontracting: Yes.

There are two strategies for managing subcontracted operations:

  1. When the product is made fully by the subcontractor.
  2. 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.

Read: How to create Purchase Orders and free issue materials to subcontractors?

The cost of the final product will include:

  1. both the PO line cost, and
  2. the cost of materials.

Inventory transactions:

  1. When materials are shipped (picked from the stock), they are subtracted from inventory.
  2. When 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.

Read: How to define subcontracted operations in the Routing?
Read: How to keep track of subcontracted operations in a Manufacturing Order?