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Raising and sending a purchase order

Build a PO from your inventory items, send it to the supplier, and track what is outstanding.

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A purchase order records what you asked a supplier for, at what price, and what has actually turned up. It is what turns “I think we ordered more paper” into a fact.

Before you start

You need a supplier and the inventory items you are ordering. Both can be created inline from the purchase order screen if you are missing one.

Raising the order

  1. 1Go to Purchasing and start a new purchase order.
  2. 2Choose the supplier and, optionally, an expected delivery date.
  3. 3Add a line per item, with the quantity and the unit cost you are being charged.
  4. 4Save. The order starts as a Draft.

Use the price on the quote, not the price in your system

The unit cost here is what this delivery costs. If it differs from the item's stored cost, that is a signal to update the item in Inventory Items so your product margins stay accurate.

The lifecycle

StatusMeaning
DraftBeing prepared. Nothing has been committed.
SentPlaced with the supplier. Awaiting delivery.
Partially ReceivedSome of it has arrived; the rest is outstanding.
CompletedEverything ordered has been received.
CancelledAbandoned. No stock effect.

Send moves a draft to Sent. Receiving is covered in Receiving stock and moves the order to Partially Received or Completed depending on how much arrived.

Tracking what is outstanding

The purchase order page shows, per line, how much was ordered against how much has been received. Filter the Purchasing list by status to see everything still owed to you.

Ordering does not change your stock

Stock rises when goods physically arrive and you receive them — not when the order is placed. Anything else would have you printing with paper still sitting in a supplier's van. For the same reason, a purchase order affects cash flow but never profit and loss: see Profit & Loss vs Cash Flow.

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