RisingERP - Purchase Order (PO)

Purchase Order

A Purchase Order serves as a contractual agreement with your Supplier, indicating your commitment to acquiring a specific set of items under predetermined conditions.

It functions similarly to a Sales Order but is kept for internal record-keeping rather than being sent to an external party.

Home > Procurement> Purchasing > Purchase Order

Procurement Flow

1. Prerequisites

Before initiating the creation and usage of a Purchase Order, it is recommended to establish the following:

1. Supplier
2. Item

2. How to Create a Purchase Order

A Purchase Order can be generated automatically from a Requisition Form or Supplier Quotation.

1. Go to the Purchase Order list and click on New.
2. Select the Supplier and the required by date.
3. In the items table, specify the item by code, and adjust the required by date for each item.
4. Set the quantity, and the price will be auto-populated if configured in the Item master.
5. Set taxes.
6. Save and Submit.

2.1 Setting Warehouses

Set Target Warehouse: Optionally, you can designate the default target Warehouse for the delivery of purchased items. This will be populated into the Item table rows.

2.2 Fetching Items from Open Requisitions

Items can be automatically fetched into the Purchase Order from open Requisitions Forms. To enable this:

1. Select a Supplier in the Purchase Order.
2. Set the default Supplier in the Item form under Item Defaults.
3. Ensure a Requisition Form of type 'Purchase' is present.
4. Click on the "Get Items from open Requisition" button below the Supplier name.

3. Features

3.1 Address and Contact

1. Select Supplier Address: The Supplier's billing address.
2. Select Shipping Address: The Supplier's shipping address.
3. Address, Shipping Address, Contact, Contact Email will be fetched if saved in the Supplier master.
4. Supplier and Company TIN: The Tax Identification Number of your Supplier and your company.
5. Place of Supply: Required for VAT, indicating the state's name and number.

3.2 Currency and Price List

1. Set the currency for the Purchase Order.
2. If a Pricing List is set, item prices will be fetched from that list.
3. Ignoring Pricing Rules can be done by ticking on "Ignore Pricing Rule."

3.3 Subcontracting or 'Supply Raw Materials'

1. Setting 'Supply Raw Materials' is useful for subcontracting where you provide raw materials for manufacturing items.

3.4 The Items Table

1. Scan Barcode: Add items to the table by scanning their barcodes.
2. Quantity and Rate: Automatically fetched information from the Item master.
3. Warehouse: Auto-filled if 'Set Target Warehouse' was configured.
4. Project: Link a project to track progress.
5. BOM (Bill of Materials): Link a BOM to monitor progress.
6. Accounting Details: Autofilled for a Purchase Order, including 'Expense Account' and 'Cost Center.'
7. Required By Date: Specify delivery dates for partial deliveries.

3.5 Allow Zero Valuation Rate

1. Enabling 'Allow Zero Valuation Rate' allows submitting the Purchase Receipt even if the Valuation Rate of the Item is 0.

3.6 Raw Materials Supplied

1. Appears when 'Supply Raw Materials' is set to 'Yes.'
2. Displays a table with items supplied to the Supplier for the subcontracting process.

3.7 Purchase UOM and Stock UOM Conversion

1. Ability to change UOM as per stock requirements in the Purchase Order.

3.8 Taxes and Charges

1. Add additional taxes, shipping, or insurance charges to accurately track costs.

3.9 Additional Discount

1. Apply a discount to the entire purchase order, either as a percentage or an amount.

3.10 Payment Terms

1. Add payment terms templates or manually specify terms for staggered payments.

3.11 Terms and Conditions

1. Apply specific terms and conditions to transactions for documentation.

3.12 Print Settings

1. Configure letterhead, group same items, and customize print headings.

3.13 More Information

1. Displays Purchase Order status, percentage of items received, and billed.
2. If it's an Inter Company Order, the linked Sales Order can be viewed.

3.14 After Submitting

1. Actions post submission include updating, deleting items, holding, or closing the Purchase Order.
2. Creation of Purchase Receipt, Purchase Invoice, Payment Entry, or Journal Entry.

Note: You can add, update, or delete items in the Purchase Order after submission, but items that have already been received cannot be deleted.