Purchase Orders

Purchase orders (POs) are documents you send to vendors to order goods or services. They formalize your intent to purchase, specify quantities and prices, and help track pending deliveries until items are received.

What Are Purchase Orders?

Purchase orders are formal requests sent to vendors to supply goods or services. They specify what you want to buy, quantities, agreed prices, and expected delivery dates. POs do not affect stock until you receive the goods and record a purchase bill.

How to Create a Purchase Order

Create New PO
Go to Inventory → Purchase Orders and click "Create Purchase Order" or "New PO".
Select Vendor
Choose the vendor from the dropdown. Ensure the vendor is set up in Customers & Vendors.
Enter Order Details
Set the order date and expected delivery date. Select the warehouse where goods will be received.
Add Line Items
Add items with quantities and rates. Optionally apply a discount. Tax is calculated automatically.
Save and Confirm
Save as Draft to review later, or confirm the PO to send it to the vendor. Confirmed POs can be converted to purchase bills when goods arrive.

Purchase Order Form Fields

Field Required Description
Vendor Required The vendor from whom you are ordering. Select from your vendor list.
Order Date Required The date the purchase order is created.
Expected Date Optional When you expect to receive the goods. Used for tracking and planning.
PO Number Auto Automatically generated. Unique per company.
Warehouse Required The warehouse where goods will be received when you record the purchase bill.
Items Required Line items with quantities and rates. At least one item is required.
Discount Optional Percentage or fixed amount discount applied to the order total.
Tax Auto Calculated automatically based on item tax settings.
Notes Optional Additional notes or instructions for the vendor.

Items Line Columns

Items Line Columns
Item
The product being ordered. Select from your item catalog.
Description
Optional description or notes for the line item.
Quantity
Number of units to order. Must be greater than zero.
Rate
Agreed unit price per item.
Tax
Tax applied to the line. Calculated from item tax settings.
Amount
Line total (Quantity × Rate). Calculated automatically.

Purchase Order List Columns

Purchase Order List Columns
PO #
Unique purchase order number. Click to view or edit.
Vendor
The vendor to whom the order was sent.
Date
Order date.
Expected Date
Expected delivery date.
Amount
Total order amount.
Status
Current status: Draft, Confirmed, Received, or Cancelled.

Purchase Order Statuses

  • Draft — PO is being prepared or saved but not yet sent to the vendor.
  • Confirmed — PO has been confirmed and sent. Awaiting delivery.
  • Received — All items have been received and a purchase bill has been created.
  • Cancelled — PO has been voided.

How to Convert PO to Purchase Bill

When goods arrive, open the purchase order and click "Create Purchase Bill" or "Receive Items". The system creates a purchase bill with the PO details pre-filled. You can adjust quantities if you received less than ordered. The purchase bill updates stock when saved.

How to Receive Items

Receiving items is done by creating a purchase bill from the PO. Open the confirmed PO, click "Receive" or "Create Bill", and enter the received quantities. Save the purchase bill to increase stock in the warehouse.

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Sales Invoices
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Purchase Bills