Purchase order

A Purchase order is the means by which you record the quantity and price of goods or services that you are going to purchase from a Suppliers (Creditor), and the manner and date by which they are to be supplied.

A Purchase order can specify stock and non-stock Items of any price or quantity. When the goods are received, one or more Receive s are created for some or all of the items specified on the Purchase order. The liability for the cost of the goods is not incurred for a Supplier’s account until the goods are Received.

After creation, a Purchase order is usually printed and faxed, mailed or e-mailed to the relevant Supplier.

The following can be said about Purchase orders:

  • A Purchase order must specify exactly one Supplier (Creditor)
    • The Supplier cannot be changed if it has prepayments linked to it
    • The supplier cannot be changed to one of a different currency if a receive has already been made for it
  • You cannot create Receive goods or services without a Purchase order
  • A Purchase order is referenced throughout the system by its Purchase Order #
  • A Purchase order only specifies the requested price of goods or services: a subsequent Supplier invoice relating to the Purchase order may indicate different prices than those originally specified
  • All Items on a Purchase order can only be received into a single warehouse (specified on the Purchase order)

How to handle rounding of prices on Purchase orders or Supplier Invoices