How to add a Purchase order, your first request for goods/services from your Supplier.
Add a Purchase Order (Service)
A Purchase Order is a request for goods/services from your supplier, it is the first document of agreement on prices/stock/services with your Supplier. This is simply an interest and until it is copied to a Purchase Invoice does not affect your Supplier account balance or financial accounts.
Tip: if a Purchase Order is not required skip this step and proceed to enter your Purchase Invoice.
1. To add a Service Purchase Order, click on Purchasing > Orders> Create a new Purchase Order
- Select your Supplier account, you can also add a new supplier from here if it does not already exist.
- Select the Contact from your Supplier for this purchase.
- Select the Bill to address, these will show the defaults that you have already defined when setting up your supplier account details.
- Select the Deliver to address - you can choose your Organisation address.
- Enter a Reference Number
- The Buyer defaults to the logged in user but this can be changed if you have multiple users.
- The Posting Date defaults to today’s date but can be changed.
- The Delivery Date defaults to today's date but can be changed. This is the date you agree with your supplier to receive goods/services.
- The Supplier currency will default to the Supplier's currency that you have already setup in Companies.
- The Currency Rate will show the rate you have defined in Settings for Banking, this can be changed.
2. Now click on +Add Item to add your Order details.
- Enter a Service name which is your description for each line.
- Enter a Price for this purchase, this value does not include Vat
- Select your Account code which is the Expenses/Cost of sale GL account for this purchase, this is taken from the list provided in the Chart of Accounts in your Finance module.
- Select your Tax code, there is a list of tax codes provided relevant to your region
- If you need to add more lines click on Add additional item otherwise click on Ok to finish adding lines.
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For Orders with Service Items simply select the Service item from the dropdown list and enter your quantity.
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You can select Cost Centres to assign to each row, more details available in the Settings article.
- Click on Edit if you need to change any of the line details
- You can click on Delete to remove a line
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You can add in Remarks which will show on the end of the Order for the Supplier to see.
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You can add in Comments which are for your own internal use, the supplier will not see this on the order.
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Just to note that tax is not shown or calculated on the order at this point but will show once the Order is added.
When you are happy with all the invoice details you can now click on Save to add your document.
What's Next: You can copy this Purchase order to a Purchase Invoice.
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