Purchase Orders

A purchase order is used to initiate a transaction with a supplier when a company wishes to acquire something. This document outlines the items that the company agrees to purchase at a specified price and specifies the delivery date and payment terms. Once the items have been delivered, the supplier will send the final invoice.

1. Creating a Purchase Order

To record a new purchase order, follow these steps:

1. In the main menu, go to Purchases and then click on Purchase Orders.
2. In the list of Purchase Orders, click on the (+) button and then New Document.
3. Choose the supplier, currency, issue date, due date, status (Draft or Open), and the employee.
4. If you select a foreign currency (e.g., EUR$), a new field with the exchange rate will appear. You can adjust this rate if needed.
5. In the content section, you'll see two tabs, Items and Accounts. In the Items tab, you can select products or services that you have previously added to the system in the master area. In the Accounts tab, you can choose to affect accounting accounts.
6. In the Items tab, select a product or service and set the description, tax, quantity, cost, and discount.
7. In the Accounts tab, you can choose an ledger account, tax, cost, and discount.
8. Each order comes with a default line in both the Items and Accounts tabs. However, if you need to add more lines, simply click the (+) button below the list and repeat the previous step.
9. In the totals area, you can apply discounts as a percentage (%) of the purchase or as a fixed ($) amount. To apply one or the other, click on the word DISCOUNT ($) and choose the desired option. Then, click on the amount next to it and define the discount amount or percentage.
10. Finally, you can add Additional Notes.
11. Click Save to save the document.

2. Editing a Purchase Order

There may be occasions when it is necessary to make changes to a purchase order, whether due to an error or other reasons. To edit a purchase order, follow these steps:

• In the main menu, go to Purchases and then click on Purchase Orders.
• In the list of Purchase Orders, locate the purchase order you wish to modify.
• Click on the actions menu (three horizontal dots) and then select Edit.
• Make the necessary adjustments.
• Click Save to save the changes.

3. Deleting or Voiding a Purchase Order

There may be occasions when it is necessary to delete or void a purchase order, whether due to an error or other reasons. To void or delete a purchase order, follow these steps:

• In the main menu, go to Purchases and then click on Purchase Orders.
• In the list of Purchase Orders, locate the order you wish to void or delete.
• Click on the actions menu (three horizontal dots).
• If the purchase order is in Draft or Open status, you will have the option to Delete.
• If the purchase order is in Closed status, it cannot be deleted. In this case, you will have the option to Void Document.
• You will be prompted to confirm the action.

4. Sending a Purchase Order via Email

To send a purchase order via email, follow these steps:

• In the main menu, go to Purchases and then click on Purchase Orders.
• In the list of Purchase Orders, locate the purchase order you want to send via email.
• Click on the actions menu (three horizontal dots), and then click on Send by Email.
• Complete the fields for To (Email), Subject, and Message. These details will come by default, but you can make any necessary adjustments.
• If you need to include a BCC or CC, click on the link next to the To field.
• Click Send to send the purchase order.

5. List of Purchase Orders and Options

The purchase orders module provides a list of all registered purchase orders and a set of options in the action menu (three horizontal dots) for each transaction. These options allow you to manage and track each transaction easily. The options in this menu include:

1. Preview
   This option allows you to preview the document as it would appear when printed.
   ‍
2. Edit
   If you need to edit a purchase order, this option allows you to make changes to a document in Draft status.
   ‍
3. Duplicate Document
   If you need to record a document with similar information to an existing one, this option allows you to duplicate it to avoid entering the same data again.
   ‍
4. History
   Allows you to view all transactions associated with this purchase order.
   ‍
5. Copy to Expense / Purchase
   If you need to record an expense or purchase based on a purchase order, this option allows you to copy all the information from the order.
   ‍
6. Copy to Goods Receipt
   If you need to generate a goods receipt based on a purchase order, this option allows you to create a goods receipt by copying all the information from the order.
   ‍
7. Send by Email
   This option allows you to directly send a purchase order to a supplier or third party via email.
   ‍
8. Audit
   The audit trail shows the changes made to the document, allowing for detailed tracking of modifications.
   ‍
9. Upload File
   Allows you to add files related to the purchase order, such as supporting documents or attachments sent, among others.
   ‍
10. Delete
    If for any reason you need to delete a purchase order, you can do so using this option. Note that you can only delete a document in Draft status.
    ‍
11. Void Document
    If you need to void a registered purchase order, you can use this option. A voided document cannot be deleted and remains in the system for recording and auditing purposes.
    ‍
    

Tips & Best Practices

1. Order Details
   To avoid confusion, ensure that all the details of your purchase order are clear and precise. This includes item details, agreed-upon prices, delivery dates, payment terms, and any other relevant information.
   ‍
2. Review Before Sending
   Before sending the purchase order to the supplier, it's important to carefully review it to make sure everything is correct. A small error could lead to significant issues in the future.
   ‍
3. Sending Purchase Orders via Email
   Use the option to send via email to streamline your transactions and keep your suppliers informed in real-time.
   ‍
4. Price Verification
   It's always a good idea to verify the prices being paid for products or services. Ensure that the prices of products or services match the previously agreed-upon prices.
   ‍
5. Document Status
   Use the 'Draft' status for transactions that are not yet complete or require review. Once you are confident that the information is correct, change the status to 'Open.' Remember that once a document is in the 'Open' status, it can no longer be modified.
   ‍
6. Currency and Exchange Rate
   When conducting a transaction in a foreign currency, make sure to check and adjust the exchange rate as needed to reflect the current exchange rate.
   ‍
7. Changes
   If you need to make changes to a purchase order after it has been sent, make sure to communicate clearly with your supplier and document any changes made.
   ‍
8. Use the Duplicate Function
   If you frequently perform similar transactions, use the duplicate function to save time. This allows you to copy all the details from an existing transaction, which you can then edit as needed.
   ‍
9. Cancellation and Deletion of Purchase Orders
   If you ever need to cancel or delete a purchase order, it's important to understand the difference between these two terms. While a purchase order in Draft or Open status can still be deleted, a purchase order in Closed status cannot be deleted but can be voided.
   ‍
10. Auditing
    Use the auditing function to track changes made to your transactions. This tool can be helpful in detecting errors, irregularities, or fraudulent activities.
    ‍

Follow these tips and best practices to ensure efficient management of purchase orders in your company.

Common Issues

Here are some common problems and their solutions:

1. I can't see an Item I want to include
   If you can't see a product or service in the item list, and it has already been created in the products and services area, it may not be available for purchase. To activate it, go to Masters > Products and Services, find the product or service, and in the action menu, click Edit. Activate the "Purchased" option and click Save to save the changes. Remember to exit the document and re-enter to see the changes.
   ‍
2. Incorrect or Incomplete Information
   This is one of the most common issues with purchase orders. Ensure that all details, such as product descriptions, quantity, price, and supplier details, are correct and complete before sending the order.
   ‍
3. Incorrect Exchange Rate
   If you operate in a multi-currency environment, problems can arise if exchange rates are not applied correctly. Make sure to use the correct and up-to-date exchange rates to avoid discrepancies in transaction values.
   ‍
4. I can't modify a closed purchase order
   Once a purchase order becomes a purchase or a goods receipt, it can no longer be modified. If you need to make changes to a purchase order after it has been closed, you'll have to void it and create a new one.
   ‍
5. I can't delete a Purchase Order
   You can only delete a purchase order if it's in Draft or Open status. If you try to delete a purchase order in Closed status, you'll have to void it instead.
   ‍
6. The email with the purchase order didn't arrive
   Issues may arise if emails with purchase orders are not sent or received correctly. If you experience problems with the email sending function, check your email settings and ensure that the recipient details are correct.
   ‍
7. Someone made changes to the purchase order
   Without proper tracking of modifications to purchase orders, discrepancies and confusion can occur. Make sure to use the audit function to keep detailed track of changes.
   ‍

Remember that if you can't resolve the problem, it's always best to contact technical support for assistance and to avoid potential errors that could affect your accounting records.