What is a Purchase Order?

A purchase order is a commercial source document that is issued by a business’ purchasing department when placing an  order with its vendors or suppliers. The document indicates the details on the items that are to be purchased, such as the types of goods, quantity, and price.

In Retail Business, retailers will make purchases within the state and outside the state. They will visit the manufacturing place directly or the wholesale market, will look up the required collection of the stocks and give the order details on the required quantities. When the items are received, the purchase order will be converted into purchase.

To make a Purchase Order, follow the steps below:

Step1: Go to Purchase > Purchase Order

Step2: Select the Distributor and take any items with relevant details, and click on F6 [Save] to save the Purchase Order entry.

Step3: Click on Yes to confirm.

Step4: Click on Ok to complete the process.

Now let's see how to convert the Purchase Order to Purchase Invoice. Follow the following steps for the same.

Step1: Go to Purchase > Purchase Invoice

Step2: Select the Vendor (For example SOUMIN) and press Enter button, the Purchase Order Details LOV will appear in front of you automatically.

Setp3: Select the desired Purchase Order from the list. All the relevant details from the Purchase Order will be loaded in the Purchase Invoice Screen.

Step4: After checking all the details and putting the Invoice No and Invoice Date as per your requirements, click on F6 [Save] button to initiate the save process.

Step5: Click on Save to proceed.

Step6: Click on Ok to complete the process.

Also, we would like to inform you that we have a Purchase Order Approval process as well in our Professional Edition. For that, we need to activate "Do not allow to convert PO into Purchase/RN unless the PO is approved via Approval Screen" from the Configurations screen. If this configuration is enabled, the Purchase order cannot be converted into Purchase/RN unless the PO is approved via Approval Screen.

Follow the below steps to configure the same:

Step1: Go to Tools > Configuration > Configuration

Step2: Search for "Do not allow to convert PO into Purchase/RN unless the PO is approved via Approval Screen" and pit a Tick ✔ in the Values and click on Save to save the changes.

Now, let's see after applying this configuration what changes are done in the system.

Step1: Go to Purchase > Purchase Order

Step2: Press F5 [View] button and the Filter Box will come. Chose your desired date and in Order From Date and Order To Date and press Enter Button in the Order No field.

Step3: In the Purchase Order Details, a new option Approved Status option appeared where all are showing as Unapproved. It means that the Purchase Order Approval process started.  

Now let us check the Purchase Order Approval Screen.

Step1: Go to Purchase > Purchase Order Approval

Step2: Press Enter Key in the Dist.Code and select the desired supplier/Distributor from the Distributor List. You will see all the Purchase Order details will be loaded in the Purchase Order Approval Screen. As the approval process is working, that's why it's coming in this screen.

***Note: If you try to load the Purchase Order in the Purchase Invoice screen it will not show till the time Purchase Order gets approved form the Purchase Order Approval Screen.

Step4: Click on Yes to confirm the Save process.

Step5: Click on Ok to complete the process.

Now let us check how the Purchase Order gets loaded in the Purchase Invoice screen.

Step1: Go to Purchase > Purchase Invoice

Step2: Press Enter on the Dist.Code field to bring up the Distributor list and choose your desired Distributor from the list.

Step3: Now you can see the list of Purchase Order Details LOV will appear. Select the Purchase Order from the Purchase Order Details LOV.

Step4: All the details will get loaded from the Purchase Order after getting approved from the Purchase Order Approval Screen. Click on F6 [Save] to save the entry.

Step5: Click on Yes to Confirm the save process.

Step6: Click on Ok to confirm the process.

Conclusion:

Purchase Order to Purchase Invoice process is a systematic process by the organizations to maintain the Order to Invoice process. In Purchase Order, store owners lists their required items and places order to their suppliers and send a hard copy to their for future reference. After getting the ordered items from suppliers, store owners pass Purchase Invoice entry to complete the purchase process.

As an additional security layer, the store owner can introduce the Purchase Order Approval process, which will be approved by the Store Admin or the Store Owner itself based on security features. This way the whole operations can be managed properly.  

Related Links:

We have our GoSure GRN App as well as a mobility solution with similar features.

Check the below link for your reference.

Help Resource:

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