Creating Purchase Orders

Creating Purchase Orders

Purchase Orders (PO) in EquiBillBook allow you to record orders placed with suppliers before receiving goods or services. This helps you track pending purchases, manage inventory expectations, and maintain a clear workflow from order placement to bill receipt.

What is a Purchase Order?

A Purchase Order is a formal document sent to a supplier indicating the types, quantities, and agreed prices for products or services. It serves as a commitment to purchase and helps both parties track the order through fulfillment.

Accessing Purchase Orders

To create a new purchase order:

1. Log in to your EquiBillBook account
2. Navigate to Purchase → Purchase Order → Create
3. You'll see the Purchase Order creation form

Step-by-Step Order Creation

Step 1: Select Supplier

Choose the supplier from whom you're purchasing:

• Start typing the supplier name in the supplier field
• Select the supplier from the dropdown list
• If the supplier doesn't exist, you can create a new supplier on the fly
• The supplier's billing address and contact information will be automatically populated

Step 2: Enter Order Details

Fill in the basic order information:

• Order Date: The date when the order is placed (defaults to today's date)
• Order Number: Automatically generated based on your numbering rules, or you can enter a custom number
• Reference Number: (Optional) Your internal reference number or supplier's quotation number
• Expected Delivery Date: When you expect to receive the goods/services
• Payment Terms: Select payment terms for this order
• Place of Supply: Location where goods/services will be received

Step 3: Add Items

Add items to your purchase order:

1. Click "Add Item" or start typing in the item field
2. Select the item from the dropdown
3. Enter the Quantity ordered
4. Enter the Unit Price (or it will use the item's default purchase price)
5. If applicable, enter Discount (percentage or amount)
6. The system will automatically calculate the line total
7. Repeat for all items in the order

Step 4: Apply Discounts and Charges

You can apply discounts and additional charges at the order level:

• Discount: Apply a percentage or fixed amount discount on the entire order
• Additional Charges: Add freight charges, handling fees, or other charges
• All calculations are done automatically

Step 5: Tax Configuration

Taxes are automatically calculated based on:

• Item tax settings
• Supplier tax information
• Your organization's tax configuration
• Place of supply rules

You can review and adjust tax calculations if needed.

Step 6: Delivery Information

Enter delivery details:

• Delivery Address: Select or enter the delivery address (defaults to your organization's address)
• Delivery Method: Choose how the order will be delivered
• Special Instructions: Add any delivery notes or special instructions for the supplier

Step 7: Additional Information

You can add:

• Terms & Conditions: Custom terms for this order
• Notes: Internal notes (visible only to your team)
• Supplier Notes: Notes that will appear on the order document sent to supplier

Step 8: Save the Order

Once all information is entered:

1. Review the order summary
2. Check the total amount
3. Click "Save Order" or "Create Order"
4. The order will be saved with status "Pending" or "Draft"

Order Status

When you create a purchase order, it typically starts with one of these statuses:

• Draft: Order is being prepared and not yet sent to supplier
• Pending: Order is confirmed and awaiting supplier confirmation
• Partially Received: Some items have been received
• Received: All items have been received
• Cancelled: Order has been cancelled

Printing and Sharing Orders

After creating an order, you can:

• Print Order: Generate a printable version of the order
• Email Order: Send the order to the supplier via email
• Download PDF: Save the order as a PDF file
• Share Link: Generate a shareable link for the supplier

Best Practices

• Always verify supplier information before creating the order
• Double-check quantities and prices before saving
• Set appropriate expected delivery dates to track timelines
• Use reference numbers to link orders to supplier quotations
• Add clear delivery instructions to avoid confusion
• Review tax calculations to ensure compliance
• Keep track of order status to follow up with suppliers

Troubleshooting

Can't find the Purchase Order menu?

• Ensure the Purchase module is activated in your account
• Check that you have the necessary permissions to create purchase orders
• Contact your administrator if you don't see the Purchase menu

Item prices are not showing correctly?

• Check the item's purchase price in the Items master
• Verify supplier-specific pricing if configured
• Ensure the item is active and available

Tax calculations are incorrect?

• Verify item tax settings
• Check supplier tax information
• Review your organization's tax configuration
• Ensure place of supply is correctly set

Purchase orders are an essential part of managing your procurement workflow. They help you track supplier commitments and ensure smooth order fulfillment!