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Updated January 04, 2026

Purchase Order Workflow

Understanding the Purchase Order workflow in EquiBillBook helps you manage the complete procurement process from order creation to bill receipt. This guide explains the typical workflow stages and how to navigate through them.

Overview of Purchase Order Workflow

The Purchase Order workflow in EquiBillBook follows a logical progression from order creation to final bill processing. Each stage represents a different state in the procurement lifecycle.

Workflow Stages

Stage 1: Draft

Status: Draft

Description: The purchase order is being prepared but hasn't been finalized or sent to the supplier.

Actions Available:

  • Edit order details
  • Add or remove items
  • Modify quantities and prices
  • Save changes
  • Delete the order (if not yet sent)

Next Steps: Finalize the order and send it to the supplier to move to "Pending" status.

Stage 2: Pending

Status: Pending

Description: The purchase order has been created and sent to the supplier, awaiting confirmation or fulfillment.

Actions Available:

  • View order details
  • Print or email the order
  • Track order status
  • Cancel the order (if needed)
  • Convert to Purchase Bill when goods are received

Next Steps: Wait for supplier confirmation and goods delivery, then convert to Purchase Bill.

Stage 3: Partially Received

Status: Partially Received

Description: Some items from the purchase order have been received, but the order is not yet complete.

Actions Available:

  • View received items
  • Convert partial receipt to Purchase Bill
  • Track remaining items
  • Update order status

Next Steps: Receive remaining items or convert partial receipt to Purchase Bill.

Stage 4: Received

Status: Received

Description: All items from the purchase order have been received.

Actions Available:

  • Convert to Purchase Bill
  • View complete order details
  • Generate receipt reports

Next Steps: Convert to Purchase Bill to complete the procurement process.

Stage 5: Converted to Bill

Status: Converted

Description: The purchase order has been converted to a Purchase Bill, completing the procurement cycle.

Actions Available:

  • View linked Purchase Bill
  • View order history
  • Generate reports

Next Steps: Process payment for the Purchase Bill.

Stage 6: Cancelled

Status: Cancelled

Description: The purchase order has been cancelled and will not be fulfilled.

Actions Available:

  • View cancelled order details
  • View cancellation reason
  • Generate cancellation reports

Note: Cancelled orders cannot be converted to bills or reactivated.

Workflow Transitions

Draft → Pending

When you finalize and send a draft purchase order:

  • The order status changes to "Pending"
  • The order is locked from major edits
  • You can track the order status

Pending → Partially Received

When you receive some items:

  • Mark items as received in the order
  • Status updates to "Partially Received"
  • You can convert partial receipt to bill

Pending/Partially Received → Received

When all items are received:

  • Mark all remaining items as received
  • Status updates to "Received"
  • Ready for bill conversion

Received → Converted to Bill

When you convert the order to a Purchase Bill:

  • Click "Convert to Purchase Bill"
  • A new Purchase Bill is created with order details
  • Order status changes to "Converted"
  • Order is linked to the Purchase Bill

Any Status → Cancelled

When you cancel an order:

  • Select "Cancel Order"
  • Enter cancellation reason (optional)
  • Status changes to "Cancelled"
  • Order cannot be reactivated

Managing Workflow

Tracking Order Progress

To track your purchase orders:

  • View the Purchase Order list to see all orders and their statuses
  • Use filters to view orders by status
  • Set up notifications for status changes
  • Generate reports to track order fulfillment

Status Updates

You can manually update order status:

  • Navigate to the order details page
  • Click on "Update Status"
  • Select the new status
  • Add notes if required
  • Save the changes

Automated Workflow

Some status changes happen automatically:

  • When items are marked as received, status may update automatically
  • When converting to bill, status changes to "Converted"
  • System notifications may be sent on status changes

Best Practices

  • Keep orders in "Draft" status until all details are confirmed
  • Update order status promptly when goods are received
  • Convert orders to bills as soon as goods are received and verified
  • Use status filters to track pending orders
  • Set up reminders for orders that have been pending for too long
  • Document any changes or issues in order notes
  • Regularly review cancelled orders to identify patterns

Workflow Reports

Generate reports to analyze your purchase order workflow:

  • Pending Orders Report: View all orders awaiting fulfillment
  • Order Status Report: Overview of orders by status
  • Order Fulfillment Report: Track order-to-bill conversion rates
  • Order Aging Report: Identify orders that have been pending for extended periods

Troubleshooting

Can't change order status?

  • Check if you have permission to update order status
  • Verify the order is not locked by another user
  • Ensure the order is not already converted or cancelled

Status not updating automatically?

  • Manually update the status if needed
  • Check system settings for automated workflow
  • Contact support if status updates are not working

Understanding the Purchase Order workflow helps you manage procurement efficiently and ensures smooth order processing from creation to bill receipt!

Tags:
Purchase Vendor