Purchase orders

Raise a purchase order to a supplier, print it, and convert it into a purchase bill when the goods arrive.

A purchase order (PO) tells a supplier what you want to buy. It does not touch your stock or accounts. Only when you convert it does it become a real purchase bill.

Before you start

• Create the supplier in Suppliers and the items in Products.
• PO numbers come from an invoice series. If no series exists for the year, the number box says No numbering series for this year — set one in Settings → Invoice Series, or enter a number manually. See Invoice series.

Steps

1. Open Transactions > Purchase Orders.
2. At the top right of New Purchase Order, choose Item (goods) or Accounting (expense ledgers).
3. Pick the Supplier. Place of Supply fills in from the supplier's state. The note under it shows Intra-State — CGST + SGST or Inter-State — IGST.
4. Set the Order Date. Optionally set Expected Delivery.
5. The PO number shows as No: .... To type your own, click Set number manually. To go back, click Use auto number.
6. Click Delivery & Billing Address to open the address section (see below). This is optional.
7. Add lines. In Item mode, pick the product in Item 1 and enter Quantity, Rate, Disc ₹ and GST %. Click Add Item for more lines.
8. In Accounting mode, pick an Expense Ledger, then enter Description, Amount, Disc ₹ and GST %. Click Add ledger line for more lines.
9. For freight or packing, click Add charge under Other charges (freight, packing…). Pick a Ledger and enter the amount.
10. Add Notes if needed, for example delivery or payment terms.
11. Check the line Taxable · GST · Total, then click Save Purchase Order.

The saved PO appears in Recent Purchase Orders below the form with status Draft.

Add the delivery address

1. Click Delivery & Billing Address, then Add / Edit.
2. Under BILL TO, click Use my business address, or type the name, address, state and pincode.
3. Under SHIP TO / DELIVER TO, type where the supplier should deliver. Click Same as Bill To to copy the bill-to address.
4. Enter Vehicle No. if known.
5. These details print on the order.

Print a PO

1. In Recent Purchase Orders, click the printer icon on the row.
2. The print preview opens and the print window starts.
3. Click Print / Save as PDF to print again or save a PDF.

Mark a PO as sent

1. Click the send icon (Mark as issued (sent to supplier)) on a Draft row.
2. The status changes to Issued.

Convert a PO into a purchase bill

1. When the goods arrive, click the convert icon (Convert to Purchase Invoice) on the row.
2. Read the message and click Convert.
3. A purchase bill is created and posted to your books. Stock goes up and the supplier is credited.
4. The PO is locked with status Converted.

The new bill uses the PO's date, lines and charges. Its bill number is the PO number. The notes get the line "Against Purchase Order ...".

Edit or cancel a PO

• Click the pencil icon to load a PO into the form. Change it and click Update Purchase Order. Click Cancel Edit to stop editing.
• Click the cancel icon, then Cancel it. Nothing is reversed because a PO posts nothing. Click Keep to leave it.
• A Converted or Cancelled PO cannot be edited, converted or cancelled. You can still print it.

Common problems

• Select a supplier or Select a Place of Supply — fill in that box before saving.
• Item 1: quantity must be greater than zero — a line has a product but no quantity. Enter the quantity or remove the line.
• Add at least one item with quantity — no line has both a product and a quantity.
• PO number '...' already exists in this financial year. — the manual number is taken. Use another number or Use auto number.
• This date falls in ..., but you are working in ... — appears on convert when the PO date is in another financial year. Switch to that year on the Dashboard, then convert.
• Cannot convert — status is CANCELLED — a cancelled PO cannot be converted. Create a new one.

Related

• Record a purchase bill
• Purchase register
• Proforma invoice

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