Purchase Order

Purchase Order (PO) Documentation

Introduction

A Purchase Order (PO) is a formal document created by a company to purchase goods or services from a supplier.

It helps you:

• Order items clearly
• Track delivery
• Control costs
• Maintain proper records

Think of it as an official request + agreement between your company and the supplier.

A. Details Tab

1. Basic Information

Series (Naming Series): This generates the Purchase Order number automatically.

Example: PO-2026-0001

Supplier: The vendor from whom you are purchasing items.

Example:

You are buying raw material from ABC Traders → select ABC Traders.

Date: The date when the Purchase Order is created.

Required By (Delivery Date): The date by which you expect the items to be delivered.

Company: Your company name for which the order is created.

2. Additional Fields

MPS (Master Production Schedule): It is used when your company plans production in advance. Simply It tells what items need to be produced and when.

Example:

• You are manufacturing sign boards and need raw material → linked via MPS.

Segment: Used to categorize the Purchase Order based on business type(Digital, Signage, Solar).

Reference Type & Reference Name: Used to link this PO with specific department.

Issue: Used to link any problem, complaint, or requirement.

Is Reverse Charge: Used for GST cases where buyer pays tax instead of supplier. Use only if your finance team tells you.

Is Subcontracted: Enable when you are sending raw material to a vendor for processing.

Example: You send metal sheets → vendor cuts and returns finished goods

Title: Short description of the order.

Example:

“Purchase of Steel Sheets for May Production”

Is Transporter: Enable if supplier is a transport/logistics provider.

3. Accounting Dimensions

Cost Centre : Tracks which company is spending money

Project: Link the purchase to a specific project.

Site Name: Location where items will be used.

4. Currency & Price List

Currency: Currency used in transaction (e.g., INR).

Price List: Predefined list of item prices. Automatically fills item rates.

5. Inventory Settings

Scan Barcode: Use barcode scanner to quickly add items.

Set Target Warehouse: Default warehouse where items will be stored.

6. Items Table

Item Code: Name of item from Item Master.

Required By: Delivery date for each item.

Quantity: Number of units required. Example: 100 sheets

UOM (Unit of Measure): Unit of item.

Example:

• Nos (Numbers)
• Kg

Rate: Price per unit.

Amount: Automatically calculated by Quantity × Rate

Target Warehouse: Where this item will be stored.

Summary

• Total Quantity
• Total Amount

7. Taxes & Charges

This decides the final payable amount.

Tax Category: Type of tax applicable.

Purchase Taxes and Charges Template: Predefined GST setup.

Purchase Taxes and Charges Table: Autofilled from taxes and charges template. We can modify it.

Shipping Rule: Defines shipping cost.

Incoterm: International shipping terms.

Example:

• FOB (Free on Board)
• CIF (Cost + Insurance + Freight)

Totals: Autofetched

• Total Taxes and Charges (INR)
• Grand Total
• Rounding Adjustment
• Rounded Total

8. Additional Discounts: Apply extra discount if needed.

Example:

• 5% discount on total
• ₹500 flat discount

Note: Tax breakup and GST breakup are auto-calculated by the given information of items.

B. Address & Contact Tab

1. Supplier Details: Important for tax calculation.

• Supplier Address

These fields are auto-fetched by Supplier Address.

• Supplier GSTIN (Tax ID)
• GST Category
• Supplier Contact

2. Contact Person: auto-fetched by Supplier Address

• Name
• Mobile Number
• Email

3. Shipping Details

• Dispatch Address: From where goods are sent
• Shipping Address: Where goods will come

Must be correct to avoid delivery issues.

4. Billing Details

• Company billing address
• Company GSTIN
• Place of Supply

Important for GST calculation.

C. Terms Tab

1. Payment Terms : We can select a template and modify it.

• Defines how payment will be made.

Example:

• 50% Advance
• 50% After Delivery

2. Payment Schedule

Breaks payment into parts.

3. Terms & Conditions

Write agreement details:

Include:

• Delivery timeline
• Payment rules
• Penalty clauses
• Warranty

D. More Info Tab

1. Status

• Shows current stage:
• Draft
• Submitted
• Cancelled

2. Printing Settings

• Letterhead
• Print title
• Language
• Group same items

3. Auto Repeat

• Used for recurring orders.

Example:

• Monthly raw material order

4. Additional Info

• Internal Supplier: For company-to-company transactions
• Inter Company Reference: Link internal orders
• Supplier Quotation: Link quotation