02 - Setting Up Purchase Orders

A Purchase Order (PO) is a formal document sent to a vendor to request goods or services. In the Inventory App, Purchase Orders help you streamline procurement, track pending deliveries, and ensure smooth stock replenishment.

Purpose of Purchase Orders

• Clearly communicate product requirements to vendors.

• Track expected deliveries and due dates.

• Provide a reference for receiving goods and matching invoices.

• Improve vendor accountability and reduce errors.

Step 1: Create a New Purchase Order

1. Open the Purchase Orders tab and click New.

2. Fill in the following details:

   • Vendor Account – Select the vendor you are purchasing from.

   • PO Number – Auto-generated or manually entered.

   • Order Date – Date of creation.

   • Delivery Date – Expected receipt of goods.

   • Warehouse – Location where goods will be received.

   • Payment Terms – e.g., Net 30, Advance, or COD.

3. Add products to the PO:

   • Select products from the catalog.

   • Specify quantities and purchase price.

   • Apply discounts or taxes if applicable.

Step 3: Save and Approve the PO

• Save the PO as Draft if more details are pending.

• Submit for approval (if your org uses purchase approvals).

• Once approved, the PO is marked as Issued and can be shared with the vendor.

Step 4: Sending the PO to Vendors

• Print or export the PO in PDF format.

• Email the PO directly to vendors from Salesforce (if enabled).

• Attach supporting documents if needed.

Step 5: PO Lifecycle

• Draft – PO created but not yet finalized.

• Approved/Issued – Sent to the vendor.

• Partially Received – Some items delivered, others pending.

• Closed – Fully received and invoiced.

Best Practices

• Use consistent PO numbering for easy tracking.

• Always link POs to the correct vendor account.

• Define approval rules for large-value purchases.

• Regularly monitor open and pending POs via dashboards.

Totals in Purchase Order

When working with a Purchase Order, the system displays a Totals section that provides a quick snapshot of the order status:

• Total Quantity – The overall quantity of items ordered in the PO.

• Total Received – The quantity already received against the PO through Goods Receive transactions. This helps track pending deliveries.

• Total Amount – The total value of the Purchase Order based on item quantities and prices.

This section ensures that users can monitor how much of the order has been fulfilled and what is still outstanding, improving visibility in the procurement process.

You can also perform the following actions on existing purchase orders:

Send Email
Open the purchase order, click Send Email, review and send. 

Download or Print
Open the purchase order, click PDF, preview, then click Download or Print.

Edit Purchase Orders
Open Purchase Orders tab, select a purchase order, click Edit, make changes, then Save.

Clone Purchase Orders
Open Purchase Orders tab, select a purchase order, click Clone, update details, then Save.

Delete Purchase Orders
Open Purchase Orders tab, select a purchase order, click Delete, then confirm.

Open Purchase Orders
Open the purchase order, click Open, then confirm.

Close Purchase Orders
Open the purchase order, click Close, then confirm.

Attach Files
Open the purchase order, go to Notes & Attachments, click Upload Files or drag and drop. Manage files as needed. 

Next Step

Once the PO is issued, the next step in the purchase cycle is Receiving Goods (Goods Receive – GR). Refer to the article Receiving Goods to learn how to record stock when vendor deliveries arrive.