Purchase Order

A Purchase Order is your confirmed order to a supplier: items, quantities, rates, taxes and the date you expect delivery. It posts nothing to the ledger, because nothing has been received or owed yet; its value is control. The Purchase Receipt made from it brings goods into stock, debiting Stock In Hand and crediting Stock Received But Not Billed, and the Purchase Invoice then clears that liability into Creditors, or, for services and assets, posts the expense or asset directly. The order shows Per Received and Per Billed so you can see what is still outstanding, and it blocks a supplier whose scorecard standing prevents orders. Close an abandoned order rather than deleting it.

Per Received = Received qty / Ordered qty x 100; Per Billed = Billed amount / Order net total x 100

1. 01Go to Buying > Purchase Order > New, or open a Material Request and click Create > Purchase Order.
2. 02Pick the supplier, set the Required By date, and add item rows with quantity, rate and warehouse.
3. 03Pick VAT 13% - YFF in Purchase Taxes and Charges if the supplier is VAT registered.
4. 04Save and Submit; nothing posts and the order locks.
5. 05When goods arrive, click Create > Purchase Receipt and Submit; the entry above posts.
6. 06When the bill arrives, click Create > Purchase Invoice and Submit; Stock Received But Not Billed clears to Creditors.
7. 07Watch Per Received and Per Billed reach 100, or use Close for an order the supplier will not fulfil.

Create under Buying > Purchase Order or from a Material Request. Submitted orders lock; close them if abandoned.

Order a Dell laptop for Rs 1,00,000 from Market mind investment group before it arrives and is billed.