Overview
Not just a communication tool between the Buyer and Seller of materials, the Purchase Order lays the framework for material management records tracking the material's physical and financial footprint. Only authorized personnel can create a Purchase Order. It can be a Stocking Inventory or Job-Specific (special-ordered). Materials ordered and the balance of materials to order are reflected in the jobs.
Overview of Purchase Order Video
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A Purchase Order has multiple purposes:
Contract between Buyer and Seller
The PO is a communication tool/contract with the Vendor to acquire materials.
- Sidemark (optional)
- PO # for billing and tracking purposes
- Order by Date, Expected Date
- PO Notes and Conditions
- Printing & Emailing
Inventory Records
The PO generates an Inventory Record for each material line.
- Physical representation of the material: The Inventory Records will be used by Warehouse Management to Receive, Track, and Deliver the materials as they move in and out of the warehouse.
- Financial representation of the material: The Inventory Records will be used by the Accounts Payable Dept to cost verify the material (landed cost including Freight, Taxes, Import Duty Taxes, etc)
- Costing to the Jobs: The Inventory Records are assigned to the job's material lines and carry those landed costs back to the jobs that used them, resulting in accurate job costing.
Procurement Department / Expediting
- Placing the Orders
- "Notify Me" features
- Expediting
- Searching POs
Reports
- Stocking Inventory Orders (Min/Max)
- Inventory Need to Order (all materials)
- Purchase Orders Late and more
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