Purchase Order Workflow

Complete guide to procurement: creating purchase orders, receiving materials, performing quality checks, and managing supplier invoices.

Workflow Overview

Step 1: Create Purchase Order

Navigate to: Purchasing → Purchase Orders

Creating a New PO

1. Click "Create Purchase Order"
2. Enter PO Header Information:
   • PO Number: Auto-generated or manual entry
   • Supplier: Select from dropdown
   • Site: Select destination site
   • Expected Date: When you need materials
   • Payment Terms: Auto-filled from supplier (Net 30, Net 60, etc.)
   • Buyer: Your name (auto-filled)
3. Add Line Items:
   • Click "Add Line"
   • Select Item from dropdown
   • Enter Quantity
   • Enter Unit Price
   • Line Total calculates automatically
   • Add multiple lines as needed
4. Review PO Total - Subtotal + Tax (if applicable)
5. Add Notes (optional) - Special instructions for supplier
6. Click "Save Draft" - PO status: Draft

Step 2: Submit for Approval

Approval Workflow

1. Review Draft PO - Verify all details are correct
2. Click "Submit for Approval" - PO status: Pending Approval
3. Approval Routing:
   • Automatically routes to Manager or Admin based on PO amount
   • Approver receives notification
   • Approver can Approve or Reject with comments
4. Once Approved: PO status changes to Approved
5. Send to Supplier: Download PDF or email directly from system

Step 3: Receive Materials

Navigate to: Purchasing → Receiving

Creating a Purchase Receipt

1. Click "Create Receipt"
2. Select Purchase Order from list of open POs
3. Enter Receipt Information:
   • Receipt Date: Date materials arrived
   • Packing Slip Number: From supplier documentation
   • Carrier: Shipping company
   • Tracking Number: (optional)
4. For Each Line Item:
   • Enter Received Quantity (can be partial)
   • Select Destination Location (where to put materials)
   • If item has QC plan: Materials go to "Inspection" location
   • If no QC plan: Materials go directly to selected location
5. Click "Complete Receipt"
6. System Actions:
   • Creates GRNI (Goods Received Not Invoiced) journal entry
   • Updates PO received quantities
   • If partial receipt: PO remains open
   • If complete receipt: PO status changes to Closed

Step 4: Quality Inspection

Navigate to: Quality → Inspections

Performing Quality Inspection

1. View Pending Inspections - Items in Inspection location appear here
2. Select Receipt Line to inspect
3. Review Inspection Plan:
   • View all checkpoints defined for this item/supplier
   • Each checkpoint has acceptance criteria
4. Perform Inspection:
   • Check each inspection point
   • Record Pass/Fail for each checkpoint
   • Add notes for any failures
   • Take photos if needed (attach to inspection)
5. Record Results:
   • Accept Quantity: Amount passing inspection
   • Reject Quantity: Amount failing inspection
   • Total must equal received quantity
6. Complete Inspection:
   • Accepted materials → Move to storage location
   • Rejected materials → Send to MRB (Material Review Board)

Step 5: Put-Away to Storage

Moving Materials to Storage

1. Automatic Task Generation:
   • System automatically creates put-away tasks
   • Tasks appear in warehouse task queue
2. Execute Put-Away:
   • Navigate to: Inventory → Tasks
   • Select put-away task
   • Verify destination location
   • Scan or confirm quantity moved
   • Complete task
3. Inventory Update: Materials now available in storage location for production or sales

Bonus: Invoice Matching (3-Way Match)

Navigate to: Purchasing → Supplier Invoices

Recording Supplier Invoice

1. Click "Create Supplier Invoice"
2. Enter Invoice Details:
   • Supplier Invoice Number
   • Invoice Date
   • Due Date
   • Select Purchase Order
3. 3-Way Matching:
   • System compares: PO → Receipt → Invoice
   • Flags variances in quantity or price
   • Highlights mismatches for review
4. Approve for Payment: Once matched, invoice ready for AP processing

Common Scenarios

Related Guides