How to Create and Manage Purchase Orders
How to Create and Manage Purchase Orders Complete guide to managing purchase orders, suppliers, and procurement workflows for construction projects What This Feature Does The Purchase Order system helps you manage procurement for construction projects, track supplier relationships, receive goods and services, and maintain complete audit trails from order to payment.
Initial Setup First-Time Configuration Navigate to "Procurement" by clicking "Purchase Orders" in the left sidebar You'll see the purchase orders dashboard with any existing orders Before creating purchase orders, set up your suppliers by clicking "Suppliers" in the sidebar Before you begin, make sure you have:
Supplier information and contact details Project details with cost codes configured Banking details for supplier payments Approval workflows defined for your team Day-to-Day Usage How to Add a New Supplier Go to "Suppliers" in the left sidebar Click "New Supplier" button in the top right corner Fill in the supplier details:Supplier Name : Company name (e.g., "ABC Building Supplies")Tax ID/ABN : Business registration numberEmail : Primary contact email for orders and invoicesPhone : Main contact numberAddress : Supplier's business addressPayment Terms : Default payment period (e.g., 30 days)Banking Details : Account information for payments Add any Notes about the supplier (trade specialties, delivery preferences) Click "Save Supplier" How to Create a Purchase Order Go to "Purchase Orders" in the left sidebar Click "New Purchase Order" button in the top right corner Fill in the header details:Project : Select the construction projectSupplier : Choose from your supplier listIssue Date : Today's date or order dateExpected Delivery : When you need the goods/servicesCurrency : Select currency (defaults to USD)Payment Terms : Days until payment dueReference Number : Your internal reference (optional) Add line items for what you're ordering:Click "Add Line Item" Description : e.g., "Concrete mix - 25MPa - Ready mix"Quantity : Amount needed (e.g., 50)Unit of Measure : Units (e.g., "cubic meters", "each", "tonnes")
Unit Price : Price per unit
Cost Code : Link to project cost tracking (optional)
Notes : Special instructions or specifications
Review totals and add any Notes for the supplier
Internal Notes : Add notes only your team can see
Click "Save as Draft" to continue editing, or "Approve" to finalize
How to Track Purchase Order Status Go to "Purchase Orders" in the left sidebar View orders by status:Draft : Orders being preparedPending Approval : Awaiting management approvalApproved : Orders sent to suppliersPartially Received : Some items deliveredCompleted : All items received and invoicedCancelled : Orders that were cancelled Click on any PO number to view full details Status automatically updates as goods are received and invoices processed
How to Approve Purchase Orders Find pending purchase orders in the list Click on the PO number to view details Review all line items, quantities, and prices Check project budget impact Click "Approve" button if everything is correct Confirmation dialog will appear - click "Confirm Approval" Status changes to "Approved" and supplier can now fulfill the order
Common Tasks
Recording Goods Receipt Open an approved purchase order In the "Goods Receipt" section, find the line item delivered Click "Record Receipt" for that line item Enter receipt details:Quantity Received : Amount delivered (can be partial)Received Date : Delivery dateReceived By : Team member who accepted deliveryDelivery Reference : Delivery docket or receipt numberNotes : Condition notes or special observations Click "Record Receipt" The system updates received quantities and PO status automatically
Managing Supplier Invoices When suppliers submit invoices, they appear in "Supplier Invoices" Go to "Supplier Invoices" in the left sidebar Review submitted invoices:Submitted : New invoices awaiting reviewUnder Review : Invoices being processedApproved : Ready for paymentRejected : Returned to supplier for correction Click "Review" on any submitted invoice Compare invoice details with:Original purchase order quantities and prices Goods receipt records Delivery confirmations Choose action:Approve : If invoice matches PO and receiptsReject : If corrections are needed (provide reason)
Setting Up Purchase Order Numbering Go to "Purchase Orders" then click "Settings" tab Configure numbering sequence:Prefix : Your company code (e.g., "PO-")Starting Number : First PO number to useCurrent Number : Shows next number to be assigned Click "Update Settings" All new purchase orders will use this numbering system
Supplier Portal Features
Inviting Suppliers to the Portal Go to "Suppliers" and find the supplier in the list Click "Invite Supplier" next to their name Select supplier users to grant access:Choose from existing supplier users in your system Only users with "Supplier" role can be invited Click "Send Invitation" Supplier receives email with portal access instructions They can now log in to view their purchase orders and submit invoices
What Suppliers Can Do in the Portal Suppliers with portal access can:
View all approved purchase orders issued to them See line item details, quantities, and specifications Submit invoices against purchase orders Upload supporting documents (delivery receipts, certificates) Track invoice status (submitted, approved, rejected) View communication history and feedback
Advanced Procurement Features
Purchase Order Approval Workflow Draft Stage : Cost controllers create and modify ordersApproval Required : Orders above certain thresholds need management approvalApproved : Orders are locked and sent to suppliersReceiving : Goods/services are delivered and recordedInvoicing : Suppliers submit invoices for payment processingPayment : Finance team processes approved invoices
Flexible Receipt Requirements Configure whether purchase orders require goods receipt before invoice submission:
Materials/Goods : Typically require receipt confirmationServices : Can be invoiced without physical receiptPre-payments : May not require receipt confirmationSet per purchase order based on what you're buying
Integration with Project Cost Control Link PO line items to project cost codes for accurate cost tracking View procurement spend by project in analytics dashboard Track budget vs. actual spend across all purchase orders Monitor supplier performance and delivery reliability
Procurement Analytics & Reporting
Key Metrics Dashboard Access comprehensive procurement insights:
Total Purchase Orders : Count and value of all ordersSupplier Performance : Delivery times and reliability metricsProject Spend Analysis : Procurement costs by projectInvoice Processing : Approval times and payment statusBudget Tracking : Committed vs. actual spending
Monthly Spend Trends View procurement spending patterns over time Identify seasonal variations and planning opportunities Track spend by supplier, project, or cost category Export data for external reporting and analysis
Common Tasks for Construction Teams
Ordering Materials for Multiple Projects Create separate purchase orders for each project to maintain cost tracking Use consistent descriptions that include:Material specifications and grades Delivery location and timing requirements Quality certifications needed Reference project phases in line item descriptions Set realistic delivery dates considering project schedules
Managing Equipment Rental Orders Create purchase orders for equipment rental In line items, specify:Description : "Excavator rental - 20 tonne"Quantity : Rental period (e.g., 4)Unit of Measure : "weeks" or "days"Unit Price : Weekly or daily rateNotes : Delivery, pickup, and operator requirements Set Expected Delivery as start date of rental period Use Internal Notes for site access and safety requirements
Processing Subcontractor Purchase Orders Set up subcontractors as suppliers in your system Create purchase orders for subcontractor packages:Description : Trade package scope (e.g., "Electrical rough-in - Level 1")Quantity : Usually 1 for complete packagesUnit Price : Contract or quote amountCost Code : Link to project cost breakdown Include contract references and specifications in notes Set delivery date as work completion deadline
Troubleshooting
If you can't create a new purchase order Check that you have "Purchase Orders" permission in your role Ensure you have at least one supplier and project created Verify your team subscription includes procurement features Contact your team administrator for access
If suppliers can't access the portal Confirm the supplier user has "Supplier" role assigned Check that supplier access was granted for the specific supplier record Verify supplier's email address is correct Ask supplier to check spam folder for invitation email
If goods receipt fails to record Ensure the purchase order status is "Approved" Check that quantity being received doesn't exceed ordered amount Verify you have permission to record receipts Ensure line item details are complete
If invoice approval fails Verify invoice quantities don't exceed received quantities (if receipt required) Check that invoice amounts match purchase order pricing Ensure you have "Supplier Invoice Review" permission Confirm invoice number isn't duplicated
Tips for Construction Teams Use detailed descriptions that include material grades, specifications, and delivery requirements Set realistic delivery dates considering project schedules and supplier lead times Include site access instructions and safety requirements in internal notes Track warranty periods and certification requirements in line item notes Use cost codes consistently to enable accurate project cost reporting Maintain regular communication with suppliers about delivery schedules
Integration with Other Features Projects : All purchase orders link to specific construction projectsCost Codes : Track procurement costs by work type and tradeInvoicing : Supplier invoices integrate with your accounts payable processAnalytics : Procurement data feeds into project cost reportingNotifications : Automatic alerts for approvals, receipts, and invoice submissions
What's Next After setting up purchase orders, you may want to:
