How to Create and Manage Purchase Orders

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

1. Navigate to "Procurement" by clicking "Purchase Orders" in the left sidebar
2. You'll see the purchase orders dashboard with any existing orders
3. Before creating purchase orders, set up your suppliers by clicking "Suppliers" in the sidebar

Required Information

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

1. Go to "Suppliers" in the left sidebar
2. Click "New Supplier" button in the top right corner
3. Fill in the supplier details:
   • Supplier Name: Company name (e.g., "ABC Building Supplies")
   • Tax ID/ABN: Business registration number
   • Email: Primary contact email for orders and invoices
   • Phone: Main contact number
   • Address: Supplier's business address
   • Payment Terms: Default payment period (e.g., 30 days)
   • Banking Details: Account information for payments
4. Add any Notes about the supplier (trade specialties, delivery preferences)
5. Click "Save Supplier"

How to Create a Purchase Order

1. Go to "Purchase Orders" in the left sidebar
2. Click "New Purchase Order" button in the top right corner
3. Fill in the header details:
   • Project: Select the construction project
   • Supplier: Choose from your supplier list
   • Issue Date: Today's date or order date
   • Expected Delivery: When you need the goods/services
   • Currency: Select currency (defaults to USD)
   • Payment Terms: Days until payment due
   • Reference Number: Your internal reference (optional)
4. 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
5. Review totals and add any Notes for the supplier
6. Internal Notes: Add notes only your team can see
7. Click "Save as Draft" to continue editing, or "Approve" to finalize

How to Track Purchase Order Status

1. Go to "Purchase Orders" in the left sidebar
2. View orders by status:
   • Draft: Orders being prepared
   • Pending Approval: Awaiting management approval
   • Approved: Orders sent to suppliers
   • Partially Received: Some items delivered
   • Completed: All items received and invoiced
   • Cancelled: Orders that were cancelled
3. Click on any PO number to view full details
4. Status automatically updates as goods are received and invoices processed

How to Approve Purchase Orders

1. Find pending purchase orders in the list
2. Click on the PO number to view details
3. Review all line items, quantities, and prices
4. Check project budget impact
5. Click "Approve" button if everything is correct
6. Confirmation dialog will appear - click "Confirm Approval"
7. Status changes to "Approved" and supplier can now fulfill the order

Common Tasks

Recording Goods Receipt

1. Open an approved purchase order
2. In the "Goods Receipt" section, find the line item delivered
3. Click "Record Receipt" for that line item
4. Enter receipt details:
   • Quantity Received: Amount delivered (can be partial)
   • Received Date: Delivery date
   • Received By: Team member who accepted delivery
   • Delivery Reference: Delivery docket or receipt number
   • Notes: Condition notes or special observations
5. Click "Record Receipt"
6. The system updates received quantities and PO status automatically

Managing Supplier Invoices

1. When suppliers submit invoices, they appear in "Supplier Invoices"
2. Go to "Supplier Invoices" in the left sidebar
3. Review submitted invoices:
   • Submitted: New invoices awaiting review
   • Under Review: Invoices being processed
   • Approved: Ready for payment
   • Rejected: Returned to supplier for correction
4. Click "Review" on any submitted invoice
5. Compare invoice details with:
   • Original purchase order quantities and prices
   • Goods receipt records
   • Delivery confirmations
6. Choose action:
   • Approve: If invoice matches PO and receipts
   • Reject: If corrections are needed (provide reason)

Setting Up Purchase Order Numbering

1. Go to "Purchase Orders" then click "Settings" tab
2. Configure numbering sequence:
   • Prefix: Your company code (e.g., "PO-")
   • Starting Number: First PO number to use
   • Current Number: Shows next number to be assigned
3. Click "Update Settings"
4. All new purchase orders will use this numbering system

Supplier Portal Features

Inviting Suppliers to the Portal

1. Go to "Suppliers" and find the supplier in the list
2. Click "Invite Supplier" next to their name
3. Select supplier users to grant access:
   • Choose from existing supplier users in your system
   • Only users with "Supplier" role can be invited
4. Click "Send Invitation"
5. Supplier receives email with portal access instructions
6. 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

1. Draft Stage: Cost controllers create and modify orders
2. Approval Required: Orders above certain thresholds need management approval
3. Approved: Orders are locked and sent to suppliers
4. Receiving: Goods/services are delivered and recorded
5. Invoicing: Suppliers submit invoices for payment processing
6. Payment: Finance team processes approved invoices

Flexible Receipt Requirements

Configure whether purchase orders require goods receipt before invoice submission:

• Materials/Goods: Typically require receipt confirmation
• Services: Can be invoiced without physical receipt
• Pre-payments: May not require receipt confirmation
• Set 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 orders
• Supplier Performance: Delivery times and reliability metrics
• Project Spend Analysis: Procurement costs by project
• Invoice Processing: Approval times and payment status
• Budget 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

1. Create separate purchase orders for each project to maintain cost tracking
2. Use consistent descriptions that include:
   • Material specifications and grades
   • Delivery location and timing requirements
   • Quality certifications needed
3. Reference project phases in line item descriptions
4. Set realistic delivery dates considering project schedules

Managing Equipment Rental Orders

1. Create purchase orders for equipment rental
2. 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 rate
   • Notes: Delivery, pickup, and operator requirements
3. Set Expected Delivery as start date of rental period
4. Use Internal Notes for site access and safety requirements

Processing Subcontractor Purchase Orders

1. Set up subcontractors as suppliers in your system
2. Create purchase orders for subcontractor packages:
   • Description: Trade package scope (e.g., "Electrical rough-in - Level 1")
   • Quantity: Usually 1 for complete packages
   • Unit Price: Contract or quote amount
   • Cost Code: Link to project cost breakdown
3. Include contract references and specifications in notes
4. 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 projects
• Cost Codes: Track procurement costs by work type and trade
• Invoicing: Supplier invoices integrate with your accounts payable process
• Analytics: Procurement data feeds into project cost reporting
• Notifications: Automatic alerts for approvals, receipts, and invoice submissions

What's Next

After setting up purchase orders, you may want to:

• Configure Cost Codes for detailed cost tracking
• Set up Projects for better organization
• Review Analytics for procurement insights
• Explore Assignar Integration for supplier data import