A Purchase Order is a buyer-generated document that authourises a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties. A purchase order lays out the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller. Its also called an order.

This topic covers how to setup a Purchase Order Transaction Type.

All of these fields and tabs are explained in detail in the Transaction Type topic, here.

What you'll find on this page

• • Start here

• Transaction Types

  • General

  • Items & Inventory

  • Custom Fields

• Status

• Copy Rules

• Templates

• Costing Rules

• Reporting

• Cost Update

Start here

1. Navigate to Setup > Transaction Types > Edit.

2. Click Add. A new record will appear at the bottom of the screen. You will note that some fields are auto-populated already.

Transaction Types

General

The defaults for Transaction Types only require a small amount of change. The only fields to change are:

1. Description - Enter 'Purchase Order'.

2. Code - Enter 'PO'. This is the 'nickname' of the Transaction Type.

3. Contacts - Select Suppliers - All. This is so that users can create a Purchase Order from all Suppliers on the database.

4. Create / Copy - Select Create New & Copy if you need to create new Purchase Orders from scratch, or copy from another Transaction.

Items & Inventory

• Pricing Items - Select 'Supplier Price'. This is so that only the selected Supplier's price will apply to the Item.

• Resolve Items - Select 'Order'. This sets what Resolve is set by default for items on this transaction type. If 'Order' is selected then you can receive an ordered item into stock.

Custom Fields

The defaults for Custom Fields for a new Purchase Order Transaction Type only require a small amount of change. More on Custom Fields here.

The only field to change is:

• Caption for Due Date - Set to Due date.

Status

Copy Rules

These are dependent on the other Transaction Types that need to be linked to Purchase Orders. For a more indepth explanation of Copy Rules, click here.

1. Purchase Orders to Customer Invoices - This allows you to create a Customer Invoice transaction linked to the Purchase Order for items that are sold directly to the Customer.

2. Purchase Orders to Goods Received - This allows you to create a Goods Received transaction linked to the Purchase Order for items that have arrived from the Supplier.

3. Purchase Orders to Supplier Invoices - This allows you to create a Supplier Invoice linked to the Purchase Order, in order to pay the Supplier for the items that are delivered, and to track payments.

Templates

A Purchase Order template can be setup for Purchase Orders, and can be modified to include Forex should you trade in foreign currency. More on Templates here.

Here are some examples of Purchase Order templates.

1. Purchase Orders - Items - This shows the Items ordered on the Purchase Order.

2. Purchase Orders - RFQ - This is a request for a quotation that you could send to several Suppliers to obtain the most competitve price.

This is an example of a Purchase Order - RFQ template.

Costing Rules

The Costing Rules determine how the cost of sales is generated in the fixed Cost of Sales module (more here). This is done by identifying which Transaction Types are used to Issue Stock, Return Stock or Purchase Items.

If you use Purchase Orders to purchase materials or services against Sales Orders / Work Orders, then add the Purchase Order Transaction Type. More on Costing Rules here.

Ideally these other Transactions that can be linked to a Purchase Order Costing Rule have been created already.

1. Sales Orders > Purchases > Purchase Orders (PO) - The costs of the purchased items in the Sales Orders are allocated against the linked Purchase Orders transaction.

2. Work Orders > Purchases > Purchase Orders (PO) - The costs of the purchased items in the Work Orders are allocated against the linked Purchase Orders transaction.

Reporting

Supplier Summary

This is an instant summary of Supplier transactions over time. More on Supplier Summaries here.

You can add Purchase Orders here to show the orders that have been received on the Supplier Summary.

Cost Update

QuickEasy provides the functionality to automatically update your item prices from Transactions. More on Cost Update here.

Use these settings if you would like your Supplier Prices to be updated every time a Purchase Order is made and set to Complete, or to another Status that you may select.

• Purchase Orders > Supplier Price > Complete - This ensures that, once goods are purchased, the Supplier Price record is updated, and the Status is set to Complete.