Inventory

Managing Purchase Orders

In this section, you can learn about the different methods of creating purchase orders and sending it to your vendors.

• Creating a New Purchase Order
  • Primary Purchase Information
  • Item Information
  • Discount Information
  • Additional Information
• Creating Purchase Order from Contacts
• Creating a drop shipment
• Status of a Purchase Order
• Editing a Purchase Order
• Deleting a Purchase Order
• Cancelling items in a Purchase Order
• Multi-warehouse operations related to Purchase Orders

Creating a New Purchase Order

• Click on the quick create (+) icon next to the Purchase Orders tab or the +New icon placed on top of the purchase order window to create a new purchase order.

• You will be navigated to a new window for entering the details for the new purchase order to be created.

Primary Purchase Information

• Under the Vendor name field, you can either pick the vendors from the list you have already created or you can add a new vendor by clicking on the + New vendor option.

• If you choose the option to add a new vendor, a new contact creation tab opens up

• After filling up the required details, click on Save And Select to add the new vendor to the purchase order being created.
• In the Purchase Order# tab, a purchase order number is generated by default.
• If you wish to manually enter a purchase order number:
  • Click on the Settings icon next to the tab.
  • A pop-up will appear where you can select between auto-generated estimate number or manual entry of purchase order numbers.

• Date tab is the date on which the purchase order is created.
• In the Expected Delivery Date tab, you can set the date by which the product should be delivered by the vendor to the you.
• In the Shipment Preference tab, you can choose or type to add the preferred method of shipment to be done by the vendor.
• Tax Reverse Charges: Enable this if the transaction is applicable for reverse charging.

Item Information

• Items can be added from the list of items shown in the drop down that have already been created by you in your Zoho Inventory account.

• To add another item, click on + Add another line option.
• Alternatively, you can also click the Add items in bulk option to add several items at once to your sales order.

• Enter the Quantity, Rate and Tax if applicable from the drop down.
• Tax drop down shows the taxes you created in the settings tab under taxes section and an option to add a new tax if applicable.

Discount Information{purchase-discount}

• Include Discounts and add Adjustments in the total section.
• Add the TCS Rates (as per 206C - 1H), if applicable. You can also click the Edit icon to override the calculated rate and enter the tax amount manually. Learn how to add TCS Rates.

Additional Information

• You can record Notes of upto 2000 characters and purchase Terms & Conditions of upto 5000 characters for the purchase order.
• Check the Use this in future box to use the terms & conditions in all future purchase orders.
• This will be carried forward while converting the purchase order into a bill.
• In the Deliver To tab you are provided with two options.
• To create a normal purchase order, choose the option Organization.
• To make a drop shipment check the box near Customer. To know more about drop shipments, click here.
• The address to deliver can be changed by clicking on the Change destination to deliver.

• Now click on the Save button to save the new purchase order as a draft.

Creating a Purchase Order from Contacts

• Navigate to the Contacts tab.
• Select a contact.
• Click on the New Transaction button and select Purchase Order from the drop-down.
• You will be navigated to the New Purchase Order screen.

• Fill up the necessary details.
• Click on the Save button.
• After creating the new purchase order, you will be able to find it as a draft under the Purchase Orders tab.

Status of a Purchase Order

These indicate the stages of progress a purchase order goes through. Lets take a look at what each status indicates:

• Draft - This status indicates, that a purchase order has been created and is yet to be sent to the vendor.
• Issued - This status indicates that a purchase order has successfully been sent to the vendor.
• Partially Received - This status indicates that portion of the list of items in the purchase order has been received by you/your organization from your vendor.
• Received - This indicates that all the items in your PO has been received by you/your organization from your vendor.
• Cancelled - This indicates that your purchase order has been cancelled.

Editing a Purchase Order

To edit a purchase order:

• Navigate to the Purchase Orders module.
• Select the preferred purchase order.
• The purchase order page opens up.

• Click the Edit button(Pencil like button).
• You will be directed to a edit purchase order page.
• Update all the necessary changes.
• Click the Save button to update your changes.
• Word to the wise: Be sure to mail the edited purchase order to your vendor after making the changes or he might fulfil the older unchanged order.

Important Note:

• Only Purchase orders in Draft or Issued status can be edited.
• In case of Issued purchase orders, if they have bills associated with them, then you can only increase the quantity of existing items or add new items to the order.
• You will not be able to remove or reduce the quantity that has already been billed.
• Workaround: If you need to reduce the quantity or remove a billed item from the purchase order, then the only way to do is, by deleting the bill associated with the order and try again.
• Once you are done with the changes, you can again convert the purchase order to a bill easily.

Deleting a Purchase Order

To delete a purchase order:

• Navigate to the Purchase Orders module.
• Select the preferred purchase order.
• The purchase order page opens up.
• Click on the More button.

• Select the Delete option from the More drop-down.
• A pop-up asking for confirmation will appear.
• Confirm your choice and the purchase order will be deleted successully.

Note: Only Draft and Issued purchase orders without any bills and receives associated with it can be deleted.

Cancelling items in a Purchase Order

After issuing a purchase order to your vendor, you might realize that you have ordered a wrong item or you have ordered some items excessively. In such cases, you can cancel selective items in the purchase order you have issued.

Prerequisite: Items in the purchase order must be partially billed or received.

To cancel selective items in a purchase order:

• Navigate to the Purchase Orders module.
• Open the preferred purchase order.
• Click  More - Cancel Items.

• Edit the items and the quantity to cancel for each item.
• Click Proceed to cancel the items.

• You can view the details of the cancellation under the Cancelled Items tab in your purchase order.

• To undo the cancellation, once again go to More and click Reopen cancelled items.

Multi-warehouse operations related to Purchase Orders

If you’ve enabled multiple warehouse management for your organization, you’ll have additional steps and capabilities related to purchase orders. To know more, click here.