Create & Manage Purchase Orders
A Purchase Order (PO) is a formal document you send to a supplier requesting specific goods at agreed prices. Use purchase orders when you need to plan procurement in advance — for example, placing orders with manufacturers who have lead times, ordering seasonal stock, or when you need internal approval before buying. POs help you track what was ordered vs. what was received. You can add items with quantities, prices, discounts, and taxes. Once the goods arrive, convert the PO into a Purchase Invoice with one click — all item details carry over automatically. Purchase Orders do not increase stock or affect financial reports until they are converted to a purchase invoice.
Steps
- Navigate to Purchase > Purchase Orders from the sidebar.
- Click "+ Create Purchase Order" to open the order form.
- Select or add a Supplier — you can create a new supplier on the fly.
- Set the Order Date and Order Number (auto-generated, editable).
- Select the Store/Godown — this determines where the stock will be added when the PO is later converted to a purchase invoice.
- Add items by clicking "+ Add Item" — search by item name or scan a barcode. Add multiple items to a single order.
- For each item, enter Quantity, Price, and Unit.
- Apply Item-level Discount for individual items — supports both percentage (%) and flat amount (Rs.) discounts.
- GST/Tax is auto-calculated based on each item's tax rate settings.
- Add Extra Discount (bill-level discount) on the overall order total.
- Add Shipping Charges or any other additional charges if applicable.
- Add optional Remarks or notes about the order (e.g., delivery instructions, special requirements).
- Click "Save" to create the purchase order. No stock is added at this point.
- When goods arrive from the supplier, open the PO and click "Convert to Purchase Invoice" — all item details carry over automatically.
Tip: Use purchase orders to plan ahead — convert them to purchase invoices when goods arrive to avoid re-entering item details. This ensures consistency between what was ordered and what was received.
Common Questions
No, a purchase order does not increase your inventory. Stock is only added when the purchase order is converted to a purchase invoice. The PO is a planning and tracking document — it records what you ordered and at what price, but does not affect your actual inventory levels.
Yes, when the goods arrive, open the purchase order and click 'Convert to Purchase Invoice'. All item details, quantities, prices, discounts, and taxes are carried over automatically. This saves time, eliminates data re-entry, and ensures consistency between what was ordered and what was received.
Use Purchase Orders when there is a gap between placing an order and receiving goods — for example, when ordering from manufacturers with lead times, when you need internal approval before buying, or when you want to track orders from multiple suppliers. Use direct Purchase Invoices when you receive goods immediately (e.g., buying from a local supplier or cash-and-carry purchases). Both update your stock and accounts the same way once finalized.
No, purchase orders do not appear in your purchase reports, profit reports, or GST reports. They are only used for procurement planning and order tracking. Financial and tax reports only reflect actual purchase invoices. This ensures your expense and liability figures are based on received goods, not pending orders.
Yes, purchase orders support all the same pricing features as purchase invoices: item-level discounts (percentage or amount), bill-level extra discounts, GST/tax auto-calculation, and shipping/additional charges. When you convert the PO to a purchase invoice, all these details carry over automatically.
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