Purchase Order Process Overview

Purchase Order Process Overview


Purchase Orders are created to allow us to document our intent to purchase items from a supplier; either directly for a job or to add to inventory. Purchase Orders allow us to ultimately confirm that the items we ordered have been received by us and that the invoices we receive from suppliers match what we ordered from them.

The steps of the Purchase Order through Receipt process are as follows:
  1. Create the Purchase Order, adding an itemized list of the items being ordered from the supplier.
  2. Mark the PO as "Sent" by either emailing the PO to the supplier, or if placing the order through the supplier's e-commerce site, mark the PO as "Sent"
  3. When the items ordered have arrived at the branch or have been picked up by a tech at the supplier, open the PO and mark it as Received.
    1. If all ordered items were not delivered, modify the received quantities of those items on the Receipt screen. The PO can now be marked as Partially Received (allowing you to generate another Receipt when the items arrive) or the remaining items on the PO can be cancelled.
  4. Once Receipts are created, they are batched and exported to Intacct where the AP Accounting team can match them to the invoices received from the suppliers.

Timing Requirements for Receiving Purchase Orders

In order for the AP Accounting team to be able to properly match Receipts to the invoices received from suppliers, it is imperative that Purchase Orders are Received as soon as the items ordered have been delivered or picked up.
  1. Field POs as well as job related orders picked up by techs should be Received SAME DAY. Any POs of these types that are not received within a day should have a Comment added to them which indicates why the processing of the Receipt has been delayed.
  2. Replenishment POs will be marked as Received when the technicians validates that the items given to them in their bin match the items on the Replenishment PO (copy to be placed in Bin with materials). Technicians should be coming into the shop AT LEAST twice a week to pick up their restock bins. If a Replenishment PO is left unreceived for more than three days, the Warehouse Manager should contact the technician's manager. They should also confirm the contents of the bin match the order, so the Receipt can be recorded and used by the AP Accounting team to match to the supplier invoice.

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