Skip to main content
A Purchase Order is the formal document you send to a supplier to order raw materials or components. It confirms what you are buying, the agreed price, and when you need delivery. In manufacturing, Purchase Orders are typically raised from Material Requests identified during production planning. Once a supplier delivers the goods, you record a Purchase Receipt, and when the supplier bill arrives, you record a Purchase Invoice.

​
Who Uses This Feature

​
Before You Start

Before creating a Purchase Order:
  • The supplier must have a record in Bizaxl (see Supplier Management)
  • The items you are ordering must be in the Item catalogue
  • A Material Request should exist (though you can create a PO directly)

​
Creating a Purchase Order

1

Open Purchase Order

Go to the Buying workspace and click Purchase Order, or use the Purchase Order shortcut.
2

Create from a Material Request (recommended)

The fastest way to create a Purchase Order is directly from a Material Request:
  1. Open the Material Request
  2. Click Create Purchase Order
  3. Select the supplier
  4. The items and quantities are auto-populated
Alternatively, click New on the Purchase Order list to start from scratch.
3

Select the supplier

In the Supplier field, select the supplier you are ordering from. Supplier contact details and payment terms populate automatically.
4

Set the order date and required delivery date

Enter the Transaction Date (today) and the Schedule Date (when you need delivery).
5

Add items

In the Items table, add each item you are ordering:
  • Select the Item Code
  • Enter the Quantity
  • Confirm the Rate (price per unit — fetched from the last purchase price or price list)
  • Set the Warehouse where goods will be received
6

Add taxes and charges

In the Taxes and Charges table, add applicable GST or other taxes. Use a saved tax template if one is configured for this supplier.
7

Review the total

Check the grand total including taxes.
8

Save and submit

Click Save then Submit. The Purchase Order is now active. You can print it or email it to the supplier from the submitted record.
Purchase Order form showing supplier, items table with quantities and rates, and taxes section

​
After Submission: Receiving Goods

When the supplier delivers the materials, the Store Keeper creates a Purchase Receipt:
  1. Open the Purchase Order
  2. Click Create Purchase Receipt
  3. The items and quantities are pre-populated from the PO
  4. Enter the actual quantities received (may differ from ordered quantities)
  5. Set the warehouse where goods are being stored
  6. Save and submit
The Purchase Order’s status updates to To Bill (goods received, waiting for the invoice).
Purchase Receipt created from a Purchase Order showing received quantities

​
Recording the Supplier Invoice

When the supplier bill arrives:
  1. Open the Purchase Order (or Purchase Receipt)
  2. Click Create Purchase Invoice
  3. Review the items, quantities, and amounts
  4. Enter the supplier’s invoice number in the Supplier Invoice Number field
  5. Save and submit
The Purchase Order status updates to Completed.

​
Purchase Order Status

​
Field Guide

​
Reports and Monitoring

​
Dashboard Chart (Buying Workspace)

Purchase Order Trends shows the volume of Purchase Orders over time, helping identify purchasing patterns and seasonal procurement cycles.

​
GST on Purchase Orders

For Indian businesses, GST is calculated automatically based on the item’s HSN code and the tax template applied. When a Purchase Receipt is submitted, the GST input tax credit is recorded. Use the Purchase Reconciliation Tool in the GST India workspace to match your purchase data against GSTR-2B data from the GST portal.

​
Best Practices

Always link Purchase Orders to Material Requests. This maintains the traceability chain from production planning → material request → purchase order → receipt. Without this link, it is difficult to understand why a purchase was made. Set accurate schedule dates. The schedule date is what procurement uses to prioritise orders. If you enter an arbitrary date, critical materials may arrive too late for production. Record partial receipts. If a supplier sends goods in multiple deliveries, create a Purchase Receipt for each delivery. Do not wait for the full order to arrive before recording anything — partial receipts update stock immediately. Do not close Purchase Orders prematurely. Closing a PO means you accept the received quantity as final. Only close an order if you have explicitly agreed with the supplier that the partial delivery is the final one. Use the Supplier Quotation Comparison report. Before placing large orders, get quotes from multiple suppliers and compare them using the report. This ensures you are getting competitive pricing on critical raw materials.

​
Troubleshooting

The rate on the Purchase Order item is zero: No rate was found from the price list or purchase history. Enter the rate manually or update the item’s standard buying rate. Purchase Receipt cannot be created: The Purchase Order must be in Submitted status before a receipt can be created. Check the status and submit if it is still in Draft. GST amount is not calculating: Check that the item has the correct HSN code and that a tax template with GST rates has been applied in the Taxes and Charges table. Cannot submit because items table is empty: At least one item must be added to the Purchase Order before it can be submitted.