> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bizaxl.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Purchase Order

> How to create and manage Purchase Orders in Bizaxl — ordering raw materials from suppliers, tracking delivery, and recording receipts.

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

| Role                   | What They Do                                                         |
| ---------------------- | -------------------------------------------------------------------- |
| **Purchase Manager**   | Creates, reviews, and approves Purchase Orders                       |
| **Store Keeper**       | Receives goods against Purchase Orders and creates Purchase Receipts |
| **Accounts Payable**   | Records Purchase Invoices when supplier bills arrive                 |
| **Production Planner** | Monitors delivery status of critical materials                       |

***

## 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

<Steps>
  <Step title="Open Purchase Order">
    Go to the **Buying** workspace and click **Purchase Order**, or use the **Purchase Order** shortcut.
  </Step>

  <Step title="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.
  </Step>

  <Step title="Select the supplier">
    In the **Supplier** field, select the supplier you are ordering from. Supplier contact details and payment terms populate automatically.
  </Step>

  <Step title="Set the order date and required delivery date">
    Enter the **Transaction Date** (today) and the **Schedule Date** (when you need delivery).
  </Step>

  <Step title="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
  </Step>

  <Step title="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.
  </Step>

  <Step title="Review the total">
    Check the grand total including taxes.
  </Step>

  <Step title="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.
  </Step>
</Steps>

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/bizaxloptimizationsllp/images/placeholder-purchase-order-form.png" alt="Purchase Order form showing supplier, items table with quantities and rates, and taxes section" />
</Frame>

***

## 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).

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/bizaxloptimizationsllp/images/placeholder-purchase-receipt-from-po.png" alt="Purchase Receipt created from a Purchase Order showing received quantities" />
</Frame>

***

## 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

| Status                  | Meaning                                             |
| ----------------------- | --------------------------------------------------- |
| **Draft**               | Created but not submitted                           |
| **To Receive and Bill** | Submitted — goods not yet received or invoiced      |
| **To Receive**          | Partially or fully invoiced but not yet received    |
| **To Bill**             | Goods received, invoice not yet recorded            |
| **Completed**           | Fully received and invoiced                         |
| **Cancelled**           | Order cancelled                                     |
| **Closed**              | Manually closed (partial receipt accepted as final) |

***

## Field Guide

| Field                              | Description                                    |
| ---------------------------------- | ---------------------------------------------- |
| **Supplier**                       | The supplier you are ordering from (mandatory) |
| **Supplier Name**                  | Auto-filled                                    |
| **Transaction Date**               | Date the order is placed (mandatory)           |
| **Schedule Date**                  | Expected delivery date (mandatory)             |
| **Company**                        | The company placing the order (mandatory)      |
| **Currency**                       | The currency of the order                      |
| **Buying Price List**              | Price list to fetch item rates from            |
| **Items table — Item Code**        | The item being ordered                         |
| **Items table — Quantity**         | How many units to order                        |
| **Items table — UOM**              | Unit of measure                                |
| **Items table — Rate**             | Price per unit                                 |
| **Items table — Amount**           | Quantity × Rate                                |
| **Items table — Warehouse**        | Where goods will be received                   |
| **Items table — Material Request** | The Material Request this item came from       |
| **Items table — Received Qty**     | Updated when a Purchase Receipt is created     |
| **Items table — Billed Qty**       | Updated when a Purchase Invoice is created     |
| **Taxes and Charges table**        | GST, freight, and other charges                |
| **Net Total**                      | Total value before taxes                       |
| **Grand Total**                    | Net Total plus taxes and charges               |
| **Supplier Invoice Date**          | Date on the supplier's invoice                 |
| **Supplier Invoice Number**        | Reference number from the supplier's invoice   |
| **Payment Terms**                  | Payment schedule agreed with the supplier      |
| **Advance Paid**                   | Any advance payment made                       |
| **Per Received**                   | Percentage of the order received               |
| **Per Billed**                     | Percentage of the order invoiced               |
| **Status**                         | Current status of the Purchase Order           |

***

## Reports and Monitoring

| Report                            | What It Shows                                                  |
| --------------------------------- | -------------------------------------------------------------- |
| **Purchase Order Analysis**       | Status of all open purchase orders by item and supplier        |
| **Purchase Analytics**            | Purchase volumes and trends by supplier and item               |
| **Procurement Tracker**           | Full journey from Material Request to Purchase Receipt         |
| **Items to Order and Receive**    | Material Requests with outstanding Purchase Orders or Receipts |
| **Supplier Quotation Comparison** | Compare quotes from multiple suppliers                         |

### 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.

***

## Related Features

* [Material Request](/manufacturing/inventory/material-request) — raises the need that creates this Purchase Order
* [Supplier Management](/manufacturing/procurement/purchase-order) — supplier records used on the PO
* [Stock Entry](/manufacturing/inventory/stock-entry) — stock is updated when the Purchase Receipt is submitted
* [Quality Inspection](/manufacturing/quality/quality-inspection) — incoming inspection may be required before accepting goods
* [GST Compliance](/manufacturing/finance/gst-compliance) — handles GST calculations and input tax credit