Purchase Orders


Purchase orders are documents normally used to place an order for product or service from a vendor.   POS/OE 4 has a powerful purchase order system with many capabilities.

It is possible to print, email or even electronically transmit purchase orders (EDI - electronic data interchange).

You can create purchase orders manually or automatically with the open to buy purchase order generator.  The generator is flexible and can consider re-order point, maximum stock levels and even handle "Just In Time" (JIT) inventory calculations.

A simple re-ordering example: I can set a product to have a re-order point of 10, a maximum stock of 50.   When my stock falls to 10, the item will be flagged as requiring order.  The system can generate a purchase order, and will order 40 to bring me up to a quantity of 50.

More complex re-ordering is available, where the system looks at sales and inventory data such as what the sales at the current time are versus what the sales were last year, flexible 'windows' of analysis, and more.

Combine this with the ROI (return on investment) and Inventory Turns reports for more precision.

Purchase Order documents are normally received via a Receiving document.  For example, you place a purchase order for product from a vendor and later receive in that product with a receiving document referencing that PO.  The PO can be partially received if for example the vendor ships multiple partial shipments.   You may choose to receive only certain items or even partial quantity of a particular item.  Later you can view the items and quantity that are still outstanding on the PO, and pull what is left on the PO in to additional receiving documents.


Other purchase order features include:

Analyze and Organize your purchase orders - similar to other areas of the software it is possible to search, sort, generate reports, labels, emails or letters (on screen or paper).   For example, re-send a PO via email to a vendor.   Find all the PO's for vendor XYZ and print a report with subtotals by month (to paper or electronic).    Sort a list of PO's by shipping cost or subtotal.

Multiple vendor addresses can be utilized - use one address for purchase orders, a different address for accounts payable (AP) remittance.

Apply special discount pricing using purchase control - for example, to handle discounts when you purchase in bulk - quantity break points.

Set a purchase order cancel date to eliminate 'lost' or 'forgotten' purchase orders, or to communicate to your vendor that you do not want the shipment unless they meet your deadline.

Hide cost fields on the screen and certain documents to control what information your employees have the ability to see.   Cost is very sensitive information in some companies, and it is possible to restrict the ability to view it on various screens and documents for specific employees. 

Inclue special instructions text for the vendor.   You can define notes to be included for every PO to a vendor, and/or customize the notes for a specific PO.

PO's can also handle Tax, Shipping and Handling.   These numbers will flow through to the Receiving process when the shipment comes in, all the way through to accounts payable (AP).

Store your own reference data in the Misc fields.  These can be used to search, sort or for reporting.

It is possible to apply and track pre-payment for purchase orders - for example if a vendor requires you pay a certain amount when placing the PO.

The system can also handle multiple foreign currency conversion for PO's, calculating loaded and loading costs, conversion rates and more.

PO's as well as most other documents (orders, invoices, receivings, transfers) can handle anywhere from a single line item to hundreds of line items - and more depending on your configuration.


There are many other POS/OE 4 features and information on this site!

To learn more, click the links on the left to browse our site and view addtional screen shots and information.