What is a purchase order, and how do you create one?

A purchase order (PO) can best be described as a formal confirmation (an email, digital, or physical document) that a company sends to a supplier to purchase products. Once the supplier accepts the purchase order, you enter the confirmed purchase order (PO) into the WMS.

Follow the steps below to create a purchase order:

1. Go to "New Purchase Order": You can easily create a new purchase order in the WMS. Simply fill in the required fields.

2. Add products to the purchase order: Select the product you want to purchase and add it to the order. You can also set the quantity. Do you have a whole list of products to add? Import them effortlessly using an Excel file!

3. Proactive management of delivery dates: If you already know when the purchase order will be delivered, you can enter the expected delivery date. You can specify an expected delivery date at the product level and for the entire order.

4. Editing, canceling, and saving purchase orders: To err is human. The WMS allows you to cancel or edit purchase orders, but make sure you’re certain before canceling anything—you can’t undo this action!

5. Confirmation of receipt: Once we have physically received the purchase order, we will confirm receipt.

6. Export the purchase order: Would you like a summary of the order? In the WMS, you can export the purchase order to an Excel file or PDF.

7. We keep track of the delivered products: You have full visibility into the status of purchase orders. Have all products been delivered? If so, we immediately process any backorders so that the customer receives their order.

What should you look out for when placing purchase orders?

There are also some risks associated with creating or placing a purchase order. For example, if an error is made in the product description or quantity, this can result in significant financial loss.
Furthermore, if the supplier is unable to deliver the ordered products or services, this can lead to delays and additional costs. It is also possible that the goods are damaged upon arrival, which can also cause additional costs and delays.

Upon physical receipt of the purchase order, we ensure that the delivered products are counted and inspected. If any discrepancies or damage are identified during the inspection, we always report them immediately and work together to find a satisfactory solution.