Overview

This article outlines the key aspects of Purchase Orders in iVendNext, including how to create them, the prerequisites, and the features available to enhance your procurement process.

1. What is a Purchase Order?

A Purchase Order is a formal document sent to a supplier to request goods or services. It outlines the details of the purchase, including the items, quantities, prices, and delivery terms. In iVendNext, Purchase Orders are not only used to communicate with suppliers but also serve as internal records for tracking procurement activities.

Key Features of a Purchase Order:

• Binding Contract: Once submitted, a Purchase Order becomes a legally binding agreement with the supplier.

• Internal Record: It helps in maintaining a record of what has been ordered, ensuring transparency and accountability.

• Integration with Other Modules: Purchase Orders can be linked to Material Requests, Supplier Quotations, and other procurement documents.

2. Prerequisites for Creating a Purchase Order

Before you can create a Purchase Order in iVendNext, you need to ensure that the following prerequisites are met:

2.1 Supplier Master

• You must have a Supplier created in the system. The supplier’s details, including contact information, billing address, and shipping address, will be used in the Purchase Order.

2.2 Item Master

• The Items you wish to purchase must be added to the Item Master. This includes details such as the item code, description, unit of measurement (UOM), and pricing.

2.3 Material Request (Optional)

• If you are creating a Purchase Order from a Material Request, ensure that the Material Request has been submitted and is in the system.

3. How to Create a Purchase Order in iVendNext

Creating a Purchase Order in iVendNext is a straightforward process. 

Follow these steps to create a PO:

Step 1: Navigate to the Purchase Order Module

• Go to Home > Buying.

• Click on the Purchase Order shortcut to access the Purchase Order List View Screen.

Step 2: Add a New Purchase Order

• Click on the Add Purchase Order button to open the Purchase Order Creation Screen.

Step 3: Fill in the Required Information

• The Purchase Order Creation screen is divided into several tabs:

• Details Tab: Enter the basic information such as the supplier, required by date, and currency.

• Address and Contact Tab: The supplier’s billing and shipping addresses will be auto-filled if saved in the Supplier Master.

• Terms Tab: Set payment terms, shipping rules, and other conditions.

• More Info Tab: Add additional information such as project links or inter-company details.

Step 4: Add Items to the Purchase Order

• In the Items Table, select the items you wish to purchase. You can manually enter the items or fetch them from an open Material Request.

• Set the quantity, rate, and required by date for each item.

Step 5: Save and Submit

• Once all the details are filled in, click the Save button to create the Purchase Order.

• After reviewing, click Submit to finalize the Purchase Order.

4. Key Features of Purchase Orders in iVendNext

4.1 Address and Contact Management

• Supplier Address: The billing and shipping addresses are automatically fetched from the Supplier Master.

• GSTIN and Place of Supply: For businesses in India, GST-related fields such as the supplier’s GSTIN and the place of supply are included.

4.2 Currency and Price Lists

• You can set the currency for the Purchase Order. If a Price List is selected, the item prices will be fetched automatically.

4.3 Subcontracting and Raw Material Supply

• If you are subcontracting, you can enable the Supply Raw Materials option. This allows you to specify the raw materials to be supplied to the supplier.

4.4 Taxes and Charges

• You can add taxes and charges such as shipping, insurance, or other fees. These will be included in the total cost of the Purchase Order.

4.5 Payment Terms and Discounts

• Payment Terms: You can set payment terms, such as partial payments before and after delivery.

• Additional Discounts: Apply discounts to the entire Purchase Order, either as a percentage or a fixed amount.

5. Amending Purchase Orders After Submission

In iVendNext, you can amend a Purchase Order even after it has been submitted. This is particularly useful if there are changes in the order requirements or supplier conditions.

5.1 Updating Quantity and Rate

• Click on the Update Items button to modify the quantity or rate of items.

• Note: You cannot update the quantity for items that have already been received or the rate for items that have been invoiced.

5.2 Validations

• The system checks if the Purchase Order has associated Purchase Receipts or Invoices before allowing updates.

6. Post-Submission Actions

Once a Purchase Order is submitted, you can perform several actions:

6.1 Create Purchase Receipts

• A Purchase Receipt is created to confirm that the items have been received.

6.2 Generate Purchase Invoices

• A Purchase Invoice is generated to bill the supplier for the received items.

6.3 Payment Entries

• You can create Payment Entries to record payments made to the supplier.