How to create a Purchase Order

First, in the Purchase Order page, you click on New Purchase Order button.

New Purchase Order button

→ A popup will show for you to select the supplier for this PO.

Select Supplier popup

After you have selected a supplier, you can click on Create button to continue.

→ You will be redirected to Purchase Order details - All Supplier Products page. A new PO with Pending status will be created.

Add product from All Supplier Products page

In this page, you can see all products in this supplier product list, with the following information:

Product	Name, SKU of the Product. Default Cost (per S.UoM) of the *Product = Cost in Supplier Product List Stock UoM Conversion Rate / Purchase UoM Conversion Rate. Retail Price of the Product**. (the price in Magento Backend - Default Store View)
Qty On PO	Qty ordered from the supplier but have not been received.
Qty from Internal Transfer	Qty sent from another source to current source but haven't been received.
Qty Backordered	Qty backordered of the product in the current source. (only show when Fulfillment module enabled).
Available Qty	Available Qty = Qty on Hand - Qty committed (only calculated when Fulfillment module is enabled). Qty Committed = qty has been assigned to an action (Fulfillment request,...) If Available Qty < Reorder Point -> Value = L (Low) -> Covered in Red. If Reorder Point <= Available Qty < 150% * Reorder Point -> Value = N (Normal) -> Covered in Yellow. If Available Qty >= 150% * Reorder Point -> Value = H (High) -> Covered in Green.
Reorder Point	Reorder Point of the product (Configured in Restocking Metrics Worksheet page). The stock level that you should order if the product qty on hand fall belows.
Preferred Stock Level	Preferred Stock Level of the product (Configured in Restocking Metrics Worksheet page). The stock level that you want to reach after placing a purchase order for the product.
Unit of Measure	The assigned Stock Uom and Purchase UoM of this product. (show when the module Unit of Measure is enabled.)
Suggest Purchase Qty	If Available qty < Reorder Point -> Suggest Purchase Qty = Preferred Stock Level - Available qty + Qty Backordered (Config) - Qty on PO (config) - Qty from Internal Transfer (config)) * (S.UoM Conversion Rate/P.UoM Conversion rate). If Available qty >= Reorder Point -> Suggest Purchase Qty = 0 Note: The qty has been converted from Stock Unit to Purchase Unit.

You can select product in the page and click on Add Product to Order button to add them into the Purchase Order. The products will be removed from the All Supplier Product list and added to the Ordered Product list. (The Suggested Purchase Qty will be prefilled as the Order Qty).

Add product from Supply Needs Product page

You can click on Supply Needs Product button to redirect to this page.

In the Supply Needs Products page, you can see all products that are in supply needs.

The system will calculate the Suggest Purchase Qty (or Supply Needs Qty) and show products with qty > 0.

Suggest Purchase Qty

Suggest Purchase Qty (Purchase UoM) = Max(0, forecast_days * Daily Sales Speed - Available Qty - Qty on PO (config) + Qty Backordered (config) - Qty from Internal Transfer (config)) * (Stock UoM Conversion Rate/Purchase Uom Conversion Rate).
Forecast_days = Day of Forecast to - today. I.e.: Today = 11/11, Forecast Supply Need To = 18/11 -> Forecast_days = 18 - 11 = 7.

You can click on Edit Settings button to change the selected Sales Period and Day of Forecast.

Sales Period: The system will use the qty of product shipped from the current source during the selected Sales Period divided by the total day to calculate the Daily Sales Speed.

Day of Forecast: Used to calculate the qty of product that needs to have on hand.

Then you can select the product then click on Add Product button.

→ The products will be removed from the Supply Needs Products list and added to the Ordered Product list. (The Suggested Purchase Qty will be prefilled as the Order Qty).

Manage Purchase Order product list with Ordered Products page

After you have added all the products you want to order from the supplier, you can manage them in the Ordered Product list.

In this page, you can manage the product list to be ordered (can remove, edit the Cost, Tax, Discount, Order Qty).

In case that there is a product that you want to order from the supplier, but it has not been created on Magento site, then you can first create a Custom Item first to complete the PO, then reconcile it later. You can read the guide below on How to create and manage custom items.

{How to create and manage custom items}

After managing the product to be ordered, there are still some information that you needs to fills in the Purchase Order details page. (access by clicking on the “+” button → View Details)

Then you will be redirected to Purchase Order Details page.

In this page, you can set up the Estimated Delivery Date, Shipping Method, Payment Term and the Shipping Cost for the PO. You click on Save button to save the information.

After the product list and POs details have been updated, you can click on Send Email button to send an email to confirm with the supplier first.

When everything has been confirmed between you and the supplier, click on Confirm button to confirm the PO. The PO status will be changed from Pending to In-progress.

In addition, if your PO needs to be changed some information related to the Order Qty or Cost of the PO after confirming, you can use the editing PO function ( How to edit a Purchase Order after confirming )