Purchase Orders Overview
When merchants need to restock or add new merchandise, they create and send documents called purchase orders (POs) to vendors. A PO typically includes the following information:
- The vendor from whom the items will be ordered
- Order, shipping, and cancel dates
- Special shipping instructions if necessary
- A list of the items to be ordered and information about those items, including description, price, cost, and the quantity ordered
- The total cost of the order, including discounts, fees, and taxes
The merchandise ordered on a PO is added into inventory when the merchandise has been received on a voucher referencing that PO. When a PO has been filled or cancelled, it should be deleted. The permanent record of the items purchased is provided by receiving vouchers. When creating a purchase order (or voucher), the user must enter a Vendor Code (the unique code that identifies the vendor). When creating a voucher, the user can enter a PO # and bring the items/quantities from the PO to the voucher, updating the PO Fill Status.
Before creating purchase orders, make sure you configure related RP Prism permissions and preferences.
Basic Steps for Purchase Orders
1. Start a new PO and select the vendor.
2. List the items you are ordering from the vendor.
3. Enter any discounts, fees, or shipping charges.
4. (Optional) Enter the payment terms for the order.
5. Save the order. When the merchandise arrives, create a voucher that references the PO.
Drop Ship and Marked For POs
There are two types of POs: Drop Ship POs and Marked For POs.
- Drop Ship POs: Use Drop Ship POs to order merchandise that will be shipped directly to the stores where it will be sold. You can use a Drop Ship PO to order merchandise for shipment to one store or to multiple stores, with subsequent distribution to the selling stores. If ordering for shipment to multiple stores, you can use allocation patterns to plan the distribution of merchandise. The allocations you make will result in separate shipments to the individual stores.
- Marked For POs: Use Marked For POs to order merchandise that will be shipped to one location, typically a central warehouse. If the merchandise is going to be transferred to other stores, you can auto-generate a transfer order (TO) that follows the PO's allocation instructions to transfer the merchandise.
Purchase Order Permissions
| Permission | Description |
|---|---|
| Print Purchase Orders | Allow group members to print purchase orders. |
| Access Inactive Purchase Orders | Allow group members to view/edit inactive purchase orders. |
| Edit Purchase Orders | Allow group members to edit purchase orders. |
| Edit Purchase Order Item Notes | Allow group members to edit the Notes field for purchase order items. |
| Access Purchase Orders | Allow group members to access the Purchasing > Purchase Orders area. |
| Create/Copy Purchase Orders | Allow group members to create a new voucher using the New button or by copying an existing voucher. |