How to Create Purchase Order

Use this workflow to create an issued Purchase Order for a vendor.

When to use this workflow

Use this workflow when the company is ordering inventory, supplies, services, or other vendor items that should be tracked on a Purchase Order.

Use How to Generate Outside Service PO when the PO should be generated from open work order outside-service steps.

Before you start

Confirm:

• The vendor exists in Vendor Management.
• Required date is known.
• Payment terms are known.
• Inventory parts are set up when the item should be received into inventory.
• GL account is known for every line.
• Currency and exchange rate are correct for non-USD purchases.
• Supplier UOM and supplier pricing are understood when the part has purchasing conversion setup.

Steps

1. Go to Dashboard > Purchasing > Purchase Orders.
2. Select New Purchase Order.
3. Search for and select the Vendor.
4. Review the Pay To and Ship To addresses.
5. Enter Order Date.
6. Enter Required Date.
7. Select Payment Terms.
8. Select Shipping Method if applicable.
9. Confirm Currency and Exchange Rate.
10. Add header Notes if needed.
11. Enter or select a Part Number for each line.
12. Confirm description, UOM, quantity, unit cost, GL account, work order, amount, and line notes.
13. Use supplier UOM rows when the vendor quantity or vendor price should drive the stock quantity or stock unit cost.
14. Select Add Line for additional lines.
15. Select Create Purchase Order.
16. If PAX shows Non-Inventory Items Warning, review the listed lines and choose Continue to Create only if those lines are intentionally non-inventory.

Inventory and non-inventory lines

When the part number exists in inventory, PAX defaults description, UOM, supplier part number, unit cost, and GL account where possible.

When the part number does not exist in inventory, PAX treats the line as non-inventory and warns before creation. Non-inventory lines require a description, quantity, unit price, and GL account, but they do not create inventory quantity on order.

When a Work Order is selected on a line, PAX forces the line to WIP account 1210 and treats it as non-inventory for normal inventory tracking. This is for work-order-related purchasing, not normal stock replenishment.

What happens behind the scenes

PAX creates the PO as Issued. The PO number is generated from the current year and the next sequence number.

PAX saves the PO header, Pay To address, Ship To address, notes, and active PO lines.

For inventory lines that are not linked to a work order, PAX increases quantity on order. For non-inventory and work-order-linked lines, PAX does not create normal inventory on-order quantity.

After creation, PAX opens the PO PDF.

Related docs

• New Purchase Order Overview
• Open Purchase Orders Overview
• How to Edit Purchase Order
• How to Receive Purchase Order
• Vendor Invoices Overview
• How to Add Vendor