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Supplier PO

SUPPLIER PO​

Prerequisites​

  1. Certainly, before creating a purchase order (PO), it's a good practice to ensure that all the relevant details have been entered or updated. These details typically include information about the supplier, items, pricing, and any other relevant data. Here's a checklist of the details you should verify before adding a PO:
  2. Updating/Adding master screens like suppliers, items, item brands, item categories, price master, holders, collets, cutting tools, pull studs, tools, Instrument/Gauge and parts before adding a supplier purchase order (PO) is crucial for maintaining accurate and effective procurement processes. Each of these elements plays a role in ensuring that the purchase order contains correct and up-to-date information. Here's why updating these master screens is important:
  3. Supplier Master: Keeping supplier information current helps in selecting the right supplier for the purchase order. This includes contact details, payment terms, and any other relevant information necessary for communication and coordination.
  4. Item Brand and Category: Organizing items by brands and categories helps streamline the procurement process. It ensures that items are classified correctly, making it easier to search, select, and manage them on the purchase order and within the inventory system.
  5. Price Master: Maintaining updated prices for items is critical for cost estimation and budgeting. Accurate pricing information helps in calculating the total cost of the purchase order accurately.
  6. Holders, Collets, Cutting Tools, Pull Studs, Tools, Parts, Item, Instrument/Gauge: These are all components and items that might be used in manufacturing or assembly processes. Ensuring that the master data for these items is current helps in selecting the right components for the order, preventing delays or errors caused by outdated information.
  7. By Updating these master screens before creating a supplier purchase order, you ensure that the procurement process is efficient, accurate, and free from errors.

Additional Info:

  1. Supplier Information:
    • Supplier name, contact details, addresses and Payment terms
    • Any special agreements or terms with the supplier
  2. Price Information:
    • Promotions, or negotiated prices are correctly applied.
  3. Components and Parts:
    • Verify that the details of any additional components, parts, or tools required are accurate and up-to-date.
  4. Additional Information
    • Any special instructions for the supplier or internal notes for your team.
    • If applicable, reference to any related documents such as quotes, requisitions, or contracts.
    • Budget and Approval: Ensure that the purchase falls within the allocated budget.
    • If the PO represents other country it should validate the amount in currency Exchange Master Screen
    • Check that the necessary approvals have been obtained before proceeding with the PO creation.
  5. Internal Validation:
    • Confirm that the PO aligns with the organization's purchase policies and guidelines.
    • Check for any duplicate POs to avoid unnecessary orders.
  6. Dates and Deadlines:
    • Verify delivery or completion dates to ensure they align with project timelines.
  7. Communication:
    • If there have been any changes or updates to the order, make sure that relevant stakeholders are informed
    • Double-checking these details before creating a purchase order helps to minimize errors, reduce the chances of miscommunication, and ensures that your purchase order process is smooth and efficient. It also helps maintain accurate records for future reference and reporting.

1.1 Add Supplier PO​

Add a Supplier Purchase Order - Step-by-Step

Step 1: Reach the Supplier PO Section

  • From the main Side menu, click on "Purchase," then go to "Operations," and finally choose "Supplier PO" This will open the Supplier PO Search page.

Step 2: Adding a Supplier PO

  • On the top right of the Supplier Purchase Order Search page, you'll see an "Add Supplier PO" button. Click this button.

Step 3: Fill in details

1.1.1 Purchase Order Fields and Descriptions​

  • Supplier: [Dropdown] (Mandatory) Choose the supplier from the dropdown list. Suppliers added in the Supplier screen will be available as options.
  • PO Number: [Auto-generated] (Mandatory) The system will automatically generate this field. The generated number may include a prefix that can be updated from the Organization Details screen.
  • PO Date: [Date Field] (Mandatory) Select the date for the Purchase Order.
  • PO Status: [Auto-generated] (Mandatory) The status of the Purchase Order will be generated automatically by the system.
  • Quotation Number: [Text Field] Enter the quotation number, if applicable.
  • Quotation Date: [Date Field] Enter the date of the quotation, if applicable.
  • Payment Terms: [Dropdown] (Mandatory) Select the payment terms from the dropdown list. This selection is important for due date calculation on the GRN Invoice. It will also reflect on:
    • GRN Invoice
    • GRN Invoice Payment
    • Aging Report
  • Payment Term Description: [Text Field] (Mandatory) This field will be automatically populated based on the selected payment terms. However, users may modify it if needed.
  • File Type: [Dropdown] (Mandatory) Select the appropriate file type from the dropdown list. This selection is used for categorizing files associated with the Purchase Order. It will reflect on the Purchase Inward screen. The options include:
    • Test Certificate – Documentation that certifies a product or component has passed specific quality tests or inspections.
    • Dimensional Report – A report detailing product dimensions and measurements, typically used for quality assurance.
    • Certificate of Conformance – A document stating that a product or service meets specific requirements or standards.
    • Material Test Certificate – Documentation providing information about the material composition and properties of a product.
    • No File
  • Supplier Billing Address: [Dropdown] (Mandatory) The billing address will be fetched based on the selected supplier. Only active addresses will be shown. This address will appear in the PO PDF, and applicable taxes will be determined based on it.
  • Description (While Amendment): [Text Field] Use this field to describe any changes or amendments made to the Purchase Order.
  • Amendment Type: [Dropdown] This field will be displayed only when a PO amendment is being made. It is mandatory during amendments.

1.1.2 Import from Purchase Request​

The Purchase Request screen is available in all department side menus. Users can raise a purchase request for the required products, making it easier for the purchase team to generate the Purchase Order (PO) based on these requests.

  • Purchase Request Number: [Dropdown] (Optional)
    Select one or more Purchase Request Numbers from the multi-select dropdown. Data is fetched from the Purchase Request module based on the selected supplier.
    • Only approved Purchase Requests will be displayed.
    • Once a Purchase Request is used to create a PO, it will no longer appear in the PO screen.
  • After selecting the Purchase Request Number(s), click the "Get Line Item" button to retrieve the list of requested products associated with the supplier.
  • If there are pending requests, a table will be displayed with the following columns:
    • Purchase Request: Displays the Purchase Request number with a clickable link. Clicking the number opens the corresponding Purchase Request in a new tab.
    • Product Type: Indicates the type of product such as Item, Collet, Pull Stud, Tool, Holder, etc.
    • Product: Displays the details of the requested product.
    • HS Code: Displays the effective HS code. If a valid HS code is not available, a ❌ symbol will appear to indicate that the HS code is missing.
    • Unit: Fetched from the appropriate master screen.
    • Quantity: Displays the requested quantity.
    • Price: Displays the effective price. If a valid price is not available, a ❌ symbol will appear to indicate that the price is missing.
    • Tax: Displays the effective tax. If valid tax information is not available, a ❌ symbol will appear to indicate that the tax is missing.
  • Note: HS Code, Tax, and Price are validated against the PO date and their respective effective and expiry dates.
  • Add to Line Item:
    This button is used to convert the request entry into a PO line item. If HS Code, Price, and Tax are all valid, the item can be added to the PO. If any one of them is missing, the item cannot be converted into a PO line item.
    The delivery date for all added line items will be calculated automatically based on the defined lead time.
  • Options (Shortcut to Price Master):
    If users need to update expired or missing values (Price, HS Code, or Tax), they can use the Options menu:
    • Adjust Pricing: Opens the Price Master screen in a new tab. The current PO screen remains open and unchanged.
    • Refresh: After updating the required details in the Price Master, return to the PO screen and click the Refresh option under the Options menu. This will update and apply the latest valid Price, HS Code, and Tax to the item.
  • After adding to the line item, users can edit or delete the details if needed.

1.1.3 Add Supplier Purchase Order Line Item(s)​

Follow the steps below to add line items to a Supplier Purchase Order:

  1. Ensure all necessary details for the purchase order are filled in.
  2. Locate the "Add" icon in the bottom left corner of the screen.
  3. Click the "Add" icon to begin adding a line item to the purchase order.
  4. When the popup window appears to enter line item details, fill in the required information as follows:

1.1.4 Line Item Fields​

  • Item No: [Number Field] (Mandatory) This field is autogenerated to provide a unique number for each item in the purchase order. However, if needed, the autogenerated number can be edited.
  • SupplierXProduct: [Dropdown] (Mandatory) Displays data from master records such as items, parts, cutting tools, etc. Only effective data will be shown, validated against the PO date and the Supplier X Product's effective and expiry dates. Select the appropriate product supplied by the supplier.
  • Price: [Number Field] (Mandatory) Represents the cost of the selected product. This field is auto-filled from the master data and is non-editable, as the price is predefined and cannot be modified in the purchase order.
  • Charges Category: [Dropdown] (Mandatory for Part Type Products) If the selected product is of "Part" type, the user must select the appropriate Charges Category. This is a multi-select dropdown. The selected charges will be calculated and reflected in the price field.
  • Quantity: [Number Field] (Mandatory) Specify the quantity of the selected product.
  • HS Code: [Dropdown] (Mandatory) Displays HS Codes associated with the selected product. Only effective codes will be shown, validated against the PO date and HS Code's effective and expiry dates.
  • Delivery Date: [Date Field] (Mandatory) Select the expected delivery date for the line item.
  • Discount: [Number Field] (Optional) It's fetch from respective supplier x Product master. if need user can edit that discount.
  • Special Discount: [Number Field] (Optional) If need we can add Special discount for the line item.
  • Tax:
    There are three tax fields: CGST, SGST, and IGST. The applicable fields will be displayed based on the selected supplier billing address:
    • Intra-state: CGST and SGST fields will be shown and are mandatory.
    • Inter-state: IGST field will be shown and is mandatory.
    • Export PO: Tax is not applicable.
  • Validation Rules:
    • If there is no HS Code or applicable tax, the system will display an “ALERT”, and submission will not be allowed.
  • Product Notes (Terms & Conditions):
    When a product is selected in the line item, the system will automatically populate product notes with the terms and conditions from the Item Master.
  • After adding the line items, a checkbox will be available to apply the first line item's Discount and Special Discount to all other line items.
    This checkbox will be displayed only when:
    • There is more than one line item, and
    • The first line item has a discount value greater than zero.

1.1.5 Add Supplier Purchase Order Other charge(s)​

Follow the steps below to add other charges to a Supplier Purchase Order:

  1. Locate the "Add" icon in the bottom left corner of the screen.
  2. Click the "Add" icon to begin adding a Other charges to the purchase order.
  3. Other charges form will display, fill in the required information as follows:

1.1.6 Other charges Fields​

  • Other Charge Item No: [Number Field] (Mandatory) This field provides a unique number for each "Other Charge" added to the Purchase Order.
  • Other Charge: [Dropdown] (Mandatory) Displays data from the Item Master under the "Other Service" category. Only effective records will be shown, validated against the PO date and the Supplier X Product's effective and expiry dates. Select the applicable charge provided by the supplier.
  • Price: [Number Field] (Mandatory) Represents the cost of the selected "Other Charge". This field is auto-filled from the master data. If needed, the user can edit the value.
  • Quantity: [Number Field] (Mandatory) Specify the quantity for the selected charge. If no specific quantity is required, enter 1 as the default.
  • HS Code: [Dropdown] (Optional) Displays the HS Codes associated with the selected charge. Only effective codes will be shown, validated against the PO date and HS Code's effective and expiry dates.
  • Discount: [Number Field] (Optional) Fetched from the corresponding Supplier X Product Master. If needed, the user can modify the discount.
  • Tax: Three tax fields are available: CGST, SGST, and IGST. The applicable tax type is determined by the supplier’s billing address:
    • Intra-state: CGST and SGST will be shown and are mandatory.
    • Inter-state: IGST will be shown and is mandatory.
    • Export PO: Tax is not applicable.
  • Validation Rules:
    • If the HS Code or tax is missing, the system will show an “ALERT”.
    • However, submission is still allowed even without HS Code or tax.
  • Product Notes (Terms & Conditions):
    Upon selecting the product, the system will auto-populate product notes using the terms and conditions defined in the Item Master.

Notes:

  1. Ensure you provide the correct price for the selected product.
  2. Specify the quantity you wish to order accurately..
  3. Select the appropriate HS code for customs purposes.
  4. Indicate the expected delivery date for this line item.
  5. All mandatory fields (indicated with *) must be completed before saving.
  6. By following these steps, you'll be able to accurately specify the price, quantity, HS-code, and delivery date for the supplier PO line item. This ensures precise and comprehensive information for your procurement process.

1.1.7 PO Terms and Conditions​

  • A rich text editor is provided to enter Purchase Order (PO) Terms and Conditions during PO creation.
    By default, the PO Terms and Conditions will be auto-filled from the Organization Details.
  • If needed, users can edit the Terms and Conditions directly in the editor.
  • After selecting the Supplier, if any Special Instructions are available in the Supplier Master, those instructions will be appended to the existing Terms and Conditions.
  • If any Product Notes (defined in the Item Master) are available for the selected products, those notes will also be concatenated with the PO Terms and Conditions.
  • These complete Terms and Conditions will be displayed in the PO PDF and email notifications.

Step 4: Save Supplier PO

1.2 Save Supplier PO​

1.2.1 Save as Draft​

  • Work in Progress: Saving a Purchase Order (PO) as a draft allows you to continue working on it without finalizing.
  • Review and Editing: Drafts provide the flexibility to review, edit, and make any necessary changes before final submission.
  • No Communication: Unlike final submission, selecting "Save as Draft" does not trigger an email notification to any recipients.
  • PO Number Assignment: When saved as a draft, the PO number may not be assigned immediately. It will typically be generated only upon submission or approval.
  • PDF Labeling: If a PDF is generated while the PO is still in draft status, it will display "Draft PO - Not Approved" in the PO number field.
  • No Email Notification: No emails will be sent to the team while the PO remains in draft status.

1.2.2 Submit for Approval​

  • When a Purchase Order (PO) is submitted for approval, an automated email is sent to the person(s) whose approval limits meet or exceed the PO amount. How the Approval Workflow Functions:
  • Approval limits are configured in the Limit Authorization screen, where specific limits are assigned to user IDs.
  • International restrictions (e.g., for import/export POs) can also be configured for each user.
  • Each user ID is linked to an employee profile, which contains the corresponding email address.
  • When the "Submit for Approval" button is clicked, the system checks the PO's net value against user approval limits.
  • Emails are sent only to users who are authorized to approve the PO based on the defined limits.

International Purchase Orders, Currency Exchange, and Approval Workflow

  • When submitting an international purchase order (PO) for approval, the system considers both the foreign currency exchange rate and the user's approval limits.

Workflow Details:

  • Submit for Approval – International PO:
    Upon submission, the system initiates a currency exchange calculation based on the most recent exchange rates.
  • Currency Exchange Calculation:
    The PO value is converted into the local currency using the current exchange rate for the specified foreign currency.
  • Missing Approval Limit:
    If no approval limit is configured for a user who should receive the approval email, the system will automatically escalate the request and send the email to the top-most authority or designated fallback recipient, as defined in the email configuration screen.
  • Best Practices:
    • Ensure currency exchange rates are updated regularly and reflect accurate market values.
    • Maintain accurate and up-to-date approval limits for all authorized personnel in the Limit Authorization screen.

1.2.3 Approve​

Approval and Email Notification

  • When you click the "Approve" button for a Purchase Order (PO), the system sends an automated email notification to the recipient(s) configured in the Email Configuration screen.
  • In the Email Configuration screen, the Supplier PO recipient email address is defined.
  • This email serves as a record of the approval action and notifies relevant stakeholders. Notification to Creator/Modifier
  • Once the PO is approved, the system also sends an email notification to the user who created or last modified the PO.
note

All email notifications are also sent to the user who created or modified the PO.

1.2.4 PO Versioning​

  • The system provides the flexibility to edit a Purchase Order (PO) even after it has been approved.
  • When edits are made post-approval, a new "PO Version" is created for each individual change.
  • Each time a line item is edited after approval, a new version is automatically generated and added to the version history.
  • This versioning feature allows for clear tracking of changes and maintains full transparency throughout the procurement process. Benefits:
  • Revision Control: Easily track what changes were made, when they were made, and by whom.
  • Enhanced Accountability: Transparent versioning helps ensure accountability at every stage of the PO lifecycle.
  • A "View PO Version History" button is available.
    Clicking this button will display the complete history of all versions created for the PO.

1.3 Search Supplier PO​

Search a Supplier Purchase Order - Step-by-Step

Step 1: Start Searching On the Search page, you can search in different ways:

  • Supplier: Select the supplier
  • From Date: Define a date range within which your search should be conducted.
  • To Date: Define a date range within which your search should be conducted.
  • PO Number: Type the PO Number.
  • PO status: Select the PO status.
  • For All: If you don't have a specific name or code, just click "Search" to view all previously created Purchase orders.

After clicking "Search," you'll see results

1.3.1 Search Results and PO Status​

  • If you search by Supplier Name, Date, or PO Number, the results will show the matching supplier(s).
  • If no filters are applied and you click "Search", the system will display a list of all existing Purchase Orders.

1.3.2 PO Status Definitions​

  1. Draft: Indicates that the PO is still in the preliminary or incomplete stage. It is being worked on but is not yet finalized.
  2. Pending: Indicates that the PO is awaiting action, approval, or completion. No progress has been made yet, and the process is on hold until further steps are taken.
  3. Rejected: The PO has been reviewed and declined. This means the submission did not meet necessary criteria or standards.
  4. Placed: This status confirms that the PO has been successfully approved or officially placed with the supplier.
  5. Partially Received: Only a portion of the expected items has been received or completed. Remaining items are still pending.
  6. Received: The PO has been completely fulfilled, and all items have been successfully received.
  7. Canceled: The PO has been voided. No further action is allowed on this PO once it is cancelled.

1.3.3 Generate​

  • You can generate the Supplier Purchase Order in PDF format using the "Generate" option.

PDF Labeling The label displayed in the PO Number field of the generated PDF depends on the current status of the Purchase Order (PO):

  • Draft: If the PDF is generated while the PO is in draft status, it will display:
    Draft PO - Not Approved
  • Pending: If the PDF is generated while the PO is in pending status, it will display:
    PO Number - Pending
  • Placed: If the PDF is generated while the PO is in placed status, it will display:
    PO Number
  • Rejected: If the PDF is generated while the PO is in rejected status, it will display:
    PO Number - Rejected
  • Canceled: If the PDF is generated while the PO is in canceled status, it will display:
    PO Number - Canceled
  • Partially Received / Received: If the PDF is generated while the PO is in either partially received or received status, it will display:
    PO Number
  • Versioned PO (Placed / Partially Received / Received): If the PDF is generated for a versioned PO in placed, partially received, or received status, it will display:
    PO Number/R<version number>

    Example: PO-1023/R2 for version 2 of PO-1023

1.4 Edit Supplier PO​

Edit a Supplier Purchase Order- Step-by-Step Step 1: Find Supplier Purchase Order which one going to edit On the Supplier Purchase Order Search, you can edit Supplier Purchase Order:

  • Supplier, dates, PO number, PO status: fill anyone in the search filter (Optional).
  • Click Search: Press "Search" to find the PO you want to edit.

Step 2: Edit Details After searching, you'll see the PO you want to edit.

  • Click "View/Edit" icon to reach the Edit Supplier Purchase Order page.

Step 3: Update Info

1.4.1 Edit Supplier Purchase Order​

On the Edit Supplier Purchase Order page, you can view and modify existing PO details.

Quotation Upload

  • You can upload a quotation file related to the purchase order as part of the editing process.

Amendment Process

  • Click the "Amendment" button to initiate changes to the PO.
  • A new mandatory field, "Amendment Type", will appear.
    • Options: Internal Changes or Request from Supplier
  • After selecting the Amendment Type, the "Submit" button will be enabled to finalize the changes.

1.4.2 Editing Line Items​

  • Non-editable fields: Product, Price, and Tax cannot be modified.
  • Editable field: Delivery date can be modified but must be greater than or equal to the PO date.

PO Quantity Restrictions

  • Example: If the original PO quantity is 100 and 50 units have already been inwarded:
    • You cannot reduce the quantity below 50.
    • You can increase the quantity beyond 50.
  • If the received quantity is greater than 0, the Delete icon for that line item will be disabled.

PO Date Changes

  • If the PO date is modified, the system will revalidate all line items for:
    • Price
    • Tax
    • HS Code
  • If any of these values are expired, you will not be able to submit the PO.
  • The system will display the "Options" menu in the last column, which allows:
    • Adjusting expired/missing Price, HS Code, and Tax in the Price Master
    • Use the "Refresh" menu after updating to fetch the latest valid details.

Purchase Request Integration

  • If the PO was raised from a Purchase Request, the corresponding Purchase Request Number will be shown in each line item.
  • You can click on the Purchase Request Number to view its details in a new tab.

Email Notification

  • After completing an amendment, an email will be sent to the configured recipients based on your email setup.

Final Submission

  • Click the "Submit" button to finalize and save the amended PO.

Reject PO

  • You can reject a PO that is in Pending status (i.e., pending for approval).
  • Use the "Reject" button if there are mistakes or incorrect details in the PO.
  • Once rejected, the PO cannot proceed further until corrected.

Cancel PO

  • You can cancel a PO from the Edit page only if no quantity has been received.
  • If any line item has received quantity greater than zero, cancellation is not allowed.
  • Once cancelled:
    • The PO cannot be edited or resubmitted.

1.5 Calculation Summary​

  • Taxable Amount: The total value of all line items before applying any discounts, taxes, and other charges with taxes. If Other charges have tax it's calculated with line item value. without tax other charges calculated as separate value.
  • Discount Amount: The total standard discount applied on the line item amount, usually based on a percentage.
  • Special Discount Amount: An additional discount applied on top of the standard discount, which may be granted under special terms or promotions.
  • Total Amount (After Discount): The amount remaining after applying both the standard and special discounts to the taxable amount.
  • Tax Amount: The total calculated tax based on applicable CGST, SGST, or IGST, depending on the supplier’s billing address and PO type.
  • Other Charges Amount: Any additional charges added to the order, such as freight, packaging, or handling charges, before applying discounts. Without tax other charges only calculated with this field.
  • Other Charges Amount (After Discount): The total of other charges after applying any applicable discounts specific to those charges.
  • Sub Total: The sum of the Total Amount (After Discount), Tax Amount, and Other Charges (After Discount).
  • Round Off: A minor adjustment made to round the Sub Total up or down to the nearest whole number or decimal precision, as per financial policy. If don't want roundoff, we can disable it in organisation details.
  • Grand Total: The final payable amount after including all applicable discounts, taxes, other charges, and round-off adjustments.
note

Same details will displayed in the Supplier PO PDF and Mail.

That's it! You've learned how to ADD, SEARCH, EDIT a customer using the DMeX app. If you need help, contact the support team.