Purchase Order

A Purchase Order (PO) is a formal document issued by a buyer to a supplier, outlining the items, quantities, and agreed prices for products or services. In ERPNext, the Purchase Order is a core part of the procurement workflow, linking Material Requests to supplier transactions like Purchase Receipts and Invoices. It helps organizations maintain control over purchasing, budgeting, and inventory in an integrated and auditable way.

👥 Authorized Actions by Role

🔧 Action	👤 Roles Allowed
🆕 Created by	`Purchase User`, `Purchase Manager`
📤 Checked by	`Purchase Manager`
❌ Cancelled by	`ERP Manager`, `Purchase Manager`
🔁 Amended by	`Purchase User`, `Purchase Manager`
✅ Approval by	`Purchase Order Approver` (User ID must be listed in ALM)

1️⃣ Open Purchase Order List

Navigate to: Buying Module → Purchase Order
Click on Add New Purchase Order
View or export existing records

2️⃣ New Purchase Order

2.1 ✍️ Creation Methods

Direct entry by filling required fields
From Material Request:
- Click Get Items From → Select Material Request
- Supports multiple MRs

2.2 📑 Material Request Selection

🔎 Search by Material Request ID
🎯 Apply filters
✅ Select item-wise MR entries by ticking "Select Material Request Item"

3️⃣ Accounting Dimensions

📌 Each PO must include:

💰 Cost Center (Mandatory)
🗺️ Location and 🧮 Budget Head (Mandatory only if Budget Applicable = Yes on Cost Center)
📆 Fiscal Year auto-calculated on Save (based on PO creation date)
📥 Dimensions are located in the Details Tab (moved from "More Info")

4️⃣ Item, Warehouse, Advance & Additional Fields

📦 Target Warehouse: Mandatory
🔍 Item Code: Filtered
📊 Item Types:
- ✅ Non-stock or Fixed Assets (if company is set, purchase allowed, and no variants)
- 📥 Stock Items (fetched via Material Request)
📅 Required By Date: Mandatory per item
📐 UOM: Filtered from item master and Stock Settings

➕ Additional Fields

💸 Advance: Enter % or amount (Use 0 if not applicable)
📝 Extra Description: Optional field for internal notes
👤 Purchase Person: Mandatory and filtered for users with Purchase User role

5️⃣ Over Allowance

⚠️ System blocks PO if: - Ordered quantity exceeds linked MR
(considers Draft and Submitted POs)

🗑️ Cancelling PO → Releases MR quantity
❌ Material Request cannot be cancelled/amended unless the PO is cancelled or deleted

6️⃣ After Save of Purchase Order

🔗 Linked Material Requests listed in the PO
📝 MR Subject appears in Extra Description (after a comma if already filled)
👥 Approvers (Recommender, First Level, Final Level) auto-pulled from ALM

7️⃣ Workflow Status

Alerts and approvals

📧 Email, 📱 WhatsApp, and Mobile App alerts sent to approvers
📲 Mobile and 📧 Email approval supported

Status	Notes
📝 Prepared	Initial state after Save
✅ Checked	Requires `Purchase Manager` role
🔃 Recommended	Set via ALM
🔼 First Level Approved	Set via ALM
🆗 Final Level Approved	Set via ALM
❌ Rejected	Reverts status back to Prepared
🗑️ Trashed	Allowed until Final Approval
🚫 Cancelled	Releases Budget + MR Quantity

⚠️ If linked MR is Cancelled or Stopped, PO cannot progress

8️⃣ Budget Management on PO

📌 Cost Center: Mandatory
📊 If Budget Applicable = Yes:
- Budget Head and Location required
- 📆 Fiscal Year set on Save

🚫 PO Save Blocked if: - Budget is exceeded (Pool, Fixed Asset, or Salary)

♻️ Budget is released when: - PO is Cancelled - PO is Deleted - PO is Updated via Update Items

💡 Budget is not consumed again in: - Purchase Invoice - Payment Entry (if linked with PO)

9️⃣ Validations

9.1 🔎 General Checks

Ensures the following match between Main Form and Items:
- Cost Center
- Location
- Fiscal Year
- Budget Head

9.2 ❌ Cancel Restrictions

PO cannot be cancelled if:
- 📦 Purchase Invoice / Receipt is linked (Submitted)
- 💵 Payment Entry is linked (Draft or Submitted)
- 🧾 Supplier Payment Request is linked (Draft or Submitted)