Create a Purchase Order

Overview

Accounting Seed supports two types of purchase orders: Standard and Drop Ship. The functionality for each is described below:

• Standard - This is the traditional purchase order used to receive goods. The shipping address will be the address that is entered on the PO PDF format (usually the company's address). 

• Drop Ship - A dropship Purchase Order (“PO”) automatically allocates a Sales Order and creates a shipment when the PO is fully received. Dropship POs must be completed from a Sales Order, and also must be received in full at one time to automatically create the allocations and shipment associated with their source Sales Order. The shipping address on the PO will be the address on the customer account. Please see the Create Purchase Order from Sales Order knowledge article for more details.

Create a Purchase Order

1. Navigate to the Purchase Order Tab and click New.
   
   
   
   
2. Complete the required fields. Required fields have a red asterisk(*) beside the field title.
   
   
   
   
   
   
3. The list below is a reference to how the Purchase Order header fields are used. You first need to complete a Purchase Order header and then add Purchase Order Lines to the Purchase Order.

• Required Fields on this page:
• Type - (Standard or Drop Shipment).

Note: With the Hibiscus Fall 2019 release, the validation rule that controlled the Type field has been removed. The Type is now required and must be set to either Standard or Drop Shipment. Null/None is no longer allowed.

• Order Date - Select the purchase order date. Defaults to today
• Status - (Open, Closed, Cancelled) This is used to denote the status of the purchase order and can be changed so that users can set the status of their Purchase Orders, as per their business process.
• Vendor - Select the vendor to issue the Purchase Order to.

• Non-Required Fields on this page:
• Currency - The currency will initially default to currency assigned to the default Ledger (or the active Ledger if Accounting Seed’s Multi-Company Ledger Manager App feature is used). If multi-currency is enabled, then you can select a currency other than the default.
  
  Note: With the Hibiscus Fall 2019 release, Purchase Order has been implemented for Multi-currency users. (See Example Multi-Currency Transactions for more information).
  
  
  1. In this example, the currency defaulted to USD, since that is the currency assigned to the Ledger.
     
     
     
     
  2. The Purchase Order though needs to be in Euro, so the currency needs to be changed to EUR. Once the Purchase order has been created, the Currency cannot be changed.
     
     
     
     
• Currency Conversion Rate - the Currency Conversion Rate should normally be left blank. If Multi-currency is enabled, the Currency Conversion Rate shown on the Purchase Order Header and subordinate Purchase Order Line(s) will remain blank until it is set in the Receive process. The currency conversion rate that will be used for the Inventory and GL transactions will be set based on the rate on the Initial Inventory Receive Date recorded for the Purchase Order. 
  1. If Multi-currency is enabled, the Currency Conversion Rate will be pulled from the Dated Exchange Rate table based on the Initial Receive Date. (This setup is described in the Add Currencies and Exchange Rates article.)
• Initial Receive Date - the Initial Receive Date should normally be left blank. If Multi-currency is enabled, the Initial Receive Date shown on the Purchase Order Header and subordinate Purchase Order Line(s) will remain blank until it is set by the Initial Receipt of an Inventoried Product in the Receive process. The Initial Receive Date and its currency conversion rate will be used for the Inventory and GL transactions for this and all other Inventoried Products received for the Purchase order.
• Purchase Order Format - If left blank, this will default to the Default Purchase Order PDF format set for the Ledger.
• Ledger - The ledger will default to what is set up in Accounting Settings. If multi-company is enabled, then you can select a ledger other than the default.
• Vendor Contact - The Vendor Contact specifies who the purchase order will be sent to and is required to email the Purchase Order. If left blank, the field will default to the Billing Contact on the Vendor Account.
• Vendor Address Fields - Indicates the address the purchase order is sent to. If left blank, the field will default to the Billing Address on the Vendor Account.
• Shipping Company - Select the Account to ship the Purchase Order to.
• Shipping Contact - Lookup to the Contact object. This is used as a reference field as to who a purchase order was sent to.
• Shipping Address Fields - This indicates the address the purchased items should be shipped to. A workflow rule may be used to populate these fields automatically from the Account, Contact or a custom object storing addresses.

4. Click Save to create the Purchase Order.

5. After the Purchase Order has been created, go to the Purchase Order Lines. Purchase Order Lines may be entered one (1) at a time by clicking the “New” button or in mass by selecting the “Mass Add/Edit Rows” button. Purchase Order Lines are where you enter the specific product(s) or service(s) that are being purchased.
   
   
   
   Below is an example of the Mass Add/Edit Rows page, which includes the options to Save & Refresh, Save & Complete, or Save & New (save changes and create a new Purchase Order). 
   
   
   Note: Click here to view the above image in full screen. 
   

• Product - Lookup to Salesforce products.
• Quantity - The number of units you are purchasing for.
• Unit Price - Enter the product or service unit price. The field allows up to six decimal places.

1. If a default Purchase Price is set up for this Product and Vendor, it will auto-populate this field after the product is selected. If a default purchase price is set up without a default vendor, the unit price will automatically populate upon save. (See Purchase Prices for more information on set-up).
   
2. If Multi-currency is enabled, the Unit Price must be in the same currency that was set on the Purchase Order.
   

• Project & Project Task - If the line is associated with a project, then select the Project and Project Task here. 
• GL Variable 1-4 - Used to record reporting designations like divisions, departments, geographies, cost centers, profit centers, or business units. This will automatically populate if set on the individual Product record.

6. Click Save & Complete to save and return to the Purchase Order or click Save & Refresh to both save and add additional lines.
   
   The alternative is selecting New and entering the Purchase Order Lines individually. Below is an example.
   
   

• Product - Lookup to Salesforce products.
• Quantity - The number of units you are purchasing for.
• Unit Price - Enter the product or service unit price. The field allows up to six decimal places.

1. If a default Purchase Price is setup for this Product and Vendor, it will auto-populate this field.  (See Purchase Prices for more information on set-up).
   
2. If Multi-currency is enabled, the Unit Price must be in the same currency that was set on the Purchase Order.
   

• Project & Project Task - If the line is associated with a project, then select the Project and Project Task here. 
• GL Variable 1-4 - Used to record reporting designations like divisions, departments, geographies, cost centers, profit centers, or business units. This will automatically populate if set on the individual Product record.

7. Click Save to save and return to the Purchase Order or click Save & New to both save and add additional lines.
8. Once the Purchase Order is complete, the Purchase Order can be emailed to the Vendor contact or saved as a PDF file. To do this, click Create PDF found on the right-hand side menu.
   
   
   
   
   Note: Click here to view the above image in full screen. 
   

• To enable the Send Email option, the Send to Contact field cannot be blank.
• The Subject and Body can be modified to say what you would like.
• Enter any CC Addresses, if necessary. For Salesforce Lightning, email addresses will auto-populate based upon the relationships that have been added as Related Contacts on the Account. For Salesforce Classic, this will auto-populate based upon the Contact Roles related to this Account.
• Attachments can be added if necessary by clicking the Attach file button. (Up to five (5) attachments can be added).
• The Save PDF button only saves a copy of the statement to the Files related list on the Account record and does not email the Contact.

9. Click Send Email to save a copy of the PDF and then send an email containing the PDF and attachments or Save PDF to just save a copy of the PDF.
   
   
   

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Release Notes and Schedule

• The Purchase Order - Create PDF intermediate screen is available in the Lightning UI. 

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Release Notes and Schedule

• Leverage Salesforce’s “Contacts to Multiple Accounts” feature so that users can set up Contacts to be automatically copied when emails are sent in the Lightning UI.
• A Save & New button has been added to the Mass Add/Edit Rows page. This will save any entered information on the Mass Add/Edit Rows page and then open a New dialog box for creating a new header record. This can result in fewer clicks/keystrokes.

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Release Notes and Schedule

• Purchase Orders have been implemented for Multi-currency users. 
• Currency, Currency Conversion Rate, and Ledger Amount fields have been added to the Purchase Order.
• Type is now required and cannot be Null/None. Consequently, the validation rule below is now enforced via code: Type_Is_Required
• The Status field on the Purchase Order is now required and, consequently, the validation rule is now enforced via code: Status_Is_Required.
• Purchase Order Line Unit Cost field label is changed to Unit Price.