Purchase Orders

The Purchase Orders module manages procurement with external vendors. It tracks order placement, supplier purchasing holds, expected shipping schedules, automated document emailing, and dock receiving integration.

---

Purchase Order Lifecycle & Automated Rules

stateDiagram-v2
    [*] --> Draft : Create PO
    Draft --> Ordered : Send / Confirm with Supplier
    Draft --> Cancelled : Cancel

    Ordered --> Draft : Revise PO
    Ordered --> PartiallyReceived : Partial Dock Receipt (Auto)
    Ordered --> Received : 100% Received (Auto)
    Ordered --> Cancelled : Cancel

    PartiallyReceived --> Received : Remaining Lines Received (Auto)
    PartiallyReceived --> ClosedShort : Close Unfulfilled Balance
    PartiallyReceived --> Ordered : Receipt Reversal

    Received --> Invoiced : AP Bills Matched & Posted (Auto)
    Received --> PartiallyReceived : RTV Return Shipped (Auto-Revert)
    Received --> Ordered : Full Receipt Cancellation

    Invoiced --> Archived : Archive
    Cancelled --> Archived : Archive
    ClosedShort --> Archived : Archive

Automated State Transition Rules Engine

The PO lifecycle rules engine continuously monitors warehouse and accounting events:

Rule Name	Event Trigger	Evaluation Condition	Target State
auto-receive-when-fully-received	Goods Receipt Created	All lines have Quantity Received >= Ordered Quantity	Received
auto-partially-receive-when-some-received	Goods Receipt Created	Some lines have Quantity Received > 0 but not all	Partially Received
auto-invoice-when-fully-invoiced-and-received	Supplier Invoice Posted	All lines are fully received and fully matched against posted AP bills	Invoiced
auto-revert-to-partially-received-on-return	Purchase Return Shipped	Return shipment reduces net received quantity below ordered quantity	Partially Received

---

Business Logic & Purchasing Controls

1. Supplier Purchasing Holds

• Hold Gate: If a vendor is marked On Purchasing Hold in Suppliers, the system warns operators during draft creation and strictly blocks advancing the PO to Ordered.
• Hold Release: Holds can only be lifted on the vendor master record by users with authorized vendor management privileges.

2. Multi-Currency & FX Snapshotting

• Purchase orders snapshot the vendor’s active currency code and current exchange rate to the system base currency upon order creation.
• Line items, unit costs, and purchase totals are transacted in the vendor’s currency, while base equivalent amounts are maintained for inventory capitalization and GL budgeting.

3. Closing Short vs. Revision

• If a supplier is unable to deliver the remaining units on a partially received order, an operator can click Close Short.
• Closing short transitions the PO status to Closed Short, releasing open on-order stock reservations from demand planning without leaving orphaned purchase commitments.
• An Ordered purchase order with no received goods can be reverted to Draft if commercial terms or line items need modification.

---

Step-by-Step Workflows

1. Creating and Sending a Purchase Order

1. Go to Purchasing → Purchase Orders (/purchase-orders).
2. Click New Purchase Order (/purchase-orders/new).
3. Select the Supplier. Currency, payment terms, and vendor addresses fill automatically.
4. Set the Expected Delivery Date and destination Receiving Warehouse.
5. Add line items, quantities, and agreed unit costs.
6. Click Save as Draft, then click Send to Supplier to advance status to Ordered.
7. Click Email to generate and transmit the branded Typst PDF purchase order.

2. Receiving and Invoice Matching

1. When goods arrive, dock staff receive items in Inventory → Receiving. The PO automatically updates to Partially Received or Received.
2. When the vendor bill arrives, navigate to Purchasing → Supplier Invoices to match lines against the receipt note and post to Accounts Payable. Once fully billed, the PO moves to Invoiced.

---

Field Reference

Field	Description
Supplier	Vendor account receiving the purchase order.
PO Number	Unique procurement identifier (e.g. PO-2026-00067).
Expected Delivery Date	Anticipated arrival date at the receiving dock.
Receiving Warehouse	Target warehouse facility for goods receipt.
Currency & FX Rate	Sourcing currency and exchange rate to system base currency.
PO Status	Stage (Draft, Ordered, Partially Received, Received, Invoiced, Closed Short, Cancelled, Archived).
Unit Cost	Agreed purchase price per unit in supplier currency.
Supplier Hold	Warning indicator shown if vendor is on operational hold.