Creating purchase orders

A purchase order is the official document between a supplier and a buyer that communicates product specifications and defines the expectations of the business transaction. Purchase orders can detail a variety of requirements, including the products, quantity, price, and a general outline of delivery.  Whether you’re the buyer or seller, this legally binding contract is intended to protect all parties involved. The seller is protected should the buyer refuse payment, but also protects the buyer in the circumstances that the seller fails to deliver the goods or services.  Creating purchase orders within Finale is intuitive and efficient.

Purchase orders communicate the buyer’s needs and define the expectations of the business transaction. Since it’s a binding contract, it protects the seller should the buyer refuse payment. It also protects the buyer if the seller does not deliver the goods or services (or if they deliver the wrong goods or services). Since a purchase order is legally binding, make sure you consult with a legal expert to make sure any purchase order you’re working with meets your specific needs.

Creating the purchase order is done by the buyer.   It should include the PO number associated with that order, the shipping date, billing address, shipping address, product request, quantity, price, and any other information that is critical to complete the order.

If you’re the buyer, the PO is sent to the email after you have completed creating a purchase order. Once you receive the inventory or services from the supplier, it should be logged into your system and marked as processed. Finally, if the inventory or services meet your expectations, pay the supplier to complete the purchase order process.

creating purchase orders

 

Creating purchase orders


(Videos: See complete list of available videos)

 

Video Transcription

Hello. This is Mike Kroeger, Finale Inventory. This short video we are going to discuss creating purchase orders to receive merchandise into the warehouse that you have ordered from your suppliers or vendors. So, we’ll switch right here to the familiar Finale Inventory home screen. So, we’ve got our inventory column here in the middle. We would normally order our merchandise or commodities from a supplier over here. So we should already have created a supplier, and we’re going to now create a purchase order to a supplier. So if you need to create a supplier you can do it from new supplier, or you can also do it from new up here. So you have new supplier, new purchase, and so on.

Let’s go ahead and look at the purchases. So if I click on view purchases, it takes me to the purchase order view. So this purchase order view has a search box, you can search for a specific PO number such as 10070, or you could search for a supplier name, so I could look for Perfec. Okay. So, also the purchase order view, you have a status filter. So every time you create a purchase order the default status is editable, which means it’s like draft. You’re not really…you’re working on it, you haven’t submitted it to your supplier. Your next status is committed. Committed means it is on order, you have communicated that to your supplier. The next status after committed would be completed, meaning you’re done with it. You’ve received everything that you intend to receive against the purchase order. And finally, another status that you can have of a purchase order is canceled. So if you created one by mistake, or you didn’t wanna do it, you can cancel it.

So notice that there is a filter here. So we can look at editable and committed, editable only, and so on. We can pick which type of purchase order status we wanna look at. So we’re looking at editable committed. You also can filter the POs by a date range. So if you wanna look back in time to see a particular range. But let’s talk about creating a purchase order. So we can do that by, add new purchase. So purchase will come up and you either take a system generated sequential ID, so Finale is gonna start your new account off at say 10,000. So the first PO you create would be 10,000 if you use this button here. The next one you would create might be 10,001, automatically. Or, if you want to take more control or have more specific numbering for your purchase orders you could do that. So you can specify your own number when creating purchase orders.

So I’m gonna show you. I will be creating purchase orders here. We’re gonna call it, demo PO. So we have a demo PO. As I create the purchase order, we now have the purchase order number right here in the top of the screen. Tells me the date that we created it. And you notice that we have a navigation bar to get back to the purchased view, okay? So notice that our beginning status is editable, that means we have not transmitted this to the supplier. So what’s the first thing you wanna do? Well, we wanna pick the supplier, we’re gonna create a purchase order to this Perfec ID supplier. We wanna order some ID cards. So, now that we picked the supplier, then all the information for as far as the ship to and ship from information that will automatically populate.

And then notice also in Finale you have the PO date, but you also have a PO destination. If you just have one warehouse, then it’s gonna default to main, which is the way your account gets set up. But you could rename main to a different name, or you also can have multiple warehouses. So you can, whenever you have more than one warehouse created in your account, you will then change the destination as to which warehouse is it going to when creating purchase orders.

The next thing you might wanna pay attention to is custom fields. Custom fields may not show up if you’ve never created any custom fields for your purchase order. So these are purchase order custom fields, just for an example so you can see in this illustration. We’ve created an ETA date field, an ETA ship date field, a drop ship type of yes or no type of field, okay? These are just examples, they are not in all of your accounts, but you can see how you would create fields to make your POs a little bit more unique for yourself. Now, pay attention now, if you say, “Hey, I wanna add some items to the purchase order, how do I add items to the purchase order?” Well, normally, you would click down here. You can click in like the product ID and you could start typing.

So, I know that we’re gonna order some ID cards, so I may say, “I need some white ID cards.” So as I start typing white, you can see how it just starts to filter my parts database by all the parts that may match. So I can see a PVC card white here, I also see a W card. Well, that’s the one I wanna order. So I’m going to just simply double-click on it and it adds it to the purchase order. Now, it’s pulling all the rest of the information from the database. So it defaults by saying, “Okay, you wanna order one.” Well, maybe I don’t wanna order one. So let’s say I wanna order 500. So I just type over that and it will automatically make the change for us and update the pricing. So, as you can see on the screen, you’ll see that there is a lot more to the PO, so as you scroll down you have places to put notes to the supplier, private notes, okay? So that’s another aspect of creating purchase orders. Now, I’ve showed you one way to add items to the purchase order. Now, there’s other ways to add items to the purchase order.

So another way you could do this is, you could go to the product view here. So there’s a tab, you’re here on the purchase order. Now, we could go look at our products in more of a list view to see, well, what do I have in stock? What do I need to order based on how much I have left? So if I click on product view, you’ll notice that I get to see all the products in my database. But right now we’re just doing a purchase order for ID cards. So I may pick that category. I’ve got a category created in my database, so I’ll say, “Show me my ID cards.” And you’ll see that there is a green line here of the W cards that we’ve already added to the PO and I’ve typed in 500. So, I may wanna say, “Well, maybe I wanna order some red cards.” So I might say 100. And maybe I wanna order some yellow cards, and then maybe I wanna order 50 of those, or maybe I wanna order some silver, and I maybe order 25 of those.

So, as you see me type here, I get to see how many are available in the system and how many we have on hand. Well, there’s none. So quantity on hand is zero for these, so I definitely wanna order some of these. But maybe I really don’t wanna order any of these right now, that’s fine. And notice that you can take advantage of all types of filterings to filter through your parts to find what you want. So remember, you can search for your parts with the full-text search, you could use quantities filters in all kinds of ways to narrow down through your parts to figure out what you wanna add to a PO. Now that we’ve added some more parts to the PO, how do we go back to that PO? It’s right here at the top. Just click on your purchase order tab. So now you’ll see it automatically added those other items to the purchase order. So they’re all right there on the purchase order.

So there we have, that’s the basics of creating purchase orders. Of course, up here at the top, you’ve got the next step, “Hey, how do I communicate this to the supplier?” So you would want a market committed, okay? And also, notice that there’s an action menu up here. So when you’re in the purchase order tab, there’s an action menu. You could duplicate this order if you wanted to repeat the order may be in the future, you could cancel it from here, so that’s how you would get rid of it if you didn’t wanna use it, you can import into this purchase order.

So we talked about…you could type in here and get one item to purchase order time. You saw me use the products view and just type in the order column. Or, you could import these items. So let me show you that as well. So if I wanna import something here, I could just go, import order items. Now it gives me a paste window. Now, the paste window is just like the other import mechanism inside Finale. Notice that you have product ID, item note, unit price, quantity, case quantity, and packing. This is what you can import in to a purchase order. So I happened to have created a demonstration Excel sheet here where it’s got the ID cards that I want, or the product IDs I wanna order, the quantity amounts, and the prices that I expect to pay. So if I just simply highlight that in Excel and hit copy, I could paste that into that and this would overwrite that PO.  So I’m kinda importing my items instead of typing them in. So if everything matches just fine, as you see, I just say next and commit it. I just imported this information right in from the Excel sheet, okay? So that’s easy way of creating purchase orders.

But going back here to the action menu, then you can export this order, you can print the order, you can print the purchase order in more of a PDF format. You also can customize this screen on the purchase orders. So that gives you a lot and look at what can you do with purchase orders, but that’s the basics of creating a purchase order. So if you wanna see what does it look like if you email or print this PO out, you can click on print PO and it will actually generate a PDF for your supplier, and you could email that. Now, I did the print, but you could email it right to your supplier which would then pull up the email form and you just fill in the addresses, or it pulls the email addresses off the supplier records. But don’t forget we also support barcodes.

So you can kinda see some of the advanced features that Finale has here. We could add barcodes to your purchase orders. You can see how that would be very useful for receiving and checking in your products via our mobile barcode scanner. So you have a barcode of the order ID at the top and even supplemental product ID barcodes that you could receive those in. So that’s a very quick look of creating purchase orders. We’ll have other videos that will walk through how do you receive a shipment against the purchase order. I’ll give you a tip, it’s right up here under the shipment tab. So that’s where we’ll go next.