Purchase Orders

A purchase order (PO) in Racko is a formal document sent to a vendor to request goods or services. It outlines the items, quantities, agreed prices, and delivery terms. Purchase orders are crucial for maintaining accurate records and managing your supply chain effectively.

Overview

• Purchase orders are non-posting transactions, meaning they don't directly affect your financial reports and also do not affect inventory levels.
• POs can be synchronized with your accounting software if you connect to an accounting system.
• A PO closes automatically when all items have been received, but can be closed manually at any time.

Creating a Purchase Order

To create a new purchase order:

1. Navigate to Purchase > Purchase Order in the main menu.

2. Click on Add New on the top right.

3. Fill out the PO form with the following information:

   • Date: The date of the PO creation. Default is today's date.
   • Vendor: Select the supplier
   • PO Number: Automatically generated or manually entered
   • Payment Terms: The payment terms for the PO
   • Due Date: The due date for the PO
   • Shipping Method: The requested shipping method to the vendor
   • Warehouse: The warehouse where the items will receive

4. Enter Vendor Address and Shipping Address:

   • Vendor Address: The vendor's address. This will be auto-populated based on the vendor's information.
   • Shipping Address: Where the goods should be delivered. This will be auto-populated based on the warehouse's information.

5. For each item being ordered:

   • Select the Item
   • Enter the Quantity
   • Set the UOM (Unit of Measure). This will be auto-populated based on the transaction history.
   • Specify the Unit Price. This will be auto-populated based on the transaction history.
   • Add any Description or Part Number if needed

6. Add any additional notes

7. Click Save to create the purchase order

Managing Purchase Orders

Receiving Items

When items arrive, use the "Receive" action on the PO to generate an item receipt.

Purchase Order List

The Purchase Orders list provides an overview of all POs in the system. From this list, you can:

• View the status of each PO (draft, confirmed, partially received, fully received, closed)
• Filter and search for specific POs
• Perform batch actions on multiple POs

Best Practices

1. Always check for existing open POs before creating a new one for the same vendor.
2. Regularly review open POs to ensure timely follow-up with vendors.
3. Use the expected date field to help with inventory planning.
4. Take advantage of blanket POs for recurring orders with consistent pricing.
5. Implement an approval process for POs above a certain value threshold.

Related Features

• Items
• Vendors
• Receiving

For more detailed information on managing purchase orders, please refer to the specific sections in this documentation.