Getting started with Purchase Orders

Use the Purchase Orders module when you want to enter purchase orders for products and services from your suppliers.

You create a purchase order when you want to buy products or services from your suppliers. When the purchase order is accepted by your supplier, it forms a contractual agreement between you (the customer) and your supplier, to deliver products or provide a service, on time and at an agreed price.

The purchase order process

Depending on how you handle purchase orders, you might not need to use all these features. For example, you might not use purchase requisitions, or authorise orders.

1. Create orders.

   Record orders you want your supplier to fulfil. You can:

   • Enter purchase orders individually.

     See Create, amend or view a purchase order.

   • Use the Generate Orders method (in the Sage 200 desktop), which suggests a list of items to purchase based on the stocking levels you set for stock items and any outstanding sales orders. You can then choose which purchase orders to create from this list of suggestions.

   • Generate purchase orders from requisitions, if you want to use requisitions (in the Sage 200 desktop).

2. Authorise orders (in the Sage 200 desktop).

   Order authorisation is optional. You can set up rules to select which orders require authorisation, based on their value and who has placed the order.

3. Print orders.

   You can print orders for your suppliers, and print copies of orders for office use.

4. Confirm goods received (in the Sage 200 desktop).

   Record the delivery of goods or services completed, and match these to your purchase orders.

   This updates the stock level and the cost prices of your stock items. A goods received note (GRN) is produced which you can match with the invoice from your supplier.

5. Record invoices (in the Sage 200 desktop).

   Enter details of purchase invoices from your supplier, and then match the invoice to the purchase order and the record of goods received.

   Those with discrepancies can be marked as disputed provided you set Sage 200 to use disputed invoice processing. This stops the invoice being processed further until the dispute is removed or the disputed value can be written off.

6. Check order progress.

   You can monitor the progress of your purchase orders at all stages of the order lifecycle.

   See Check the progress of purchase orders.

7. Return goods (in the Sage 200 desktop).

   If you need to return goods, you can record the returned items and when they are despatched to your supplier. When you receive your supplier's credit note, you can match this against the goods returned record.