Purchase Order
Overview
A Purchase Order (PO) in DIGITZ ERP is the official commitment document issued to a supplier after an approved Material Request.
It specifies the agreed items, quantities, prices, delivery schedule, and commercial terms, serving as the formal purchase contract.
The Purchase Order forms the control center of the buying process.
While it does not affect stock or accounting, it governs the entire downstream workflow — from receiving goods through Purchase Receipt to supplier billing through Purchase Invoice.
Purpose
The Purchase Order ensures that:
- All procurement actions follow approved internal requirements.
- Suppliers receive a clear, documented instruction for supply.
- Item quantities, costs, delivery dates, and terms are predefined and agreed.
- The organisation can track pending deliveries and purchasing commitments.
- Receipts and invoices follow the same structure for accuracy and consistency.
POs prevent unauthorized purchases and maintain transparency in procurement operations.
How It Works
- An approved Material Request is converted to a Purchase Order.
- Users select the supplier and define pricing, quantity, taxes, and expected delivery dates.
- Once submitted, the PO becomes active and is used for:
- Purchase Receipt → to record delivered stock
- Purchase Invoice → to book supplier billing
- The system automatically tracks delivered and pending quantities.
- Partial deliveries are supported, allowing goods to be received over multiple receipts.
The Purchase Order serves as the official reference for all procurement activity and downstream documentation.
Partial Delivery Behaviour
DIGITZ ERP fully supports partial delivery of Purchase Orders.
How it works
- A supplier may deliver goods in multiple batches instead of delivering everything at once.
- Each batch is recorded through Purchase Receipt, which deducts the received quantities from the PO’s pending quantities.
- The PO status updates automatically:
- To Receive and Bill → No or partial receipts
- Partially Received → Some items received, some pending
- Completed → All quantities received
- Purchase Invoice can also be created in stages if the supplier invoices partially.
Benefits of Partial Delivery Handling
- Flexibility in receiving goods over time.
- Accurate tracking of pending quantities.
- Avoids over-receiving more than ordered.
- Ensures supplier deliveries are monitored against PO commitments.
Pending Quantities Tracking
DIGITZ ERP dynamically maintains:
- Ordered Quantity
- Received Quantity (from Purchase Receipts)
- Pending Quantity
- Billed Quantity (from Purchase Invoices)
These values help procurement teams monitor supplier fulfilment and prevent discrepancies or delays.
Pending quantity tracking is visible on:
- The Purchase Order itself
- Linked Purchase Receipts
- Linked Purchase Invoices
- Buying reports (explained below)
Key Features
- Direct creation from approved Material Request.
- Supplier selection with predefined master data.
- Configurable item pricing, quantity, and delivery schedule.
- Tax and charges support.
- Partial delivery and partial invoicing support.
- Automatic update of PO statuses (Draft → Submitted → Partially Received → Completed).
- Document linking for full procurement traceability.
- Helps manage budgets, delivery timelines, and supplier performance.
Relevant Reports
DIGITZ ERP provides multiple reports to track Purchase Order performance and pending deliveries.
Purchase Order Register
Shows all Purchase Orders with their current status and values.
Purchase Order Itemwise Register
Breaks down each PO into item-level details:
- Ordered qty
- Received qty
- Pending qty
Ideal for monitoring supplier fulfilment.
Purchase Order Itemwise Summary Report
Summary of items ordered across all POs — helpful for planning and procurement analysis.
Pending Purchase Orders Report
Highlights all POs that are not fully received or billed.
Goods Due for Receipt (if applicable)
Shows items expected to arrive based on delivery dates.
These reports help procurement teams identify delays, coordinate with suppliers, and plan stock arrivals more effectively.
Workflow
- Navigate to Buying → Purchase Order → New.
- Select Supplier and optionally fetch items from Material Request.
- Enter quantities, rates, expected dates, and any charges.
- Save and Submit the Purchase Order.
- Track order status and delivery progress.
- Upon receiving goods, create Purchase Receipt.
- Record supplier billing through Purchase Invoice.
- Monitor pending quantities and partial receipts through reports.
Integration
Purchase Order integrates smoothly with:
- Material Request → for pulling approved requirements.
- Purchase Receipt → updates stock against the PO.
- Purchase Invoice → for billing with or without GRN.
- Supplier Master → supplier-related terms and information.
- Stock Ledger → indirect integration via Purchase Receipt.
- General Ledger → indirect via Purchase Invoice.
- Buying Reports → full visibility of pending orders and supplier performance.
Conclusion
The Purchase Order in DIGITZ ERP acts as the central agreement between the organisation and its suppliers.
It brings structure, clarity, and control to the procurement process, managing quantities, pricing, partial receipts, and delivery schedules with precision.
With comprehensive tracking, partial delivery support, and integrated reporting, Purchase Orders ensure smooth procurement operations and accurate downstream stock and accounting updates.
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