Purchasing & Inbound LogisticsOptional Module

Purchase Orders (PO)

1. Overview & Purpose

What are Purchase Orders (PO)?

Purchase Orders serves as the official procurement document issued to suppliers. It details item specifications, agreed unit prices, delivery schedules, and payment terms.

Menu Location:Purchase > Purchase Orders

2. When to Use Purchase Orders

Automated Reorder Point Replenishment (e.g. Unilever / FMCG)

Warehouse inventory of high-demand bottled tea drops to the safety buffer of 50 cartons, requiring scheduled procurement from the principal distributor.

Recommended Action:Create a Purchase Order specifying receiving branch and warehouse bay, add the SKU line quantities, and lock the agreed distributor cost prices.

Commercial Bulk Discount & Credit Term Negotiation (NET45)

Purchasing manager negotiates a 7% bulk order discount with vendor Indofood for a 200-carton order with 45-day deferred trade credit terms.

Recommended Action:Record paymentTermDays = 45 and input line percentage discounts; the system calculates exact subtotal, tax amount, and net contractual commitment.

Multi-Tier Managerial Authorization before Vendor Dispatch

High-value procurement commitments (e.g. equipment or orders over Rp 30.000.000) must receive executive sign-off before being sent to external vendors.

Recommended Action:Submit the draft PO; the system locks status in PENDING and notifies authorized approval managers before generating the official PDF order slip.

Blanket Purchase Orders with Staged Inbound Schedules

Contracting a large annual purchase of 5.000 packaging boxes delivered in staggered monthly batches across the fiscal quarter.

Recommended Action:Issue a master PO with expected delivery dates; warehouse teams generate multiple Goods Receipts against the same parent PO as each truck arrives.

Commodity Price Lock & Hedging against Wholesale Inflation

Procuring volatile agricultural commodities (cooking oil, wheat flour, coffee beans) before anticipated market price increases.

Recommended Action:Submit a long-term Purchase Order with locked unit pricing, ensuring future staggered deliveries honor agreed historical wholesale rates.

3. Data Dictionary & Fields

Schema structure for the purchase_orders procurement header table:

Field / Column	Input Type	Requirement	Description & Operational Guide
poNumber	STRING(50)	Required	System-generated unique document code (e.g. PO-20260522-001).
supplierId	BIGINT (FK)	Required	Reference to suppliers table identifying contracted vendor.
branchId	BIGINT (FK)	Required	Physical operational branch receiving the ordered merchandise.
locationId	BIGINT (FK)	Required	Target storage room or warehouse receiving bay designated for intake.
orderDate	DATE	Required	Official document issuance date.
expectedDeliveryDate	DATE	Optional	Contractual date when supplier is scheduled to deliver goods.
paymentTermDays	INTEGER	Required	Credit term duration in days (0 for COD, 30 for NET30).
subtotalAmount	DECIMAL(18,4)	Required	Pre-tax and pre-discount gross sum of all ordered items.
taxTotal	DECIMAL(18,4)	Required	Calculated value-added tax according to applied tax rates.
grandTotal	DECIMAL(18,4)	Required	Net total contractual commitment payable upon fulfillment.
status	ENUM	Required	State: DRAFT, PENDING, APPROVED, REJECTED, PARTIALLY_RECEIVED, FULLY_RECEIVED, CANCELLED, CLOSED.

4. Interface Preview

Purchase order console showing order statuses, vendor identifiers, delivery due dates, and line item breakdowns.

inventories-web

Menu Location:Route: /admin/purchase/purchase-orders

Screen Preview: Purchase Orders Management Interface

Visual interface illustration and control layout for menu Route: /admin/purchase/purchase-orders

1Add Purchase Order2Status & Approval Badges3Total Valuation Column4Goods Receipt Generation

Purchase order registry displaying PO codes, vendor names, receiving branches, expected delivery dates, and approval badges.

5. Creating a Purchase Order

Open Purchase Orders Console

Navigate to Purchase > Purchase Orders from sidebar.

Launch Order Form

Click Add Purchase Order button in toolbar.

Select Vendor & Facility

Select Supplier, receiving Branch, Location, and Expected Date.

Add Line Items & Pricing

Add products, order quantities, negotiated unit cost prices, and tax rates.

Submit for Review

Click Submit to route draft PO into managerial approval workflow.

6. Review & Approval

Managerial Review

Authorized managers review line costs, quantities, and cash flow impacts.

Approve & Transmit

Click Approve. Record transmission timestamp when dispatched to supplier.

7. Cancellation & Closure

Partial Delivery Closure

If a supplier delivers less than ordered and cannot fulfill the remaining units, do not cancel the PO. Instead, use Close PO with remarks to lock the balance while preserving received data.

Cancel Unfulfilled PO

If vendor cannot fulfill order before intake, change status to CANCELLED.

POs with existing Goods Receipts cannot be cancelled; close remaining balance instead.

8. Cross-Module Impact

Target Subsystem	Relational & Transactional Effect
Goods Receipts (GRN)	Approved POs serve as mandatory intake parent documents validating received quantities.
Purchase Invoices (AP)	Provides commercial price benchmarks for 3-way matching against vendor bills.
Approval Matrices	Enforces canApprove permissions before POs transition into deliverable status.

Operational Best Practices

Always specify realistic expected delivery dates to enable late delivery alerts.
Confirm supplier minimum order quantities (MOQ) before submitting draft orders.