87 lines
3.3 KiB
Markdown
87 lines
3.3 KiB
Markdown
A Purchase Order is analogous to a Sales Order. It is usually a binding
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contract with your Supplier that you promise to buy a set of Items under the
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given conditions.
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A Purchase Order can be automatically created from a Material Request or
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Supplier Quotation.
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#### Purchase Order Flow Chart
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In ERPNext, you can also make a Purchase Order directly by going to:
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> Buying > Documents > Purchase Order > New Purchase Order
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#### Create Purchase Order
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<img class="screenshot" alt="Purchase Order" src="{{url_prefix}}/assets/img/buying/purchase-order.png">
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Entering a Purchase Order is very similar to a Purchase Request, additionally
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you will have to set:
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* Supplier.
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* A “Required By” date on each Item: If you are expecting part delivery, your Supplier will know how much quantity to deliver at which date. This will help you from preventing over-supply. It will also help you to track how well your Supplier is doing on timeliness.
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### Taxes
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If your Supplier is going to charge you additional taxes or charge like a
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shipping or insurance charge, you can add it here. It will help you to
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accurately track your costs. Also, if some of these charges add to the value
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of the product you will have to mention them in the Taxes table. You can also
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use templates for your taxes. For more information on setting up your taxes
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see the Purchase Taxes and Charges Template.
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### Value Added Taxes (VAT)
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Many a times, the tax paid by you to a Supplier, for an Item, is the same tax
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which you collect from your Customer. In many regions, what you pay to your
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government is only the difference between what you collect from your Customer
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and what you pay to your Supplier. This is called Value Added Tax (VAT).
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For example you buy Items worth X and sell them for 1.3X. So your Customer
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pays 1.3 times the tax you pay your Supplier. Since you have already paid tax
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to your Supplier for X, what you owe your government is only the tax on 0.3X.
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This is very easy to track in ERPNext since each tax head is also an Account.
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Ideally you must create two Accounts for each type of VAT you pay and collect,
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“Purchase VAT-X” (asset) and “Sales VAT-X” (liability), or something to that
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effect. Please contact your accountant if you need more help or post a query
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on our forums!
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#### Purchase UOM and Stock UOM Conversion
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You can change your UOM as per your stock requirements in the Purchase Order
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form.
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For example, If you have bought your raw material in large quantities with UOM
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-boxes, and wish to stock them in UOM- Nos; you can do so while making your
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Purchase Order.
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__Step 1:__ Store UOM as Nos in the Item form.
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Note: The UOM in the Item form is the stock UOM.
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__Step 2:__ In the Purchase Order mention UOM as Box. (Since material arrives in
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Boxes)
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__Step 3:__ In the Warehouse and Reference section, the UOM will be pulled in as
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Nos (from the Item form)
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#### Figure 3: Conversion of Purchase UOM to stock UOM
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<img class="screenshot" alt="Purchase Order - UOM" src="{{url_prefix}}/assets/img/buying/purchase-order-uom.png">
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__Step 4:__ Mention the UOM conversion factor. For example, (100);If one box has
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100 pieces.
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__Step 5:__ Notice that the stock quantity will be updated accordingly.
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__Step 6:__ Save and Submit the Form.
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