FAQ: Creating Purchase Orders

Q: Do I need to create a purchase order before buying from a vendor?
A: Purchase orders are recommended for tracked procurement. For small, informal purchases or if your company does not use purchase orders, you can create a bill or cash purchase directly. However, using a purchase order provides a record of what you agreed to buy before the invoice arrives, which helps prevent billing disputes.

Q: Can I edit a purchase order after I save it?
A: Yes, you can edit a purchase order before it is finalized or matched to a receipt. Once it is fully received or confirmed by the system, editing may be restricted. If you need to change a finalized order, ask your administrator.

Q: What happens if the vendor's invoice does not match the purchase order?
A: The system allows you to receive goods against the purchase order and then match the vendor's invoice. If quantities, prices, or items differ, you can note the difference and decide how to proceed (accept the variance, return goods, or contact the vendor).

Q: Can I delete a purchase order?
A: You can usually delete a draft purchase order. Once it is confirmed or partially received, deletion is not allowed. If you need to cancel an order, ask your administrator to see if the order can be marked as canceled instead.

Q: How do I handle rush orders or orders that arrive before the expected date?
A: You can update the Expected Delivery Date in the purchase order to reflect the actual or new expected date. When the goods arrive, record a receipt against the purchase order regardless of the expected date.

Q: Can multiple people order from the same vendor at the same time?
A: Yes. Each purchase order is independent. Multiple team members can create separate purchase orders for the same vendor. This is useful for organizations with multiple departments or warehouses.

Q: What if the vendor is not in the system?
A: Ask your administrator to create a new vendor contact. You cannot create a purchase order without an existing vendor in the system.

Q: Do purchase orders affect my budget or accounting immediately?
A: No. Purchase orders are planning documents. They do not create an accounting entry until you receive goods and the vendor sends an invoice. However, some systems allow you to create budget commitments or encumbrances based on purchase orders for planning purposes.