Lines with estimated costs and the reference number

Each line on a purchase order represents one item or service you are ordering. For each line, you specify the product, quantity, estimated unit cost, and optionally a vendor reference number. The estimated cost helps you forecast spending and compare actual invoices against your order.

Before you start

• Product must exist: If you are ordering a product, it must already be created in your system's product catalog.
• Vendor selected: You should have already chosen the vendor on the purchase order header.
• Quantities and costs: Have the quantity and unit price you expect to pay ready.

Steps

1. On the purchase order form, find the Items or Lines section.

2. Click Add Line or a similar button to add a new item to the order.

3. In the Product field, search for and select the item you want to order. If it is a service, select the service product.

4. Enter the Quantity you want to order (e.g., 10 units, 5 boxes).

5. Enter the Estimated Unit Cost or Price per unit. This is your best estimate of what the vendor will charge.

6. (Optional) In the Vendor Reference or Reference Number field, enter a code or identifier that the vendor uses for this product. This makes it easier to match when the vendor sends an invoice.

7. The line amount (quantity × unit cost) is calculated automatically.

8. Repeat steps 2–7 for each item you want to order.

9. Once all lines are added, the order subtotal displays at the bottom of the form.

Accounting impact

The lines define what you are committing to purchase. The estimated costs are used for planning but do not create a journal entry until you receive the goods and record the actual invoice. The vendor's actual price may differ from your estimate.

Tips & common mistakes

• Estimated costs are a forecast—the actual invoice from the vendor may have different prices. You can reconcile the difference when you receive the goods.
• If you need to order the same item multiple times, add separate lines for each order rather than combining quantities.
• The vendor reference number is optional but helpful when the vendor uses different product codes than your system.
• If a product is not found in the search, ask your administrator to ensure it is created and is not archived.
• You can edit or delete lines before saving the purchase order.