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Acumatica Case Studies and existing customer success stories

How to Simplify Your Purchase Order Management

By centralizing your organization’s purchasing processes, a purchase order system can help you reduce costs and improve vendor relationships. With Acumatica, you can automate the entire procurement process from vendor quotes to paying invoices. Here is how you can simplify your purchase order management.

Streamlining your procurement processes enables you to easily track items, manage drop shipments, and automate replenishment to ensure a steady supply of materials while enforcing policy and process controls.

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The Benefits of using Acumatica for Purchase Order Management

Automatic Creation of Purchase Orders

Automatically generate purchase orders based on stock level and inventory replenishment algorithms. Orders are placed with the vendor that best meets the price and delivery time requirements that you specify. Automatically generate drop shipment purchase orders from open Sales Orders.

Approval Workflows

Create approval rules for various order types, vendors, order amounts, and other order-specific information. Control document release using predefined approval processes.

Partial and Consolidated Receipts and Vouchers

Track receipts, whether – partially filled, completely filled, or consolidated from multiple purchase orders into a single receipt. Automatically create accounts payable vouchers from receipts. Consolidate multiple rejects into a single voucher and multiple invoices from a single receipt. Modify pricing during the invoice entry in Accounts Payable with automatic variance posting in General Ledger. Link returns to purchase receipts, updating inventory with the correct item cost and reason codes.

What is a Purchase Order (PO)?

A purchase order is used by a buyer to place an order and is issued before delivery. An invoice is issued by a seller using invoicing software after an order is delivered. It defines the amount the buyer owes for the purchased goods and the date by which the buyer needs to pay.

What is PO Management?

Purchase order management is an internal procurement process adopted by organizations to ensure that each and every purchase is necessary, justified, and optimized for costs.

The purchase order is prepared by the buyer, often through a purchasing department. Using a digital solution allows for better tracking and electronic submission of orders to the supplier.

easy guide to managing purchase orders

Acumatica PO features and capabilities

Automatic Creation of Purchase Orders

Automatic Creation of Purchase Orders

Acumatica automatically generates purchase orders based on the inventory stock level and inventory replenishment algorithms. Orders are placed with the vendor that best meets the price and delivery time requirements that you specify. Drop shipment purchase orders can be automatically prepared based on the information in open Sales Orders.

Blanket Orders

Blanket Orders

Blanket orders allow you to aggregate several orders to receive a volume discount or stock hard-to-get items. After creating a blanket order, you can create several purchase orders that refer to the blanket order and reduce the amount of the blanket order balance. As you enter purchase orders, Acumatica automatically checks for open blanket orders and provides the option to link to them.

Landed Cost Functionality

Landed Cost Functionality

Acumatica allows you to include additional shipping and receiving costs with your purchased items. Costs can be allocated across several goods using custom allocation methods. Landed cost bills can be entered directly in Accounts Payable and associated with received items. Landed costs are automatically included in the inventory costs for stocked items.

Partial and Consolidated Receipts and Vouchers

Partial and Consolidated Receipts and Vouchers

Acumatica tracks when purchase orders are received. Orders can be partially filled, completely filled, or consolidated from multiple purchase orders into a single receipt. Acumatica automatically creates accounts payable vouchers when goods are received for complete, partial, or consolidated orders. Multiple receipts can be consolidated into a single voucher and multiple bills can be entered for a single receipt. Pricing information can be modified during the bill entry in Accounts Payable and the difference will be posted to the designated variance account.

Reporting and Drilldown

Reporting and Drilldown

Acumatica’s purchasing module provides a complete set of inquiry screens and auditing reports to help you analyze your purchasing history. Report and inquiry screens allow you to drill down to the original transactions.

Audit Trail

Audit Trail

The Purchasing Management Module provides a complete audit trail of all purchasing transactions. After a transaction is released, it cannot be deleted – to correct mistakes, you must enter a transaction to reverse the incorrect entry. The system keeps the details of all purchasing transactions, including the user who entered the transaction, the user who approved the transaction, and the user who modified the record. The auditing process is simplified by having notes as well as supporting electronic documents attached directly to the transactions.

Simplified Approval Of Purchase Orders

Simplified Approval Of Purchase Orders

Create different approval rules based on the type of order, vendor information, order amount, and other order-specific information. Purchase orders must be approved by a designated person before they can be printed and sent to the vendor.

Drop Shipments

Drop Shipments

Acumatica allows you to create drop shipment orders for goods that should be delivered directly to a customer location. Drop shipments can be created automatically from sales orders or entered manually by linking to a sales order from the purchase order entry screen. After the bill is entered for the drop shipment order, the corresponding sales order will be released and an invoice will be generated for the customer.

Vendor Selection and Performance Analysis

Vendor Selection and Performance Analysis

Acumatica allows you to upload vendor price lists with product descriptions, prices, and delivery times. Each uploaded inventory item can be mapped to existing inventory or a new item can be created. Inventory information such as cost, quantities, and lead times can be automatically updated each time inventory is received. Statistical information is used to automatically produce purchase orders and analyze vendor performance.

  • Partial and consolidated receipts. Track when purchase orders are received. Orders can be partially filled, completely filled, or consolidated from multiple purchase orders into a single receipt. You can modify pricing information during bill entry in Accounts Payable, and the difference will be posted to the designated variance account.
  • Simplified item tracking. Manage disparate inventory IDs among suppliers and your system. Automatically assign serial and lot numbers when you receive purchase orders.
  • Automatic payment vouchers. Create accounts payable vouchers automatically when goods are received for complete, partial, or consolidated orders. You can consolidate multiple receipts into a single voucher and enter multiple bills for a single receipt. Also, add one or more prepayment requests to purchase orders, as well as allow purchase orders to be added to prepayment documents.
  • Blanket orders. Aggregate orders for volume discounts. Automatically check for open blanket orders and optionally link to them.
  • Drop shipments. Create drop shipments to deliver goods directly to a customer location. You can create drop shipments automatically from sales orders or enter them manually by linking to a sales order from the purchase order entry screen. After the bill is entered for the drop shipment order, the corresponding sales order will be released, and an invoice will be generated for the customer.

Streamline your procurement processes, try Acumatica for Purchase Order Management

A guide to simplifying Purchase Order Management

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