Purchase orders and GRN

Overview

A purchase order (PO) is a record of stock you are buying from a supplier — created before the goods arrive. It is the buying side of your business, the mirror image of a customer order (the selling side).

A PO answers, with certainty: what did we order, from whom, at what cost, and has it arrived yet? It keeps your inventory and your true cost of goods accurate, and gives you a clear paper trail with every supplier.

• Accurate stock — goods raise your stock only when you receive them against the PO (via a GRN), so your counts stay truthful even on short or partial deliveries.
• Real profit — the cost prices you enter become each product's landed cost, so your margins are real, not guesses.
• Spending control — a PO can require approval before any money is committed.

Purpose

Use a purchase order whenever you order stock from a supplier: to plan the purchase, get it approved if needed, and then confirm exactly what physically arrived — so your stock levels and costs are never a guess.

Step-by-step guide

1. Create the PO (Draft). Choose the supplier and the warehouse the stock will arrive at, then add each product with its quantity and cost price. Save any time — a draft changes nothing yet.
2. Submit for approval. "Save & submit" moves the PO to Submitted. If the supplier already has an open PO, the form warns you so you don't create a duplicate.
3. Approval. Someone with approval permission reviews and Approves the PO. By default that is the business owner, a Manager, a Warehouse Manager, or an Inventory Controller. Staff without that role can create and submit a PO, but cannot approve it. You can change who approves under Staff → Permissions → Approve Purchase Orders. If you run purchasing on your own, you simply approve your own PO.
4. Order. Once approved, mark it Ordered — this means it is confirmed with the supplier and on its way.
5. Receive the goods (GRN). When the delivery arrives, open Goods Receipts and create a Goods Received Note against the PO. For each line enter the accepted, damaged and missing quantities. Accepted stock is added to the warehouse at the PO's cost price; damaged goes to a separate damage bucket; missing is recorded as a shortage.
6. Partial or complete. If only part of the order arrived, the PO becomes Partial — receive the rest later with another GRN. When everything is in, it is marked Received.

Important: a purchase order never changes your stock on its own — only a Goods Receipt (GRN) does. Until goods are received, the PO is just a plan.

Common mistakes

• Receiving more than was ordered without checking the line quantities.
• Marking everything as accepted when some items are damaged or missing — enter the real split so your stock and cost stay correct.
• Expecting stock to rise the moment the PO is approved. Stock rises only when you receive a GRN against it.
• Choosing the wrong warehouse — goods are added to the warehouse recorded on the PO.
• Leaving the cost price at zero — this makes your profit margins and stock valuation wrong.
• Raising a second PO for a supplier who already has an open one — watch for the duplicate warning on the form.

Best practices

• Enter accurate cost prices — they drive your real margins and inventory valuation.
• Receive against the PO as soon as goods arrive, so your stock is always current.
• Use the approval step to control spending once staff members can raise POs.
• Add a reference number in Remarks so you can match the supplier's invoice to the PO later.

FAQ

Who approves a purchase order? By default the business owner, a Manager, a Warehouse Manager or an Inventory Controller. This is adjustable under Staff → Permissions.

Does creating a PO change my stock? No. Stock changes only when you receive goods against the PO with a Goods Receipt (GRN).

What if only part of the order arrives? Receive what came — the PO becomes Partial. Receive the rest when it arrives.

What is landed cost? The cost price you record on the PO. It becomes the product's cost of goods, so your profit figures are accurate.