Purchase order is a type of order, which we use to “buy” items from our vendors or suppliers. Purchase order is just like an order/invoice but this is to buy stock and actually it adds in the stock, rather than taking out the stock.
Purchase order system in OMINS:
OMINS has a full-featured, built-in purchase order system with automated email system incorporated in it.
How to create a Vendor:
Go to vendor menu
Click add vendor — > fill in the details — > click save . See images below
Note: Address of the vendor is just for your own reference and is not used anywhere except when creating the vendor. The name of the vendor would go into email that is sent to vendor from your system containing purchase order, and obviously if you wish to automatically send email to the vendor then you will want to fill in the email address here.
How to create a Purchase order (for local purchases).
Go to purchase menu and click “add purchase”.
On next page
– Add vendor’s details: Vendor’s ID if you remember or vendor’s company name.
– Select ship to address: If check box is enabled, this will fill in your own company address from your settings configuration or otherwise, you can put in customer name to directly ship to customer, like a drop-ship order.
– Adding products to purchase: In the line item section below, you can add in products (via upc or product part # or vendor’s part #) and set other things here. Do not check imported checkbox for local NZ purchases, as import purchase orders are somewhat different and explained later in this section. (see below).
– Qty and rec columns: Qty is the quantity to order and rec column is quantity received. If you select “received all” total ordered quantity will show in “rec” column and will be added to stock of this product. For partial received you can manually enter the received quantity in “rec” column.
– Applying current status: Simply you can set any status to the purchase order, this is for your internal reference. (see below)
Paid status: you can apply paid or unpaid status and this is for your internal reference.
– Payment and instruction section: In payment section, you can add the payment once you have paid the vendor for this purchase and this is for internal reference only. Likewise instruction section is explained in the pic below.
NOTE: DO NOT FORGET TO SAVE YOUR PURCHASE ORDER, ONCE YOU ARE DONE.
Emailing purchase order to vendor.
Once you have saved the purchase order you will able to see email section below the status section on right-hand side. You can just send or “edit and send” this purchase order to vendor. (see below)
Configuring purchase emails for vendor
You can configure emails to be sent to vendor from purchase menu and then purchase emails. This is same as configuring invoice emails (click here for help on invoice emails) and for the most part, you will not have to configure new email yourself, as for most of the users, the default one works.
Purchase orders for import purchase orders (overseas vendors)
This is a bit different from local purchases and some added calculations are incorporated here.
For this purchase order, you will have to check/enable imported check box. (see below)
The dollar sign showing in the price and freight section basically can be any currency (foreign currency).
In import purchase orders, “freight”, “price” and “price x qty” columns are showing foreign currency i.e. the currency from where you are purchasing or importing the goods.
“cost”, “local amount” and “other freight” are having local currency values (NZD).
local amount: NZD dollars based on conversion rate + any other bank charges for transaction.
Other freight: Any other transportation charges, which are not mentioned in freight column above, e.g. truck service charges from port to warehouse and loading/unloading labor charges, etc. this will be in local currency NZD. (see below)
Example import purchase order.
For example I am buying two items from china, one in quantity 500 and other in quantity 100. The price will be in Chinese Yuan (forget about the $ sign), freight will be in Chinese Yuan and total price calculated will be in Chinese Yuan. Tax for the import purchase orders will be zero.
Total value of my order is 4292.00 Yuan.
CHY 4292.00 = NZD 848.46
Say, bank charges for this transaction were $25 NZD
Local amount: Total is 848.46+25 = $873.46 (NZD). This will be my local amount for this order.
Other freight: $300 NZD as per following.
Truck charges from port to warehouse = $200 NZD
Labor charges = $100 NZD
Once I have entered all of the amounts, OMINS automatically calculates the “true” cost of each product (in this example including freight and unpacking labor and bank fees) in NZD based on the data entered.
(click image to enlarge)
This post is also available in: Chinese (Simplified)