The Purchase Order (PO) module is the central procurement transaction in GEMS ERP that enables organisations to purchase goods and services from approved suppliers. It records the purchasing commitment by defining the supplier, products, pricing, delivery terms, commercial conditions, and financial information required for procurement.

A Purchase Order serves as the primary reference document for the procurement lifecycle. It integrates with Supplier Master, Product Master, Purchase Price Master, and Organisation Master data, and acts as the source document for Goods Receipt, Invoice Receipt, and Purchase Order Item Status tracking.

Purpose

The Purchase Order module enables your organisation to:

• Create purchase orders for approved suppliers.
• Procure products and services using governed pricing rules.
• Define delivery, shipping, and commercial terms.
• Capture organisational and financial posting information.
• Route purchase orders through approval workflows.
• Support three-way matching between Purchase Order, Goods Receipt, and Invoice.
• Track procurement progress from ordering through receipt and invoicing.
• Maintain complete purchasing records for reporting and auditing.

Navigation

Procurement & Logistics → Purchase Orders

Key Features

The Purchase Order module provides the following capabilities:

• Purchase Order creation
• Supplier selection and supplier information
• Product and line item management
• Automatic pricing from Purchase Price Master
• Product configuration and variant selection
• Delivery and shipping management
• Organisational and financial posting details
• Commercial and payment terms
• Approval workflow
• Goods Receipt integration
• Invoice Receipt integration
• Purchase Order status tracking

Screen Overview

The Purchase Order screen enables authorised users to create procurement transactions by selecting suppliers, adding products, defining delivery and payment terms, reviewing pricing information, and submitting purchase orders for approval.

The Purchase Order transaction is organised into multiple sections.

Section	Description
Purchase Order Information	Captures PO Number, Document Type, PO Date, Required Delivery Date, Delivery Priority, Procurement Category, and Reference Details.
Supplier Information	Stores supplier details, supplier standing, billing party, contact information, and supplier type.
Line Items	Captures products, quantities, units of measure, item category, account assignment, and purchasing details.
Configuration	Displays product variants and configurable product attributes where applicable.
Pricing Information	Displays the complete purchase price waterfall including base price, adjustments, discounts, freight, and taxes.
Delivery & Shipping	Stores delivery address, shipping conditions, Incoterms, delivery tolerances, and goods receipt information.
Organisation Details	Captures Business Entity, Plant (MFU), Inventory Unit, Cost Centre, Profit Centre, GL Account, and sourcing information.
Commercial Information	Captures payment method, payment terms, supplier reference, currency, exchange rate, freight, insurance, customs, and invoice control settings.

Data Model

The Purchase Order module uses a header-and-line structure. The Purchase Order Header stores supplier, organisational, commercial, and procurement information, while Purchase Order Line Items store the individual products or services being ordered from the supplier.

Purchase Order Header

The Purchase Order Header stores the overall procurement information and is uniquely identified by a system-generated Purchase Order Number. Information from Supplier Master, Organisation Master, and related configuration is automatically populated when applicable.

Information Stored

Category	Information
Purchase Order Identification	PO Number, PO Document Type, Status
Reference Information	Reference Type, Reference Document Number, Reference Date
Supplier Information	Supplier ID, Supplier Name, Contact Person, Billing Party, Supplier Type
Procurement Information	PO Date, Required Delivery Date, Valid From, Valid To, Delivery Priority, Procurement Category
Delivery Information	Delivery Address, Goods Receipt Contact, Shipping Conditions, Incoterms
Commercial Information	Payment Method, Payment Terms, Currency, Exchange Rate
Organisation Information	Business Entity, Plant (MFU), Inventory Unit, Cost Centre, Profit Centre, GL Account
Audit Information	Created By, Created Date, Updated By, Updated Date

Purchase Order Line Items

Each Purchase Order contains one or more line items representing the products or services being purchased.

Each line stores:

• Product details
• Quantity
• Unit of Measure
• Item Category
• Account Assignment
• Product Configuration
• Unit Price
• Discounts
• Freight
• Taxes
• Net Amount
• Delivery status
• Invoice status

Pricing is automatically calculated using the Purchase Price Master, ensuring consistent pricing across procurement transactions.

Entity Relationship

Purchase Order
│
├── Supplier
├── Product Master
├── Purchase Price Master
├── Organisation Master
├── Purchase Order Line Items
├── Goods Receipt
├── Invoice Receipt
└── Purchase Order Item Status

The Purchase Order acts as the primary procurement document and serves as the reference for Goods Receipts, Invoice Receipts, and Purchase Order status tracking throughout the procurement lifecycle.

Status Lifecycle

A Purchase Order progresses through the following statuses during its lifecycle:

Status	Description
Draft	Purchase Order has been created but not submitted for approval.
Pending Approval	Purchase Order has been submitted and is awaiting approval.
Approved	Purchase Order has been approved and is available for Goods Receipt.
Rejected	Purchase Order has been rejected and returned to the requester.
In Progress	Goods Receipt or Invoice processing has started against the Purchase Order.
Partially Received	Some ordered quantities have been received.
Fully Received	All ordered quantities have been received and processed.

How It Works

The Purchase Order process generally follows these steps:

1. Navigate to the Purchase Order module.
2. Create a new Purchase Order.
3. Select the supplier.
4. Enter Purchase Order information including document type and required delivery date.
5. Add one or more products as line items.
6. Review product configuration and pricing information.
7. Enter delivery, shipping, and organisational details.
8. Configure commercial and payment terms.
9. Save the Purchase Order, which is initially created with Draft status.
10. Submit the Purchase Order for approval.
11. Once approved, use the Purchase Order for Goods Receipt and Invoice Receipt processing.
12. Track procurement progress until all ordered items have been received and invoiced.

Business Benefits

Using the Purchase Order module helps organisations to:

• Standardise procurement activities.
• Improve supplier management.
• Enforce governed purchasing policies.
• Automate purchase pricing.
• Strengthen approval controls.
• Improve inventory planning.
• Support accurate financial postings.
• Enable three-way matching between Purchase Orders, Goods Receipts, and Invoices.
• Maintain complete procurement traceability.

Best Practices

• Create Purchase Orders only for approved suppliers.
• Verify supplier information before creating the order.
• Review pricing before submitting for approval.
• Confirm delivery dates and shipping terms carefully.
• Complete all organisational and financial posting details.
• Submit Purchase Orders through the approval workflow before procurement.
• Monitor Goods Receipts and Invoice Receipts against each Purchase Order.
• Regularly review Purchase Order status to identify pending deliveries or outstanding invoices.

Next Steps

The Purchase Order module includes the following functional areas, each documented separately in the User Guide:

1. Purchase Order List
2. Create Purchase Order
3. Edit Purchase Order
4. View Purchase Order
5. Line Item Management
6. Pricing Information
7. Approval Workflow
8. Goods Receipt Integration
9. Invoice Receipt Integration
10. Purchase Order Status Tracking

Each section explains its purpose, available fields, and the steps required to create, approve, manage, and monitor Purchase Orders within GEMS ERP.