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Creating a Purchase Order

Last updated 18/03/2020

Purchase Orders are used to buy stock from your Suppliers. When the goods are received your inventory will increase. This article explains how to create a Purchase Order.

Purchase Orders

Purchase Orders notify your suppliers of your intent to purchase their goods. Once confirmed, you will typically receive the goods and then the invoice shortly after.

Creating a Purchase Order in Cin7 serves three purposes:

  • Purchase Orders can be emailed to your suppliers
  • Receiving Purchase Orders increases the inventory of your products
  • Purchase Orders that have been invoiced can be imported into your accounting software

Creating a Purchase Order

To create a Purchase Order:

  1. From the left navigation, select Purchases, and then click New Purchase Order
  2. In the top half of the screen, enter the details of the Supplier
  3. Select the branch from the branch menu
  4. Enter the products to be purchased in the products grid below
  5. Enter an Estimated Time of Delivery (ETD)
  6. Click Approve to approve the purchase
  7. In the Admin screen that follows you can Email or Print the Purchase Order

Viewing Incoming stock

An Open Purchase Order indicates that an order has been placed but it does not change the quantity of Stock on Hand.

In the products page, incoming stock is shown in the Incoming Stock column, and by clicking into the SOH column you will be able to see incoming stock broken down by ETD. For more information on this subject, see Open To Sell.

Receiving a Purchase Order

When a Purchase Order is received, the SOH increases. To Receive a Purchase:

  1. From the Purchase Orders List Page, click the Purchase order Reference number (Orange number in the "Ref" column) to enter the screen where you are able to edit your chosen order
  2. To receive all the goods at the same time, enter a Fully Received Date
    (If partially receiving a Purchase, see creating a back order)
  3. Enter an Invoice Date and Invoice Number. Entering an invoice date makes the Purchase Order available for importing into your Accounting Software.
  4. Click Save to complete the transaction

Receiving More or Less than Ordered

If you receive more than you originally ordered, you have several options depending on the situation:

Situation Solution
Received more than expected at no extra cost You have two options in this scenario, each with different implications for gross profit reports.
  • Lower the unit cost and change the quantity ordered so the cost is spread evenly over each item
  • Add the additional items as an extra line item, at 100% discount.
Received more than expected at additional cost Change the Qty Ordered field to match the quantity received.
Received less than expected at reduced cost Change the Qty Ordered to match the quantity received. The amount you are invoiced for should match the total of the Purchase Order.
Received less than expected and credited for the remaining The Purchase Order total will need to remain the same but the Qty Received should change. Fully Receive all the goods first, and then edit the Qty Received to amend the quantities.
Received less than expected and remaining is backordered To make a back order, see our dedicated article Creating a Back Order for Purchases.


Do I need to add payments?

If you wish to record payments against Purchase Orders, you can enter them in the grid at the bottom of the screen. Note that this does not sync with your Accounting Software, so it is for information only and is not required. See this article about creating Payment types.

How do I purchase fashion items?

Take a look at our article on Creating Purchase Orders for Fashion items.

How do I receive goods with Batch Numbers or Serial Numbers?

Take a look at our article on Purchasing Batch and Serial Number products.

How do I process goods from overseas?

There are two articles you should read - one about Purchasing in Foreign Currencies, and another about Applying Freight to a Purchase Order.