The orders management sub-system is tightly connected to the inventory sub-system. Each order flowing through the system has a direct impact on the inventory levels and value.
This article covers purchase and sales orders in Stock&Buy and how these impact your inventory levels.
Purchase ordersA purchase order (PO) is a commercial document issued by a buyer to a seller, indicating products or services to be purchased, quantities, and agreed prices. A PO document is used to control the purchasing of products and services from external suppliers and acts as a purchase agreement between the buyer and seller.
There are 4 steps a purchase order goes through in Stock&Buy:
QUOTEThis is the very first stage each PO goes through. New POs are also created in this state. Orders in quote state have no impact on inventory levels and are meant to be draft orders until they are approved by the inventory manager.
APPROVEDWhen a PO gets approved, the line items and the orders quantities are locked and can no longer be modified (unless the order is voided). The received quantities fields will be enabled when a PO is set to this state.
PARTIALLY RECEIVEDA PO goes into this state when you start receiving the ordered goods. This state allows the reception of a given PO in batches
RECEIVEDThe PO is set to this state as soon as all the items in the order are received. Inventory levels of all ordered items are updated in this phase. Each ordered item's moving average cost (MAC) is also updated at this stage accounting for all recorded landed costs.
The Sales order, also known as SO, is an order issued by a business to a customer. A sales order may be for products and/or services. A sales order is an internal document which records the customer's originating purchase order which is an external document. Sales orders are slightly more complicated than purchase orders for the various steps a sales order goes through along which invoices, payments and shipments have to be recorded