Create a Purchase Order from a Sales Order

Do you have a Sales Order that needs Inventory ordered before it can be fulfilled? Do you want to do a Drop Ship PO to your Client?  Learn all about it here!

When can a Purchase Order be generated from a Sales Order?

If you need to generate a Purchase Order to fill a specific Sales Order, there are three conditions that are required in order for the PO to be created successfully:

  1. Order Status: The Sales Order must be at least in Committed status (or beyond.)
  2. BO Qty: At least one line item on the Sales Order must have a Backorder Qty greater than or equal to 1.
  3. Vendor Name: The backordered line(s) must have a Vendor Name entered.
    • If there is a Primary Vendor listed on the Product record, it will be added to the line item automatically. Alternatively, you can enter the Vendor Name on-the-fly.

The following info can also be included. These items are optional:

  • Primary Vendor PO Cost: If there is a Primary Vendor PO Cost entered on the Product record, it will flow through to the Sales Order and then to the Purchase Order. The default cost can be overridden on either the SO or PO, if necessary.
  • Required Ship Date: The date entered on the Sales Order will be passed as the ETA Date on the PO.
  • Vendor Part Number: If there is a Primary Vendor Part Number entered on the Product record, it will flow through to the Sales Order and then to the Purchase Order.

Some of the columns described above are hidden by default. Each column can be activated/deactivated via Administration -> System Configuration. See the article on Purchase Order Defaults & Line Item Columns to learn how to set this up.

Sales Order example

1. Create a Purchase Order from a Sales Order

  1. Highlight the Sales Order that meets the above requirements.
  2. Use the Action Menu -> Create Purchase Order(s).
  3. Choose the PO Options.
  4. Click Create POs.

PO Options

  • Inventory: These are any Products that you are ordering that could be part of your physical inventory system. It doesn't matter if you normally stock the items or not, the term Inventory in this case refers to the check box on the Product record that determines if it's an Inventory (i.e. stock) vs. a Non-Inventory (i.e. supply or service) item.
  • Non-Inventory: These Non-inventory Products, as indicated on the Product record, can be added to a PO by choosing the Non-Inventory option.

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  • Create Drop Ship POs: Check this option to generate a Drop Ship Purchase Order.
    • The PO will be tagged as a Drop Ship PO.
    • The Ship To Address on the PO will be pulled from Client's Ship To address on the Sales Order.
    • If there is more than one Vendor indicated for a particular Sales Order, you will get one PO per Vendor with each PO having the Drop Ship address pulled from the Sales Order.
    • If this option is left unchecked, the Ship To Address on the PO will be pulled from the Warehouse listed on the Sales Order.
Sales Order Action Menu - Create Purchase Order

2. Purchase Order Creation Log

The system will validate each highlighted Sales Order and generate the POs to match.

The Purchase Order Creation Log will be presented to confirm that the process completed. If there are errors, the log will tell you why the process failed.

Purchase Order Creation Log

3. The Purchase Order

You can use the cross-reference tool (from the Sales Order window to the Purchase Order window) to find the PO. Cross-references between the Sales Order, Sales Analysis, Purchase Order and Purchase Analysis windows are supported when a Purchase Order is linked to a Sales Order.

The basic info such as the Vendor, Part Number, Product Name, UM and Quantity are copied to the PO, of course. You can also see some of the other data that was pulled from the Sales Order:

  • Memo: The system automatically copies the Sales Order ID into the Memo field of the PO for future reference. The Sales Order ID is not Order Number or Invoice Number! It is the the internal system ID of the Sales Order record.
  • Part No. (ven): The Vendor Part Number
  • Unit Cost: The Primary Vendor PO Cost from the Product (i.e. the Def PO Cost from the Sales Order).
  • Ship To: The PO was tagged as a Drop Ship PO so the Ship To address was pulled from the Client's Ship To Address on the Sales Order.
Purchase Order created from Sales Order

4. PO Confirmation on the Sales Order

If you open up the Sales Order again you will see that the system has copied the PO # for future reference.

Sales Order with PO Number

Optional: Create drop-ship PO's by default

If you want to create ALL Purchase Orders as drop-ship PO's ...

  1. Navigate to Administration -> System Configuration.
  2. Select Purchase Order from the drop-down menu.
  3. Find the Default Drop Ship Value on New POs setting and set it to True.
System Configuration - Purchase Order settings

Optional: Assign an Existing PO to a Sales Order

You may have a Purchase Order already in process with a Vendor and need to assign that PO to a new Sales Order. Doing so is as simple as typing the PO # into the column on the Sales Order by hand. AcctVantage will verify that the PO # you've entered actually contains the Product before allowing you to save.