What is a purchase order?

A purchase order (PO) is a business document, created by the buyer, which authorizes a purchase transaction for goods or services from a supplier. POs play an important role in controlling business purchases. A professional PO process builds robust supplier relationships and provides an audit trail of all transactions. It is generally assisted by some level of automation that helps speed up the process, improves communication and minimizes financial risk.

How to create a PO?

  • From the left navigation select Purchase Order > View.

  • This is PO listing page, click on Create PO on the upper right side of the page.
  • This opens a popup that takes the basic info and redirects you to the PO detail page.
  • You can now start adding the products to the PO and click on save button.
  • Once the items are added to the PO it can be moved to further statuses from Draft.


  • At this stage PO is in the draft status and you start populating more information for the PO on the detail screen.
  • PO is always created in the supplier’s local currency. On this screen you can update the Exchange rate, this is to get the values in GBP.
  • Shipping method of the PO can be selected from Courier, Air and Sea.
  • Goods receiving tolerance for the PO can be populated as well.
  • Other details like Supplier Name, Billing address and Shipping address is visible on the screen.