How to Create Vendor Purchase Orders

Before You Start

Purchase orders require the following setup:

1. Vendors Must Be Created

Create vendor accounts before they can appear in purchase orders.

• Navigate to Vendors → Add New Vendor
• See How to Set Up and Manage Vendors for complete setup instructions

2. Products Must Be Assigned to Vendors

Each product needs at least one vendor assigned in the product's Vendors tab.

• Open product in Product Catalog Manager → Vendors tab
• Mark one vendor as Preferred Vendor
• Bulk option: Use vendor import to update multiple products at once

3. For Bulk Purchase Orders: Configure Inventory Thresholds

Set preferred stock levels and reorder points per warehouse location in product's Inventory tab.

Understanding Vendor SKUs

Vendor SKUs are the SKU codes that vendors use for products - may differ from your internal SKU.

Configure vendor SKUs in the product's Vendors tab when assigning vendors.

Individual vs Bulk Purchase Orders

The individual PO interface works like the sales order screen—select vendor, add products, and submit.

Basic Setup

1Select Vendor from dropdown (contact info, payment terms, etc. populates automatically)

2Select YOUR Warehouse Location for receiving inventory

Add Products

Method 1: Product Selector

• Click Add New Item to see all products assigned to this vendor
• View current inventory levels for selected warehouse
• Use Show products with zero on hand filter to find out-of-stock items
• Check Backorder links to see existing open POs—prevents duplicate ordering
• Select items and click Select

Method 2: Add Items in Bulk

• Click Add Items in Bulk
• Download Template and Legend to import a CSV file of products

Configure Order Details

• Enter quantities for each product
• Adjust Unit Cost if vendor pricing differs from defaults
• Apply line item discounts if applicable
• For matrix products (size/color), specify exact options
• Add shipping/handling costs or leave blank to backfill later

Submit Purchase Order

Review items, quantities, and costs, then click Create Purchase Order. The PO is created with "Pending" status.

Bulk purchase orders automatically identify products below reorder points and generate orders grouped by vendor and location.

Step 1: Configure Inventory Thresholds (One-Time Setup)

Navigate to Products → Product Catalog Manager → Open product → Inventory tab

For each warehouse location, set:

• Preferred Stock Level: Target "full stock" inventory (e.g., 500 units)
• Reorder Point: Threshold that triggers reorder alert (e.g., 200 units)

Step 2: Verify Vendor Assignments

In each product's Vendors tab, confirm:

• At least one vendor assigned
• One vendor marked as Preferred Vendor: Yes
• Vendor SKU configured (if vendors use different SKU codes)
• Vendor costs are current

Step 3: Generate Bulk Purchase Orders

1Navigate to Vendors → Create Bulk Purchase Order

2View all SKUs below reorder point with suggested quantities

3Use filters to narrow results:

• Location: Single warehouse
• Preferred Vendor: Specific vendor
• Back Ordered = Yes: Products with pending customer orders
• SKU or Product Name: Search specific items

4Select products using checkboxes (header checkbox selects all visible)

5Adjust Qty to Order based on sales forecasts, budget, or vendor minimums

6Change vendor from dropdown if needed

7Click Create Purchase Order

A list of bulk purchase orders will appear with a success message

If a Purchase order is created that does not meet your minimum quantity configured in the Vendor Tab for that item, you will receive a warning message. 

Email Individual Purchase Order

1Open the purchase order

2Click CRM tab → Email Vendor

Default email template sends with PO Summary PDF attachment showing vendor SKUs.

Bulk Email Multiple Purchase Orders

1Navigate to Vendors → Search Purchase Orders

2Check boxes next to POs you want to send

3Select Email Selected PO and click Go

Each vendor receives their purchase order(s) via email. Maximum 50 purchase orders per batch.

After a purchase order is created and approved, it moves to Pending Receipt status. When inventory arrives at your warehouse, you'll receive the PO to add items to inventory.

Receive Items from Purchase Order

1Navigate to the purchase order (should be in "Pending Receipt" status)

2Click Receive PO button at the top of the page

3Select items that were received:

• Method 1: Check the Receive? checkbox next to each SKU that arrived
• Method 2: Scan barcodes with a barcode scanner to automatically check items

4Enter the Qty. Received for each item (defaults to full quantity ordered)

5Adjust unit costs if actual vendor invoice amounts differ from PO

6Click Save Changes

What Happens When You Receive Items

• Inventory is updated: Received quantities are immediately added to warehouse inventory
• Item Receipt is created: A transaction record appears in the PO's Transactions tab
• PO status changes:
  • If all items received → Status changes to Received
  • If only some items received → Status changes to Partially Received

Viewing Item Receipts

After receiving items, view the receipt record:

1Open the purchase order and click the Transactions tab

2Or click Item Receipts List from the Vendors tab

Each item receipt shows which products were received, quantities, and unit costs.

Purchase Order Status Workflow

Filter purchase orders by status: Navigate to Vendors → Status section → Select status

Using Tags to Organize Purchase Orders

Tags are custom labels for organizing and filtering purchase orders. Common examples:

• "In Transit": Items shipped but not yet received
• "Urgent": High-priority orders
• "Warehouse-Boston": Location-specific tracking
• "Q1-Restock": Seasonal ordering

Apply Tags:

• Open purchase order and add tags in the Tags field
• Tags can be applied during PO creation or edited later

Filter by Tags:

• Navigate to Vendors → Tags section
• Click tag name to view all POs with that tag
• Select multiple tags to combine filters

Best Practices for Individual Purchase Orders

• Check backorder links before adding products to avoid duplicate ordering
• Leave shipping costs blank if unknown, then backfill after receiving vendor invoice
• Specify matrix options precisely (size, color) to prevent vendor shipping errors
• Tag POs during creation for easier tracking and organization

Best Practices for Bulk Purchase Orders

• Base thresholds on sales velocity: Review 24-day and 12-month sales data before setting preferred stock levels
• Account for vendor lead times: Set reorder points high enough to cover time between ordering and receiving
• Adjust for seasonality: Increase preferred stock levels before peak sales periods
• Filter by location first: Create purchase orders one warehouse at a time for easier review
• Prioritize backorders: Use "Back Ordered = Yes" filter to focus on products with waiting customers
• Review costs before submitting: Verify subtotals align with budget constraints

General Best Practices

• Email vendors immediately after creating purchase orders
• Keep vendor information current: Update contact details, costs, and lead times regularly
• Use vendor SKUs correctly: Ensure vendor SKU field is populated so vendors understand what to ship
• Schedule regular PO reviews: Check bulk purchase order screen weekly or bi-weekly
• Update tracking numbers: Add vendor tracking info to POs when items ship

Troubleshooting: No Products Appearing in Bulk Purchase Orders

Possible Causes:

• No products have inventory below their reorder point
• Products don't have vendors assigned
• Preferred stock levels or reorder points aren't configured
• Filters are too restrictive

Solutions:

• Click Reset to clear all filters
• Verify products have vendors: Products → Product Catalog Manager → Open product → Vendors tab
• Check inventory thresholds: Open product → Inventory tab → Verify Preferred Stock Level and Reorder Point are set
• Confirm current inventory is at or below reorder point

Troubleshooting: Specific Product Missing from Bulk POs

Possible Causes:

• Product doesn't have a vendor assigned
• Inventory is above the reorder point
• Preferred stock level or reorder point not set for that location

Solutions:

• Search for product using SKU or product name filter
• Open product in Product Catalog Manager
• Check Vendors tab—ensure at least one vendor assigned with "Preferred" marked
• Check Inventory tab—verify thresholds exist for the warehouse location
• Confirm current Qty on Hand is at or below Reorder Point

Troubleshooting: Cannot Change Vendor for a Product

Cause: Product only has one vendor assigned

Solution:

• Navigate to Products → Product Catalog Manager → Open product → Vendors tab
• Select additional vendors from dropdown and configure details
• Mark one vendor as Preferred Vendor
• Save changes, then return to bulk purchase orders—multiple vendors now available

Troubleshooting: Suggested Quantity Seems Incorrect

Possible Causes:

• Calculation includes backordered quantities
• Preferred stock level was recently changed
• Units already on order (in transit) not yet received

Solutions:

• Review Back Ordered column—system adds these units to suggested quantity
• Check Qty On Order column—units already ordered reduce suggested amount
• Verify Preferred Stock Level in product's Inventory tab matches expectations
• Manually adjust Qty to Order field to override system suggestion

Vendors Overview

Bulk Purchase Orders Video Tutorial

Related Articles

• How to Set Up and Manage Vendors - Create vendor accounts and configure vendor settings
• How to Import Vendors and Assign Vendors to Products - Bulk import vendors and vendor assignments using CSV