Managing Purchase Orders

You can use purchase orders to record the products, prices, and quantities that your store orders from suppliers. Purchase orders help track detailed information such as incoming inventory counts, inventory costs, payment terms, and estimated arrival times. This information can help you understand each purchase order better and manage inventory more effectively, allowing for better purchase planning. 

Creating Purchase Orders for Inventory Replenishment

You can create purchase orders in the SHOPLINE backend, which can be saved as Draft for future use or marked as Ordered. When a purchase order is marked as Ordered, the inventory quantity for these purchased items will be recorded as incoming inventory at the receiving location. 

Please follow below steps to create the orders: 

Go to SHOPLINE Admin panel > Products > Purchase orders > click Create purchase order. 

Input Supplier and Destination details. 

To add products you want to purchase from a supplier, you can enter details such as the quantity, supplier's SKU, cost per item, tax rate, and other relevant information for each product.

You can continue to fill in other relevant purchase information, such as payment terms, supplier currency, shipping details, and notes.

You can add other incidental expenses by clicking the Edit button in the Cost Summary section to select or enter the cost adjustment details you need.

Then, click Add.  At this point, the purchase order is in draft status and has not yet taken effect. You can click the Mark as ordered button to approve and activate this purchase order. 

Adding and Managing Supplier Information

If you need to add a new supplier, you can click Create Supplier in the supplier dropdown menu on the purchase order interface. Fill in the relevant details in the pop-up window and click Complete. The newly added supplier will be listed in the dropdown menu. 

If you need to adjust the supplier's information, you can click Supplier Details on the purchase order page, then click the Edit Supplier button to make the adjustments. Fill in the revised information and save it. 

Modifying Purchase Orders

Purchase orders can be managed differently depending on their status. Refer to the table below for the editing and deletion rules for each status.

Managing Draft Purchase Orders

When a purchase order is in Draft status, you can edit its information at any time or delete it when it is no longer needed.

• To edit the purchase order details, click the purchase order in the list to enter the details page. After editing, click Update to save your changes.

  

• To delete the purchase order, open the purchase order details page and click Delete at the bottom of the page.

  

Managing Ordered Purchase Orders

If a purchase order has been marked as Ordered, you can still make adjustments, but it cannot be deleted.

To edit the purchase order details, click the Edit button in the upper-right corner of the purchase order details page. Make the necessary changes, then click Update to save them.

Managing Received Purchase Orders

If some or all of the inventory has been Received, you can still edit the purchase order details, but it cannot be deleted.

To edit the purchase order details, click the Edit button in the upper-right corner of the purchase order details page. Make the necessary changes, then click Update to save them.

Managing Closed Purchase Orders

Closed purchase orders cannot be edited or deleted directly. To continue processing, you can click Options > Reuse purchase order to reopen them.

Exporting Purchase Orders as PDF 

You can download the purchase order as a PDF file for printing or to hand over to your supplier.

Please follow the below steps to proceed: 

1.  Open the purchase order details page.

2. Click on Export PDF from the Options dropdown list.

Receiving and Rejecting Inventory

When you receive products purchased from a supplier, you can record the received quantity in the SHOPLINE Admin. The received quantity will automatically be added to the available inventory of the product, and the incoming inventory will be reduced accordingly.

For example, if you purchase 10 units of a product and mark 5 units as received, these 5 units will be added to the available inventory, and the incoming inventory will decrease to 5.

If you receive damaged products, you can mark them as rejected. The rejected quantity will be deducted from the incoming inventory but will not be added to the available inventory.

Steps to receive or reject inventory:

1. Open the details page of the purchase order, click on Receive inventory

2. Input the details and click Update.

Understanding Purchase Order Costs

SHOPLINE calculates the various costs of a purchase order based on the information you provide for each product, including cost, tax rate, and cost adjustments.

The total for each product represents the amount you will spend to purchase that product. It is calculated as Cost * (1 + Tax Rate) * Purchase Quantity. For example, if you purchase 10 units of a product at $20 each with a tax rate of 30%, the total would be 20 * (1 + 30%) * 10 = $260.

Tax fee represents the total tax amount you need to pay for purchasing all products, calculated by summing up the tax for each product.

Subtotal represents the total cost of purchasing all products, calculated by summing up the total for each product.

Cost adjustment is the detailed list of any additional fees you have added.

The total for the entire purchase order is the sum of all these costs, representing the total amount you will spend to complete the purchase order. It is calculated as Subtotal + Cost Adjustment.

Automatic Purchase Information Recording

When you fill out the information for a purchase order, SHOPLINE automatically records the relevant information about the products purchased from the supplier, including product details, supplier information, supplier SKU, cost, rate, currency, etc. The next time you make a purchase of the same product from the same supplier, SHOPLINE will automatically add this information for you.