Create a purchase order

A Purchase Order is your confirmed order to a supplier. It records what you will receive, at what price and by when. It does not change stock or accounts until goods are received and billed.

Before you start

• The supplier and items exist.
• A submitted Material Request or Supplier Quotation, if your company uses them. Creating from them saves typing.

Create from a material request or supplier quotation

1. Open the submitted Material Request (or Supplier Quotation).
2. Click Create > Purchase Order.
3. Choose the Supplier if it is not filled in.
4. Check the items, quantities and rates. Then continue from step 5 below.

Create directly

1. Go to Buying > Purchase Order and click + Add Purchase Order.
2. Choose the Supplier, for example "Example Grain Supplier PLC".
3. Set Required By, for example 2026-10-25.
4. In Items, add each Item Code, Quantity and Rate. Example: "Corn grits", 2,500 Kg at 40 ETB per Kg = 100,000 ETB.
5. Check the Set Target Warehouse, for example "Raw Materials - EF".
6. In Taxes and Charges, choose the Purchase Taxes and Charges Template, for example "VAT 15%". Your OLY ERP consultant sets this up during onboarding. In the example, VAT is 15,000 ETB and the Grand Total is 115,000 ETB.
7. Check the Payment Schedule, which comes from the supplier's payment terms.
8. Click Save, then Submit.
9. Click Print or email the order to the supplier.

What happens next

From the submitted purchase order, use Create:

• Create > Purchase Receipt when the goods arrive.
• Create > Purchase Invoice when the supplier's invoice arrives.
• Create > Payment if you pay in advance.

The status shows progress: To Receive and Bill, To Bill, To Receive or Completed.

Good to know

• Your company may need a manager to approve purchase orders above an amount. Your consultant sets up any approval steps.
• To change a submitted order, use Update Items if your role allows it, or Cancel and Amend.
• If the supplier cannot deliver the rest, click Close so the remaining quantity is no longer pending.
• The price on the order carries to the receipt and invoice. Check it against the supplier's offer before you submit.

Related

• Request materials (material request)
• Receive goods (purchase receipt)
• Record a supplier invoice (with VAT and withholding)