How to Add and Manage Purchase Orders: Accounting Impact, Editing, Export, and Filtering Options

Adding and Managing Purchase Orders in Qoyod

What is a Purchase Order?

A purchase order is a formal document you issue to your supplier to inform them about the products or services you intend to purchase, along with the agreed quantities and prices. A purchase order is a step that precedes a purchase invoice and does not create any accounting entry when first created. It remains purely a regulatory document until it is converted into a purchase invoice.

Is the Purchase Orders feature available in your plan?

Before you start, make sure you have the permission to create purchase orders and that your plan supports this feature:

• New plans: Available in the Professional and Advanced plans, and not available in the Basic plan

• Legacy plans (discontinued): Available in Premium and Advanced plans, and not available in Plus and Lite plans

If you don’t see the Purchase Orders option in the menu, it means your plan does not support this feature and you will need to upgrade your plan.

Steps to Add a New Purchase Order

Step One: Accessing Purchase Orders. From the sidebar menu, click on Purchases and then select Purchase Orders. At the top of the page you will find a New Purchase Order button, click on it.

Step Two: Fill in the Basic Information. A purchase order creation screen will appear containing the following fields:

• Purchase Order Number: The system assigns it automatically and you can edit it manually, but be aware that you cannot use a reference number that has already been used

• Purchase Order Description: An optional field to add any clarifying description

• Supplier Name: Select the supplier from the list, or add a new supplier by clicking the + sign and filling in its details

• Issue Date: The date of issue of the purchase order

• Payment Terms: Specify payment terms if applicable, and the options that have been previously configured will appear from Settings ← Payment Terms

• Expiration Date: The date on which the purchase order expires

• Location: Select the location (warehouse) where the goods will be received

Step Three: Adding Products. In the product table below the screen, add each product you want to order by filling in the following fields:

• Product: Select the product from the list, and only products that have the purchase property will appear. You can also add a new product directly through the Create Product option that appears in the list

• Description: Appears automatically based on what is entered in the product data and can be edited

• Quantity and Unit: Specify the required quantity and unit of measurement

• Unit Price: The default price set for the product will appear and can be edited if you have permission to modify the price. This permission can be granted or disabled from Settings ← Users ← Manage Roles ← Edit next to the role ← Enable or disable the “Edit Tax and Unit Price” property

• Tax Included?: Specify whether the entered price includes tax or not

• Discount: You can add a discount as a percentage or fixed amount, depending on your permissions. The maximum discount percentage can be controlled from Settings ← Users ← Edit next to the user ← Set the maximum discount percentage

• Tax: Select the type of tax applied, and the tax types previously added to the system will appear from Settings ← Taxes

• Subtotal, Tax Amount, and Total: Read-only fields that are calculated automatically by the system

• The “…” option: To link this row to a project or accounting dimensions

If you want to add more than one product, click Add More to add a new row.

Step Four: Add Terms and Attachments. If there are any terms and conditions or special notes related to this order, add them in the designated field. You can also upload any relevant attachments.

Step Five: Save. You have two options when finished:

• Save as Draft: If you need to review the purchase order or make later modifications

• Save and Approve: To approve the purchase order directly.

Important Clarification: The Difference Between the “Tax Included?” Field and the “Tax %” Field

In the product table within a purchase order, there are two different fields related to tax, and they are often confused:

First Field: “Tax Included?” This field is a checkbox next to the unit price, and it answers only one question: Does the price you entered in the “Unit Price” field actually include tax or not?

• If you enable the checkbox, it means the entered price includes tax, and the system will calculate the tax amount from within this price

• If you leave the checkbox empty, it means the entered price does not include tax, and the system will add the tax amount on top of this price

Illustrative Example: You purchased a product at 100 SAR with a 15% tax:

• If you enter 100 SAR with tax included enabled: The system will calculate that tax = 13.04 SAR, the price before tax = 86.96 SAR, and the total = 100 SAR

• If you enter 100 SAR without tax included enabled: The system will calculate that tax = 15 SAR and the total = 115 SAR

Second Field: “Tax %” This field is a dropdown list that specifies the type of tax applied to this specific product. When you click on it, all tax types that have been previously added to the system will appear through Settings ← Taxes, and typically include:

• Standard VAT S at 15%: For products and services subject to tax at the standard rate

• Zero-rated Tax Z at 0%: For products subject to tax but at a zero percent rate, and are recorded in the tax return under zero-rated sales or purchases

• Tax Exempt E at 0%: For products completely exempt from tax by law, and are recorded in the tax return under the exemptions item

• Not Subject to Tax at 0%: For products that fall completely outside the scope of VAT and are not recorded in the tax return

You can add new tax types at any time through Settings ← Taxes.

Summary of the Difference Between the Two Fields:

• “Tax Included?” ← Specifies whether the entered price includes tax or not
• “Tax %” ← Specifies the type of tax applied to the product and its rate

Purchase Order Statuses

After saving, the purchase order goes through one of the following statuses:

• Draft: The purchase order has been saved without approval and is still editable

• Pending Approval: The purchase order has been created by a user who does not have approval permission, and requires approval from another user who has this permission. Approval is done by clicking Edit next to the purchase order and then clicking Save and Approve

• Approved: The purchase order has been approved and has not yet been converted to a purchase invoice

• Invoiced: The purchase order has been converted to a purchase invoice

• Overdue: The purchase order has exceeded its expiration date without being converted to an invoice

• Cancelled: The purchase order has been cancelled and remains visible in the list with a cancelled status

Available Options for Each Purchase Order

After saving the purchase order, when you go to the purchase orders list you will find a set of options for each order:

• View: To review all the details of the purchase order

• Print: To print the purchase order directly

• Download PDF: To download a PDF copy of the purchase order

• Duplicate: To create a new purchase order with the same data as this order with the option to edit it

• Send Email: To send the purchase order directly to the supplier via email automatically

• Convert to Invoice: To convert the purchase order to a purchase invoice. When you click on this option, a purchase invoice ready with the purchase order data will open, and you can edit the price or quantity before saving

• Cancel: To cancel the purchase order if it has not yet been converted to an invoice. After cancellation, the purchase order remains visible in the list with a “Cancelled” status

• Edit: This option appears only if the purchase order is in draft status

• Delete: To permanently delete the purchase order

Converting a Purchase Order to a Purchase Invoice

As mentioned, a purchase order does not create any accounting entry when first created. To complete and record the accounting transaction in the system, it must be converted to a purchase invoice through the Convert to Invoice option mentioned above. When converting, you can edit the quantity if you received a different quantity than what you requested in the purchase order.

Exporting Purchase Orders to Excel

You can export the list of purchase orders to an Excel file through:

1. Go to Purchases ← Purchase Orders

2. Use the available filter options to get the results you want, which include: Reference number, supplier name or reference number, status (invoiced, approved, pending approval, draft, overdue, cancelled), minimum or maximum order value limit, date, branch, projects, and additional fields

3. Click Search to apply the filter

4. Click Export at the top of the page and the file will be exported according to the specified filter

Important Notes

• A purchase order does not create any accounting entry except after it is converted to a purchase invoice

• A purchase order cannot be edited after approval; editing is only available if it is in draft status

• For more details, you can refer to:
  https://www.qoyod.com/ara/knowledge-base-docs/%d8%a5%d8%b6%d8%a7%d9%81%d8%a9-%d8%a3%d9%85%d8%b1-%d8%b4%d8%b1%d8%a7%d8%a1-%d8%ac%d8%af%d9%8a%d8%af/

Keywords

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