Linnworks Order Management - Working with Purchase orders in Linnworks Order Management

Working with Purchase orders in Linnworks Order Management

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Purchase Order
Open Purchases and Purchase Order...
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Overview

The accounting module in the Linnworks Order Management is designed to cover fundamental parts of the business processes, these are Purchasing, Sales, Orders and Expenses. This processes fundamentally related to order management and inventory control therefore the system provides functionality for keeping simplistic accounting records in one package, however does not intend to replace dedicated accounting packages. This guide addresses the purpose of certain functionality in the accounting module and describes how to work with the system.

Purchase Order

Purchase order ledger lets you keep track of all your stock purchases. It is used in conjunction with the stock control to maintain stock levels of the goods you purchase and stock. Purchase order creates new stock items in the system whenever it is marked as delivered and complete. You can also keep track of the returns to the supplier and supplier lead time.

In relation with the manufacturing module the purchase order is also used to populate stock of your raw materials which will be consumed during the production of certain goods.

To create new purchase order go to Accounting > New Purchase.

Purchase date – is when the purchase order has been put in place (send to the supplier)

Delivery date – expected delivery date for the order

Supplier – supplier

Deliver to location – geographical location where the order will be delivered to. When order is marked as Delivered, stock levels will be updated in this location.

Invoice number – invoice reference number (either your own PO number or supplier’s order id)

Postage cost – shipping and packaging costs for the order

VAT – value added tax as stated by the supplier when the order is placed

Total Cost – total amount to be paid (this may differ from total value of items + postage cost).

Purchase item grid lists all stock items in this purchase order. Cost line is the total cost of all items in the line.

Status of the order item specifies how many items have been delievered (in case of partial delivery) and how many have been returned to the supplier.
Please note Postage Cost, VAT and Total Cost are free entry fields. These fields not being calculated automatically, rather it lets you enter free values to allow for any additional costs incurred in raising the purchase order.

Each purchase order goes through a cycle of status. When it is raised with the supplier it is normally open until the supplier receives and clears the funds. The supplier may deliver the order in parts. You have an ability to mark the purchase order as partially delivered (only certain items arrived). And when the purchase order is delivered in full it will be marked as delivered.

To mark the purchase order as partially delivered, select the status option from the drop down box. You will see button above the purchase item grid. Select the item you want to identify as partially delivered and click Partial Delivery button.

Once you have marked items as partially delivered, you cannot change them back to undelivered.

Open Purchases and Purchase Order Ledge

If the purchase order is in the Open or Partial Delivery state it will be placed in Open Purchases section. Go to Accounting > Open Purchases

Here you can search outstanding purchase order, edit them from this screen and mark as Delivered directly from this screen.

Once the purchase order is marked as delivered or all of its purchase order items have been delivered, the record will be placed in Purchase Order Ledger. Go to Accounting > Purchase Ledger.

Partial Return

Purchase order items can be returned to the supplier. The system allows you to keep track of the returns and discard necessary quantity of items from the stock levels. To return items select the purchase order from Purchase Ledger list and click Partial Return from the toolbar.

Enter the quantity of purchase order items to be returned and the reason for return for your own reference. Then click Return button.

You can view all returned items for the purchase order by double clicking on the particular purchase order in the purchase ledger screen.