Purchase Orders Key Concepts
Purchase Orders (POs) within Linnworks allows you to log and record what you are ordering in from suppliers to replenish your stock. The Purchase Orders functionality is very flexible and can be used to fully track your supply chain process from start to finish.
Purchase Orders are a way of managing your orders placed with suppliers. Linnworks can keep track of your open purchase orders and update your stock levels when stock is delivered to your warehouse locations. Outstanding purchase order items are tracked until the whole PO has been delivered.
Stages of Purchase Orders
Similar to Warehouse Transfers, there are many stages to the PO life cycle:
- Pending: A pending PO is a draft that is created until the order has been sent to the supplier. While a PO is marked as Pending, anything on the order can be edited
- Open: An open PO is where the order has been finalised and sent to the supplier. While in the Open status, items for the PO can be updated or deleted as well as new Items can be added to the order. Likewise, other details such as shipping details, supplier reference number, location, due quantities and expected delivery date can be updated during this status
- Partial: A partial PO is where some of the order items have been delivered, but there are still outstanding items awaiting delivery. As with OPEN status, changes can be made in PARTIAL status (add/update/delete items, add/deduct Due quantities, locations and shipping details)
- Delivered: A PO can be in the delivered state for multiple reasons:
- All items on the PO have been delivered and booked in
- The status was changed to delivered by using the button. This will not deliver any outstanding items on the order. The stock level will not change as a result of the status being changed. In addition to this, any stock that was expected and showing in open orders as Due will be set to 0
Purchase Order Locations
Purchase Order can only be made to order stock into one of your own warehouse locations, ie NOT a Fulfilment Centre or Amazon FBA. This is due to the requirement that stock for these locations can only be booked in by the receiving Fulfilment Centre or Amazon FBA as they are the ones who unpack the delivery and can confirm both the quantities received and if any items were damaged in transit.
Remember, Location can be edited/changed at any status of the Purchase Order but DELIVERED. In this cases, Due quantities will be deducted from previous location and added to newly changed location.
Order Item Quantity
Purchase orders use two attributes that may alter how many of a particular item are ordered. These are set on the stock item, on the Suppliers tab, but can be imported in bulk using an Inventory Import.
Minimum Order Quantity
This is the minimum number of Individual Order Items that need to be ordered from the supplier. For instance, if 12 order items are required, but the minimum order quantity is 100, the PO will be adjusted to reflect at least the minimum order quantity. However, it should be noted that Pack Size has an impact on how the order quantities are adjusted.
This is the number of order items that are bundled together by the supplier. For instance, if you sell bottles of fruit juice individually, the supplier may only sell them in a pack of 24. With a pack size set, the number of items entered on the PO will adjust to being a multiple of the pack size.
Pack Size / Minimum Quantity Interaction
The number of order items will always be a multiple of pack size that is above the minimum order quantity. For instance:
If you want to order 10 bottles of fruit juice, where the pack size is 24 and the minimum order quantity is 12: the PO will adjust to 24.
If the pack size is set to 0 on the stock item, the default order quantity will be set to the minimum order quantity.