Overview
Once the purchase order is approved, it is ready for fulfillment.
All the milestones of the purchase order fulfillment are reflected in its state, regularly calculated by the system. That allows you to track the process through handy states.
At the beginning, prepayment or advance payment, which is a financial condition prior to confirmation, is controlled.
If all financial conditions are met, the vendor sends confirmation to deliver goods on time. Regular communication with the vendor ensures that the goods will be available to date, delivered on time, in full quantity, and so on. All changes in order are timely reflected in the system.
Then, goods and invoices receipt controlling procedures are performed. In case of delays, you can regularly send reminders and notifications to the vendor.
All invoices received are carefully monitored for timely payment.
If there are items in the order that are not relevant for shipment, according to notifications received from the vendor, they should be excluded from the order.
The priority is managed to differentiate business practice with vendors.
As a result, purchase orders are followed up, and their priority is updated.
Video guide
Follow up purchase order progress flowchart
Paths
Path | Purchasing → Purchasing → Purchase orders |
|---|---|
| In-app link EN code |
e1cib/list/Document.PurchaseOrder
|
| In-app link RU code |
e1cib/list/Документ.ЗаказПоставщику
|
How to follow up purchase order fulfillment statuses
1. Go to Purchasing and then click Purchase orders under Purchasing.
2. In the Purchase orders list, open the Current status filter.
- Pending approval. Related to the purchase order before internal approval.
- Pending payment before confirmation. In some cases, the buyer must make an advance payment before the vendor commits to delivery. This term is defined in the payment terms.
- Confirmation is expected. The prepayment or advance payment is fulfilled. The vendor confirms delivery obligations.
- Pending payment before purchase. In some cases, the buyer must make a prepayment to start the shipment process. This term is defined in the payment terms.
- Ready for receipt, and Expecting receipt. All conditions before delivery, including prepayments, are fulfilled. The warehouse employee is informed about expecting goods receipt.
- Pending payment. Goods are received. The invoice is registered, and waiting for payment.
- Fulfilled. The manager must perform the closing procedure for the order.
- Closed. All logistic and financial terms of the order are fulfilled.
How to control prepayments
1. In the Purchase orders list, select the order with Pending payment before confirmation or Pending payment before purchase state, then click Reports → Fulfillment status.
2. In the Fulfillment state report, in the Payment steps column, find the Payment before confirmation or Payment before purchase.
3. Check Payment date.
4. Check Plan, Actual, and Overdue payment figures.
5. Notify the finance manager about overdue payment.
How to control receipt of vendor confirmation
1. In the Purchase orders list, select the order with Confirmation is expected state.
2. Ask vendor to confirm order commitments to deliver goods on time.
How to control delivery of goods and invoices
1. In the Purchase orders list, select the order with Ready for receipt, or Expecting receipt state, then click Reports → Fulfillment state.
2. In the Fulfillment state report, check Goods and Invoices receipt states.
3. Notify the vendor about difficulties with delivery of goods, and invoicing.
How to control invoice payments
1. In the Purchase orders list, select the order with Pending payment state, then click Reports → Fulfillment state.
3. In the Fulfillment state report, in the Payment steps column, find the Payment after shipment, and Payment regardless of shipment.
4. Check Payment date.
5. Check Plan, Actual, and Overdue payment figures.
6. Notify the finance manager about overdue payment.
How to mark obsolete purchase order items
1. In the Purchase orders list, find the order with Ready for receipt, or Expecting receipt state, and with Due date in the past, and open it.
2. In the Purchase order document, click the Goods tab.
3. In the Goods tab, select items, then select the Cancellation reason column and choose the reason the item was cancelled.
4. Post the document.
How to update purchase order priority
1. In the Purchase orders list, open the required document.
2. In the Purchase order document, select the High or Low priority for the order, and Post the document.
3. In the Purchase order list, notice the high and low priority orders highlighted in the list.
4. Use the Priority filter to view orders with the high or low priority.