How does the Purchase Ordering System Work?

Creating Purchase Orders on your Suppliers.

Written By Grainne Reidy (Super Administrator)

Updated at September 20th, 2022


The Purchase Ordering System has three modules:

  • Purchase Order Entry
  • Goods Receipts Entry
  • Invoice production

It is or can be, integrated with the Inventory Management system, either fully in the context of quantities management, or partially in the context of non-stocked goods and services. You can also use it in the Approval process.

Items that don’t need a Purchase Order

You don’t need to enter all Orders into the system. You can process small low-value Items such as stationery or refreshments through the Batch Entry facility without the necessity of a preceding Purchase Order. This, however, is a security risk as it bypasses the Ordering process. If this is a concern, you should remove the Batch Invoicing option from your Menus or severely restrict its usage. This means that all Invoices must be processed using the Item Invoices option. 

Using only an Item Invoice

You can still enter Item Invoices for things like Electricity, Water, or Rent without a preceding Purchase Order. However, you can enforce the entry of prior Purchase Orders against selected Suppliers (Vendors). The Invoice will subsequently undergo an Invoice/Order Matching process. If the Invoice exactly matches the Order in respect of all Lines, Quantities, and Prices, then the Invoice is automatically processed without the need for entering it into the system.

Graphical user interface, text, application, email

Description automatically generated

Best Practices

To introduce the strictest possible control over your Purchasing System:

  • Limit access to the Batch Entry facility.
  • Enforce Order Entry against most Suppliers (Vendors).
  • Ensure that only authorised personnel have access to the Supplier (Vendor) Master record maintenance function.


The Purchase Ordering facility has several prerequisites. These include the:

  • Supplier (Vendor) Master table
  • Inventory Master table (Stock or Non-Stock)
  • various Code tables including General Ledger Codes, Taxes and Currencies


Purchase Orders Overview (17.0) - AIQ Academy

Purchase Order Entry - Pre-requisites (17.1) - AIQ Academy

Purchase Order Entry (17.2) - AIQ Academy

Purchase Deliveries (17.3) - AIQ Academy

Purchase Orders /Delivery Queries (17.4) - AIQ Academy

How do I Implement Purchase Approval for Non-Budget Holders?‍ 

How do I Implement Purchase Approval for Budget Holders?‍ 

How does Purchase Batch Invoicing Work?‍ 

How do I use the Client Administration facilities to add Users and Control their Access Permissions? ‍ 


Purchase Order Entry

Step One: Enter a new Purchase Order

Go to Purchases > OrdersNew Order. This opens the Purchase Order screen.

Step two: Complete the Purchase Order Details tab

In the upper section of the screen:

  • Purchase Order No: This is controlled in Company Details and Settings. If auto-numbering is on, then the P.O. Number will auto-generate. Otherwise, supply a unique Order No.
  • Supplier (Vendor): Select from the dropdown provided. This populates the Supplier’s (Vendor’s) details on the Order Header. 




When entering the Supplier Code or Name, if you receive a message, "This Account is over the Assigned Credit Limit of xxxx.xx by xxxx.xx", do not proceed with the Order as you will not be able to save it. Instead, choose another Supplier, or leave the Order, resolve the Credit Limit issue, and return to it later. 


  • Order Date: This defaults to today’s date, but you can change it using the dropdown.
  • External Ref: This is your own reference number to help you keep track of your Orders. It could, for example, be the Supplier’s (Vendors) Inventory Code.
  • Expected Delivery Date: This defaults to today’s date, but you can change it using the dropdown. It defines which Orders are Overdue for delivery.
  • Use ACC VAT (Tax) Code: This indicates that this Rate of VAT (Tax) is for all Lines in this Order instead of the VAT (Tax) Codes associated with the Items. When used it is a default, but you can override it on any line.
  • BI Code: Some Suppliers (Vendors) always deliver to the same part of the Company which they represent with an optional BI Code from the Supplier (Vendor) Master Record. It is not a mandatory entry as you may not want to use Extended Business Analysis, or your Order might use several BI Codes. If a BI Code exists, it will appear on each line of the Order where you can override each individually. However, if you are using Purchase Order approval, then you can only use one BI Code per Order.
  • Supplier (Vendor) Area: This defaults from the Supplier’s (Vendors) Master Record but you can override it here.
  • Requester: This is an optional field. It is the person ordering the goods and will receive them.
  • Supplier (Vendor) Contact: This is the Primary Contact from the Supplier’s (Vendors) Master Record.

In the lower section of the screen:

Click Display Lines Only to hide the Supplier (Vendor) Detail in the upper half of the screen. Click again to restore. 

Similarly, click the arrow icon at the start of each Order Line to display/hide details from the Inventory file for the Product nominated on that Line.

  • Item: This comes from the Inventory Product file. Use the dropdown together with its Description and default GL Posting Code which you can change if required.
  • GL Account Code: This comes from the Supplier’s (Vendors) Master record (if any) and then the GL Account Code from the Product file overrides it. You can override it using the dropdown or by keying in a GL Code.
  • BI Code: If you are using Extended Business Analysis then supply a BI Code. It might come from the Order Header; in which case you can still override it here.
  • Qty: Enter the Quantity of Items required from the Supplier (Vendor).
  • Unit Price: This comes from the Last Cost field on the Inventory Master Record, but you can override it here.
  • VAT (Tax): This either comes from the Order Header (which in turn comes from the Supplier’s (Vendors) Master record) or from the VAT (Tax) Rate associated with this Item on the Inventory file. In both cases, it is a default rate, but you can override it here.
  • Disc. Rate, Disc. Amount: If there is a Discount Percentage on the Supplier’ (Vendor) Record, then this will apply. You can either accept this Rate and Calculation or you can put in a fixed amount in the Disc. Amount field and the system will work out the percentage. 
  • Line Note: You can add a Note to each Order Line.
  • Exchange Rate: If the Supplier is a Foreign Currency Supplier (Vendor) then, at the start of the Order, an Exchange Rate from the Currency table will appear at the lower end of the screen, which you can override if necessary. In this instance, the Order Lines costs will be calculated taking the Exchange Rate into account. The totals for both Currencies (Base and Foreign Currency) appear at the bottom of the Order.

Graphical user interface, application, Word

Description automatically generated

Step three: Complete the Additional Details tab

In this tab, you can modify the Delivery Details inherited from the Supplier’s Master Record such as:

  • Discount: The Discount Percentage which, if you’ve already entered all your Order Lines, will apply retrospectively. 
  • Note Printed on Purchase Order: Here you can also add a Note to appear on the Supplier’s (Vendor's) Order.

Step four: Complete the Notes tab

The Notes tab allows you to add internal Notes to the Order. 

  1. Click Add New Note.
  2. Enter your note.
  3. Click Save

Graphical user interface, text, application

Description automatically generated


How do I Implement Extended Business Analysis?‍ 


Order Status

After saving, the Order will bypass Purchase Approval if:

  • You leave Purchase Approval Enabled unticked in Company Details & Settings.

Graphical user interface, application

Description automatically generated

  • If you tick Exclude from Approval in Supplier Accounts.

If you bypass Purchase Approval, the Order's Status will be:

Reserved: The word Receive will appear in the Receive column in the Orders – Not Yet Delivered grid.


If you use Purchasing Approval:

The Grid will display approval status. In this instance, you will not be able to Receive Orders until the Order is approved.



Viewing and Editing 

Once you reserve an Order, it is saved. You can recall the Order at any time before full delivery to amend and/or re-issue it.

Viewing a Purchase Order

  1. Go to Purchases > Orders and find it in the grid.
  2. If Order delivery is complete and the Order is ready for invoicing, the Receive column will be blank.

Graphical user interface, text, application, email

Description automatically generated

  1. Click the Order No. to open the Purchase Order. 

    If the Receive column was blank all fields will be greyed out meaning you cannot edit them. 

    If they are not greyed out, make any required changes. You can delete Lines, add new lines, change Quantities and Prices, Vat Rates, add Line Notes, and amend GL Codes and BI Codes. Click the arrow or the Item Code dropdown to make any edits. 


  1. Click Save.

Closing, Duplicating, Cancelling, Printing, and Emailing an Order

Closing Orders

You can close an order at any time by opening the order and clicking Close Order. This will update the status of the order to Closed.

Duplicating an Order

You can duplicate or copy an order at any time. The duplicate order can have completely different line details than the original, but you may want just the original header information to remain.

You can also duplicate closed orders even though all the details for the closed order are greyed out (read-only).

  1. Click Duplicate to create a replica order.
  2.  Add a new External Ref. 
  3. Modify it, including adding new Order Lines, as you require.
  4. Click Save. The old Order will remain in the system as it was.
  5. Email the new Revised Order. 


Go to Sales > OrdersActions to Duplicate an order. You can also cancel an order here.

Printing an Order

  1. Go to Purchases > Orders
  2. From the New Order screen, you can, print a PDF Order that you can email to the Supplier (Vendor). 


Receiving Orders

When your Supplier (Vendor) delivers the Goods to your chosen location, you need to Receive the Goods (full or partial). You can process Partial Deliveries. 

  1. Create an Order as described previously.
  2. Process it to the stage of sending it to your Supplier (Vendor). 
  3. Open the Purchase Order and click View Deliveries



Description automatically generated

  1. To Receive these Deliveries, go to the Orders grid and find your order.
  2. Click Receive against the Order No. to open the Purchase Deliveries screen.


  1. In This Delivery, enter the appropriate quantity. To undo the Delivery Quantities, click Reset. To fill in all the Quantities from Outstanding, click Receive All.
  2. Click Save or from the Save dropdown, select Save and Print Order to produce a Goods Receipt Note for your records. 

Invoice Matching

You can now:

  • Wait for further Deliveries.
  • Process Invoice(s) now if your Supplier (Vendor) has forwarded an Invoice for completed Deliveries.
  1. Go to Purchases > Deliveries and find your delivery.
  2. Under Actions, select View Deliveries.

Graphical user interface, text, application, email

Description automatically generated

  1. If several Invoiced Deliveries exist, you can view them by going to Purchases > Item Invoices > Item Invoice.

  1. Click the Item Invoice No. to open the Purchase Invoice.

  1. If the Invoice details do not agree with your Delivery Records, then:
  • If quantities differ, change the Quantity on this Invoice to match your quantities.
  • If there are price differences and you’re willing to accept them, adjust the Unit Price.
  • If there are additional charges against a Line, add a new line with the same Item Code, a quantity of 0.00, and put the extra charge in the Net column. This additional cost will be used in the calculation of the overall Average Cost for the Item.
  • If you receive more than you ordered, then you cannot increase the Quantity here. You must go back to the Order first and increase the quantity there and then deliver it.


In most cases, the delivery and Invoicing process won’t be so complex since the occurrences of partial deliveries won’t be so extreme. Normally, you will use Receive All in the Purchase Deliveries screen. 

  1. Click Save. If the saved Invoice now matches the Delivered Order, then the Order will be fulfilled and disappear from the system. You can Cancel an Order at any time. If there are partial Deliveries in the system, you can still cancel the remainder of the Order.