- What is a purchase order?
- How do you enable purchase orders in Zoho books?
- Creating your first purchase order | Edit | Know the terms
- Customizing your PO | Template | Mail
- Importing and Exporting Purchase Orders
In this document, you’ll find all the information you’ll need to get started on Purchase Orders in Zoho Books. Learn what a Purchase Order is, how to create one in Zoho Books and how to send your first Purchase Order to your vendor.
What is a Purchase Order?
A purchase order is an official document that a buyer issues to a seller, indicating relevant information about what they want to buy, the quantity, the price agreed for that particular product or service.
Why issue a Purchase order?
Allows the buyer to clearly and explicitly communicate the requirements to the sellers
Conveying the quantity and agreed price to the seller.
Clear documentation of the process of purchase.
Allows for easier ordering, receipt of product and payment tracking.
Automatic linking of every purchase to your accounts.
To start using Purchase Order in Zoho Books, you need to enable it from your Settings. Please follow the steps below to enable Purchase orders.
Enabling Purchase Order
Sign into Zoho Books
Click on Settings available on the top right corner.
Click on ‘Preferences’ under Settings.
Under ‘General Settings’, click ‘YES’ for Would you like to enable ‘Purchase Order’.
Once done, click on the ‘back’ link found on the top left corner of the page.
You will find ‘Purchase Order’ tab listed on the left navigation bar.
Creating a new Purchase item
Before you proceed to creating a purchase order, you can create an item.
Creating a new account: Create a new Cost of Goods sold(COGS) account in the Chart of accounts tab under settings found in the left bottom corner. The COGS account is necessary to map the item that is purchased, to your accounting books.
Creating a new item: If you would be buying an item on a regular basis, you can create the item as a purchase item and map the same to a COGS account that you already have(If you do not have one, create a new COGS account). You can create it in the items tab under settings, or when creating the purchase order.
Creating your first Purchase Order
- Click on (+) on the ‘Purchase Order’ tab
Enter the vendor name for whom the purchase order is to be raised.
Enter purchase order number. Zoho Books will auto generate the number to keep count and track of your purchase orders. You can also manually add the numbers.
Enter other details like reference number, date of issuing, delivery date and ship via.
Select the item. You can create the item and store it in case you would be purchasing it regularly. Or if it is going to be a one-time purchase or service, you can just mention the item name and proceed.
Map the item to your account, quantity, rate and amount of the item that you wish to purchase from the vendor. You can add multiple items in the same PO, one below the other.
Enter terms and conditions if any. If you wish to use the terms and conditions you enter, in future POs, you can click on the ‘Use this in future’ for it to be automatically used in future POs.
Enter the delivery address along with the contact person’s name if needed.
Also mention any specific delivery instructions you may have.
Check and confirm the above details and click on ‘Save’.
(All the above is possible only once you enable Purchase Order for your account)
Purchase Order Fields Explained
Purchase Order number: The purchase order number will be a unique number which is used to track the purchase order in the future. This will be auto generated but can also be made manual.
Reference number: Reference number is the number from the estimate that the seller issues before you release your purchase order. It can also be used to track the purchase order.
Date: The date on which the PO is issued.
Delivery date: The date by which(or before) the product or service is expected to be received.
Ship via: This can be specified by the buyer to know or through whom they would be receiving the product(Ex: Ship Via: UPS, FedEx, etc)
Item details: Here you enter the item name. It can be anything right from furniture to paper. You can either create the item if it would be purchased regularly or just mention it.
Account tab: The item to be purchased should always be mapped to one of the accounts like Fixed asset, liabilities, expenses etc(Ex: Paper bundles to Printing and Stationery expense account).
Quantity: Mention the quantity of the product required. If it’s bulk packaging, then mention that and mention the quantity per pack below it(Example: 5 Paper bundles, 500 paper pieces per bundle).
Rate: Mention the rate of the product. Rate should always be mentioned Rate per unit.(Ex: Rate for 1 pen even if buying 100 pens)
Amount: The amount is automatically calculated once you enter the quantity and rate.
Terms and conditions: You can mention terms and conditions(T&C) based on the rules that your company follows with respect to purchase(For Ex: 50% payment will be made on the receipt of the goods. 50% will be paid after quality check or after receipt of invoice). If these T&C will be constant for any purchase, then you can add it to all POs by default by clicking the ‘Use this in future’ tab just below it.
Email To: You can select the email address or the contacts that you want to email the purchase order to.
Deliver To: The deliver to address will have one default address that you enter in the beginning when you get set up on Zoho Books. This can be changed when you need the product to be delivered to another address, say, your company’s branch in the other end of the city or to your warehouse, etc. You can always add more when needed.
Contact person: The contact person at the receiving end.
Notes: These can be any notes for the seller (Ex: The contact person will not be available on thursdays, or, we do not work on fridays, etc).
Editing a Purchase order
Click on the Purchase Order tab.
Select the Purchase Order that you wish to edit and click on ‘Edit’ in the specific Purchase Order’s detail page.
In the ‘Edit Purchase Order’ page, edit the fields required.
Click on ‘Save’ after editing the Purchase Order.
Convert Purchase Order to a Bill
Click on the Purchase Order tab.
Select the Purchase Order that you wish convert to a bill.
Click on ‘Convert to Bill’ in the specific Purchase Order detail page.
The purchase order details will be carried forward to the Bill creation page.
Once the fields are entered, you can click on ‘Save’.
Other actions in Purchase Order
You can mark a Purchase Order as Billed. This means that a bill has been raised by you in Zoho Books for the purchase order which you have sent to the vendor.
On the Purchase orders page, you can choose to mark a purchase order as Cancelled if you will not be using the Purchase Order anymore. Once deleted, it cannot be used again. Please note, only ‘Open’ Purchase Order can be cancelled.
Stamp your own style on your orders. You can fashion your purchase orders to suit your requirements, as well as personalize the accompanying mail. Here’s how,
1.Steps to customize your PO Template
Go to Settings – More Settings – Templates – Purchase order templates
Create your own purchase order, or pick our standard template and make your own changes.
2.Steps to customize your PO Mail
Go to Settings – More Settings – Email Templates – Purchase order notification.
Personalize the content and save as default. All the purchase orders you send out will now contain the customized content.
Import and Export your Purchase Orders
Data transfer and mapping is smooth and hassle-free in Zoho books. The new individual import and export features focus on compatablity and ensure error free data translation.There are two ways to import your Purchase Orders,
1. Importing from within the PO section
Data import can be carried out for each entity in Zoho Books including Purchase Orders. To Import purchase orders into Zoho Books,
Go to the Purchase orders tab, where all your orders are listed. Click on the menu button and select the option ‘Import Purchase orders’.
From here you can download a sample file to check the proper format for upload and ensure your PO file matches that format, or directly proceed to upload that file
You also have an option to enable auto generation of PO number for the file you’re about to upload.
Zoho Books will auto match the file headers of the imported file to the closest matching field in Zoho Books. You can manually edit each field too to match the headers, and save these preferences for future use
On proceeding, Zoho Books shows you any unmapped field you may have left out or could not match. You can map these by adding new fields matching the respective headers.
2. General Import and Export
To import and export purchase order, simply go to Settings and select More Settings. On the navigation panel on the left, select the option ‘Import and Export’. Click on the drop down and select ‘Purchase Orders’ and you’re good to go. Remember that Purchase Orders should be imported in CSV or TSV format only, and exported in CSV or XLC format only.