Stock Terminology: Purchase Order Terminology


  • PO number
    • This is a unique PO number that Flowlens assigns to each PO.
    • It is not entered by the user and can not be edited either.
    • Every PO gets this number, and is sequential starting from 10000.
  • Supplier
    • This is the company from which the goods/services are to be bought.
    • To be able to raise a PO, a supplier must first be specified.
    • Only the companies created with the type 'Supplier' can be selected to create a PO.
    • Once a supplier is selected, it can not be changed for the PO. If by mistake, a wrong supplier was selected , then the only option is to delete the PO and create another one.
  • Date raised
    • This is the date the PO was created.
    • This cannot be changed or edited on the UI.
  • Currency
    • This is the currency in which the trade will take place.
    • Once a PO is created, its currency can not be changed. If by mistake, wrong currency was selected , then the only option is to delete the PO and create another one.
  • Due date
    • This is the date by which you are expecting the goods to be delivered by the supplier.
    • It is not a compulsory field, however it must be filled in to make the most out of PO reports.
  • Supplier reference
    • This is a free text field to be entered by the user to note if supplier had stated them any specific reference number from their system to identify this purchase.
    • It is not compulsory field and can be used as needed.
  • Buyer
    • This is the user who created the PO.
    • It can be edited and changed to a different user as needed.
  • Carriage terms
    • This is a free text field to specify any transport arrangements that may have been agreed with the supplier.
    • It is not a compulsory field.
  • Carriage cost
    • This is the cost which is agreed for the transport of goods from supplier side to the delivery address.
  • Delivery address
    • This is free text field which denotes the address where you want goods to be delivered.
    • By default set to the company's address but can be edited as needed before finalising the purchase order.
  • Supplier notes
    • This is a free text field to write any specific instructions that need to be given to the supplier for the purchase and delivery of the goods on the purchase order.
    • Displays on the purchase PDF.
    • It is not a compulsory field and can be used as needed.
  • Internal notes
    • These are internal notes that one can write on the purchase order to keep a record to things that are important and related to the purchase order.
    • Any text in this field will not be printed on a purchase order PDF and hence will not be sent to the supplier.
    • It is not a compulsory field and can be used as needed.
  • PO status
    • A purchase order can have the following statuses:
      • In Progress: This is a purchase order in draft status and is open to all edits. This signifies that the purchase order is still being edited and is not sent to the supplier yet.
      • Sent: This is the purchase order which has been sent to the supplier. A purchase order cannot be edited after it has been sent to the supplier. If a purchase order requires editing after being sent, then it must be revised, which will put it back to 'In progress' status.
      • Received: Once a purchase order is fully received, it is given a status of 'Received'.
      • Approved for payment : Status given after all the GRNs on the purchase order have been approved.
  • PO GRN status
    • Apart from a purchase order status, each purchase order also has a GRN status. A purchase order can have the following GRN statuses:
      • None received: If none of the ordered parts/quantities are been received yet.
      • Part Received: If some of the ordered parts/quantities have been received but not all.
      • Fully Received: When all the ordered parts/quantities have been received .

Purchase Order Line

  • Part number
    • Each purchase line item must have a part number.
    • The part search on the purchase order will only allow a user to select parts that can be supplied by the supplier. Part/Supplier relationship must be created on part's page before it can be bought from a supplier.
  • Description
    • The part name of the part selected. It can be edited on the purchase order to include any extra details as needed.
  • Due date
    • Each part on the purchase order might have different lead times. If thats the case, each line will have its own due date.
    • Items received report and Items due report use this date to show you supplier performance.
  • Quantity
    • The quantity of the part being ordered from the supplier.
    • Once a part is selected, if the part had a 'Minimum order level' defined against it, then that is auto-populated into the field.
    • This can be edited and updated as needed.
  • Unit cost
    • The unit cost of the part as defined on the Part/Supplier relationship.

Goods Received Notes (GRN)

  • Delivery reference
    • The delivery reference as contained on the delivery document supplied by the supplier.
    • It is a compulsory field to create a GRN.
  • Date received
    • The date the delivery was made.
    • Auto-populated as the day data is entered, but can be changed.
    • If goods were received in the past, and the 'paperwork' is only now being processed, then users can set the 'Date received' to a past date.
    • The stock movement for the stock received is applied on the day of this date. If this date is entered in the past, then the stock movement will happen in the past, allowing users to retrospectively update stock in Flowlens.
    • It is compulsory for all GRNs to have this date.
  • Received by
    • This is defaulted to the user who is creating the GRN, but can be changed to the correct user as needed.
  • Notes
    • This is a free text field and can be used to record various things at the point of creating the GRN. Some customers use it to record condition of goods delivered, some use it to record the driver/person/company who delivered the goods etc.
  • Part number
    • Each GRN will have all the parts listed in the PO, as any one/all of them can be received on the purchase order. If a part was not ordered via the PO, it cannot be received against it using GRN.
    • These will be already listed when a GRN is created and user is not required to search for these parts.
  • Receiving location
    • This is the part location where the goods were/are stored upon GRN creation.
    • This is defaulted to a part's default location, but can be changed on the GRN if the part is stored in a different location.
  • Quantity ordered
    • This lists the quantity of each line that was ordered on the PO. It is a view only field on GRN and can not be edited here.
  • Quantity received
    • This shows the quantity of the part that has been received till date (i.e. prior to recording the current GRN).
    • It is important to view this field here, and it gives user the idea of how many quantities have been received till now and hence telling them how much is yet to be received.
    • It is a view only field on the GRN and not not be edited.
  • Quantity
    • This is the place where user will enter the quantity of each part that is received in the current GRN.
    • If some parts are not received, then they should be marked as '0' quantity to ensure GRN is correct.
    • Defaulted to Quantity = Quantity Ordered - Quantity Received, and ensures minimum data entry. Prior to saving the GRN, ensure this quantity is correct and reflects the actual amount received.

Approving GRNs

Once a GRN is created, it can be approved on the GRN tab of the PO.

This step should be performed once the supplier has supplied an invoice for the GRN. Approving a GRN allows users to create a Purchase Invoice.

Once a GRN is approved, it cannot be voided.

  • Invoice number
    • This field should be used to record the invoice number on the supplier invoice for the GRN.
  • Invoice date
    • Record the Invoice date as noted on the supplier's invoice.
  • Approved by
    • Defaulted to current user
    • Can be changed by the user if needed.
  • Notes
    • This is a view only field and shows any notes that were recorded while creating a GRN.
  • Approval notes
    • Free text field to record any notes/comments that are useful for the GRN approval.
    • If the supplier invoice had any notes/instructions/comments, they can be recorded here too.
  • Part Number/Description/Quantity Received
    • These are view only fields and show the part, description and quantity received in the GRN.
  • Total cost
    • This is a view only field and shows the total cost that the supplier should have charged per the purchase order.
  • Invoice cost
    • This field should be used to record the invoice cost (EX VAT) that the supplier actually charged for the goods delivered.
    • If there are any differences on the items cost prices between the PO raised and the Invoice sent by supplier, it can be viewed on the PO Cost Variance report in the reports section.

Purchase Order Returns

If any of the goods supplier by the supplier are to be returned, then a purchase order returned can be created on the purchase order. This is done by using the action 'Return Item(s)' on the purchase order actions menu.

Creating a purchase order return will deduct the returned stock from 'Stock on Hand' of the part. Only the quantities/assets received on the purchase order can be returned and not more.

Once a purchase order return is created, no GRN can be voided on the purchase order.

Once a purchase order return is created, it cannot be deleted.

If a purchase order return is created and the purchase order was fully received, its status will still stay at 'Fully Received' and there will be a warning raised on the purchase order that it might not have been fulfilled. This warning can be cleared on the purchase order. Also, any purchase orders with this warning can be filtered on the purchase order index page using the boolean 'Fulfilment needs verified'.

The following fields are required when creating a purchase order return:

  • RMA number
    • RMA stands for : Return Merchandise Authorization (RMA).
    • This is the number supplier should have provided to you before you raise a purchase order return on Flowlens.
  • Reason for return
    • Reason for return should first be defined in settings
  • Return date
    • This is the date the return is created. It is defaulted to current date, but can be changed as needed.
  • Part/Location/Quantity
    • This section lists all the parts and quantities that have been received on the purchase order.
    • Users should first select the parts that they need returning and then update the quantities of the part that they are returning.
  • Asset/Part/Location/Quantity
    • If any of the parts received on the purchase orders were asset-able parts, then assets must have been created on the GRN.
    • This will list all the assets that are received on the purchase order.
    • These assets can be either Pending assets or completed assets.
    • Only assets received on the purchase orders will be listed for the user to select for return.
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