A purchase order is a step in the procurement process where you order services and goods for direct consumption or replenishment.
Purchase orders can arise from your sales orders. It happens when a customer requests goods that you do not have in stock.
In 1C:Drive, you can place purchase orders as follows:
- Manually create a purchase order.
- Automatically generate multiple purchase orders during your demand planning.
You can use purchase orders to register the following purchases:
- A contract purchase. You register a purchase order with direct reference to a supplier contract. Its billing terms determine purchase order prices and payment terms.
- An off-contract purchase. You a register a purchase order without direct reference to a supplier contract.
Before you register a purchase, do the following:
- Choose between direct purchasing and subcontracting.
- Configure purchase settings.
- Choose purchase order workflow.
For processing purchase orders, use the Purchase orders list where you can:
- View purchase orders
- Monitor purchase order statuses
- Create purchase orders
- Change purchase order statuses
- Post purchase orders
- Close purchase orders
- View purchase transaction records
For purchase order analysis, use purchase order reports.
Direct purchasing and subcontracting
In the procurement workflow, you have the following options:
- Direct purchasing. You buy goods, raw materials, and services for resale or production.
- Subcontracting. You buy goods that a subcontractor produces on their site from your raw materials.
1C:Drive supports both options. In both cases, you create a purchase order and specify an operation type:
- Purchase order for direct purchasing
- Subcontractor order for subcontracting
In case of a subcontractor order, you also specify raw materials that you transfer to a subcontractor.
You can process an order according to your business needs. To learn more, see Purchase order workflows.
Purchase settings
When you plan purchases, you choose between direct purchasing and subcontracting.
If you go for direct purchasing based on a supplier contract, register the contract, specify its billing terms, and enable billing by contracts.
If you go for subcontracting :
- To enable subcontract order processing, go to Settings > Purchases/Warehouse > Other and select the Hand over materials for processing check box.
- To use bills of materials to track materials that you provide to a subcontractor, go to Settings > Production > Other and select the Enable production subsystem check box.
Purchase order workflow
A purchase order workflow can vary. The table below shows common workflow steps, purchase order statuses that match the steps, and the tools that support them in 1C:Drive.
| # | Workflow step | Purchase order status | Tool |
| 1 | Register purchase order | Open | Purchase order |
| 2 | Transfer materials to subcontractor (for subcontracting only) | In progress | Goods issue |
| 3 | Receive goods | In progress | Goods receipt |
| 4 | Register incoming invoice | In progress | Supplier invoice |
| 5 | Make payment | In progress |
|
| 6 | Complete purchase order | Completed | Status selector |
Note. The purchase order workflow can also include the inventory movement step.
For example, you might want to move the received goods from one storage location to another. In this case, you have the following options:
- To move the received goods to another warehouse, register an inventory transfer.
- To move the received goods to another storage bin, register an intra-warehouse transfer.
You can guide your purchases through these steps as your business process requires.
Viewing purchase orders
1C:Drive stores all purchase orders in the Purchase orders list.
To view purchase orders:
- Go to Purchases > Purchases > Purchase orders.
The Purchase order list shows purchase order statuses and other details. The list columns can vary depending on the list settings. By default, the following columns are available:
- Date. A creation date.
- Number. A purchase order ID.
- Supplier. A purchase order supplier.
- Subtotal. The purchase order amount before VAT and discounts.
- Tax. The total VAT amount.
- Total. The total purchase order amount after VAT and discounts.
- Date required. A planned delivery date.
To quickly view supplier details:
- Select a purchase order line and then, under the list, expand Supplier details.
To quickly find certain purchase orders:
- Sort the list by any column by clicking a column header. To change the sorting order, click the header again.
- Filter the list using the fields above the list. You can filter by the following parameters:
- Supplier. A supplier.
- Responsible manager. A manager assigned for processing a purchase order.
- Status. A purchase order status.
- Company. A buyer.
- Relevance. A purchase order relevance:
- Closed. Show only closed purchase orders.
- Except closed. Show all purchase orders except the closed ones.
- All. Show all purchase orders.
To view purchase order details:
- Double-click the purchase order line.
Monitoring purchase order statuses
You can monitor purchase order statuses in the Purchase orders list.
To open it, go to Purchases > Purchases > Purchase orders.
You can track receipt status, payment status, relevance, and lifecycle status. Line colors help you quickly differentiate between overall statuses.
Track purchase order statuses in the following columns:
. Receipt status. Shows progress on a purchase order delivery:
. Fulfilled. You have received all goods and registered the related goods receipts or supplier invoices.
. Partially fulfilled. You have received a part of goods and registered the related goods receipts or supplier invoices.
. Not fulfilled. You have not received the goods yet.
The circle color indicates whether a purchase order delivery meets the schedule:
- Green. On schedule.
- Orange. Due today.
- Red. Overdue.
- Payment status. Shows progress on a purchase order payment:
. Fulfilled. You have paid for all goods and registered the related payment documents (such as bank payments).
. Partially fulfilled. You have paid for a part of goods and registered the related payment documents (such as bank payments).
. Not fulfilled. You have not paid for the goods yet.
The circle color indicates whether a purchase order payment meets the schedule:
- Green. On schedule.
- Orange. Due today.
- Red. Overdue.
. Relevance. Shows whether you have completed processing a purchase order. Orders with a check mark
in the Relevance column require no more actions.- Status. The lifecycle status of a purchase order:
- Open. Indicates that purchase order processing has not started yet.
- In progress. Indicates that purchase order processing is in progress.
- Completed. Indicates that purchase order processing is completed.
Creating purchase orders
You can create a purchase order from scratch or generate it from a sales order or RFQ response or generate multiple purchase orders based on the demand. A generated purchase order includes prefilled details and a link to the source document. This saves your time on data input and ensures traceability of your purchase transaction.
To create a purchase order:
- Do one of the following:
- To create a purchase order from scratch, go to Purchases > Purchases > Purchase orders and click Create.
- To generate a purchase order based on a sales order or RFQ response, open the source document, and select Generate > Purchase order.
- To generate multiple purchase orders based on demand, use the Demand planning or Demand forecasting tool.
- Specify general purchase order details.
- Specify products to buy.
- Specify payment terms.
- Specify additional information.
- Post the purchase order.
Specifying general purchase order details
To specify general purchase order details, fill in the following fields:
| Field | Description |
|---|---|
| Supplier | A supplier name from the Counterparties catalog. |
| Contract | The contract with the supplier that determines purchase terms. When you specify a contract, its terms apply to the purchase order. This fills in:
The field is available if a supplier’s billing details include Contacts. |
| Sales order |
A sales order that the purchase order covers. It automatically fills in when you generate a purchase order from a sales order. This prefills the purchase order details. You can also specify a sales order manually and click |
| RFQ response |
An RFQ response that the purchase order is based on. It automatically fills in when you generate a purchase order from an RFQ response. This prefills purchase order details. You can also specify an RFQ response manually and click |
| Date required |
The expected order delivery date. It affects the purchase order receipt status. This helps you track purchase order delivery. If not delivered in time, the purchase order becomes overdue and the color of its receipt status icon changes. To learn more, see Monitoring purchase order statuses. |
| Operation |
A purchase method. You have the following options:
|
| Company |
A buyer’s name from the Companies catalog. You can select another company if Use multiple businesses accounting option is turned on in Settings > Company > Multiple businesses > Multiple businesses accounting. |
| Warehouse |
A destination warehouse from the Warehouses catalog. You can select another warehouse if Multi-warehouse accounting option is turned on in Settings > Purchases/Warehouse > Warehouse accounting. |
| Prices and currency |
Settings that determine the currency, price type, and VAT tax category that apply to a purchase order. They apply automatically for contact purchases when you select a supplier contact. |
to import its details.
to import its details.Specifying products to buy
When you place a purchase order, you specify products to buy. In 1C:Drive, you can do it:
- Automatically
- Manually
- Using the product selection tool
Specifying products automatically
You can add products automatically if your purchase order is based on a sales order or an RFQ response.
To add products automatically, do one of the following:
- Generate a purchase order from the source document.
- In a purchase order, specify the target document and click
.
Products appear on the Products tab. The product list varies depending on the source. The following table describes product list sources and the product list items matching them:
| Product list source | Product list items |
| Sales order | Products of Inventory type. |
| RFQ response | Products of Inventory and Service types. |
You can edit the product list. To learn more, see Managing products.
Specifying products manually
To specify products manually:
- In a purchase order, on the Products tab, click Add.
- Add the products. To learn more, see Managing products.
Specifying products with product selection tool
The product selection tool helps you quickly find products and put them on the list. Then you can easily add the entire list to a purchase order.
To open the product selection tool :
- In a purchase order, on the Products tab, click Select.
To learn more, see Selecting products for sales and purchase documents.
Managing products
You can manage products in a purchase order as follows:
- To add a product, click Add and specify its details.
- To recalculate prices, modify the Prices and currency settings.
- To delete a product, right-click and select Delete.
- To specify product details, enter or select the following:
| Field | Description |
|---|---|
| Product | A product description from the Products catalog. |
| Variant | An option to differentiate between product characteristics, such as color or size. Select a variant from the Product variants list. |
| Quantity | The number of product items. |
| Unit | A unit of measure that automatically comes from:
|
| Price | A product price that automatically fills in from:
You can change it manually or recalculate it using Prices and currency settings. |
| VAT rate | A VAT rate for VAT accumulation. It automatically fills in from:
You can change it manually or use Prices and currency settings. It is available if a buyer’s company is registered for VAT. Its values are available if added to the VAT rates catalog. |
Specifying raw materials for subcontractors
If you go for subcontracting, you provide your raw materials to subcontractors. In 1C:Drive, you specify and reserve raw materials using a purchase order.
To specify raw materials, do one of the following:
- Use the automatic option
- Add materials manually
The automatic option is available if Enable Production subsystem is selected. To use the option:
- In a purchase order, in the Operation field, select Subcontractor order.
- Select the Raw materials supplied tab.
- Click Fill in with BOM.
This adds materials from bills of materials available for the products listed on the Goods tab of your purchase order.
To add raw materials manually:
- In a purchase order, in the Operation field, select Subcontractor order.
- Select the Raw materials supplied tab.
- Click Add.
- Enter or select the following:
| Field | Description |
|---|---|
| Product | A product description from the Products catalog. |
| Variant | An option that allows to differentiate between product characteristics, such as color or size. Select a variant from the Product variants list. |
| Quantity | The number of product items. |
| Unit | A unit of measure that automatically comes from a product card. If a product comes in various units, you can select another unit manually. |
| Shipment date | It helps you track your deadlines on raw materials supply to subcontractors. You can view the Inventory flow calendar to monitor your needs in materials by date. |
| GL accounts | The general ledger account that accumulates the raw materials cost. It automatically comes from a Product GL accounts settings. You can select another account manually. |
To ensure that the specified materials are available when needed, select Reservation > Allocate. If t he material is in stock, the reserved quantity appears in the Reserved column. If available stock is less than required, the available quantity is reserved.
To check whether materials are available, use the product selection tool.
Specifying payment terms
Payment is an intrinsic part of purchasing. To ensure timely payment and accurate cash flow, you need to specify the payment terms when you place a purchase order. In 1C:Drive, you can do it automatically or manually.
The automatic option is available for contract purchases if you enable billing by contracts and set billing terms for a supplier. When you specify the supplier contract in a purchase order, its prices and payment terms apply. You can change them manually.
To specify the payment terms manually:
- Set purchase order status to In progress.
- Select the Payment terms tab.
- Select the Set payment terms check box.
- Do one of the following:
- To set a single payment, select Single and specify the payment method and bank account.
- To set a payment by installments, select Installments and specify the payment method, account, and installment details.
Specifying additional information
When you place a purchase order, you might need to specify supporting information. In 1C:Drive, you can do it as follows:
- In a purchase order, select the Additional information tab.
- Enter or select the following.
| Field | Description |
|---|---|
| Department | A department responsible for processing a purchase order. |
|
External document # |
The ID of an external supporting document. You can use it for reference. For example, in the event of annual audits. |
| dated | The date of an external supporting document. |
| Responsible person | A person responsible for purchase order processing. You can specify it to filter the Purchase orders list and quickly find a purchase order. |
To add custom fields, select More actions > Change set of additional attributes, click Create, and add attributes according to your needs. The fields appear on the Additional info information tab.
Changing purchase order statuses
As you process a purchase order, change its lifecycle status according to your workflow step.
You can track purchase orders by status. To learn more, see Monitoring purchase order statuses.
Purchase order workflows can vary depending on your business needs. To learn more, see Purchase order workflows.
When you register a purchase order, its lifecycle is automatically set to Open. Then you can change the status as your workflow requires. In 1C:Drive, you have the following options:
| Conditions | Action |
|---|---|
| You start purchase order processing. | Set In progress status. |
| You have received the ordered goods and paid for them. | Set Completed status. |
To change purchase order status:
- Go to Purchases > Purchases > Purchase orders.
- In the Purchase orders list, double-click a purchase order.
- On the Main tab, in the Status field, select a status.
- Click Save.
Posting purchase orders
To record the purchase cost and track accounts payable and inventory flow, post a purchase order. You can do it at any step a purchase order workflow except when its status is Open.
To post a purchase order:
- Go to Purchase > Purchases > Purchase orders.
- In the Purchase orders list, do one of the following:
- Double-click a purchase order
- Right-click a purchase order
- Click Post and close.
As a result, 1C:Drive registers the purchase transaction. You can track its records.
Closing purchase orders
If a purchase order is no longer relevant, you stop its processing. In 1C:Drive, you can do this at any workflow step.
To close a purchase order:
- Go to Purchases > Purchases > Purchase orders.
- In the Purchase orders list, select a purchase order.
You can select multiple orders while holding down Ctrl or Shift. - Click Close orders.
This cancels all not completed operations related to the purchase order. For example, it can cancel payment liabilities and expected inventory delivery.
In the Purchase orders list, the Relevance column shows a check mark 
for closed purchase orders.
Viewing purchase transaction records
When you post a purchase order, you register a purchase transaction. You can track the transaction records in the Document register records.
To view the records:
- Go to Purchases > Purchases > Purchase orders.
- In the Purchase orders list, select a purchase order.
- Click
.
Viewing purchase order reports
1C:Drive provides a variety of reports for purchase order analysis. They include:
| Report | Description | How to view |
|---|---|---|
| Order analysis | Shows the payment status of the purchase order including amounts paid and due. |
|
| Statement of account | Shows your company’s payables and receivables by supplier within the specified period. | |
| Inventory flow calendar | Shows your planned goods receipts and shipments. |
|
| Purchase order overview | Shows purchase order status in terms of receipt and payment. | |
| Purchase order statement | Shows ordered, received, and expected goods by suppliers. |