Purchase orders

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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 register a purchase order without direct reference to a supplier contract.

Before you register a purchase, do the following:

• 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.

Purchase settings

Do the following depending on your business needs:

• If you want to register purchases based on a supplier contract, register the contract, specify its billing details, and in the AR/AP details of the supplier card, select the Contracts checkbox.
• If you want you purchase a new product, add the product to the Products catalog.

Note. In the earlier 1C:Drive versions, purchase orders included the Operation field with the Subcontracting option. This was required to register purchase orders for goods produced by subcontractors. This still applies if the Engage subcontractors checkbox is available and selected in Settings > Production > Subcontracting. But now 1C:Drive supports an enhanced subcontracting feature. We recommend that you use it. To do this, clear the Engage subcontractors checkbox. Then go to Settings > Purchases / Warehouse > Subcontracting and select the Receive subcontracting services checkbox.

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	Receive goods	In progress	Goods receipt
3	Register incoming invoice	In progress	Supplier invoice
4	Make payment	In progress	Bank payment Cash voucher
5	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:

• . Receipt status. Shows progress on a purchase order delivery. For details, see Monitoring purchase order statuses.
• . Payment status. Shows progress on a purchase order payment. For details, see Monitoring purchase order statuses.
• . Relevance. Shows whether you have completed processing a purchase order. Orders with a check mark in the Relevance column require no more actions.
• Date. A creation date.
• Number. A purchase order ID.
• Lifecycle status. Indicates a purchase order processing step. For details, see Monitoring purchase order statuses.
• Supplier. A purchase order supplier.
• Amount excl. tax. 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 for a purchase order.
  • Responsible person. A manager assigned for processing a purchase order.
  • Lifecycle status. A purchase order processing step.
  • 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 in full. You have received all goods and registered the related goods receipts or supplier invoices.
  • . Fulfilled in part. 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 in full. You have paid for all goods and registered the related payment documents (such as bank payments).
  • . Fulfilled in part. 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.
• Lifecycle status. Indicates a purchase order processing step:
  • 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:

1. 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.
2. Specify general purchase order details.
3. Specify products to buy.
4. Specify payment terms.
5. Specify additional information.
6. Post the purchase order.

Specifying general purchase order details

To specify general purchase order details, fill in the following fields:

Field
Lifecycle status	The purchase order processing step.
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: Prices and currency Tax Payment terms The field is available when billing by contracts applies to the supplier (the Contracts checkbox is selected in the AR/AP details of the supplier's card).
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  to import its details.
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. The field is available if the Date required field position is set to In header in the document settings (More actions > Settings).
Number	The purchase order ID. It is automatically generated when you post the purchase order. You can edit it. You can find purchase orders by ID in the Purchase orders list.
Date	The purchase order date. It is automatically filled in when you post the purchase order. You can edit it.
VAT ID	Your company’s VAT identification number. This field is available if both of the following conditions are met: Your company’s accounting policy states that the company is registered for VAT. Multiple active VAT IDs are specified on the company's card.
Company	A buyer’s name from the Companies catalog. You can select another company if the Manage multiple companies checkbox is selected in Settings > Company.
Warehouse	A destination warehouse from the Warehouses catalog. You can select another warehouse if Multi-warehouse accounting option is selected 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 contract purchases when you select a supplier contract.

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:

1. In a purchase order, on the Products tab, click Add.
2. 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.
Batch	A product's batch description. It is used for tracking the product by batches. The field is available if the Inventory accounting by batches checkbox is selected in Settings > Purchases/Warehouse. The field can be required or optional depending on the product's batch tracking policy.
Quantity	The number of product items.
Unit	A unit of measure that automatically comes from: A product card for off-contract purchases. A supplier contract for contract purchases. It affects a product price. If a product comes in various units, you can select another unit manually. This recalculates the product price according the conversion rate that you set when you add product units.
Price	A product price that automatically fills in from: The product counterparty prices for off-contract purchases. The source document for off-contract purchases based on a sales order or RFQ response. A supplier contract for contract purchases. You can change it manually or recalculate it using Prices and currency settings.
Discount	A discount percent and amount. To learn more about discounts, see Discounts. The discount amount is in the purchase order currency (specified in the Document field of the Prices and currency settings).
Amount	The amount of money to be paid for a product. The amount is after the discount. It is in the purchase order currency (specified in the Document field of the Prices and currency settings).
Tax	A VAT rate and amount for VAT accumulation. It automatically fills in from: The product accounting details for off-contract purchases. The source document for off-contract purchases based on a sales order or RFQ response. The VAT amount is in the purchase order currency (specified in the Document field of the Prices and currency settings). You can change the VAT rate manually or set a VAT category in the Prices and currency settings. The VAT category determines the VAT rate. The VAT rates list is based on the VAT rates catalog. This field is available if a buyer’s company is registered for VAT.
Total	The total purchase order amount after VAT and discounts.
Reserve for	A sales order or work order that you reserve the purchased product for. For instance, you might need to buy and reserve a material required for completing a certain work order. This material will be unavailable for dispatching under other work orders, sales orders, or inventory transfers.
Date required	The expected product delivery date. It affects the purchase order receipt status. This helps you track purchase order delivery. If products are 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. The field is available if the Date required field position is set to In tabular section in the document settings (More actions > Settings).

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:

1. Set purchase order status to In progress.
2. Select the Payment terms tab.
3. Select the Set payment terms checkbox.
4. Do one of the following:
   • To set a single payment, select Once-off payment 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:

1. In a purchase order, select the Additional information tab.
2. 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 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:

1. Go to Purchases > Purchases > Purchase orders.
2. In the Purchase orders list, double-click a purchase order.
3. On the Main tab, in the Lifecycle status field, select a status.
4. Click Save.

To learn more about lifecycle statuses, see Lifecycle statuses in orders.

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:

1. Go to Purchase > Purchases > Purchase orders.
2. In the Purchase orders list, do one of the following:
   • Double-click a purchase order
   • Right-click a purchase order
3. 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:

1. Go to Purchases > Purchases > Purchase orders.
2. In the Purchase orders list, select a purchase order.
    You can select multiple orders while holding down Ctrl or Shift.
3. 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:

1. Go to Purchases > Purchases > Purchase orders.
2. In the Purchase orders list, select a purchase order.
3. Click .

Viewing purchase order reports

1C:Drive provides a variety of reports for purchase order analysis. They include:

Description	How to view
Order analysis	Shows the payment status of the purchase order including amounts paid and due.	Go to Purchases > Purchase orders. In the Purchase orders list, double-click a purchase order. At the top of the purchase order, click the report link.
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.	Go to Purchases. Under Reports, click the report link.
Purchase order overview	Shows purchase order status in terms of receipt and payment.
Purchase order statement	Shows ordered, received, and expected goods by suppliers.

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