Purchase orders

Creating a purchase order

1. Go to the Purchases menu and choose Create purchase order.

2. Choose the Supplier you're ordering from.

3. (Australia only) If the order will result in a reportable payment, select the option Report to ATO via TPAR. Learn more about Reportable contractor payments.
4. Confirm the Shipping address where you want the order delivered.

5. If necessary, change the Purchase order number. This number is automatically generated, based on the last number used.

   If you change the number, you’ll change the automatic numbering. For example, if you change the number to 000081 , the next time you create a purchase order, the new number will be 000082 .

6. If you have a Supplier invoice number or Promised date from the supplier, enter these.
7. Select whether the amounts in the order are Tax inclusive or Tax exclusive.
8. Click the Field layout icon and select the applicable option based on what you're ordering.
   

9. Enter details of the items and/or services you're ordering.

   If you're ordering an item:

   1. In the Item ID field, click the dropdown to choose an item or search for an item by entering all or part of the Item ID or Supplier item ID. As you type, matching items are shown.

      Entering a new item?

      Click the dropdown arrow in the Item ID column and choose + Create Item. Enter the item details and click Save. Learn more about Creating items.

      

      
      When you choose an item:

      • its Description, Account for tracking purchases, Unit price and Tax code appear automatically, based on what you entered when you created the item (you can edit these details if you want).

      • the total price of the items is calculated automatically in the Amount field.

   2. In the No of units field, enter the quantity to be delivered.

10. If you're paying a deposit on this order, enter it in the Amount paid field near the bottom.

    Deposits on orders

    If you want to apply a payment to a purchase order, you'll need to specify a linked account for tracking supplier deposits (Accounting menu > Manage linked accounts > Purchases tab > I track deposits paid to suppliers).

    Learn more about linked accounts and supplier deposits.

11. Enter any charges for Freight, and if required, and if required, change the right Tax/GST code. If you can't enter Freight, you'll be prompted to specify a linked account for freight. (What is a linked account?)

    The following totals are automatically calculated:

    1. • Subtotal—the total for the items added to the bill

       • Tax—the amount of tax applied to the bill

       • Total—the subtotal amount plus the tax amount

    • • Balance due— the amount owing.
        
        
    Here's our example order with a $100 deposit applied:
    
    
    

12. When you're done, use the buttons across the bottom of the page to choose an action.

    If you want to...	do this...
    Print or save a PDF copy	Click View PDF and choose the template to generate the PDF (currently only invoice templates can be used) then click Export. The order appears as a PDF in a new tab where you can print or save it.
    Email the order	Click Email purchase order, enter or check the details of the email and click Send purchase order. You can change the default purchase order email template by clicking your business name > Purchases settings. Learn more about Purchases settings
    Cancel without saving	Click Cancel.
    Save the order and create a new one	Click Save and... then choose Save and create new. The order is saved and a new, blank order appears.
    Save the order and create a duplicate	Click Save and... then choose Save and duplicate. The order is saved and a new order with the same details and new order number is created.
    Save the order	Click Save.

Once the supplier invoices you for what you've ordered, you can convert the order to a bill as described below.

Applying a deposit to a purchase order

A deposit is a payment for goods or services that you haven't been billed for yet. This means if you make a payment against a purchase order, it's considered a deposit.

Once a purchase order is converted to a bill, you can apply a regular supplier payment.

You can record a deposit when you create the purchase order using the Amount paid ($) field.

To record a deposit after the purchase order is created (and before it's converted to a bill) record it in a similar way to other supplier payments (Purchases > Create supplier payment > select the option Show purchase orders).

You can then record the deposit amount against the applicable purchase order.

Learn all about Supplier deposits.

Finding purchase orders

Go to the Purchases menu and choose Purchase orders. You can filter the list of displayed purchase orders using the filters across the top, then click a purchase order number to view its details.

Finding deposits

If you've applied a payment to a purchase order, before that order is converted to a bill the payment is considered a deposit. You can find your supplier deposits in the same way you'd find any other supplier payment.

Just check the Activity history at the bottom of the purchase order. You can then click the payment ID to see more details.

If you're after a list of deposits you've applied to multiple purchase orders, use Find transactions.

1. From the Banking menu, choose Find transactions.
2. Click the Transactions tab.

3. For the Source Journal, choose Cash Payments.

   Source journals organise your accounting entries and make it easier to find transactions. Cash Payments source journals include things like money paid out, including supplier deposits.

4. If required, use the other filters to narrow down the list. For example, use the Search field to search across any of the displayed columns.
5. Click a transaction's reference number to view its details or edit it.

Learn more about supplier deposits.

Once a supplier invoices you for the goods and services you ordered, you can convert the purchase order into a bill. This saves you from having to re-enter the details of the order in a bill. It also helps you keep track of what you owe the supplier and when the payment is due.

If you use the inventory features in MYOB Business, saving a bill for an inventoried item also automatically updates the item's on-hand quantity.

1. From the Purchases menu, choose Purchase orders.
2. Click the purchase order you want to convert to a bill. If needed, use the filters at the top to help find the order.
3. Click Convert to bill at the top or bottom of the order.
   
   The bill appears with all the details from the purchase order.
4. Make any changes that might be necessary, like adding the supplier's invoice number or due date.
5. If you're making a payment on this bill, enter it in the Amount paid ($) field. Learn more about entering payments made to suppliers.

6. When you're done, use the buttons across the bottom of the page to choose an action.

   If you want to...	do this...
   Print or save a PDF copy	Click View PDF. The bill appears as a PDF in a new tab where you can print or save it. See Previewing and printing bills.
   Cancel without saving	Click Cancel.
   Save the bill and create a new one	Click Save and... then choose Save and create new. The bill is saved and a new, blank bill appears.
   Save the bill and create a duplicate	Click Save and... then choose Save and duplicate. The bill is saved and a new bill with the same details and new bill number is created.
   Save the bill	Click Save.

Saving the bill updates your stock levels

When you save a supplier bill for an inventoried item, MYOB Business automatically updates the on-hand quantity of the item.

For more information about tracking stock levels, see Inventory items and services.

Changing or deleting a purchase order

Need to change or fix something? Open the order and make your changes. You can change anything except the Supplier or the Amount paid value.

If it's easier, you can delete the order and start again.

Who can enter purchase orders?

Any user with the following role or permissions can enter purchase orders:

• Administrator
• Accountant/Bookkeeper 
• Purchases

You can prevent an ordinary MYOB Business file user entering purchase orders by deselecting the Purchases role and permissions:

Find out more about user roles and permissions.

Where do I set my default email text for purchase orders?

Click your business name and choose Purchases settings. Here you can set the default subject and message for your purchase order emails, and choose if you want to include the purchase order number in the email subject. Learn more about Purchases settings.

Why is the ITEM NO column blank on my purchase order PDF?

This is because you need to enter a Supplier item ID in an item listed on the purchase order.

With the release of the new inventory features in MYOB Business, you now get the ability to add a Supplier item ID in the Buying section of your inventory items.

You can use the Supplier item ID to check against supplier bills or to help you to find the item when buying or selling it.

The Supplier item ID also appears in the ITEM NO column of your purchase order PDF (this column previously displayed the Item ID).

How do I change the line account in item purchase orders?

To ensure the right account is used for your item orders, the expense account you've set for the item will be used. If you want to change this account you'll need to do it in the item.

What if I only receive some of the items I ordered?

If you order items but don't receive all of them you can edit the No of units column in the purchase order before converting the purchase order to a bill. If you're expecting to receive the undelivered items, you'll need to create a new purchase order for them (or you could create a bill on the spot for them when they arrive).