Purchasing & Payables

The Purchasing & Payables module manages the full procurement lifecycle — from identifying resource requirements through issuing purchase orders, receiving goods, matching invoices, and posting payments. Every financial step automatically generates double-entry General Ledger entries, keeping your books current without manual journal work.

Module Overview

1. Purchasing & Payables — page title and module entry point
2. Resource Requirements tab — track what each project needs before creating a PO
3. Purchase Orders tab — the main PO workflow hub
4. Inventory tab — on-hand stock levels for received items
5. GL Journal tab — all auto-posted journal entries
6. Inventory Ledger tab — every inventory movement in/out
7. Payments Ledger tab — full vendor payment history
8. Change Log tab — complete audit trail

Workflow Lifecycle

A purchase order moves through the following statuses. Each transition requires a deliberate action — nothing advances automatically.

Step 1 — Review Resource Requirements

1. Column headers — Project, Item, Description, Quantity Needed, Required By, Status
2. Resource Requirement row — one row per material or labor request from a project
3. Create Purchase Order button — creates a PO from selected requirements (see below)

Before creating a purchase order, project managers flag what they need through the Resource Requirements tab. Each row represents a request from a specific project for a material or labor item.

What to look for:

• Project — which project needs the item
• Item / Description — what is being requested
• Quantity Needed — how much is required
• Required By — deadline for the materials to arrive
• Status — whether the request is pending, in-progress, or fulfilled

Shortcut: Create a PO directly from Resource Requirements

You can select one or more requirement rows and click Create Purchase Order to auto-populate the PO line items — no manual data entry needed.

Important: A purchase order can only be issued to a single vendor. If your selected requirements span multiple vendors, you will need to create a separate PO for each vendor.

How to use it:

1. Check the checkbox on each requirement row you want to include
2. Click Create Purchase Order in the toolbar
3. The new PO panel opens with line items pre-filled from your selections
4. Choose the vendor, confirm the order date, and save

Step 2 — Create a Purchase Order Manually

1. Vendor Search — type to search and select the vendor (must exist in the Vendors list)
2. Order Date — the date the PO is issued
3. Browse Catalog — select items from your product/service catalog
4. Create PO / Save — saves the PO in Draft status

If you are not starting from Resource Requirements, switch to the Purchase Orders tab and click + New Purchase Order. A slide-out panel opens on the right.

Header fields:

Line items:

Click + Add Line (or Browse Catalog) to add items. For each line enter:

• Item / Description — what you are ordering
• Quantity — how many units
• Unit of Measure — e.g. EA, HR, LB
• Unit Price — cost per unit
• GL Account — the expense account this line charges

The Subtotal, Tax, and Total fields calculate automatically.

Click Save to create the PO in Draft status.

Step 3 — Review and Approve the PO

1. Column headers — PO #, Invoice #, Type, Vendor #, Vendor, and more
2. Purchase order rows — each row is one PO; click the PO # to open the detail view
3. Purchase order rows — rows 2 and 3 shown; use column filters to narrow by status, vendor, or date

After saving, the new PO appears in the Purchase Orders grid in Draft status.

To act on a PO, check the checkbox on the left of the row. A toolbar appears at the top of the grid with actions available for that status.

1. Edit — modify the PO (only available in Draft status)
2. Approve — submit the PO for internal approval
3. Selected count badge — shows how many POs are currently selected

Click Approve to advance the PO.

1. Approve confirmation dialog — summary of the PO being approved
2. Confirm Approve — click to finalize; status changes to Approved
3. Cancel — dismiss without approving

Note: Only users with the Approve Purchase Order permission can perform this step. If you do not see the Approve button, contact your system administrator.

Step 4 — Send the PO to the Vendor

Once approved, the toolbar updates.

1. Send to Vendor — transmits the PO and changes status to Sent
2. Void — cancels the PO (available on approved POs)

Click Send to mark the PO as sent. The PO status changes to Sent.

Preview the PO as a PDF:

With any PO selected, click Preview / Print in the toolbar to open a formatted view of the purchase order.

1. PO preview — formatted purchase order exactly as the vendor receives it, including line items and totals

Use the print icon to send to a printer or save as PDF.

Step 5 — Receive the Goods

When goods arrive at the job site or warehouse, record the receipt in the system.

Select the PO (must be in Sent status) and click Receive in the toolbar. A receipt form opens where you enter:

• Receipt Date — date goods were physically received
• Received Quantity — per line item (can be partial)
• Condition Notes — any damage or discrepancy observations

Click Save Receipt to record. If all quantities are fully received, the PO advances to Received. If only some items arrived, it becomes Partially Received and remains open for subsequent receipts.

GL impact: When a receipt is saved, the system debits the Inventory or WIP account and credits Goods Received Not Invoiced (GRNI). This records the liability before the invoice arrives.

Step 6 — Match the Vendor Invoice

When the vendor's invoice arrives, switch to the Vendor Bills tab.

Click + New Vendor Bill and select the vendor. The system automatically suggests open PO receipts that can be matched. Review each line and confirm quantities and prices match the paper invoice.

Click Save to create the vendor bill. If the invoiced amounts match the receipted PO, the PO status advances to Invoiced.

GL impact: The GRNI liability is cleared, the Accounts Payable account is credited, and the expense account on each PO line is debited.

Step 7 — Approve the Payment

With the vendor bill saved, return to Purchase Orders or go to the Payments tab. Select the invoiced PO and click Approve Payment.

A payment summary appears showing:

• Vendor name and bank details
• Invoice number and amount due
• Payment method (Check, ACH, Wire)
• Scheduled payment date

Review and click Approve. The PO status advances to Payment Approved.

Step 8 — Post the Payment

From the Payments tab, select the payment and click Post Payment. Enter or confirm:

• Payment Date
• Bank Account (the account funds are drawn from)
• Reference / Check Number

Click Post to finalize. The PO status becomes Paid.

GL impact: Accounts Payable is debited and the Bank account is credited, closing the liability.

Step 9 — Review Reference Tabs

After a PO reaches Paid status, the following tabs provide a complete audit trail.

Inventory

1. Item grid — current on-hand quantities, unit cost, and project or warehouse location
2. Stock totals — updated in real time as receipts are posted

GL Journal

1. Journal entry rows — debit account, credit account, amount, and originating transaction
2. Entry details — date, reference, and the PO or payment that triggered each posting

Every receipt, invoice match, and payment automatically posts a double-entry journal entry here.

Inventory Ledger

1. Movement rows — every in/out transaction linked back to the originating PO or work order

Payments Ledger

1. Payment rows — vendor, amount, payment date, and check/ACH reference
2. Running balance — use to reconcile vendor statements

Change Log

1. Audit entries — timestamp, user, and description of every status change, edit, and approval

This log is non-editable and provides a full compliance audit trail.

Common Questions

Can I edit a PO after it has been approved? No. Once a PO is approved, the line items are locked. To make changes, void the PO and create a new one. Only Draft POs can be edited.

Can I select resource requirements from multiple vendors in one PO? No. A PO must always be issued to a single vendor. If your selected requirements include items from different vendors, create a separate PO for each vendor.

What happens if I receive more than the ordered quantity? The system will flag an over-receipt warning. You can accept the overage (it will be noted in the receipt record) or reject the excess and arrange a return with the vendor.

Can I partially pay a vendor invoice? Yes. When approving payment, you can enter a partial amount. The PO will remain in Payment Approved status until the full invoiced amount has been posted.

What if the vendor invoice price differs from the PO price? The variance is captured in the Purchase Price Variance tab. Your finance team can review and decide whether to accept the variance (updating the expense) or dispute the invoice with the vendor.

How do I void a PO that has already been received? Voiding a received PO requires reversing the receipt first. Contact your system administrator if you need to reverse a receipt, as it involves GL reversals.

Where do I see all payments made to a specific vendor? Use the Payments Ledger tab and filter by vendor name. You can also go to the Vendor record directly and view payment history there.