How to Create a New Purchase Order?

Purchase Order Creation

Purpose

This guide provides a detailed, step-by-step walkthrough for creating a Purchase Order (PO) within Contractor Foreman.

A Purchase Order is a legally binding document issued by a buyer (your company) to a seller (vendor/supplier), detailing the specific goods or services you are authorizing for purchase. It includes pricing, quantity, delivery expectations, and terms, serving as a critical communication and accountability tool in the procurement process.

This documentation is tailored for:

• Project Managers
• Office Administrators
• Site Supervisors
• Purchasing/Procurement Team Members

Anyone responsible for ordering, tracking, or receiving materials, equipment, or subcontracted labor can benefit from understanding this workflow.

Background

Contractor Foreman offers a centralized and efficient way to manage Purchase Orders. Whether you’re in the office generating a bulk materials order or in the field ordering last-minute supplies, the PO module helps track every detail in real-time.

Key capabilities include:

• Project-Centric Tracking: Every PO is tied directly to a project, ensuring clean job cost allocation and reporting.
• Status Management: Track POs from draft to approval, fulfillment, and payment.
• Search & Filters: Sort and view POs by vendor, project, approval status, and custom fields.
• Security & Permissions: Role-based access ensures only authorized personnel can edit, delete, or approve POs.
• Field-Ready: Mobile-friendly interface allows for quick entry, file uploads, and updates from a tablet or phone.

Important Notes & Guidelines

To ensure a smooth experience when creating or managing Purchase Orders, keep the following in mind:

• Required Fields: Any field marked with an asterisk (*) must be filled in before the PO can be submitted.
• Deletion Rights: Only users with Admin rights or explicit permission can delete Purchase Orders or individual line items.
• Deleting a PO: Scroll to the bottom-right of the PO form and select “Action > Delete” to remove a PO permanently.

Accessing the Purchase Order Module

To begin the creation process, navigate as follows:

1. Open the Main Menu (☰ icon in the top-left).

2. Scroll to and select “Purchase Orders.”

3. You’ll be directed to the Purchase Order Dashboard, which displays existing POs by project, supplier, date, or status.
4. On the left-hand panel, click the blue “Create a New Purchase Order” button to begin a new entry.

Filling Out the Purchase Order Form

Once the new PO form opens, fill in the fields as described below. Each section has a direct impact on budgeting, reporting, or logistics.

Project (Required)

• Choose the project this PO is associated with from the dropdown.
• This ensures all costs and materials are logged under the correct job, affecting job costing, budget tracking, and reports.

Type (Required)

• Choose between:
  • Purchase Order: Used for direct vendor orders.
  • Pricing Request: Used when you want to gather quotes from multiple vendors before awarding a PO.

Subject (Required)

• Enter a short, descriptive title (e.g., “Roofing Materials – Lot 12” or “HVAC Ductwork – Phase 2”).
• This helps identify the PO at a glance across dashboards and reports.

From

• Select the person or department issuing the PO.
• Often defaults to your company but may vary in joint ventures or divisions.

Supplier (Required)

• Select a vendor from your approved list.
• If the supplier isn’t listed, add them first via the Vendor Directory to avoid delays.

Billing Status / Terms

• Billing Status: Use this field to track whether the PO is in Draft, Approved, Pending Payment, or Paid status.
• Payment Terms: Choose the agreed-upon terms such as Net 15, Net 30, or Due on Receipt. This defines when payment is expected.

Billable

• Select whether the Purchase Order is billable

Ship To

• Select where the items should be delivered. Options include:
  • Company Address: Main office or warehouse.
  • Project Address: Jobsite associated with the PO.
  • Customer Address: End client if goods are shipped directly.
  • Pickup Address, Hold, or Directory Contact are also available based on context.

Finalizing the Purchase Order

Once all fields have been completed:

• Review your selections carefully, ensuring all quantities, pricing, and terms are correct.
• Attach any relevant files, such as supplier quotes or material specs.
• Use the “Notes” field to include internal instructions, delivery details, or special handling requirements.
• When ready, click the blue “Submit” button to save and activate the PO.

• The PO now appears in the dashboard and is available for further actions like approval, billing, or export.

Additional Best Practices & Tips

• Naming Consistency: Use standardized item names to avoid confusion and ensure accurate reporting.
• Item Descriptions: Include product codes, specifications, or part numbers when applicable.
• Supplier Maintenance: Periodically review and update vendor contact info and terms.
• Use the Notes Field Strategically: Communicate between field staff and office teams to avoid misunderstandings.
• Photo & File Uploads: Upload delivery tickets, vendor quotes, or progress photos using the attachment tool for better documentation.

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