Purchase Orders


Purchase orders are the contract initiated by an organisation with it's suppliers (vendors). Since, purchase orders commit the business to expenditure it is important to ensure that the committment is not made without the proper authority. KwaMoja forces certain procedures to be followed to ensure proper authorisation. The sequence is:

It is necessary to create purchase orders to receive stock. Stock cannot be received in without an order - except by entering a stock adjustment. The receiving of stock creates a GRN - Goods Received Note that can be printed and signed off by the person entering the receipt of stock. The system retains records of the GRNs and these must be matched off against purchase invoices to ensure that only those goods received are paid for.

Purchase Orders Status

The order status starts off as:

Amending Purchase Orders

When you click the Purchase Orders, you can search for the outstanding Purchases, it is possible to search by purchase order number or the stock location where the order is set to receive into, or search for an item and then search for purchase orders that have that item on it. Searching the orders shows all the orders that match the criteria with their status and links with the options relevant to their status shown. The links allow the order to be modified, printed, received depending on the status of the order. The supplier and the amount of the order are also shown on the search screen.

If the order is pending then it is possible to modify the order and any lines on the order. If the order had been authorised or printed then whilst it is still possible to amend any aspect of the order, it will need to be reauthorised as the status is changed back to pending - this is to ensure that there is no way for someone without the necessary authorisation level of committing the business to purchase more than they should be doing!

If the order is completed, it is not possible to modify it.

If the order is rejected, it is possible to change the order to authorised - by a user with appropriate authority.

Adding a New Purchase Order

To add a new Purchase Order, Click on Main menu.

The purchase order date, delivery date, Requisition Ref, warehouse name, Address lines 1 to 4, telephone number, and the deliverers ) Then the supplier information that need to be entered include the address line 1to 4 that needs to be entered , the phone number, the payment terms , and there is a field to type in any comments if necessary.

A success report should display showing that you have created a purchase order.

If the configuration setting to automatically authorise the purchase order is enabled, then if your authority allows you to authorise purchase orders in the suppliers currecny and your authority level exceeds the amount of this order, then the order should automatically be authorised.

If you have authority to authorise purchase orders but the configuration setting to automatically authorise purchase orders is not set, then you will need to do another step to authorise it. There is a special screen to allow selection of pending orders for authorisation, alternatively it is possible to modify the order and change it's status manually to authorised.

If you do not have the authority to authorise purchase orders in the currency of the supplier, to the value of the order, then a duly authorised person will be required to authorise it before it is possible to print the order.

Authorising Purchase Orders

Here the directors and authorising officials will log into KwaMoja to look for purchase orders that have been raised and they will either cancel, reject, or authorise these purchase orders.

Below are the steps of authorising purchase orders

This will enable the person who created purchase orders to print and receive them. In order to Receive a purchase order, it has to be printed first and sent or emailed to the supplier. (N.B this can't be done unless the purchase order is authorised)

Once a purchase order is authorised it can then be printed as follows:

After printing this purchase order you can send it to the supplier through an email or print it out and post it. If the order is being shipped by the supplier and there are additional costs to take into account, then you should use shipment costing and add the order to a shipment. Using shipment costing ensures that the costs of shipping and transport are apportioned between all the items on the shipment. See shipment costing section of the manual.

Recieving Purchase Orders

The goods received note should signed off by the person who received the goods - optionally a copy to the supplier's driver.

An alternative short-cut method is also provided for auto-receiving purchase orders at the prices defined in the purchase order, for authorised purchase orders. After having entered a purchase order or modified a purchase order a link to automatically receive the entire order and create the supplier invoice will show if the order is authorised. This will happen automatically if the configuration option to auto authorise purchase orders is set and the user creating or modifying the order is authorised to do so. Clicking this link will receive all the items on the purchase order to the extent there is any quantity yet to be received. However, this program cannot handle controlled items. If there is even one line of controlled/serialised stock on the purchase order then this facility cannot be used.

Inquiries and Reports

Purchases to Suppliers

This report shows purchases from suppliers over a period of time. It shows the overall amount, taxes and total in the supplier's currency and in the functional currency.

Report parameters:

Links within the report:

Note. The conversion between the supplier's currency and the functional currency is done with the exchange rate used in the respective transaction.


Maintain Supplier Price Lists

Use this script to maintain supplier price lists used in purchase orders.

Fields (columns):