Introduction/Purpose:

A Purchase Order Service(POS) is a document used in a procurement system to request and authorize the procurement of services from a vendor or supplier. The POS specifies the services to be provided, the quantity, the delivery date, and the price agreed upon by the buyer and the seller. It also includes terms and conditions, payment terms, and other relevant information about the service.

The POS entry process in a procurement system involves creating a new purchase service order, entering the necessary details, and submitting it for approval. Once the POS is approved, it is sent to the vendor, who can then provide the requested services. The procurement system tracks the POS throughout the procurement process, from creation to delivery and payment.

The importance of POS entry in a procurement system lies in its ability to streamline the procurement process and ensure that the requested services are provided in a timely and cost-effective manner. By using a procurement system to manage POSs, organizations can improve efficiency, reduce errors, and maintain accurate records of all procurement activities. This, in turn, can lead to better decision-making, improved vendor relationships, and increased transparency and accountability in procurement operations. Additionally, a well-managed procurement system can help organizations identify cost-saving opportunities, negotiate better terms with suppliers, and mitigate risks associated with procurement activities.

Dependency:

To record a Purchase Order Service in a procurement system, there are several dependent master or key elements that are required in the form. These elements include:

• Supplier/vendor details: The form must have accurate and up-to-date supplier/vendor details, including the name, address, and contact information of the supplier in the master module

• Item/Material/Service details: The form must include details of the items ordered, including the quantity, unit price, and total price, where Items are master and connected with the inventory system (if it’s an integrated solution)
  
• Tax details: The form must include tax details such as the tax rate, tax amount, and any exemptions or exceptions, where we have to pull VAT (from the Finance system, if it’s integrated)

In summary, these dependent master or key elements are necessary in the form to ensure that the Purchase Order Service is accurately recorded in the procurement system and can be properly tracked and referenced for future purposes.

Process Flow:

How To Navigate:

The navigation to record a Purchase Order Service in a procurement system typically involves the following steps:

• Click on the main navigation icon: The main navigation icon may be located in the top right corner of the screen. Clicking on this icon will open the navigation menu, which typically includes links to various sections of the procurement system.

• Click on the transaction section: The transaction section is located under the left section of the screen clicking on this section will display a list of transactions related to procuring.

• Find the Purchase Order section: The Purchase Order section is located in the list of transactions under the transaction section. Clicking on this section will display a list of transactions related to Purchase order.

• Click on the Purchase Order Service link: The Purchase Order Service link is located under the Purchase Order section, after clicking on this link you can navigate Purchase Order Service listing and from that you can easily upload new transactions into the system.

Listing:

The Purchase Order Service listing is an essential feature of a procurement system that allows users to view and manage all recorded purchase Orders Services. The key features of the purchase Order Service  listing include:

• Record Filter The purchase Order Service listing may include a filter option that allows users to filter the list of Service Orders based on specific criteria, such as date range, Contract, payment status, vendor name, Voucher Status or approval status.

• Transaction Search The purchase Order Service listing may include a search function that allows users to search for specific Service Orders by transaction number, supplier Order number, financial document number, or other keywords.

• Export transaction The purchase Order Service listing may include an export transaction option that allows users to export the list of Service Orders to a spreadsheet or other file format for further analysis or reporting.
  
• Extended features for each transaction The purchase Order Service listing includes extended features for each transaction such as print, view, activity log, tracking history, and more.

• Listing view The purchase Order Service listing may display each Order in a card format view that includes key information such as Service Order number, Order Amount, supplier/ Vendor Name, Delivery Status, Contract number, approval authority name, payment status, and approval status of the transaction.

• Payment status: The purchase Order Service listing displays the payment status of each Service Order, indicating whether it has been paid, unpaid, or partially paid.

• Approval status: The purchase Order Service listing displays the approval status of each Service Order, indicating whether it has been approved or not.

In summary, the purchase Order Service listing is a crucial feature of a procurement system that provides users with an overview of all recorded purchase Order Service and allows them to filter, search, export, and manage the Service Orders efficiently. It also includes extended features for each transaction and displays key information such as payment status, vendor name, and approval status in a card format view.

Recording & Update:

Purchase Order Service recording in a procurement system typically involves two main methods:

Procurement Flow: This method involves creating purchase order Services based on a procurement process that includes proposals, quotations, or contracts. The procurement flow method involves several steps, including selecting a supplier, creating a purchase order Service, sending the purchase order Service to the supplier, receiving goods or services, reviewing and approving invoices, and updating financial records.

Off the Shelf Invoice: This method involves creating a purchase order Service for off-the-shelf items that do not require a procurement process. The off-the-shelf invoice method is simpler than the procurement flow method and involves creating a purchase order Service, sending the purchase order Service to the supplier, receiving goods or services, reviewing and approving invoices, and updating financial records.

Both methods involve creating a purchase order Service and tracking the receipt of goods or services, reviewing and approving invoices, and updating financial records. However, the procurement flow method is more complex and involves additional steps related to the procurement process, such as selecting a supplier and negotiating the terms of the purchase.

The Purchase Order Service entry into a procurement system is typically divided into three parts which is mentioned below.

Basic Information

The first part of the purchase Order Service entry displays information related to the transaction, this will include below fields:

• Vendor / Supplier Name: The name of the Vendor/Supplier comes from a master which we recorded earlier and who supplies goods and services to the organization. from the List of Vendors Who Provided Good or Service 

• Contracts: Here will get the list of the active contract for selected vendors based on that can create new Purchase orders Service for  Available Qty or Services with the agreed Rate and Terms & Conditions.

• Security Payment Terms: Security payment terms in a purchase order Service are provisions that are included in the contract to ensure that the buyer is protected from any potential losses or risks associated with the transaction. These terms are designed to provide the buyer with some form of security, such as a guarantee or insurance policy, in the event that the seller fails to deliver the goods or services as promised.

• Vendor Preferred Bank: Based on Selected Vendor/Supplier Here it will show the Bank Name which has been set in Vendor/Supplier master as Bank Information.

• Currency & Exchange Rate:  If you want to record a purchase Order Service that is not in company currency, in that case, you need to provide information about the transaction currency and in which exchange rate you booked the transaction, this information is required for financial entry purposes.

• Invoice Code & PO Date: This field is system generated document number and posting date of the voucher into the finance module (if connected)

• Vendor Ref No: A Vendor Reference Number (VRN) in a purchase order is a unique identifier assigned by the vendor/supplier to an order “OD-40/544”. It helps the vendor track the purchase order and to match it with their internal records. like 

• Cost Center:  Cost centers are used for internal accounting and management purposes, allowing an organization to track and allocate its costs more effectively.

• Choose From Material: If we need to record the shelf purchase Order Service in that case selection of this field is not required, But if we need to follow procurement flow in that case need to choose from Accepted Proposal or From Accepted Quotation to manage the balance quantity.

Material / Service Information

The second part of the purchase Order Service entry displays information related to the items purchased, this will include the below fields

• Code: This Code is typically a reference of a Selected voucher from the accepted Proposal or from the accepted Quotation.

• Item  Name: This field is for the Name of the Product or Type of Service added to the Purchase Order Service.

• Delivery Date: The delivery date in a purchase order Service is the date by which the vendor/supplier is expected to deliver the goods or services to the buyer.

• Quantity: The quantity in a purchase order Service refers to the number of goods or services that the buyer is requesting from the vendor/supplier. 

• Initial Rate: The “Initial Rate” in a Purchase Order Service would refer to the original or list price of a product or service before any discounts or negotiations. It is the price that the vendor/supplier would charge for the product or service if there were no special offers or promotions.

• Disc Rate:  The discount amount in a Purchase Order Service refers to the amount of money that the vendor/supplier has agreed to deduct from the total cost of the goods or services being purchased. 

• Unit Rate: The unit rate in a Purchase Order Service is the price per unit of a product or service that is being purchased from a supplier.

• Amount: The amount in a purchase order Service represents the total cost of the products or services that a company is purchasing from a supplier. The amount is calculated by multiplying the quantity of the products or services being purchased by the unit price or unit rate.

• Tax Calculation: Tax calculation in a Purchase Order Service involves determining the amount of tax that should be applied to the products or services being purchased, based on applicable tax laws and regulations. The tax amount is typically added to the cost of the products or services to determine the total amount due on the Order.

• Tax Group:  A tax group in a Purchase Order Service refers to a group of taxes that are applicable to the products or services being purchased from a supplier

• Taxable Amount: Taxable amount in a Purchase Order Service refers to the portion of the purchase amount that is subject to tax.

• Total: The total in a Purchase Order Service refers to the sum of all the costs associated with the products or services being Service ordered, including any applicable taxes or discounts.

• Storage Location: Here will get detailed information about the request for which department, Item Specification, Delivery Location, and Ownership/Inventory detail.

• Action-Item Detail:
  • Here Will get detail about the Product/ Service Which Department has requested, the Purchase Order Service Detail and the goods or Service Received Detail.
  • Here User will get an option to remove a specific line detail from the Services Order.

Overall, the middle section of a Purchase Order Service provides detailed information about the goods or services being invoiced, including cost, tax information, and other relevant details.

Summary Information

The third part of the Purchase Order Service entry provides a summary of the transaction, and showing the below information, and some additional information which is related with the transaction.

• Remark This field is used to put internal remarks or notes related to the Purchase Order Service.

• Description This field allows the user to add any specific description related to the Purchase Order Service.

• Tax Breakup In Tax Breakup will get a summary of Taxable Amount and Tax Amount based on Tax Calculation and Group 

• Payment Breakup A payment breakup or plan can outline the agreed-upon payment schedule and amounts for the purchase order Service. This may include the amount due upfront, any installment payments that will be made, and the final payment upon completion or delivery of the goods or services.

• Attachment This field allows the user to upload any invoice copy or other documents related to the purchase order Service.

• Summary Table The summary block provides information about Non-Taxable Values, Taxable Value, Tax Value, Net Amount, and Net Payable to Vendor. The user can review this information to validate the calculations 

The user can perform the following actions in this section:

• Save as Draft: This option allows the user to save the transaction information in draft mode and publish it later. This is helpful if the user wants to review the information before submitting it for approval.

• Submit: This option allows the user to publish the transaction information. If the system has an approval flow, the maker will submit the information, and it will be sent to the approval authority or checker for approval.

• Discard: This option allows the user to discard the transaction before saving it.

Key Notes Purchase Order Service:

• For Accepted Services  Quotation or Proposal will generate the Purchase order Service 

• In Accepted Quotation Or Proposal if any of the items is Service then it will only be used in Purchase order Service

• Based on Generated Purchase Order Can View GRN/Service Completion Detail, Invoice Detail  for that Purchase Order Service