Purchase Orders

A purchase order is created at the final stage of the purchasing process.

After a requisition has been approved, a pro-forma order is created. The purchase order is then either created automatically (see Automatic Purchase Orders) or an ARM user creates it manually.

Permissions

You require one of the following permissions to create a purchase order:

  • Create Own Purchase Orders: The user can create their own purchase orders

  • Create All Purchase Orders: The user can create any purchase order

Workflow

If a requisition is approved, it is promoted to create a Pro-Forma Order which can be used to agree prices with vendors.

If the Purchasing Officers accept the pro-forma order, then a Purchase Order is created in ARM and integrated into Kinetic.

See how to work with Purchase Orders: Purchase Orders.

Automatic Purchase Orders

If the vendor on a purchase order has the Auto PO setting selected, the purchase order is created automatically at the same time as the pro-forma order.

Part Inspection

In ARM, users can receive a purchase order with parts that have the Inspection Required flag. When all the PO release lines are received the release line status is ‘Closed’, regardless of whether or not an inspection entry exists in Kinetic.

However, if you perform the receipt from Kinetic, the PO will be opened based on the 'close at release' setting in Kinetic. ARM will match the release status as per Kinetic. i.e., Inspection. The release line status will be shown as ‘Inspection’ in ARM. To close the release lines, the user needs to perform an Inspection Processing entry in Kinetic.