Purchase Order


Centralized purchasing:


Centralized purchasing refers to the purchase of goods/materials by a single purchase department. In this model, the purchasing department purchases the required materials for all the departments and branches of the company. The main advantage of this model is that organizations can enforce better control over buying, and efficient stock keeping.

Decentralized Purchasing:


Decentralized purchasing refers to purchasing of materials/good by all departments and branches independently to fulfill their individual needs separately. Under decentralized purchasing, there is usually one purchasing manager who has the right to purchase materials for all departments and divisions. The advantage of this model is that the purchasing can be immediately done for an urgent need. Also initial cost of investment is relatively less.


Just Billing Back Office supports both centralized and decentralized purchasing models.


How to create Purchase Order :


To create a purchase order (PO), log in to back office, and navigate to Back Office Management > Transaction > Purchase Management > Purchase Order:


  1. Click on new and select the supplier (see figure 1).


Note: Supplier can be created from Back Office Management > Masters> Purchase Management > Suppliers.


(Figure 1 - Purchase order supplier selection)


  1. Select the Price Catalog. Selecting the price catalog will retrieve the price of items from the selected price list.  In this case Unit Price will not be editable in the Purchase Order page.
  2. Select the Ship to Branch and Bill to Branch.


Note: The Ship to Branch indicates the branch name the supplier/vendor needs to deliver the goods to. The Bill to Branch indicates the branch name to which the purchase invoices would be sent to. In case of centralized purchasing, the purchase manager should select the appropriate branch name (under Ship to Branch) for which the purchase order is being placed.

  1. Under Line Details, select the Product Code, the unit price along with tax/discount (if any) will be automatically populated from the Price Catalog selected in the header.
  2. Enter the PO Quantity, add the line and Save (see figure 2).


(Figure 2 - Adding product code and other line details)


  1. Similarly you can add other products for which you want to place the purchase order.
    Note: Products are mapped to supplier in the Back Office Management > Masters > Product.
  2. Save the record.