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How to Create & Add Detail to Purchase Orders (POs)

In this tutorial, we will show you how to place an order with your vendor, receive it, and then confirm that what came in matched what you ordered.

The first thing we’ll do is set up vendors.

Create vendors here – https://app.shiphero.com/dashboard/vendors and from many platforms, we’ll take the vendor data and create vendors for you.

Then within the products you check off the correct vendors. A product can have many vendors.

create and assign vendors

If you want to add many products to an existing vendor at a time, you can do so from the same page by hitting “Upload CSV”. There is a vendor-product template on that page that you can download, make adjustments to, and then upload back in to the same page.

You can also do add products to a vendor in bulk from https://app.shiphero.com/dashboard/products by selecting them and hitting “Manage Vendors

bulk assign vendors

You can then create Purchase Order for those items by going to the “Vendors” page https://app.shiphero.com/dashboard/vendors and hitting “Create PO”

Once that is completed, you can then auto add all the products. The quantity defaults to “0”,  so if you want to add them to the PO, put quantities next to these items and they will be added to the PO.  The ones with “0” will not be added to the PO.

create simple PO

If you prefer, you can also set and save the manufacturer SKU and price.  You can choose to have the checkbox for “Save Price/Man.SKU” defaulted “On” by navigating to https://app.shiphero.com/dashboard/settings and checking the box “Always save prices and manufacturer SKUs when creating a Purchase Order

You can also check the “Automatically update product value with the cost price from vendorsbox to save that value as the inventory value for accounting purposes.

set account settings

In the next section, we will review how to send and receive the PO to your vendor.   However, first I’ll show you some more advanced PO generation techniques.

ShipHero can calculate the products you need. The simplest way is to have the system show you what is back ordered and add that to your PO.

You do this by hitting the “Auto Add Backordered Products” button

auto add backorder

ShipHero will show you how many items are Backordered as well as some other information like “Amount sold in the last 30 days” and the “Amount Available“.

The quantities are always recommendations, you can change the quantities up or down or remove the item for the PO.

When you go to place another Purchase Order with that same Vendor, ShipHero will not order those quantities again, since the system knows that they are already in an open PO. You can cancel a PO at any time if needed.

You can get more advanced and set rules.  For example, if you always want to keep 5 available on-hand to sell.  Navigate to Product and set a “Reorder Level” of 5, which means you want to keep 5 available to sell. Since there are already 5 on backorder, you will need to order 10 units to maintain a level of 5 available to sell.

reorder level

If the product comes in case quantities of 12, you can set a reorder amount of 12, which means you always order in increments of 12. In this example, you need 10 units so the system will prompt me to order 12.

reorder amount
Sell Ahead:

Now if you know the stock will be here tomorrow and I want to start selling some or all of the stock already, I can set a “Sell Ahead Quantity“.  The quantity that you set will be added to the available stock and ShipHero tells the platform (Shopify, eBay, etc) how much stock is available but won’t show up on hand, which is great because what is on the shelf matches on-hand, which is how the warehouse should always be. This allows you to continue to do cycle counts and your inventory value remains correct.

When the PO is received, the sell ahead is cleared.

sell ahead

Once you have the PO, I can set some values.

finish PO

And you can hit “Email Vendor” to send the PO PDF along with any email content you want to send to you vendor.

email PO

Adding notes

You can add notes to specific items, which remain visible from the web and the apps.

po-notes

And the warehouse can add notes as well from the apps.

po-notes2

You can also add attachments from the web, which are visible in the app and you can tag them as being specific to a product.

add-attachment

You can see the attachments on the web and you can take photos in the app – for example if a product is damaged or incorrect and add the images to the PO.

attachments

When the PO arrives, you can receive it from the web or from the iPad.

Receiving Purchase Orders

written by
shipherofaq