Purpose: Place an order for goods or services with a vendor
Scenario: You have successfully created a purchase requisition and now you want to proceed with creating a purchase order so that you get quotations from vendors so that you assess a vendor that has the most ideal price and quality of the item.
Key terms:
Purchase Requisition (PR) - This is an initial internal request made by an employee who needs to acquire goods or services for the business.
Request for Quote (RFQ) - This is a process of selecting vendors to submit price quotes as you look for the vendor with the best price and quality items.
Purchase Order (PO) - This is a legal document a buyer sends to a supplier or vendor to authorize a purchase. Purchase orders outline what the buyer would like to purchase and how much of it they would like to receive.
Watch the video on creating the purchase order:
There are 2 phases involved in the process of creating a purchase order. Firstly you need to send the "Request for Quote" then purchase order you need to Follow the steps to do the purchase order:
Use the following link to log into Luvelo Supply Chain app using your credentials. app.luvelo.org/SupplyChain/
From the list of sites showing, select your site or type the name its name to search.
Click the hamburger menu on the top left corner of the home page.
Click on 'Purchase Requisition'.
Search for the purchase requisition that you want to make on order of, and click on the item.
If the purchase requisition is not yet approved contact your department manager to approve on slack.
Once the purchase requisition has been approved, you can proceed to request for a quotation.
Click 'Request for Quote'.
Search for the vendor you want to request a quote from and click on their name.
Click on the vendor to view their details.
Click on the pencil icon to edit the vendor's general information, address and contact details and save.
Note: Pay attention to the Quotation Status of your purchase order.
Not sent - RFQ not yet sent to the vendor
Sent - RFQ sent to the vendor
Received - vendor received the purchase order
Declined by vendor - vendor declined purchase order
No answer - vendor did not respond
Canceled - vendor canceled the purchase order
Click to view RFQ (Request for Quote) to be sent to the vendor.
Note: You can send the RFQ to the vendor via MS Outlook or any other communication channels.
After sending the quotation, update the Quotation Status to 'Sent'.
After receiving the vendor's quotation, click 'Quotation Notes' to add any relevant notes.
Click 'Save' once you have finished typing the quotation notes.
Click on Items / Services Price to enter the price and quantity, then click Save once done.
Click Payment Overview to enter payment details. Click Save once done.
Click Attachments to attach the received quotation from the vendor.
After attaching the quotation, update the Quotation Status to 'Received'.
Once you received the quotation in the system, click Proceed with Purchase Order.
You can click the Purchase Order PDF to view the purchase order summary
Click on Items/Expenses in order to edit the quantity you want ordered.
Click on Payment Overview in order to enter payment details and save.
Click on Order Status to put delivery details of the items.
Finally submit the Purchase Order.