How to Create a Purchase Order in iDempiere for Retail
| Learn how to configure Purchase Order in iDempiere for retail procurement, vendor selection, PO lines, taxes, and downstream integration. |
Introduction
The Purchase Order window in iDempiere is the primary procurement transaction used to purchase products or services from vendors. It captures all procurement information including vendor details, warehouse destination, products, quantities, pricing, discounts, taxes, and payment terms in a single document.
In retail operations, Purchase Orders control inventory replenishment from suppliers. The document links vendor selection, warehouse management, and procurement pricing in one transaction, ensuring that all procurement details are validated before goods are physically received.
Once a Purchase Order is completed in iDempiere, it becomes the source document for downstream inventory receipt and vendor billing processes. Accurate procurement configuration directly impacts stock levels, vendor settlement, and financial reporting.
Prerequisites
Ensure the following configurations are completed before creating a Purchase Order in iDempiere:
- Vendor master configuration (Business Partner with Vendor flag enabled)
- Product master configuration (Purchase-enabled products)
- Warehouse setup
- Purchase Price List
- Tax configuration (Product Tax Category, Tax Rate)
- Payment Terms
- UOM and UOM Conversion setup (if applicable)
Business Rules
- Vendor selection is mandatory before creating a Purchase Order.
- Promise Date cannot be earlier than Date Ordered.
- Only active products can be added in PO Lines.
- Inactive or deactivated products are unavailable for procurement transactions.
- Product pricing is automatically derived from the selected Purchase Price List.
- Tax is automatically calculated based on Product Tax Category and tax configuration.
- Warehouse selection controls the inventory destination during goods receipt.
- Purchase Order must be completed before generating Material Receipt or Vendor Invoice.
- Completed Purchase Orders become read-only unless reactivated.
- Purchase Orders support document actions: Complete, Void, Close, and Reactivate.
- UOM Conversion supports procurement using carton, case, box, or bulk units.
- Lot-controlled products can be validated using Attribute Set configuration.
- Payment Rule and Payment Term control vendor settlement processing.
- Bulk product selection is supported during PO Line creation.
Navigation
Menu → Requisition-to-Invoice (Purchasing) → Purchase Order
The window displays all existing Purchase Order records.
Step-by-Step Configuration
Step 1: Open the Purchase Order Window
The window displays a list of all procurement transactions in the system. Each record shows the document number, vendor, date, warehouse, and document status.
Click the New Record (+) button to open a blank Purchase Order form.
Step 2: Create the Purchase Order Header
The Header section stores all procurement-level information for the entire transaction. Complete all mandatory fields before adding products.
| Field | Sample Value | Mandatory | Description |
| Organization | Chennai Store | Yes | Business unit responsible for the procurement transaction. |
| Target Document Type | Purchase Order | Yes | Controls the procurement transaction type. |
| Document No | PO2026_800012 | Auto | Auto-generated based on Document Sequence configuration. |
| Date Ordered | 06/12/2026 | Yes | Date the procurement transaction is created. |
| Date Promised | 06/12/2026 | Yes | Expected delivery date committed by the vendor. |
Step 3: Configure Vendor Information
The Vendor section controls supplier-related procurement information. Once the vendor is selected, iDempiere automatically derives vendor location, invoice details, payment configuration, and procurement defaults.
| Field | Sample Value | Mandatory | Description |
| Business Partner | CHENNAI SUPPLIERS | Yes | Identifies the vendor supplying products or services. |
| Partner Location | Chennai | Yes | Vendor address used for procurement and invoicing. |
| User / Contact | Murugan | No | Vendor contact person for procurement coordination. |
Note: After selecting the Business Partner, verify the Partner Location is correct. Some vendors have multiple locations for different supply regions.
Step 4: Configure Delivery Information
The Delivery section controls warehouse destination and delivery handling for the procurement transaction.
Step 5: Configure Vendor Settlement Information
The Vendor Settlement section controls procurement pricing and vendor payment handling. This section drives automatic price derivation and payment cycle management.
| Field | Sample Value | Mandatory | Description |
| Purchase Price List | Purchase Price List | Yes | Procurement pricing structure for automatic price derivation. |
| Company Agent | Ajay Narayan (Buyer) | No | Procurement user or buyer responsible for the transaction. |
| Payment Rule | On Credit | Yes | Vendor settlement method (Cash, Credit Card, Direct Deposit, On Credit). |
| Payment Term | Weekly Settlement | Yes | Vendor settlement schedule and payment due calculation. |
| Currency | INR | Yes | Procurement transaction currency. |
Step 6: Add Products in PO Line
The PO Line section stores product-level procurement information. Each line represents one procurement item within the Purchase Order.
Navigate to the PO Line tab and click the New Record (+) button to add a product line.
The selected product automatically derives UOM, pricing, discount, tax, and product description from Product Master and Purchase Price List configuration. Only active, purchase-enabled products are available for selection.
| Field | Sample Value | Mandatory | Description |
| Line No | 10 | Auto | Sequence number for the PO line. |
| Product | Britannia Good Day Butter Cookies — 200g | Yes | Procurement item being ordered from the vendor. |
| Quantity | 10 | Yes | Procurement quantity in selected UOM. |
| UOM | Each | Yes | Unit of measure for procurement (Each, Case, Box). |
| Price | 55.00 | Yes | Procurement price per unit, auto-derived from Price List. |
| Discount % | 8.33 | No | Discount percentage applied to procurement price. |
| Tax | 8.33 | Yes | Tax derived from Product Tax Category and vendor setup. |
| Line Amount | 550.00 | Auto | Calculated value based on quantity, price, and discount. |
Step 7: Configure UOM Conversion (If Applicable)
iDempiere supports procurement using alternate UOM conversion. This allows purchasing in carton, case, or bulk units while inventory is maintained in a different base unit.
UOM Conversion Example
| Purchase UOM | Inventory UOM | Conversion Factor | Example |
| Case | Each | 12 | 1 Case = 12 Each |
| Box | Each | 6 | 1 Box = 6 Each |
| Carton | Each | 24 | 1 Carton = 24 Each |
When the procurement UOM changes, iDempiere automatically recalculates procurement quantity, pricing, and line amount. Verify UOM Conversion configuration in Product Master before using alternate units.
Step 8: Configure Pricing and Taxes
The Pricing and Tax section in each PO Line controls procurement pricing and tax calculation. Verify pricing details before completing the document.
Pricing Fields
| Field | Description |
| List Price | Standard price from the Purchase Price List. |
| Price | Actual procurement price (may differ from List Price). |
| Unit Price | Price per unit after UOM conversion. |
| Discount % | Automatically calculated when procurement price differs from list price. |
| Line Amount | Final value: (Quantity × Price) × (1 − Discount%). |
Tax Fields
| Tax Type | Applicability |
| CGST | Central GST — intra-state procurement. |
| SGST | State GST — intra-state procurement. |
| IGST | Integrated GST — inter-state procurement. |
Note: Tax values are automatically derived based on Product Tax Category and vendor configuration. Verify tax setup before completing the Purchase Order to ensure accurate GST compliance.
Step 9: Review Important Tabs
The Purchase Order window includes additional tabs for procurement validation, costing, and payment tracking. Review these tabs before completing the document.
| Tab | Purpose |
| Order Tax | Displays calculated procurement tax details: tax type, tax amount, tax base amount, and GST compliance summary. |
| Matching | Stores document matching references between Purchase Order, Material Receipt, and Vendor Invoice for audit traceability. |
| Payment Schedule | Tracks payment due dates, discount dates, and validation status generated from Payment Terms. |
| Estimated Landed Cost | Captures additional procurement expenses (freight, customs, loading). Optional for standard retail procurement. |
| Landed Cost Allocation | Allocates landed costs across PO lines by Quantity, Amount, Weight, or Volume. Used in advanced costing scenarios. |
Step 10: Complete the Purchase Order
After validating all procurement information, process the Purchase Order using Document Actions. Click the Document Action button and select Complete.
| Document Action | When to Use |
| Complete | Finalises the Purchase Order. Enables Material Receipt and Vendor Invoice generation. |
| Reactivate | Reopens a Completed Purchase Order for corrections. |
| Void | Cancels the Purchase Order permanently. Cannot be reversed. |
| Close | Closes the Purchase Order after receipt is partially or fully completed. |
Important: Once a Purchase Order is Completed, the document becomes read-only. Use Reactivate only when corrections are required. Voided documents cannot be recovered.
Configuration Summary
| Configuration Item | Type | Purpose |
| Purchase Order Header | Procurement Document | Captures vendor, warehouse, payment, and procurement control information. |
| Vendor (Business Partner) | Master Data | Identifies the supplier and derives location, invoice, and payment defaults. |
| Purchase Price List | Pricing Master | Auto-derives product procurement prices in PO Lines. |
| PO Line | Transaction Line | Stores product, quantity, UOM, pricing, discount, and tax per procurement item. |
| UOM Conversion | Master Data | Supports carton, case, and bulk procurement with automatic recalculation. |
| Tax Configuration | Tax Master | Auto-calculates CGST, SGST, and IGST based on product and vendor setup. |
| Payment Terms | Master Data | Controls vendor settlement schedule and due date calculation. |
| Document Actions | Workflow Control | Complete, Reactivate, Void, and Close manage the procurement lifecycle. |
Business Flow Overview
| Stage | Action | Output |
| 1 | Create Purchase Order Header | Vendor, warehouse, and payment details captured. |
| 2 | Add Products in PO Lines | Products, quantities, pricing, discounts, and taxes recorded. |
| 3 | Validate Pricing and Taxes | Procurement totals and GST values verified. |
| 4 | Complete Purchase Order | Document locked; downstream processing enabled. |
| 5 | Generate Material Receipt (GRN) | Inventory stock updated; procurement receipt recorded. |
| 6 | Generate Vendor Invoice | Vendor billing initiated; payment schedule activated. |
| 7 | Process Vendor Payment | Vendor settlement completed; accounting updated. |
Downstream Integration
Material Receipt Integration
After Purchase Order completion, the Material Receipt (GRN) can be generated to record physical receipt of products into the warehouse. This process updates inventory stock, warehouse quantity, and procurement receipt tracking.
Vendor Invoice Integration
Vendor Invoice can be generated from the completed Purchase Order for supplier billing and payment processing. This supports vendor billing, procurement payment tracking, invoice validation, and financial processing.
Common Issues and Resolutions
| Issue | Cause | Resolution |
| Product not visible in PO Line | Product is inactive or purchase flag not enabled | Verify product is Active and Purchase-enabled in Product Master. |
| Pricing not derived automatically | Purchase Price List not configured or not assigned | Verify Purchase Price List configuration and assignment to vendor. |
| Tax not calculated | Product Tax Category or Tax Rate not configured | Verify Product Tax Category in Product Master and Tax Rate configuration. |
| Unable to complete Purchase Order | Mandatory fields missing or PO Lines empty | Verify all mandatory header fields and at least one valid PO Line exists. |
| Vendor not visible in Business Partner selection | Vendor checkbox not enabled in Business Partner | Enable the Vendor checkbox in Business Partner master configuration. |
| Incorrect UOM conversion result | UOM Conversion rate not configured correctly | Verify UOM Conversion setup in Product Master or UOM Conversion window. |
| Material Receipt not generating after completion | Purchase Order status is not Completed | Verify Purchase Order document status is Completed before generating GRN. |
| Payment schedule not generated | Payment Terms not assigned or configured | Verify Payment Terms are assigned in the Purchase Order header. |
Best Practices
- Use standardised Purchase Price Lists for consistent procurement pricing across all vendors.
- Configure UOM Conversion properly before processing carton or bulk procurement transactions.
- Verify Product Tax Category before processing GST procurement to ensure correct tax calculation.
- Use Promise Date to monitor and track vendor delivery commitments.
- Review Order Tax tab before completing the Purchase Order to validate GST amounts.
- Use Estimated Landed Cost only when additional procurement expenses such as freight or customs must be tracked.
- Complete Purchase Orders only after validating quantity, pricing, tax, and warehouse information.
- Maintain proper vendor payment terms before procurement processing to ensure accurate payment scheduling.
- Avoid voiding completed Purchase Orders unless absolutely necessary; use Reactivate for corrections.
- Preserve historical procurement records by closing completed Purchase Orders instead of deleting them.
Next Steps
After completing the Purchase Order configuration in iDempiere, proceed with:
- Generate Material Receipt (GRN) for physical goods receiving.
- Generate Vendor Invoice for supplier billing and payment.
- Process vendor payment transactions against the Vendor Invoice.
- Track pending procurement and receipt status using Procurement Reports.
- Configure Estimated Landed Cost for import or freight-heavy procurement scenarios.