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 document used to order products and services from vendors. In retail operations, it drives inventory replenishment by linking vendor selection, warehouse destination, and procurement pricing in a single transaction.

Once completed, the Purchase Order becomes the source document for Material Receipt and Vendor Invoice, directly impacting stock levels and vendor settlement.

Prerequisites

Ensure the following configurations are completed before creating a Purchase Order in iDempiere:

• Business Partner configured with the Vendor flag enabled.
• Purchase-enabled Product Master records configured.
• Warehouse and Locator setup completed.
• Purchase Price List configured and assigned.
• Tax Category and Tax Rate configuration.
• Payment Term configured for vendor settlement.
• UOM and UOM Conversion configured, if alternate purchase units are used.

Business Rules

• Vendor selection is mandatory before creating a Purchase Order.
• Promise Date cannot be earlier than Date Ordered.
• Only active, purchase-enabled products can be added to PO Lines.
• Inactive or deactivated products are unavailable for procurement transactions.
• Product pricing is automatically derived from the assigned Purchase Price List.
• Tax is calculated automatically based on Product Tax Category and vendor location.
• Warehouse selection determines the inventory destination during goods receipt.
• A Purchase Order must be completed before Material Receipt or Vendor Invoice can be generated.
• Completed Purchase Orders become read-only unless reactivated.
• UOM Conversion supports procurement in carton, case, or bulk units.
• Payment Rule and Payment Term control the vendor settlement schedule.

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

Provides the entry point for creating a new procurement transaction.

• Navigate to the Purchase Order window from the Purchasing menu.
• Review existing records, then click the New Record button (+) to open a blank Purchase Order form.

Step 2: Create the Purchase Order Header

The header captures the organization, document type, and dates that define the scope of the transaction.

• Select the Organization and Target Document Type, then enter Date Ordered and Date Promised.
• Document No is generated automatically based on the configured Document Sequence.

Field	Sample Value	Mandatory	Description
Organization	Chennai Store	Yes	Business unit responsible for the transaction
Target Document Type	Purchase Order	Yes	Controls the procurement document type
Document No	PO2026_800012	Auto	Auto-generated from Document Sequence
Date Ordered	12-Jun-2026	Yes	Date the order is raised
Date Promised	18-Jun-2026	Yes	Delivery date committed by the vendor

Step 3: Configure Vendor Information

Vendor selection determines pricing, location, and invoice defaults for the order.

• Select the Business Partner acting as vendor. iDempiere automatically populates Partner Location and contact defaults.
• Verify the location if the vendor supplies from multiple addresses.

Field	Sample Value	Mandatory	Description
Business Partner	Chennai Suppliers	Yes	Identifies the supplier for the order
Partner Location	Chennai	Yes	Vendor address used for procurement and invoicing
User / Contact	Murugan	No	Vendor contact for procurement coordination

Step 4: Configure Delivery Information

Delivery settings control where goods are received and how they are handled.

• Select the destination Warehouse and Delivery Via method.
• Set Priority if needed, and enable Drop Shipment only when the vendor ships directly to a customer.

Field	Sample Value	Mandatory	Description
Warehouse	Chennai Selling Floor	Yes	Destination warehouse for received goods
Delivery Via	Pickup	No	Delivery method used for the order
Priority	Medium	No	Indicates procurement urgency
Drop Shipment	Unchecked	No	Enable only for direct-to-customer shipments

Step 5: Configure Vendor Settlement Information

This section drives automatic price derivation and the vendor payment cycle.

• Assign the Purchase Price List for automatic pricing, then set Payment Rule, Payment Term, and Currency to define how the vendor will be settled.

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

Line items capture the actual procurement quantities, pricing, and amounts.

• Open the PO Line tab and click New Record (+).
• Select the Product; UOM, pricing, discount, and tax are derived automatically from Product Master and the Purchase Price List.

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)

Allows purchasing in carton, case, or bulk units while inventory is maintained in a different base unit.

• Verify UOM Conversion in Product Master before selecting an alternate purchase unit. iDempiere recalculates quantity, price, and line amount automatically when the UOM changes.

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: Review Pricing and Tax

Ensures GST compliance and pricing accuracy before completing the document.

• Check List Price, Price, Discount %, and Line Amount on each PO Line.
• Confirm CGST, SGST, or IGST is applied correctly based on vendor location.

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.

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.

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 not purchase-enabled	Activate the product and enable the Purchase flag in Product Master.
Pricing not derived automatically	Purchase Price List missing or not assigned	Verify Price List configuration and vendor assignment.
Tax not calculated	Product Tax Category or Tax Rate not configured	Set Tax Category in Product Master and verify Tax Rate setup.
Unable to complete Purchase Order	Mandatory fields missing or no PO Lines added	Check mandatory header fields and ensure at least one valid line exists.
Vendor not listed in Business Partner field	Vendor checkbox not enabled	Enable the Vendor flag in Business Partner master.
Incorrect UOM conversion result	Conversion factor misconfigured	Verify UOM Conversion setup in Product Master.
Material Receipt not generating	Purchase Order status is not Completed	Complete the Purchase Order before generating the Material Receipt.
Payment schedule missing	Payment Term not assigned	Assign Payment Term in the Purchase Order header.

Next Steps

After completing the Purchase Order configuration in iDempiere, proceed with:

• Generate Material Receipt (GRN) for goods received.
• Generate Vendor Invoice for supplier billing.
• Process vendor payment against the invoice.
• Configure Estimated Landed Cost for freight-heavy procurement.
• Track procurement status using Purchasing Reports.