Purchase Order – Variants for Retail

Introduction

The Purchase Order window in iDempiere is the core document retail businesses use to procure inventory, services, and related costs from suppliers. It is used across store replenishment, warehouse stocking, and vendor billing scenarios. The variant chosen affects how stock, costs, and supplier invoices are recorded and reported.

Retail Scenarios

The following scenarios reflect common retail procurement situations supported by the standard Purchase Order functionality in iDempiere.

• Single Product Procurement
• Multi-Product Procurement
• Service Procurement
• Charge-Only Procurement
• Product with Charge Procurement
• Free Item / Promotional Product Procurement
• Bundled / BOM Product Procurement

Single Product Procurement

Overview

Used for straightforward replenishment when a store or warehouse needs one specific item from a supplier.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Business Partner	ABC Distributors	Identifies the supplier for the order
Product	Britannia Good Day Butter Cookies	Item being procured
Quantity	50	Required order quantity
Price List	Purchase Price List	Determines unit pricing applied to the line

Process Flow

• Select the supplier in the Business Partner field on the Purchase Order header.
• Add a single line in the PO Line tab and select the required Product.
• Enter the Quantity needed; the Price is pulled from the assigned Purchase Price List.
• Complete the document to release it to the supplier.

System Behavior

• Creates one PO line tied to the selected product.
• Derives pricing and applicable tax automatically from the price list.
• Makes the order available for Material Receipt and AP Invoice matching.

Retail Example

A supermarket orders 50 units of Britannia Good Day Butter Cookies from ABC Distributors to replenish shelf stock for the week.

Outcome

• Stock requirement for a single SKU is fulfilled without unnecessary documentation.
• Replenishment cycle is completed quickly for fast-moving items.

Multi-Product Procurement

Overview

Used when a store consolidates several items from the same supplier into one purchase to reduce paperwork.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Business Partner	XYZ Foods Pvt Ltd	Single supplier for all line items
Product (Line 1)	Britannia Good Day Cookies	First item to procure
Product (Line 2)	Aashirvaad Atta	Second item to procure
Product (Line 3)	Coca-Cola 750ml	Third item to procure
Quantity	Line-specific	Quantity required per product line

Process Flow

• Select the supplier once on the PO header.
• Add multiple lines in the PO Line tab, one per product.
• Enter Quantity for each line; pricing is applied per line automatically.
• Review all lines, then complete the document.

System Behavior

• Calculates pricing, discounts, and tax independently for each line.
• Consolidates all products for the supplier under a single PO number.
• Allows receipt and invoice to reference the same PO across all lines.

Retail Example

A grocery chain orders cookies, atta, and soft drinks together from one distributor instead of raising three separate orders.

Outcome

• Fewer documents to manage for the same supplier.
• Lower administrative and delivery coordination effort.

Service Procurement

Overview

Used when a retail outlet procures a non-inventory service, such as maintenance, instead of physical stock.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Business Partner	CoolTech Services	Vendor providing the service
Product	AC Maintenance Service	Service-type product selected on the line
Product Type	Service	Identifies the item as non-inventory
Quantity	1	Number of service units ordered

Process Flow

• Select the service provider as the Business Partner.
• Add a PO line and choose a Product flagged with Product Type = Service.
• Enter the Quantity of service units required.
• Complete the order to release it to the vendor.

System Behavior

• Processes the line without generating an inventory movement.
• Follows the standard PO approval and completion workflow.
• Makes the service line available for invoicing once delivered.

Retail Example

A retail store orders an annual air conditioner maintenance contract from CoolTech Services for its outlet.

Outcome

• Operational services are tracked through the same procurement process as goods.
• Service costs are visible alongside inventory spend for budgeting.

Charge-Only Procurement

Overview

Used to record supplier charges, such as freight, that are not tied to a specific product line.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Business Partner	Vendor	Party billing the charge
Charge	Freight Charge	Charge type selected on the PO line
Amount	Charge Amount	Value of the charge being recorded

Process Flow

• Select the vendor as the Business Partner.
• Add a PO line and select the Charge field instead of a Product.
• Enter the charge Amount applicable to the order.
• Complete the document.

System Behavior

• Records the charge as a distinct cost line, not linked to inventory.
• Flows the charge line through to AP Invoice for vendor billing.
• Triggers no stock movement from the charge line.

Retail Example

A distributor bills a retailer separately for freight charges on a delivery, recorded as its own PO line.

Outcome

• Non-product procurement costs are formally captured and auditable.
• Freight and handling expenses are visible separately from product cost.

Product with Charge Procurement

Overview

Used when one Purchase Order needs to capture both the inventory item and its related delivery cost.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Business Partner	Vendor	Supplier for both product and charge
Product Line	LG Refrigerator	Inventory item being procured
Charge Line	Freight Charges	Associated procurement cost

Process Flow

• Select the supplier on the PO header.
• Add a product line and enter the Quantity for the inventory item.
• Add a second line using the Charge field for the freight or handling cost.
• Complete the order with both lines included.

System Behavior

• Keeps the product and charge lines separate but tied to the same PO.
• Allows charge amounts to be allocated to landed cost where configured.
• Makes both lines available together for receipt and invoice matching.

Retail Example

A retailer orders an LG Refrigerator and includes the supplier’s freight charge on the same Purchase Order.

Outcome

• Full procurement cost, including delivery, is visible in one document.
• Simplifies vendor billing reconciliation for combined product and service costs.

Free Item / Promotional Product Procurement

Overview

Used when a supplier provides bonus or promotional items at zero cost alongside a regular purchase.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Product (Paid)	Horlicks Jar	Regular product procured at standard price
Product (Free)	Display Stand	Promotional item added to the order
Quantity (Free)	1	Quantity of the free item
Price (Free)	0.00	Price entered for the promotional line

Process Flow

• Add the regular product line with standard Quantity and Price List pricing.
• Add a second line for the promotional product.
• Override the Price field on the promotional line to 0.00.
• Complete the order with both lines retained.

System Behavior

• Accepts a zero-value price on the line without blocking the document.
• Tracks the free item through receipt the same way as a paid product.
• Updates inventory for the promotional item on receipt despite zero cost.

Retail Example

A supplier sends 100 jars of Horlicks along with one free display stand as a promotional offer.

Outcome

• Promotional stock is tracked accurately without being left off procurement records.
• Store inventory reflects both paid and free items received from the vendor.

Bundled / BOM Product Procurement

Overview

Used when a retailer procures a pre-defined bundle or kit, such as a gift hamper, as one item.

Key Setup / Inputs

Field in iDempiere	Sample Value	Purpose
Business Partner	Supplier	Vendor supplying the bundled product
Product	Gift Hamper (BOM)	Bundle product configured with a Bill of Materials
Quantity	Required Quantity	Number of bundle units ordered

Process Flow

• Select the supplier on the PO header.
• Add a PO line and select the BOM product as the Product.
• Enter the Quantity of bundles required.
• Complete the order as a standard Purchase Order.

System Behavior

• Treats the BOM product as a single procurement line item.
• Follows the standard receipt and invoice workflow for the bundle.
• Handles component-level breakdown, if needed, separately through BOM or kit processing.

Retail Example

A retailer orders 20 Gift Hamper units, a bundled product made up of multiple individual items, ahead of a festive season.

Outcome

• Bundled and combo products are procured without manually listing each component.
• Simplifies ordering for festive, combo, or kit-based retail offerings.