Odoo Purchase Management

Odoo 18 Purchase Management is a comprehensive module designed to handle the entire procurement lifecycle efficiently. It allows businesses to manage suppliers, track purchase requests, create and send requests for quotations (RFQs), confirm purchase orders, and control the receipt of goods and services.

The module integrates closely with inventory, accounting, and vendor management, enabling seamless tracking of stock levels, supplier bills, and payments. Purchase Management helps organizations optimize purchasing decisions by comparing supplier offers, automating approval workflows, and maintaining transparent records of procurement activities.

Odoo Purchase Management Key Features

• Vendor Management – Maintain vendor details, categories, and performance tracking.
• Purchase Orders – Create, approve, and manage purchase orders with customizable workflows.
• Purchase Agreements – Support for blanket orders and call-off agreements with vendors.
• Request for Quotation (RFQ) – Send RFQs to multiple vendors and compare responses.
• Automated Reordering – Automatic purchase order creation based on stock rules or demand.
• Approval Workflows – Multi-level approval process for purchase orders based on amount or user roles.
• Product and Price Lists – Manage vendor-specific pricing and product catalogs.
• Receipt Management – Track incoming shipments and validate deliveries.
• Invoice Matching (3-Way Match) – Match purchase orders, receipts, and vendor bills before payment.
• Budget and Cost Control – Monitor purchases against project or departmental budgets.
• Purchase Reporting & Analysis – Real-time reports on purchase trends, vendor performance, and cost analysis.
• Integration with Other Modules – Seamless integration with Inventory, Accounting, and Sales modules.
• Document Management – Attach contracts, RFQs, and other documents to purchase records.

Business Rules

• Approved Vendors Only – Purchase orders can only be created for approved and active vendors.
• Mandatory Purchase Order Fields – All purchase orders must include vendor name, product, quantity, price, delivery date, and payment terms.
• Purchase Order Approval Workflow – Orders above a set amount must go through an approval process before confirmation.
• Price and Terms Validation – Product prices and payment terms must match vendor agreements or price lists.
• Purchase Agreement Linkage – If a purchase agreement exists, purchase orders must be created under that agreement.
• Delivery Lead Time Compliance – Vendors must deliver items within the lead time specified in the purchase order.
• Goods Receipt Before Payment – Payment cannot be made unless the ordered goods or services have been received and validated.
• Invoice Matching – Vendor invoices must match purchase orders and receipts (3-way match) before approval for payment.
• Budget Control – Purchase orders must not exceed department or project budgets.
• Product and Vendor Master Data Control – Products and vendors used in purchasing must be pre-defined and approved in the system.
• Audit and Tracking – All actions (order creation, approval, changes) must be logged for audit purposes.
• Integration with Other Modules – Purchasing data must integrate with inventory, accounting, and reporting modules.
• Cancellation and Modification Control – Purchase orders can only be modified or canceled with proper authorization.
• Performance Monitoring – Vendor delivery time, product quality, and service must be monitored for ongoing evaluation.

Purchase Management Workflow

Purchase Master Management

Following are the list of masters which support for Purchase process

• Vendor Master
• Product Master
• Vendor Pricelists

Vendor Master

Overview

Odoo Vendor Management helps you choose the best suppliers with data-driven insights.

Odoo Vendor Master Key Features

• The vendor can be created as an Individual or company
• Manage Vendor’s basic information such vendor name ,vendor address,phone number,mobile number and email address.
• To manage one or more contact details such as contact person name and their contact numbers and addresses
• Configure the Vendor’s GSTIN number
• Added the Vendor Profile Photos
• Configure the Vendor website link
• Send Specific SMS to vendors anytime
• Schedule meetings with vendor and follow-ups
• Manage Vendor Payment terms, Specific Vendor Price list and Bank Account mappings
• To view Purchase order details and vendor bills raised with respect to each vendor
• Open Statements in vendors
• Activate/deactivate vendors at anytime

Process Flow

Business Rules

• Vendor Creation – Create vendor profiles with complete contact details and company affiliation.
• Multiple Vendors per Product – Assign multiple vendors to a product, each with distinct prices and lead times.
• Vendor Price Lists – Maintain vendor-specific pricing and update regularly for accurate procurement.
• Purchase Requests and RFQs – Generate Request for Quotations (RFQs) automatically based on stock rules.
• Purchase Orders – Convert accepted RFQs into Purchase Orders (POs) for vendor fulfillment.
• Vendor Bills and Invoicing – Create vendor bills linked to POs; support 3-way matching (PO, receipt, invoice).
• Billing Policies – Choose billing policy: invoice based on ordered quantity or received quantity.
• Automated Bill Creation – Upload or email bills to auto-generate vendor invoices using OCR.
• Payment Terms – Define payment terms for each vendor to manage due dates and payment schedules.
• Vendor Rating and Review – Periodically review vendor performance and update ratings for procurement decisions.
• Vendor Activation Status – Manage active/inactive status to control vendor usage in procurement.

Vendor Master Screenshot

Vendor Master (Bank Details) Screenshot

Product Master

Overview

The Product Master centralizes all product details, including vendor info and purchase prices, helping automate orders, compare supplier offers, and manage stock replenishment efficiently.

Odoo Product Master Key Features

• Product only allow for purchase order
• Configure product types
• Configure invoicing policy and purchase taxes 
• Configure warning message for purchasing this product
• Configure control policy and purchase Description
• Auto updated the purchase details in product management

Process Flow

Business Rules

• Product Types – Classify products as Goods (physical), Services, or Combo (bundle).
• Product Tracking – Track inventory by Serial Number, Lot Number, or just Quantity.
• Product Variants – Use Attributes (e.g., size, color) to create multiple product variants.
• Vendor Assignment – Assign one or more vendors per product with specific prices and lead times.
• Inventory Rules – Define product routes like Buy, Manufacture, Dropship, or Replenish.
• Invoicing Policy – Invoice based on Ordered Quantity or Delivered Quantity.
• Packaging – Define packaging units for handling and purchasing products.
• Sales Configuration – Set optional, alternative, and accessory products for upselling.
• E-commerce Setup – Link products to website with categories and ribbons (e.g., Sale, New).
• Stock Management – Maintain accurate stock levels and trigger procurement as needed.

Product Screenshot

Product (Purchase Tab)ScreenShot

Vendor PriceLists

Overview

Vendor Pricelists in Odoo 18 allow businesses to manage and store pricing information provided by vendors for their products or services. These pricelists define the agreed prices, discounts, and valid periods for purchasing items from specific vendors. They help automate pricing during purchase order creation, ensuring accurate and consistent costs. Pricelists can be customized per product or category and support multiple currencies. Maintaining vendor pricelists improves procurement accuracy, cost control, and vendor relationship management.

Vendor Pricelists Key Features

• Vendors can have multiple pricelists.
• Pricelists have start and end dates.
• Prices can be set for products or categories.
• Discounts or markups can be added.
• Supports different currencies.
• Pricelists apply automatically when making purchase orders.
• Purchase orders use vendor pricelist prices.

Process Flow

Business Rules

• Each vendor has unique pricelists for products or categories.
• Pricelists have start and end dates for validity.
• Prices can be set per product or category.
• Pricelist currency matches vendor’s currency.
• Discounts or markups can be applied in pricelists.
• Pricelists need approval before use.
• Only valid pricelists are applied during purchase orders.
• Pricelist changes are saved and tracked.

Purchase Management

Following are the list of Purchase features supported by Odoo

• Purchase Agreement
• Purchase(RFQ and PO)

Purchase Agreement

Overview

In Odoo, a purchase agreement is a contract made with a vendor to buy products or services at agreed prices and terms over a specific period. It helps businesses plan purchases, control costs, and improve vendor relationships by setting fixed conditions for multiple orders. Odoo supports different types of agreements to match business needs and links them directly to purchase orders for easy tracking and management.

Purchase Agreement

There are two type of agreement types defines in Odoo. They are

• Blanket order
• Purchase Templates

1. Blanket Order

• A Blanket Order is a type of purchase agreement where a buyer commits to purchasing a fixed quantity of products from a supplier over a specified period. It helps secure pricing and availability while allowing deliveries in multiple partial shipments.

2. Purchase Templates

• A Purchase Template is a predefined set of products, quantities, prices, and other conditions used as a base to quickly create purchase agreements like Blanket Orders.

Process Flow

Business Rules

• Purchase agreements must be created for long-term vendor contracts.
• Agreements specify terms like price, quantity, and delivery schedule.
• Only approved vendors can have purchase agreements.
• Agreements can be of two types: Blanket (fixed quantity/period) or Call-off (on-demand).
• Purchase orders must reference an existing purchase agreement when applicable.
• Quantities ordered under the agreement should not exceed agreed limits.
• Agreements have defined validity periods with start and end dates.
• Price changes in agreements must be approved before applying.
• All agreement details and updates must be documented and auditable.
• Agreements can be renewed or terminated based on performance and business needs.

Purchase Agreement Blanket Order Screenshot

Purchase Agreement Purchase Template Screenshot

Purchase

Overview

The purchase process in Odoo 18 is a streamlined workflow designed to manage the procurement of goods and services efficiently. It starts with the creation of a Request for Quotation (RFQ) sent to suppliers to gather price and availability information. After evaluating supplier offers, the RFQ is confirmed as a Purchase Order (PO), which acts as a formal agreement.

Once the purchase order is confirmed, the goods or services are received and validated against the order. Vendor bills are then matched to purchase orders and receipts to ensure accuracy before payment is processed.

Odoo Purchase Key Features

• Vendor Management
• Multiple contact addresses for each vendor 
• Manage Purchase agreements with Vendors
• Automated Reordering Rules based on create the RFQ
• Define Purchase price list based on a group of vendors or some specific vendors
• Convert RFQ to Purchase order upon confirmation of quotations received from the vendor
• Requests for Quotation(RFQ) views in the List ,kanban,Pivot,Graph,Calendar and Activity views 
• Automatically locked order after confirmedPO
• Multiple Rfq and Purchase order merged based on same vendor 
• Multiple Requests for quotation confirm RFQ 
• Can also raise direct Purchase order without RFQ
• Country specific taxes applicable during the purchase
• One-level approvals on the Purchase order confirmation
• The purchase order can be printed or sent to vendor via email
• Goods receipt can be done with respect to PO
• Partial or Full receipt of goods possible with respect to PO
• Receipt of Goods (GRN) without PO
• Stock updates upon receipt of goods
• Purchase Order with vendor bills
• Purchase Order without vendor bills
• Analytics and Reporting
• Approval Workflows and User Access Control

RFQ Dashboard

• To Send: RFQs that haven’t been sent to the vendor yet.
• Waiting: RFQs sent by email, awaiting vendor confirmation.
• Late: RFQs or POs where the order deadline has passed.

Process Flow

Business Rules

• All purchase orders must be linked to a registered vendor.
• Purchase orders require approval based on predefined thresholds before confirmation.
• Vendors must be approved and active to receive purchase orders.
• Purchase orders should include accurate product details, quantities, and agreed prices.
• Delivery dates must be specified and monitored to ensure timely receipt of goods.
• Purchase orders cannot exceed budget limits set for each department or project.
• Goods receipt must be confirmed before vendor invoices are validated for payment.
• Price changes after purchase order confirmation require approval.
• Purchase agreements can be used to manage long-term vendor contracts and pricing.
• Purchase data must be integrated with inventory and accounting modules for consistency.
• Duplicate purchase orders for the same product and vendor within a short period should be flagged.
• Vendor performance (delivery time, quality) should be tracked for future procurement decisions.
• Payment terms with vendors must be adhered to based on agreed contracts.
• Purchase orders and agreements must be auditable with complete logs of changes and approvals.
• Purchase cancellation or modification must be authorized and documented.

RFQ Dashboard and List View Screenshot

Requests for Quotation(RFQ) Screenshot

Purchase Agreement Screenshot

RFQ With Purchase Agreement Process Screenshot

Purchase Order(PO) Screenshot

Receipts Screenshot

Vendor Bills Screenshot

Purchase Report Management

Following are the list of Reports 

• Purchase Analysis

Purchase Analysis

Overview

The Purchase Analysis Report in Odoo 18 provides a comprehensive overview of all purchasing activities. It summarizes data such as total spending, purchase orders, vendor performance, and product procurement over a selected period. This report helps businesses identify spending trends, compare vendor efficiency, and monitor procurement effectiveness. By offering customizable filters and detailed breakdowns, it supports better decision-making and helps optimize purchasing processes.

Purchase Analysis Bar Chart View Screenshot

Purchase Analysis Pie Chart View Screenshot