Purchase Orders (PO)

A Purchase Order is the formal, legally binding commitment to a vendor to supply specified materials at agreed prices, quantities, and delivery terms. POs are the central document in the procure-to-pay cycle — they originate from approved vendor offers (via RFQ), Quick Orders, or Rate Contracts, and drive all downstream activities including material receiving (MRN), vendor billing, and payment.

PO List Grid

The PO list displays all purchase orders created within the selected date range. The default filter period is the last 30 days.

Filters

• From / To Date — Filter POs by creation date range (required)
• Search — Free-text search across PO codes, descriptions, vendor names, and job names
• Status — Filter by PO status (Draft, Approved, Cancelled, All)

Row Actions

Each PO row has a dropdown action menu:

PO Lifecycle

A Purchase Order moves through distinct phases from creation to final payment. The flowchart below shows all possible paths and status transitions:

Creating a Purchase Order

There are three ways to create a Purchase Order in JobNext. Each addresses a different procurement scenario:

Path 1: From Vendor Offer (Standard)

This is the most common path and follows the full procurement cycle:

1. Open the Comparative Statement — Navigate to Procurement → RFQ, select the RFQ, and click Comparative Statement from the row actions.
2. Select the best offer — Review all vendor offers side-by-side. The system highlights the L1 (lowest) and L2 vendors. Evaluate based on total landed cost, delivery timeline, payment terms, and technical compliance.
3. Click “Create PO” — From the selected offer, click Create PO. The system calls omni_sp_scm_CreatePurchaseOrder and auto-populates the PO with all data from the offer: vendor details, material specifications, quantities, unit rates, tax rates, FOC quantities, and delivery terms.
4. Review PO header — Verify the auto-populated header data: PO description, vendor, PO date, currency, exchange rate, expected delivery dates, and billing address.
5. Review line items — Check each material line for quantity, rate, discount, tax (Tax 1 + Tax 2), FOC qty, and line notes. Adjust as needed.
6. Set payment & delivery terms — Add payment terms, INCOTERMS, delivery location, and terms & conditions. These can be selected from templates or entered manually.
7. Attach documents — Optionally attach supporting documents (drawings, specifications, vendor correspondence) to the PO.
8. Submit for approval — Save the PO (status: Draft), then click Approve to send it through the configured approval workflow.

Path 2: From Quick Order

1. Create a Quick Purchase Order — Go to Procurement → Quick Orders and create a new QPO with vendor, job, materials, and quantities. See Quick Orders.
2. Convert to PO — Once the QPO is reviewed, use the Convert to PO action. The system creates a full PO from the QPO data.
3. Review and approve — The converted PO follows the standard approval workflow.

Path 3: From Rate Contract

1. Select materials from contract — Go to Procurement → Rate Contract, open the active contract, and select the materials you need to order.
2. Generate PO — Click Generate PO. The system creates a PO with pre-agreed rates from the contract. The rate_contract_id field links the PO back to the contract.
3. Adjust quantities and approve — Enter the required quantities (rates are locked from the contract) and submit for approval.

PO Header Fields

The PO header captures the overall order details. All header fields are stored in the omni_purchase_order_header table.

Order-Level Amount Fields

These fields summarize the PO’s financial totals and are computed from line items:

PO Line Items (Detail)

Each PO contains one or more line items representing individual materials being ordered. Line items are stored in the omni_purchase_order_detail table.

Payment Terms

Payment terms define when and how the vendor will be paid. Each PO can have one or more payment milestones stored in the omni_purchase_order_paymentterms table.

Terms & Conditions

POs include standard and custom terms & conditions that define the contractual obligations between the buyer and vendor. Terms are stored in the omni_purchase_order_termsandconditions table.

• Template-based — Select from pre-configured T&C templates defined in the master settings. Each template has a term ID and default text.
• Customizable — The terms text can be edited per PO to add special conditions, modify default clauses, or remove inapplicable terms.
• Printed on PO document — All T&Cs are included in the SSRS PO report document sent to the vendor.

Common T&C categories include:

• Delivery schedule and penalties for late delivery
• Quality inspection and acceptance criteria
• Warranty and guarantee terms
• Liquidated damages for non-performance
• Insurance and liability clauses
• Force majeure conditions
• Dispute resolution and jurisdiction

INCOTERMS

International Commercial Terms (INCOTERMS) define the responsibilities for shipping, insurance, and customs clearance. JobNext supports all 11 standard INCOTERMS 2020:

Multi-Currency Support

JobNext POs support multi-currency ordering, which is critical for international procurement:

• PO Currency — The currency in which the vendor is paid. Set at the PO header level (e.g., a vendor in India is paid in INR, a GCC vendor in OMR or AED).
• Job Currency — The base currency of the job/project. Used for budget tracking and cost reporting.
• Exchange Rate — The conversion rate from PO currency to job currency. This rate is set at the time of PO creation and used to convert PO values for budget comparison.
• Inventory Valuation — Each line item has an item_inventory_value_rate_in_jobccy field, which stores the rate in job currency used for stock valuation when materials are received.

Approval Workflow

POs follow the organization’s configured approval workflow. The approval is triggered when a user clicks Approve on a Draft PO (calls omni_sp_scm_ApprovePurchaseOrder).

Approval Hierarchy

• Value-Based — Different approvers based on PO amount thresholds. For example: up to 10,000 = Site Manager, 10,001–100,000 = Procurement Head, above 100,000 = Director.
• Category-Based — Specialized approvers for specific material categories (e.g., structural steel may need engineering sign-off, safety equipment may need HSE approval).
• Multi-Level Sequential — PO passes through multiple approval levels in sequence (e.g., Site Engineer → Procurement Manager → Finance → Management).

What Happens on Approval

1. PO status changes from Draft to Approved.
2. Approved-by user and timestamp are recorded.
3. Approver comments are stored for audit trail.
4. The PO becomes available for material receiving (MRN).
5. The vendor can view the PO through the Vendor Portal (if enabled).
6. The PO value is committed against the job’s material budget.

Rejection

If a PO is rejected during the approval process, it returns to Draft status with reviewer comments. The PO creator can then revise the order (adjust quantities, rates, or terms) and resubmit, or cancel the PO entirely.

PO Statuses

Payment Statuses

In addition to the PO document status, the system tracks payment progress:

PO Amendments

After a PO is approved, it may need modifications due to changed requirements, vendor negotiations, or scope changes. JobNext handles this through the Amendment process rather than editing the original PO:

1. Initiate Amendment — On an Approved PO, click Amend from the row actions. The system creates a new Draft PO linked to the original via the original_po_id field.
2. Make changes — The amended PO is a full copy of the original. You can modify quantities, add/remove line items, change rates, update delivery dates, or revise terms & conditions.
3. Submit for approval — The amended PO goes through the standard approval workflow. Approvers can see what changed from the original.
4. Approved amendment replaces original — Once approved, the amended PO becomes the active version. The original PO’s budget commitment is adjusted to reflect the new values.

Tax Handling

POs support tax at two levels, providing flexibility for various tax regimes:

Line-Level Tax (Per Item)

Each line item can have two independent tax components applied:

• Tax 1 — First tax component (e.g., CGST @ 9%, VAT @ 5%, IGST @ 18%)
• Tax 2 — Second tax component (e.g., SGST @ 9%). Left blank for single-tax regimes.

Tax is computed on the post-discount amount: (Base Amount − Discount) × Tax Rate.

Order-Level Tax

An additional tax can be applied at the PO header level on the aggregate net item amount. This is used for surcharges, cess, or additional duties that apply to the whole order.

The omni_purchase_order_taxes table stores additional order-level tax entries with their individual tax IDs, percentages, and computed amounts.

Delivery Tracking

Three date fields on the PO header let you plan and track delivery milestones:

Actual delivery is tracked through Material Receipt Notes (MRN). Each MRN records what was actually delivered, the date, and the accepted vs. rejected quantities. Partial deliveries are fully supported — the PO line item’s Qty Received and Qty Accepted fields update incrementally with each MRN.

Downstream Documents

An approved PO drives several downstream activities. Here is the complete chain from PO to payment:

Full Traceability

Every Purchase Order maintains a complete audit trail in both directions:

PO Document (SSRS Report)

The printable PO document is generated as an SSRS report and contains:

Bulk PO Upload

For legacy data migration or bulk order creation, JobNext supports uploading POs from a spreadsheet via the omni_upload_purchase_order staging table. The upload template includes:

Budget Control

PO values are tracked against the approved material budget for the job:

• Budget Availability Check — At PO creation, the system checks if sufficient budget exists for the ordered materials. If the PO value exceeds the available budget, the system can either warn or block depending on configuration.
• Budget Commitment — On PO approval, the PO value is committed against the budget. This reduces the “available” budget even before materials are delivered or paid for.
• Budget Burn Tracking — The Material Budget Burn report (omni_sp_reports_MaterialBudgetBurn) shows estimated vs. ordered vs. received vs. paid amounts, giving real-time visibility into procurement spending.
• Variance Analysis — Comparing PO rates against estimate rates reveals procurement efficiency. The system tracks purchase rates vs. budget rates at the material level.

Available Reports

Best Practices

1. Always use the standard procurement path for high-value purchases — MR → RFQ → Comparative Statement → PO. This ensures competitive pricing and a complete audit trail. Reserve Quick Orders for genuinely urgent or low-value items.
2. Set realistic delivery dates on the PO header. Use all three date fields (Ready, Ship, Arrival) to track the full delivery pipeline, especially for imported materials with long lead times.
3. Specify INCOTERMS for international purchases to clearly define shipping responsibility, insurance coverage, and risk transfer points.
4. Use multiple payment milestones to protect against non-delivery. Avoid 100% advance payment; instead, structure payments across order, delivery, and acceptance events.
5. Review budget impact before approving a PO. Use the Material Budget Burn report to ensure the order fits within the allocated budget for the job.
6. Use amendments, not cancellations, when an approved PO needs changes. Amendments preserve the history and maintain the audit trail. Only cancel a PO when it is no longer needed at all.
7. Attach supporting documents to the PO — vendor quotation, technical drawings, material test certificates, or approval emails. This provides a complete procurement file for audits.