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Create a Purchase Order

Objective

To create a commitment that is a purchase order for a bill of materials (BOM).

Background

A purchase order typically represents a contractual agreement issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. 

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Commitments tool. 
  • Additional Information:
    • Purchase orders can be transitioned into a Change Order Request (for 1-tier Change Orders) or into a Potential Change Order (for 3-tier Change Orders).
    • You can only create a Potential Change Order (PCO) from a Purchase Order that's in the 'Approved' status.
  • If your company has enabled the ERP Integrations tool:

    • In order to send the commitment to the ERP Integrations tool to be accepted for export by an accounting approver:
      • For Dexter + Chaney, the commitment must have at least one (1) Schedule of Values (SOV) line item with a cost code from the Spectrum project. The cost code must be assigned to at least one (1) category. Category assignments must always be updated in Spectrum. 
      • For QuickBooks, the commitment must have at least one (1) SOV line item with a QuickBooks cost code. The cost code does not need to be assigned to a category, because QuickBooks does not support the category concept.
      • For Sage 300 CRE, the commitment must have at least one (1) SOV line item with a Sage 300 CRE cost code. In addition, the cost code must be assigned to at least one (1) category. You can update category assignments in Procore (see Assign Default Categories to Cost Codes).

     

Steps

  1. Navigate to the project's Commitments tool.
  2. Click the Create Purchase Order button in the right sidebar.
  3. Enter general information about the commitment.
    • #: Enter or validate the unique identifier for the commitment. If you are creating the first commitment of a project, Procore will automatically number the commitment. (e.g. PO-01-001) Subsequent commitments will automatically be prefilled with the next sequential number based on the format of the first commitment. (e.g. PO-01-002)
    • Bill To: Enter information about the company responsible for paying the invoice. The subcontracting company will use this information to send its invoice to the correct company and address.
      Note: This field will auto-populate with the data entered in the most recently created purchase order.
    • Ship To: Enter the address where the materials should be delivered. In some cases you may want to specify a different location than the actual job site.
      Note: This field will auto-populate with the data entered in the most recently created purchase order.
    • Contract Company: Select the vendor/company who will provide the purchased materials (e.g., American Construction Co.). This vendor/company must exist in the Project Directory. See Add a Company to the Project Directory (Note: For companies using the ERP Integrations tool with Sage 300 CRE, synced vendor/company data will have "(Sage)" appended to their names). 
      • Title: Provide a descriptive name for the commitment. Most ERP systems impose limits on the maximum number of characters for the Title field. Be sure to check the configuration for your integrated ERP system for the maximum character limit for the Title field. 
    • Status: Specify the status of the commitment. (Default: Draft) Purchase Orders with the status set to Draft, or Closed will not be reflected on the budget. Purchase Orders with the status Processing, Submitted, Partially Received, and Received will be listed in the Pending Cost column.  Purchase Orders with the status Approved will be listed in the Committed Cost column on the Budget. 
    • Private: Specify who can view the Purchase Order. By default, the Purchase Order is private and only visible to users with 'Admin' level permissions on the Commitments tool. You can allow non-Admin level users to view the Purchase Order, if desired. Additionally, you can allow selected non-Admin users to have read-only access to the to individual line items under the SOV subtab.
    • Payment Terms: Specify relevant payment conditions, if applicable.
    • Assigned To: Select the person from the vendor/company who is responsible for the fulfillment of the purchase order.
    • Deliver Date: Specify the date when the purchased goods are to be delivered to the location specified in the "Ship To" field.
    • Ship Via: Specify how the materials will be shipped. (e.g. freight, FedEx, etc.)
    • Default Retainage: Specify the percent of payment retainage that will be withheld. (e.g. 10)
    • Executed: Specify whether or not the materials have been delivered. Alternatively, you can use this checkbox to denote that the purchase order was fully signed and executed. 
    • Description: Provide additional information, as necessary.
    • Attachments: Attach any related materials such as pricing quotes, receipts, signed purchase orders, etc. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  4. Save your changes. (Note: Typically, you will use the Save option instead of the Save & Email option because you may still need to add items in the SOV.)
  5. Click the Schedule of Values subtab.
  6. Add a budget line item:
    • Prime Contract Line Item: If you do not have change events enabled, select the related line item from your Prime Contract. If the item is not accounted for in the Prime Contract, select the "Non Budgeted" option.
    • Sub Jobs: If your account is integrated with Sage, any sub jobs on the project that you have synced will appear in this drop-down. All cost codes related to the sub jobs will appear in the following field. For more information on sub jobs, see Add a Sage Extra to Procore as a Sub Job or Add a Sub Job.
    • Cost Code: Select the appropriate cost code for the item. (e.g. 01-041 - Tools & Equipment Rental)
    • Description: Enter a brief description about the line item.
    • Type: Select the appropriate item type from the drop-down menu. (e.g. Materials)
    • Amount: Specify the cost of the line item (Note: If your company has enabled the ERP Integrations tool with Sage 300 CRE, the Amount that you enter cannot exceed six (6) characters). 
  7. Click the add icon (+).
  8. Add additional line items, as necessary.
  9. Save your changes.
  10. When you are ready to forward the purchase order to the subcontracting company, click the Email Contract button. Be sure to change the status of the commitment, as necessary, to keep it up-to-date.
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Last modified
11:03, 3 Apr 2017

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