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Create a Purchase Order from a Change Event (Next Gen)

Objective

To create a commitment that is a purchase order for a bill of materials (BOM) from change event line items. 

Background

A commitment typically represents a contractual agreement between an owner who is financing the construction project and the general contractor who is being paid to manage the construction project. Typically, a commitment will be created directly from the Commitments tool. See Create a Commitment. However, if a change event results in the need for a new commitment, you can crate the commitment directly from the change event line item by following the steps below.

Things to Consider

  • Required User Permission:
    • 'Admin' on the Change Events and Commitments tool. 
  • 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 Change Events tool.
  2. Select the change event line items you want to create a purchase order for.
  3. From the Bulk Actions drop-down menu, select Create a Purchase Order contract.
  4. 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: This field is automatically filled with the name of the correlated change event, but you have the ability to adjust to your liking.
    • 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: This field is automatically filled with the name and description of the correlated change event, but you have the ability to adjust to your liking.
    • 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.
  5. Click Create. The Schedule of Values will be created from the change event line items.

 

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