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Procore

Create a Purchase Order

Objective

To create a purchase order in a project's Commitments tool.

Background

In Procore, a Purchase Order (PO) is the first step in a financial commitment that details the types, quantities, and agreed-upon prices for goods or services being purchased. Purchase orders are created by a buyer (i.e., general contractor) and then issued to a seller (i.e., a subcontractor, supplier, or vendor).

Things to Consider

  • Required User Permission:
    • Admin' on the Commitments tool.
      OR
    • 'Read Only' or 'Standard' permissions with the 'Create Purchase Order' granular permission enabled on the permission template. See "Grant Granular Permissions in a Permission Template" in the See Also section below. 
  • 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 (CO) 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:
      • Integration by Ryvit. The commitment must have at least one (1) SOV line item with a Integration by Ryvit phase code. In addition, the cost code must be assigned to at least one (1) category. See Assign Default Cost Types To Integration by Ryvit Cost Codes). Important! When a commitment is exported to Integration by Ryvit, it must have a unique commitment number. Procore recommends that the numbering convention you set up for the Commitments tool is preceded by the Project Number and then uses the default numbering system. For example, if your Project Number is 001, your numbering system would be 001-001, 001-002, 001-003, and so on. 
      • 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.
      • Sage 100 Contractor®. A commitment must have one (1) SOV line item with a Sage 100 Contractor® cost code. In addition, the cost code must be assigned to at least one (1) cost type. See Assign Default Cost Types To Cost Codes.
      • 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) cost type. See Assign Default Cost Types To Cost Codes.
      • Viewpoint® Spectrum®. The commitment must have at least one (1) Schedule of Values (SOV) line item with a cost code from the Viewpoint® Spectrum® project. The cost code must be assigned to at least one (1) category. Category assignments must always be updated in Viewpoint® Spectrum®. 

Steps

When creating a purchase order, complete these steps:

Step 1: Create a Purchase Order

  1. Navigate to the project's Commitments tool.
  2. Click Create Purchase Order.
  3. Under General Information, do the following:
    • Sign with DocuSign
      If you have enabled the Procore + DocuSign integration (see Enable the DocuSign Integration on a Project), a mark appears in this checkbox by default. If you do NOT want to sign the commitment with DocuSign, remove the mark from the box. 
    • #
      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)
      Notes:
      • If your company has implemented the ERP Integrations tool, your integrated ERP system may impose a maximum character limit. See What is the maximum character length for a commitment's 'Number (#)'?
      • Important! When a commitment is exported to Integration by Ryvit, it must have a unique commitment number. Procore recommends that the numbering convention you set up for the Commitments tool is preceded by the Project Number and then uses the default numbering system. For example, if your Project Number is 001, your numbering system would be 001-001, 001-002, 001-003, and so on. 
    • Title
      Provide a descriptive name for the commitment. 
      Note: If your company has enabled the ERP Integrations tool, your integrated ERP system may impose a maximum character limit. See What is the maximum character length for a commitment's 'Title'?
    • 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 Procore's Project Directory. See Add a Company to the Project Directory.
    • Invoice Contacts
      After saving the commitment, any users added here will be added to the Private section as well as in the Invoice Contacts in the commitment's Advanced Settings subtab. This is the person, or people, that will receive the Invoice Invitation email, as well as the Reminder email. You must add a contract company to the commitment before you can add any Invoice contacts.
    • 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. 
      Note: These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, see "Set up a New Budget View" in the See Also section below.
    • Executed
      Place a checkmark in this box to indicate whether or not the purchase order has been executed.
    • Private
      Choose from these options:
      • Make this visible to only administrators and the following users
        Place a checkmark in this box to limit the visibility of the purchase order to users with 'Admin' on the Commitments tool and users specified in the Select a Person drop-down list. 
      • Allow these users to see SOV items
        Place a checkmark in this box to limit the visibility of the Schedule of Values (SOV) items on the purchase order to users with 'Admin' on the Commitments tool and users specified in the Select a Person drop-down list. 
      • Select a Person
        Select one or more people from the list. 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.
    • Assigned To
      Select the person from the vendor/company who is responsible for the fulfillment of the purchase order.
    • Default Retainage
      Specify the percent of payment retainage that will be withheld (e.g., 10).
    • 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. Under Contract Dates, do the following:
    • Delivery Date. Specify the date when the purchased goods are to be delivered to the location specified in the 'Ship To' field.
  5. Under Additional Information, do the following:
    • Payment Terms. Specify relevant payment conditions, if applicable.
    • Ship Via. Enter the shipping/transport method for materials (e.g., freight, FedEx, etc.).
  6. Choose from these options:
    • Click Create to save the purchase order.
      OR
    • Click Create & Enter SOV to update the Schedule of Values (SOV).

Step 2: Update the Schedule of Values (SOV)

There are two ways to update a purchase order's Schedule of Values (SOV):

Import SOV Line Items from a CSV File

If you want to import multiple line items to an SOV, the Commitments tool provides users with a CSV template that you can download, complete, and then upload to Procore. For instructions, see Import Commitment SOV Line Items from a CSV File.

Add Line Items to the SOV

 Note
  • If your company is using the Procore + Integration by Ryvit integration and your Integration by Ryvit system is configured to use the Calculated Method, Integration by Ryvit will NOT allow the use of Lump Sum (LS) as a unit of measurement.
  • If you are using the 'Override Subtotal', you must ONLY input the Subtotal Amount. The Integration by Ryvit integration will then create an 'LS' item in Integration by Ryvit.
  1. Navigate to the project's Commitments tool.
  2. Click Edit next to the appropriate item in the list.
  3. Click Schedule of Values.
  4. Click Add Line.
  5. Follow the appropriate steps depending on whether your accounting method is Amount Based or Unit/Quantity Based:
    Note: To edit your accounting method before adding schedule of value line items, see Edit Advanced Settings Tab in Commitments. For more information on accounting methods, see How do I set the accounting method for a commitment or prime contract?
    1. For Amount Based contracts
      1. Change Event Line Item
        If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
      2. COMING SOON
        Select a budget code from the or click Create Budget Code to create a new one. 
      3. Description
        Enter a description for the line item. For example, type: Monthly Service Fee
      4. Amount
        Enter the amount of the cost.
      5. Billed to Date
        Enter the amount on the commitment that has been billed to the current date. 
      6. Amount Remaining
        Enter the amount that has NOT been billed to the current date. 
      7. Tax Code
        Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    2. For Unit/Quantity Based contracts
      1. Change Event Line Item
        If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
      2. COMING SOON
        Select a budget code from the or click Create Budget Code to create a new one. 
      3. Description
        Enter a description for the line item. For example, type: Monthly Service Fee
      4. Qty
        Enter in the quantity of units.
      5. UOM
        Enter the Unit of Measure (UOM) in the list.
      6. Unit Cost
        Enter the Unit Cost in the box provided.
      7. Amount
        The system automatically calculates the subtotal for you, based on the QtyUOM, and Unit Cost entries. 
      8. Billed to Date
        Enter the amount on the commitment that has been billed to the current date. 
      9. Amount Remaining
        Enter the amount that has NOT been billed to the current date. 
      10. Tax Code
        Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
  6. Choose one of these options:
    • Save. Click this button to save your purchase order. 
      OR
    • Save & Email. Click this button if you are ready to forward the purchase order to the subcontractor.

 

Next Steps

If your company has enabled the ERP Integrations tool:

 

The Integration by Ryvit is the product of a partnership between Procore and Ryvit, a third-party developer. Viewpoint, Inc. is not affiliated with this connector. All Viewpoint® Vista™ marks and logos are owned by Viewpoint, Inc.