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Procore

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:
    • To create a purchase order, 'Admin' level permission on the project's Commitments tool.
      OR
    • To create a purchase order as a user with 'Standard' or 'Read Only' level permission to the Commitments tool, the 'Create Purchase Order' granular permission must be enabled on the permission template associated with your user account on the project. See Grant Granular Permissions in a Permission Template
  • 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:
      • 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).
      • Spectrum. 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. 
      • QuickBooks 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.
      • Viewpoint Vista. The commitment must have at least one (1) SOV line item with a Viewpoint Vista phase code. In addition, the cost code must be assigned to at least one (1) category. You can update cost type assignments in Procore (see Assign Default Cost Types To Viewpoint Vista Cost Codes). Important! When a commitment is exported to Viewpoint Vista, 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. 

Steps

Create a Purchase Order

  1. Navigate to the project's Commitments tool.
    This reveals the Commitments page.
  2. Click Create Purchase Order.

    create-po-button.png

    This opens the New Purchase Order page. 
  3. Under General Information, do the following:
    • #. 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 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 'Number (#)'?
      • Important! When a commitment is exported to Viewpoint Vista, 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.
    • 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.
    • 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. Click Create.
    The system creates the purchase order. 

Import from a CSV 

  • If you prefer to upload a CSV to import all line items, please download and populate the provided CSV template instead. Be sure to follow the instructions in the tutorial below to ensure that add your data to the CSV in the correct format because the uploader enforces very strict syntax requirements. Data must follow the prescribed format to ensure that your data can be successfully uploaded into Procore. For example, CSV rows that only contain a Cost Code Name and Cost Code Number will not produce a new line item.
    Notes:
    • The subcontract must be in 'Draft' status in order for the Import from CSV option to be available. 
      For more detailed instructions, see Import a Commitment CSV.
    • If your company is using the Procore + Viewpoint Vista integration, you cannot import commitments to Procore from a CSV. See Viewpoint Vista Connector: User Guide.

Add a Line Item to the Schedule of Values

  1. Navigate to the project's Commitments tool.
  2. Click Edit next to the subcontract or purchase order you want to add a line item to.
  3. Click the Schedule of Values tab.
  4. Click the Edit button.
  5. Fill out the following fields:
  6. For Unit/Quantity Based Contracts: (To edit your accounting method before adding schedule of value line items, see Edit Advanced Settings Subtab in Commitments. For more information on accounting methods, see How do I determine my accounting method?)
    • 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 Not Budgeted.
    • 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.
    • Sub Jobs: Any sub jobs on the project that you have synced will appear in this drop-down menu. All cost codes related to sub jobs will appear in the following field. See Add a Sub Job to a Procore Project.
      Note: If your company is using the Procore + ERP Integrations tool, see Which integrated ERP systems support the 'Sub Job' concept?.
    • Cost Code: Select the appropriate cost code for the line item. 
    • Description: Enter a more detailed description for the line item.
    • Cost Type: Select one of the following types: Labor, Equipment, Commitment, Owner Costs, Materials, Professional Services, or Other
    • Qty: Enter in the quantity of the line item. 
    • Units: Enter the item's unit of measurement. 
      Notes:
      • If your company is using the Procore + Viewpoint Vista integration and your Viewpoint Vista system is configured to use the Calculated Method, Viewpoint Vista 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 Viewpoint Vista integration will then create an 'LS' item in Viewpoint Vista.
    • Unit Cost: Enter the unit cost. The subtotal will automatically calculate based on what you put in the Qty and Unit Cost columns.
  7. Click +Add. If the combination of the sub job, cost code, and cost type are non-budgeted, a pop-up will appear asking you to confirm you want to add this line item to the budget. If OK is selected, this line item will be added directly to the Budget with a "?" next to the line item. See Add a Partial Budget Line Item.
  8. Add additional line items as needed. 
  9. Click one of these buttons:
    • 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 subcontracting company. Be sure to change the status of the commitment, as necessary, to keep it up-to-date.

Next Step

If your company has enabled the ERP Integrations tool: