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Procore

Create a Purchase Order (EYA)

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To create a Purchase Order in Procore.

Background

A Purchase Order is created when a change is a True Extra on the project.

Things to Consider

  • Required User Permissions: 'Admin' on the Commitments tool. 
  • 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.

EYA Protocols

  • When a Purchase Order is submitted, the PO will be sent through the Procore Approval Workflow:
    • Land Development PO
      • Creator -> SVP of LD (if over $2500) -> Procurement Manager -> VP of Procurement -> Contracts Specialist (Mark Systems entry)
    • Construction PO
      • Creator -> Procurement Manager -> VP of Procurement -> Contracts Specialist (Mark Systems entry)

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 Purchase Order.
    • #*: Enter or validate the unique identifier for the commitment. If you are creating the first commitment of a project, you must manually enter a number. (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.
    • 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.
    • 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 (EYA) 
    • Title*: Provide a descriptive name for the commitment. 
    • Status: This is set by our custom workflow.
    • Private: Purchase Orders are private by default. 
    • Payment Terms: Specify relevant payment conditions, if applicable.
    • Assigned To: Select the person from the subcontracting 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.
    • Description*: The description should be a robust and specific 2-3 sentences to reflect why the change is occurring. Don't just say "Framing Changes", explain what the changes were in detail. Also include the variance reason.
    • Attachments*: Attach any related materials such as the original PO email, 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. 
    • Display Alternate Company Name: If the billing entity needs to be specifically called out at the top of the Purchase Order, select this box and then enter the name in the text field on the right. This will alter the title on the PDF.
  1. Select the specific workflow from the dropdown and validate the default workflow approvers.
    • LD Purchase Order Workflow
    • Construction Purchase Order Workflow
  2. Click Create.
  3. Click the Schedule of Values subtab.
  4. 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.
    • 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.
  5. Click the add icon (+).
  6. Add additional line items, as necessary.
  7. Save your changes.
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