Purchase Orders Module

Overview

The Purchase Orders module is your pharmacy's ordering system for buying medications from suppliers. Think of it as your digital order form that tracks everything from requesting drugs to receiving and paying for them. This module helps you manage the entire procurement process efficiently, ensuring you never run out of essential medications.

Navigating to Purchase Orders

1. Look for the Inventory Management section in your left sidebar menu
2. Click on Purchase Orders (usually at the bottom of the group)
3. You'll see a list of all your purchase orders

Understanding Purchase Orders

What is a Purchase Order (PO)?

A Purchase Order is a formal request to a supplier to deliver specific drugs at agreed prices. It serves as:

• A legal document between you and the supplier
• A tracking tool for expected deliveries
• A financial record for accounting
• A quality control mechanism

Why Use Purchase Orders?

• Organized ordering: Keep track of what you ordered, when, and from whom
• Budget control: Know exactly how much you're spending
• Delivery tracking: Monitor when drugs will arrive
• Quality assurance: Document any issues with received items
• Financial planning: Plan payments in advance

The Purchase Order Lifecycle

Typical Flow:

Creating a New Purchase Order (Step-by-Step Wizard)

Step 1: Order Details

The foundation of your purchase order:

Essential Information:

• Supplier: Select from your existing suppliers
• Order Date: When you're placing the order
• Expected Delivery Date: When you need the drugs
• Status: Current state of the order (starts as "Draft")

Status Options Explained:

• Draft: Still being prepared (not sent to supplier)
• Pending Approval: Waiting for manager approval
• Approved: Ready to be sent to supplier
• Ordered: Sent to supplier
• Partially Received: Some items received
• Fully Received: All items received
• Cancelled: Order cancelled
• Closed: Order complete and archived

Step 2: Financial Summary

The money side of your order:

Cost Breakdown:

• Total Items: Number of different drugs ordered
• Subtotal: Cost of drugs before extras
• Tax Amount: Any applicable taxes
• Shipping Cost: Delivery charges
• Discount Amount: Any supplier discounts
• Total Amount: Final amount to pay (automatically calculated)

How Amounts Work:

Step 3: Payment Information

Managing how and when you'll pay:

Payment Status:

• Pending: Not paid yet
• Partial: Partially paid
• Paid: Fully paid
• Overdue: Payment is late

Payment Details:

• Amount Paid: How much has been paid
• Amount Due: Automatically calculated (Total - Paid)
• Payment Method: Cash, Mobile Money, or Bank Transfer
• Payment Reference: Transaction/receipt number
• Payment Due Date: When payment is expected
• Payment Date: Actual date of payment

Step 4: Delivery & Receiving

Tracking the physical delivery:

Delivery Status:

• Pending: Not yet shipped
• Processing: Being prepared by supplier
• Shipped: On its way
• Partially Delivered: Some items arrived
• Delivered: All items arrived
• On Time: Delivered as expected
• Delayed: Late delivery
• Cancelled: Delivery cancelled

Delivery Details:

• Actual Delivery Date: When items actually arrived
• Shipping Method: How items were sent
• Tracking Number: For courier tracking
• Shipping Address: Where to deliver

Step 5: Quality & Approval

Ensuring you receive quality medications:

Quality Control:

• Has Quality Issues: Toggle ON if any problems
• Quality Notes: Describe any issues (appears when toggle ON)
• Rejected Items Count: How many items were rejected
• Rejected Items Value: Financial value of rejected items

Approval Process:

• Approved By: Person who authorized the order
• Approved At: Date/time of approval
• Approval Notes: Comments from approver

Step 6: Notes & Meta

Additional information and documents:

Documentation:

• Notes: General comments about the order
• Internal Notes: Private comments for staff only
• Attachments: Upload supporting documents (quotes, emails, etc.)
• Created By: Automatically records who created the order

Viewing Your Purchase Orders

Main Columns Displayed:

• Order Number: Unique identifier
• Supplier: Who you're ordering from
• Order Date: When placed
• Expected Delivery: When expected
• Status: Current state (color-coded)
• Total Amount: Cost of order
• Payment Status: Payment progress

Important Status Colors:

• 🟡 Yellow: Draft, Pending Approval
• 🟢 Green: Approved, Ordered, Delivered
• 🔵 Blue: Partially Received
• 🔴 Red: Cancelled, Overdue
• ⚫ Black: Closed

Hidden Columns (Available):

• All financial details
• Delivery information
• Quality control data
• Approval records
• Dates and timestamps

Sorting and Filtering:

• Default sorting: Most recent orders first
• Click any header to sort by that column
• Use date filter to find orders by date range
• Search by order number, supplier, or tracking

The Complete Purchase Order Workflow

Phase 1: Preparation (Status: Draft)

1. Identify drugs needed (check low stock reports)
2. Select appropriate supplier
3. Negotiate prices and terms
4. Create purchase order as "Draft"

Phase 2: Approval (Status: Pending Approval → Approved)

1. Submit draft for approval
2. Manager reviews and approves
3. Add approval notes if needed
4. Status changes to "Approved"

Phase 3: Ordering (Status: Ordered)

1. Send approved PO to supplier
2. Update status to "Ordered"
3. Record expected delivery date
4. Set payment due date

Phase 4: Receiving (Status: Partially/Fully Received)

1. Receive items from supplier
2. Check quality and quantity
3. Update delivery status
4. Mark rejected items if any

Phase 5: Payment (Status: Various Payment Statuses)

1. Verify received items match order
2. Process payment according to terms
3. Update payment status
4. Record payment reference

Phase 6: Completion (Status: Closed)

1. All items received and checked
2. All payments made
3. Quality issues resolved
4. Change status to "Closed"

Key Concepts Explained

Lead Time

• Estimated Lead Time: How long supplier says it will take
• Actual Lead Time: How long it actually took
• Delivery Delay: Difference between expected and actual dates

Quality Control

• Rejection Rate: Percentage of items rejected
• Quality Issues: Problems with received drugs
• Documentation: Always note quality issues for future reference

Financial Tracking

• Payment Terms: Agreed payment conditions
• Credit Utilization: Using supplier credit wisely
• Budget Adherence: Staying within planned spending

Best Practices for Purchase Orders

Before Creating a PO:

1. Check stock levels to avoid over-ordering
2. Compare suppliers for best prices
3. Verify supplier information is current
4. Plan delivery dates around your needs

During Order Processing:

1. Update status promptly at each stage
2. Document everything (emails, calls, notes)
3. Track delivery closely using tracking numbers
4. Inspect immediately upon receipt

After Receiving:

1. Check expiry dates on all received drugs
2. Update inventory immediately
3. Process payments on time
4. Review supplier performance based on this order

Common Scenarios

Scenario 1: Regular Monthly Order

1. Create PO for monthly restock
2. Use preferred supplier
3. Standard payment terms (Net 30)
4. Expected delivery in 7 days
5. Close after successful receipt

Scenario 2: Emergency Order

1. Create urgent PO for critical drug
2. Contact supplier by phone immediately
3. Request expedited shipping
4. Track delivery daily
5. Pay immediately upon receipt

Scenario 3: Quality Issue Resolution

1. Receive order with damaged items
2. Toggle "Has Quality Issues" to ON
3. Document problem in Quality Notes
4. Contact supplier for replacement/refund
5. Update Rejected Items count and value
6. Don't close PO until resolved

Scenario 4: Partial Delivery

1. Supplier sends some items now, some later
2. Update status to "Partially Received"
3. Record what was received
4. Follow up for remaining items
5. Update to "Fully Received" when complete

Troubleshooting Common Issues

Problem: Order is Delayed

Solution:

1. Check delivery status
2. Contact supplier for update
3. Update expected delivery date if changed
4. Consider ordering from backup supplier if critical

Problem: Payment Dispute

Solution:

1. Review all documentation in attachments
2. Check payment terms in PO
3. Contact supplier to clarify
4. Update payment status accordingly

Problem: Wrong Items Received

Solution:

1. Document error in Quality Notes
2. Take photos and attach as evidence
3. Contact supplier immediately
4. Do not update inventory until resolved

Connecting with Other Modules

With Suppliers Module:

• Select suppliers from your supplier list
• Use supplier payment terms automatically
• Track supplier performance based on PO history

With Drugs Inventory:

• Ordered drugs will update inventory when received
• Use low stock alerts to trigger new POs
• Track which drugs come from which suppliers

With Financial Management:

• POs create financial commitments
• Track accounts payable from POs
• Generate procurement reports

Reports and Analytics

Useful Information from POs:

• Monthly spending by supplier
• Delivery performance (on-time vs. delayed)
• Quality issues by supplier
• Reorder frequency for each drug
• Payment cycle analysis

Generating Reports:

1. Use date filters to select time period
2. Export data to spreadsheet
3. Analyze trends and patterns
4. Make informed decisions for future orders

Need Help?

Quick Reference Guide:

• Draft: Still working on it
• Pending Approval: Waiting for boss
• Approved: Ready to send
• Ordered: Sent to supplier
• Received: Items arrived
• Closed: All done

Important Reminders:

• Always save as draft if not ready to send
• Attach all relevant documents
• Update status at each step
• Check quality upon receipt
• Close orders when complete

Getting Support:

• System auto-saves as you work
• Email notifications available for status changes
• Audit trail tracks all changes
• Restore deleted orders if needed
• Export capability for record keeping

Glossary

• PO: Purchase Order
• Lead Time: Time from order to delivery
• Net 30: Payment due 30 days after invoice
• Subtotal: Price before taxes and fees
• Quality Control: Checking received items
• Reconciliation: Matching order with receipt
• Procurement: The process of acquiring goods