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Docs Stock Receive stock from a purchase order

Receive stock from a purchase order

Book in what your supplier delivered, back order the rest, and raise the supplier bill.

Overview

Stock comes into Smartworks through purchase orders. Ordering adds to Incoming. Receiving the order moves what arrived into on hand, or onto the job it was bought for. In the same step you can put the missing items on a back order and create the supplier’s bill in Xero.

SupplierDelivers the goods
Receive Purchase Order
SmartworksOn hand, or used on the job
Received quantities and costs
XeroPurchase order, back order, bill
What one receipt does, in Smartworks and in Xero

Stock orders and job orders

Each line on a purchase order is either for stock or for a job.

  • A line with no Job buys stock. Receiving it adds the quantity to on hand.
  • A line with a Job buys for that job. Receiving it uses the ordered quantity on the job straight away, and the line counts as a cost on the job. Anything received over the ordered quantity goes to on hand.

On the mobile app, a purchase order line on a job has a split button that opens Assign to Stock. Enter the number of items not used on the job, and Smartworks moves them to a line with no job, so they go to on hand when the order is received. This works only before the order is received.

The New Purchase Order form, with the Job field above the lines table and a Job column on each line
Step by step: receive a purchase order
  1. Click Purchase Orders in the header.
  2. Click Receive on the order’s row.
  3. Enter the quantity that arrived in Received on each line, or tick All Received.
  4. Enter the price you were charged in Cost on any line whose price changed.
  5. Tick Create Back Order, if some items are still to come.
  6. Tick Create Supplier Invoice, then enter the Supplier Invoice # and Invoice Due Date, if you have the bill.
  7. Choose a status in Update PO Status, if it should change.
  8. Click Receive, or Receive and Back Order.

Smartworks shows Successfully received purchase order. With a back order, it shows Successfully received purchase order and created back order. You are now viewing the back order. and opens the new order. You can also click Receive in a tracked product’s stock list in Products and Services.

What receiving changes

  • Stock. The received quantity moves out of Incoming. For stock lines it goes to on hand. For job lines it is used on the job.
  • The order. Each line’s quantity becomes the quantity received, and its cost becomes the Cost you entered. Lines with nothing received are removed. The order in Xero is updated to match, with the lines that did not arrive kept at zero.
  • The job. A job line takes the received quantity and cost, which is what cost of goods sold counts.
  • Receiving is once only. A received order shows a green tick and opens read-only. You cannot receive it a second time.

Back orders

Create Back Order creates a new purchase order in Xero for whatever did not arrive. Its reference is the original order number followed by B/O. The shortfall leaves Incoming on the original order and comes back as incoming on the back order, which you receive when the rest arrives.

Each back order line takes the Cost you entered on the receipt. A line where you left Cost blank can come through at $0, so check the prices on the back order, which Smartworks opens for you, and click Save once they are right.

If part of a line arrives and you do not create a back order, Smartworks keeps the missing quantity in Incoming, and the order cannot be received again. To clear it, load the correct incoming quantity with Import Stock.

Supplier bills

Create Supplier Invoice creates the bill in Xero as part of the receipt. The bill:

  • is numbered with the purchase order number and the Supplier Invoice #;
  • is dated the day you receive and awaits approval in Xero;
  • lists the received quantities at the costs you entered, with each product’s item code.

If Xero refuses the bill, the receipt still stands and Smartworks shows There was an error creating the supplier invoice: with Xero’s reason. Create the bill in Xero instead, from the purchase order. Smartworks offers Create Supplier Invoice only when you receive, so a bill that arrives later is also entered in Xero.

Bill credit notes

Click Credit on a received order to open Issue Bill Credit Note, and click SAVE CREDIT NOTE to create the credit note in Xero. Each credited line takes its quantity off hand, as a Bill Credit movement, because the goods are going back to the supplier.

This applies to job lines too, even though their stock was used on the job when it arrived, and a received job line cannot be changed. When you credit items from a job’s order, also add a line to the job in Invoicing for the same product with a negative quantity. That puts the quantity back on hand and takes its cost off the job, so both stay right.

Good to know

Deleted orders

A purchase order deleted in Smartworks takes its incoming stock with it. An order deleted directly in Xero can still show incoming stock in Smartworks, because Smartworks is not told about it.

Months waiting on an order

An order with job lines that has not been received holds its month open in the cost of goods sold report, shown as Waiting on. Receive it, or set it to DELETED, so the month can lock.

See also