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Creating Purchase Orders: Complete Guide

From "Running Low" status to actual order in supplier's hands. This is where policy becomes action.

Three Ways to Create a PO​

Method 1: Manual Creation (Most Control)​

Use when: Building from scratch, specific quantities, custom terms

Method 2: From Supply Plan (Most Efficient)​

Use when: Using Synplex forecasts, standard orders

Method 3: Bulk Creation (Multi-Location)​

Use when: Multiple locations, consolidating shipments

We'll cover all three.

Method 1: Manual PO Creation (Step-by-Step)​

Step 1: Trigger Check​

Before creating any PO:

Question: Is the product in "Running Low" status?
├─ YES: Proceed to create PO
├─ NO: Check why
│  ├─ Still "Healthy"? Don't order yet
│  ├─ "Overstocked"? Hold off, let sell down
│  └─ Other status? See Folder 03 for action

Example:

Product: Winter Jacket
├─ Synplex status: Running Low ✓
├─ Inventory: 280 units (below 295 threshold)
├─ Restock qty needed: 145 units
└─ Action: Create PO ✓

Step 2: Open Purchase Orders Section​

In Synplex:

Navigation: Main menu → Purchase Orders → [Create New PO] button

You now see the PO creation form with fields.

Step 3: Select Supplier​

Decision point:

Which supplier?

Option A: Primary Supplier
├─ Established relationship
├─ Known lead time & quality
├─ Standard payment terms
└─ Use: Normal orders

Option B: Secondary Supplier
├─ Faster lead time (emergency?)
├─ Different pricing
├─ Different terms (PRE-PAYMENT)
└─ Use: When primary can't deliver

Option C: New Supplier
├─ Lower cost (worth trying)
├─ Unproven lead time
├─ Need to verify MOQ & quality
└─ Use: Testing, secondary option

Action: Select supplier from dropdown

Dropdown: Supplier Name ▼
├─ Start typing supplier name
├─ Synplex shows history
└─ Select (or add new if not found)

Verify supplier record has:

  • ✓ Supplier address
  • ✓ Lead time (days)
  • ✓ Payment terms default (NET 30?)
  • ✓ Default currency (EUR, USD, GBP?)
  • ✓ MOQ (if applicable)

Step 4: Add Products & Quantities​

Decision: What quantity to order?

From Folder 03, you calculated:
Restock Qty = (Lead Time × Daily Sales + Safety Stock) - On-Hand

Example:
├─ (30 × 10 + 90) - 150 = 240 units
└─ Order: 240 units

BUT: Check MOQ (Minimum Order Quantity)
├─ If MOQ > calculated: Order MOQ (supplier won't do less)
├─ If MOQ < calculated: Order calculated amount
│
Example:
├─ Calculated: 240 units
├─ Supplier MOQ: 500 units
└─ You must order: 500 units (will be overstocked, but acceptable)

Action: Add line item

Product: [Select from list]
├─ Search by name or SKU
├─ Select: Blue T-Shirt

Quantity: [Enter number]
├─ Enter: 240 (or MOQ if higher)

Unit Price: [Auto-filled or enter]
├─ Supplier quote: €10/unit
├─ Enter: 10

Total (auto-calculated): 240 × €10 = €2,400

Add multiple products?

Click [+ Add Product]
├─ Repeat for each line item
└─ Example: Winter Jacket (145 units), Blue T-Shirt (240 units)

Step 5: Select PO Currency ⭐ CRITICAL​

This is where you align with supplier's pricing

Dropdown: PO Currency ▼
├─ Default: Your base currency (USD, GBP, etc.)
├─ Options: All supported currencies (EUR, JPY, CAD, etc.)
└─ Select: Match supplier's quote currency

Decision tree:

Does supplier quote in different currency?

YES → Change PO Currency
├─ Supplier quotes in EUR? Select EUR
├─ Your base currency is USD? OK, Synplex will convert
├─ Example:
│  ├─ PO currency: EUR
│  ├─ Base currency: USD
│  └─ Synplex converts all costs EUR → USD
└─ Continue to Step 6

NO → Keep default currency
├─ Supplier quotes in your base currency? Keep as-is
├─ Example:
│  ├─ PO currency: USD
│  ├─ Base currency: USD
│  └─ No conversion needed
└─ Skip to Step 7

Real example:

Your company: US-based (base currency: USD)
Supplier: German manufacturer (prices in EUR)

Step 1: Create PO with German supplier
Step 2: Supplier quote: €10/unit × 240 units = €2,400
Step 3: You select PO Currency: EUR
  ├─ Synplex detects: EUR ≠ USD (conversion needed)
  └─ Triggers: Conversion rate step

Step 6: Set Conversion Rate (If Different Currency)​

Only appears if PO currency ≠ base currency

Trigger: You selected EUR, but base is USD
Message: "Currency differs from base. Add conversion rate?"

Option 1: Auto-Fetch Current Rate
├─ Click: [Auto-Fetch]
├─ Synplex gets live rate from market
├─ Example: 1 EUR = 1.10 USD (as of today)
├─ Use: Current pricing
└─ Time: Locks rate at PO creation date

Option 2: Manual Entry
├─ Click: [Manual Entry]
├─ You enter rate: 1 EUR = 1.10 USD
├─ Use: If you negotiated a fixed rate
├─ Use: If using forward contract
└─ Use: If market rate is different from what you want

What rate to use?

Market rate vs. Supplier rate

Current market: 1 EUR = 1.10 USD
Supplier agreement: "I'll hold this price at 1 EUR = 1.10"

Use: 1 EUR = 1.10 (supplier's locked rate)

Why?
├─ You know your cost (locked in)
├─ Supplier knows payment amount (locked in)
└─ No surprises from exchange rate changes

After selection:

Conversion rate applied:
├─ PO in EUR: €2,400
├─ Conversion: 1 EUR = 1.10 USD
├─ PO in USD: €2,400 × 1.10 = $2,640 USD
│
In Synplex:
├─ You see in USD: $2,640 (for accounting)
├─ Supplier sees in EUR: €2,400 (for their accounting)
└─ Both currencies shown for clarity

Click: [Apply Conversion]

Step 7: Verify Conversion Applied​

What changes:

✓ Product costs: Converted
├─ 240 units × €10 × 1.10 = $2,640 USD

✓ Additional fees (if any):
├─ Shipping: €200 → $220 USD (if included)
├─ Insurance: €50 → $55 USD (if included)

❌ NOT converted (separate currencies):
├─ Payment currency: Set at payment time (may differ)
├─ Shipment costs: Separate currency & conversion
└─ Why: These happen at different times

Check:

Line item review:
├─ Product: Blue T-Shirt
├─ Quantity: 240 units
├─ Unit price: €10 (supplier currency)
├─ Line total: €2,400 (in PO currency)
├─ Converted total: $2,640 USD (in base currency)
└─ ✓ Correct

Step 8: Set Delivery Details​

Delivery address:

Dropdown: Warehouse Location ▼
├─ Select warehouse receiving goods
├─ Example: Berlin Warehouse
├─ System can have multiple locations
└─ Important: Stock updates to correct location

Expected delivery date:

Field: Expected Delivery Date
├─ Formula: Today + Lead Time
├─ Example: Today is Aug 15, lead time is 30 days
├─ Enter: September 15
└─ Use for: Inventory planning, stock gap prevention

Step 9: Set Payment Terms​

Decision: How will you pay?

Dropdown: Payment Terms ▼
├─ NET 30 (standard: pay 30 days after delivery)
├─ NET 15 (faster: pay 15 days after delivery)
├─ NET 60 (slower: pay 60 days after delivery)
├─ COD (cash on delivery: pay when goods arrive)
├─ PRE-PAYMENT (advance: pay before shipping)
└─ Other (custom terms)

Which to choose?

Standard (NET 30):
├─ Most common
├─ Delivery Sept 15 → Payment Oct 15
├─ Gives you 30 days to receive & verify
├─ Good cash flow balance

Early payment (NET 15):
├─ Supplier preference (faster cash)
├─ May get slight discount (1-2%)
├─ Less cash flow runway
├─ Use: Small orders, trusted suppliers

Late payment (NET 60):
├─ Better cash flow (60 days to pay)
├─ Supplier may charge premium (1-2%)
├─ Good for large orders
├─ Use: When cash flow is tight

COD (Cash on Delivery):
├─ Pay when goods arrive
├─ Good: Verify before paying
├─ Bad: Higher costs (supplier premium)
└─ Use: Unproven suppliers, large orders

PRE-PAYMENT:
├─ Pay before goods ship
├─ Supplier needs cash upfront
├─ Your risk: Supplier delays or fails
└─ Use: Only with trusted suppliers

Early payment discount?

Example term: "2/10 NET 30"
Meaning:
├─ Full payment due: 30 days after delivery (Oct 15)
├─ OR pay 2% less if paid within 10 days (Sept 25)
│
Math:
├─ Invoice: €2,400
├─ Pay on day 10: €2,400 × 0.98 = €2,352 (save €48)
├─ Pay on day 30: €2,400 (standard)
│
Decision:
├─ Have cash available? Pay early (save 2%)
├─ Cash tight? Pay on day 30
└─ ROI on early payment: 36.7% annually (good!)

Step 10: Set Payment Currency​

Important: Can differ from PO currency

Dropdown: Payment Currency ▼
├─ Default: Same as PO currency
├─ Can change: To your base currency or other
│
Why separate?
├─ PO locked at creation: EUR €2,400 (conversion to $2,640)
├─ Payment at due date: Exchange rate changed!
├─ 1 EUR now = 1.05 USD (rate dropped)
├─ Payment amount: €2,400 × 1.05 = $2,520 USD
├─ Savings: $2,640 - $2,520 = $120 USD
└─ You benefit from favorable rate change!

Payment currency options:

Option A: Pay in supplier's currency (EUR)
├─ Amount: €2,400 (fixed)
├─ Your cost in USD: Depends on rate at payment time
├─ Benefit: Know exact amount to supplier
├─ Risk: Your cost varies with USD/EUR rate
├─ Use: Most international suppliers

Option B: Pay in your base currency (USD)
├─ Amount: $2,640 USD (at time of PO)
├─ Rate locked at PO creation
├─ Benefit: Know exact cost to you (no surprises)
├─ Risk: Supplier may want EUR (need conversion)
└─ Use: When you want cost certainty

Example recommendation:
├─ Pay in supplier's currency (EUR)
├─ Let exchange rate benefit you
├─ Monitor rate between PO and payment
└─ Pay when rate is favorable (day 30, not day 15?)

Step 11: Review & Save as Draft​

Before saving, check:

Supplier:
├─ ✓ ABC Manufacturer (Germany)

Products:
├─ ✓ Blue T-Shirt, 240 units, €10/unit = €2,400

Currency:
├─ ✓ PO in: EUR
├─ ✓ Conversion: 1 EUR = 1.10 USD
├─ ✓ PO total in USD: $2,640

Delivery:
├─ ✓ Location: Berlin Warehouse
├─ ✓ Date: September 15

Payment:
├─ ✓ Terms: NET 30
├─ ✓ Currency: EUR (supplier's currency)
└─ ✓ Due date: ~October 15

Everything correct?
├─ YES → Click: [Save as Draft]
└─ NO → Edit above fields

Status: DRAFT

You can still:
├─ Edit anything
├─ Add/remove products
├─ Change quantities
├─ Change currency
├─ Delete the PO
└─ No one is committed yet

Step 12: Approve & Send​

Before sending to supplier:

Final approval:
├─ Price reasonable? ✓
├─ Quantity correct? ✓
├─ Delivery date realistic? ✓
├─ Payment terms acceptable? ✓
└─ Ready to commit? YES

Click: [Approve]
Status: APPROVED (internal approval done)

Click: [Send to Supplier]
├─ Email sent to supplier
├─ PO shows: SENT
└─ Supplier confirms receipt

Method 2: Create PO from Supply Plan (Faster)​

Synplex recommends what to order based on:

  • Running Low status
  • Calculated restock quantity
  • Supplier lead times
  • Safety stock

Quick workflow:​

Step 1: Go to Demand & Supply Plan
Step 2: Review "Recommended Orders" section
Step 3: See pre-filled orders:
  ├─ Supplier: ABC Manufacturer ✓ (pre-filled)
  ├─ Products: Blue T-Shirt ✓ (pre-filled)
  ├─ Quantity: 240 units ✓ (pre-filled)
  ├─ Lead time: 30 days ✓ (from supplier record)
  └─ Expected delivery: AUTO-calculated

Step 4: Click [Convert to PO]
  ├─ System creates PO with above details
  └─ You see: "PO created - now adjust currency & terms"

Step 5: Edit if needed
  ├─ Currency: Change to EUR (if needed)
  ├─ Payment terms: Adjust to NET 30
  └─ Click [Save]

Step 6: Send to supplier
  ├─ Click [Approve]
  └─ Click [Send]

Time saved: 10 minutes → 2 minutes (system calculates everything)

Benefit: Less error (Synplex uses your policy settings)

Method 3: Bulk PO Creation (Multi-Location)​

When you have multiple warehouses:

Berlin Warehouse: Running Low on Winter Jacket
Munich Warehouse: Running Low on Blue T-Shirt
Both from same supplier: ABC Manufacturer

Option A: Create 2 separate POs
├─ PO 1: Winter Jacket (145 units) for Berlin
├─ PO 2: Blue T-Shirt (240 units) for Munich
├─ 2 shipments, 2 shippings costs
└─ Higher total cost

Option B: Bulk create 1 PO (consolidate)
├─ PO 1: Winter Jacket (145 units) → Berlin
├─ + Blue T-Shirt (240 units) → Munich
├─ 1 shipment, 1 shipping cost (split at warehouse)
└─ Lower total shipping cost!

How to bulk create:​

Step 1: Go to Supply Plan
Step 2: Filter: Supplier = ABC Manufacturer
Step 3: Select multiple recommended orders
  ├─ ☑ Winter Jacket (145 units)
  ├─ ☑ Blue T-Shirt (240 units)
  └─ ☑ Other product?

Step 4: Click [Create Bulk PO]
  ├─ Synplex groups by supplier
  ├─ Creates 1 PO for both locations
  ├─ System tracks per-location allocation
  └─ Shipment to: "Multiple locations"

Step 5: Edit if needed
  ├─ Currency: EUR
  ├─ Payment terms: NET 30
  └─ Delivery: "Split to Berlin & Munich"

Step 6: Send
  ├─ Supplier receives 1 PO
  ├─ Ships 1 package with 2 deliveries
  └─ Lower cost, simpler communication

Real Example: Complete Manual Creation​

Company: Fashion retailer
Supplier: German manufacturer
Product: Winter Jacket
Trigger: Running Low status

Actual steps:​

Step 1: Check status
├─ Synplex shows: Winter Jacket "Running Low"
├─ Inventory: 280 units (below 295 threshold)
└─ Action: Create PO

Step 2: Manual creation
├─ Click: [Create New PO]

Step 3: Select supplier
├─ Dropdown: ABC Manufacturer (Germany)

Step 4: Add product
├─ Product: Winter Jacket
├─ Quantity: 145 units (calculated restock)
├─ Unit price: €45 (from supplier quote)
├─ Line total: €6,525

Step 5: Select currency
├─ Dropdown: EUR (supplier quotes in EUR)
├─ Base currency: USD
├─ Synplex detects mismatch → triggers conversion

Step 6: Set conversion rate
├─ Current rate: 1 EUR = 1.10 USD
├─ Action: [Auto-Fetch Current Rate]
├─ Rate applied: 1 EUR = 1.10 USD
├─ Converted total: €6,525 × 1.10 = $7,177.50 USD

Step 7: Delivery details
├─ Warehouse: Berlin Warehouse
├─ Expected delivery: September 30 (45 days from today)

Step 8: Payment terms
├─ Terms: NET 30
├─ Due date: ~October 30 (30 days after Sept 30 delivery)

Step 9: Payment currency
├─ Currency: EUR (supplier's currency)
├─ Why: Simpler for supplier, exchange rate benefit for you

Step 10: Review
├─ ✓ Supplier: ABC Manufacturer (Germany)
├─ ✓ Product: Winter Jacket, 145 units, €45/unit
├─ ✓ PO in EUR: €6,525
├─ ✓ PO in USD: $7,177.50 (your accounting)
├─ ✓ Delivery: Berlin, Sept 30
├─ ✓ Payment: NET 30, EUR
└─ ✓ All correct!

Step 11: Save as draft
├─ Click: [Save as Draft]
├─ Status: DRAFT (still editing)

Step 12: Approve
├─ Click: [Approve]
├─ Status: APPROVED (ready to send)

Step 13: Send
├─ Click: [Send to Supplier]
├─ Status: SENT
├─ Email: Sent to supplier@abcmfg.de
└─ Tracking: Begins now

Common Mistakes to Avoid​

❌ Mistake 1: Wrong Currency​

You order €2,400 in EUR, but tell Synplex it's USD
Result: System thinks cost is $2,400 (wrong!)
Actual cost: $2,640 (10% higher)

Fix: Always match PO currency to supplier quote currency

❌ Mistake 2: Ignoring MOQ​

You calculate: 240 units
Supplier MOQ: 500 units
You order: 240 units
Supplier: "Can't do that, minimum 500"

Result: Delayed order, scrambling for new arrangement

Fix: Check MOQ BEFORE creating PO
Supplier record should show MOQ

❌ Mistake 3: Conversion Rate Error​

You set conversion: 1 EUR = 0.90 USD (wrong!)
Correct rate: 1 EUR = 1.10 USD

Result: Your cost shows $1,458 instead of $7,177
Decision making: Based on wrong numbers

Fix: Use auto-fetch or verify manually
Check rates on reliable source (XE.com, OANDA)

❌ Mistake 4: Delivery Date Too Optimistic​

You set delivery: 20 days
Supplier needs: 30 days production + 15 days shipping
Reality: Arrives on day 50

Result: Stock gap, stockout, lost sales

Fix: Always add buffer (30 days → 35 days)
Confirm lead time with supplier

❌ Mistake 5: Wrong Payment Terms​

You set: PRE-PAYMENT
Supplier: Expects NET 30
Supplier: "I need payment upfront, but I'll send in 45 days"

Result: You pay early, goods arrive late, cash flow problem

Fix: Confirm payment terms BEFORE creating
Check supplier record
Negotiate terms upfront

FAQ​

Q: Can I create a PO without a supplier in Synplex?

A: No. You must first add supplier to Synplex (name, lead time, contact). Takes 2 minutes. Do it once, reuse forever.

Q: What if supplier quotes in multiple currencies?

A: Set PO Currency to the one they quoted. Synplex converts to your base for accounting.

Q: Can I change currency after sending PO?

A: Not recommended. PO is already sent in that currency. If you change: confirm with supplier (they might have already processed it in original currency).

Q: What if my base currency changes?

A: Rare but possible (move countries, change accounting). Synplex will recalculate all existing POs. Contact support first.

Q: Should I always auto-fetch exchange rates?

A: Yes, unless you have a supplier agreement locking a specific rate. Auto-fetch gets current market rate (most accurate).

Q: Can I order from 2 suppliers in 1 PO?

A: No. 1 PO = 1 supplier (by design). Create separate POs if ordering from 2 suppliers.

Q: What if I need to order TODAY (emergency)?

A: Create PO immediately. Use fast supplier (shorter lead time). Pay extra for expedited shipping if needed. See File 07 (Troubleshooting).

Next Steps​

  1. Review: Your first Running Low product
  2. Create: Draft PO (manual method to learn)
  3. Verify: All details correct (especially currency!)
  4. Send: To supplier
  5. Track: Continue to File 03 (Shipments & Receiving)

Questions? Contact support@synplex.io