Purchase Order Workflow

Overview

Purchase Orders (POs) in SynthesQ follow a structured workflow from creation through completion, with approval gates and status tracking to ensure proper procurement controls.

PO Lifecycle States

Draft

Initial state when a PO is created:

Can be edited freely
Not visible to suppliers
No inventory reservations
Can be deleted without audit trail

Transitions: → Pending (when submitted for approval)

Pending

PO awaiting approval:

Cannot be edited
Visible to approvers
Email notifications sent
Awaiting manager/admin review

Transitions: → Approved or → Cancelled

Approved

PO approved and ready to send:

Locked from editing
Ready for supplier transmission
Can generate PDF/email
Inventory expectations recorded

Transitions: → Sent (when transmitted to supplier)

Sent

PO transmitted to supplier:

Supplier has been notified
Expected delivery dates active
Receiving process can begin
Cannot be cancelled without supplier coordination

Transitions: → Partially Received → Completed

Partially Received

Some items received, awaiting remainder:

Partial inventory updates
Outstanding quantity tracked
Can receive additional shipments
Monitors expected vs. actual

Transitions: → Completed (when all received)

Completed

All items received and validated:

Inventory fully updated
PO archived
Performance metrics calculated
Supplier rating updated

Transitions: Terminal state

Cancelled

PO cancelled before completion:

Reason required for audit
Cannot be reactivated
Cancellation date recorded
Historical record preserved

Transitions: Terminal state

Business Scenarios

Scenario 1: Standard Purchase Flow

Use Case: Routine purchase from established supplier

Workflow:

Create PO in Draft state
Add line items (products + quantities)
Select supplier and delivery warehouse
Set expected delivery date
Submit for approval (Draft → Pending)
Manager reviews and approves (Pending → Approved)
Send to supplier (Approved → Sent)
Receive goods as they arrive (Sent → Partially Received → Completed)

Key Checkpoints:

Approval required for POs over threshold amount
Expected delivery date drives reorder calculations
Partial receiving allowed for split shipments

Scenario 2: Emergency Purchase (Expedited)

Use Case: Urgent stock replenishment

Workflow:

Create PO with "Urgent" priority flag
Add critical stock items
Use expedited approval process
Send immediately upon approval
Expedite receiving process

Considerations:

Higher urgency may bypass standard approval for authorized users
Expedited shipping costs may apply
Receiving team notified of urgent delivery

Scenario 3: Auto-Generated Reorder

Use Case: Automated stock replenishment

System Behavior:

Inventory monitoring detects low stock (below reorder point)
System generates PO automatically in Draft state
Uses preferred supplier for that product
Calculates quantities based on reorder quantity
Routes to approver based on dollar amount
Approved POs sent automatically (if configured)

Configuration Options:

Automatic vs. manual approval thresholds
Preferred supplier per product
Reorder points and quantities per product/warehouse
Auto-send upon approval (optional)

Scenario 4: PO Modification After Sending

Use Case: Supplier cannot fulfill original order

Allowed Changes:

Expected delivery date (with reason)
Quantity reductions (with supplier confirmation)
Cancellation of specific line items

Not Allowed:

Adding new products
Increasing quantities
Changing prices (requires new PO)
Changing supplier

Process:

Create amendment record
Log reason for change
Notify affected parties
Update inventory expectations

Approval Workflows

Single-Level Approval

When: PO total below threshold (e.g., < $5,000)

Flow: Draft → Pending → Manager Approval → Approved

Multi-Level Approval

When: PO total above threshold (e.g., ≥ $5,000)

Flow: Draft → Pending → Manager Approval → Director Approval → Approved

Auto-Approval

When: Conditions met:

Auto-generated reorder PO
Total below auto-approval limit
Preferred supplier
Within budget

Flow: Draft → Auto-Approved → Sent

Receiving Process

Full Receipt (Single Delivery)

PO arrives at warehouse
Receiving team scans/enters PO number
Validate received quantities against PO
Record receipt in system
Status: Sent → Completed
Inventory automatically updated

Partial Receipt (Multiple Deliveries)

First shipment arrives
Record partial quantities received
Status: Sent → Partially Received
Inventory updated for received items
Outstanding items remain on backorder
Repeat for subsequent shipments
Final shipment: Partially Received → Completed

Quality Control Integration

Goods received but held for QC
Inventory marked as "Received - QC Pending"
QC team inspects goods
Pass: Release to available inventory
Fail: Reject items, notify supplier, update PO

Integration Points

With Inventory Module

PO creation checks current stock levels
Receiving updates inventory quantities
Expected delivery dates affect available-to-promise
Multi-warehouse support: PO specifies destination

With Supplier Module

Supplier performance metrics updated
On-time delivery tracking
Quality ratings affected by QC results
Preferred supplier designation

With Finance Module

PO creates accounts payable expectation
Receiving triggers invoice matching
Budget tracking per department/project
Accrual accounting for received goods

Performance Metrics

Supplier Performance

On-time delivery rate
Order accuracy (received vs. ordered)
Quality acceptance rate
Average lead time
Responsiveness to amendments

Procurement Efficiency

Time from creation to approval
Time from approval to sending
Time from sending to receipt
PO cycle time (creation to completion)
Emergency PO frequency

Best Practices

Creating Purchase Orders

Verify Inventory First: Check current stock before creating PO
Batch Similar Items: Combine products from same supplier
Consider Lead Times: Order before reaching reorder point
Use Preferred Suppliers: Leverage established relationships
Include Complete Info: Delivery instructions, contact details

Approval Process

Set Clear Thresholds: Define approval limits by role
Enable Notifications: Alert approvers promptly
Track Approval Time: Monitor bottlenecks
Document Rejections: Require reason for denied POs

Receiving Process

Inspect Upon Arrival: Don't delay receiving process
Record Discrepancies: Document quantity/quality issues immediately
Partial Receives OK: Don't wait for complete order
Update System Promptly: Real-time inventory accuracy

Supplier Management

Track Performance: Use metrics to evaluate suppliers
Communicate Changes: Notify suppliers of amendments promptly
Build Relationships: Preferred suppliers get priority
Review Regularly: Assess supplier performance quarterly

Troubleshooting Common Issues

PO Stuck in Pending

Causes:

Approver unavailable
Awaiting budget approval
Missing required information

Resolution:

Escalate to backup approver
Complete missing information
Consider emergency approval process

Supplier Never Received PO

Causes:

Incorrect email address
Spam filter blocked
System transmission error

Resolution:

Verify supplier contact info
Resend PO
Follow up with phone call
Check system email logs

Receiving Discrepancies

Causes:

Supplier short-shipped
Damaged goods
Wrong items sent

Resolution:

Document discrepancy with photos
Contact supplier immediately
Receive partial quantity if acceptable
Create return/replacement process

API Endpoints

Create Purchase Order

Endpoint: POST /api/v1/operations/purchase-orders

Authentication: Required (Bearer token)

Request Body:

json

{
  "supplier_id": 12,
  "order_date": "2025-12-17",
  "expected_delivery_date": "2025-12-24",
  "status": "draft",
  "internal_notes": "Q4 inventory replenishment",
  "line_items": [
    {
      "product_id": 101,
      "quantity_ordered": 200,
      "unit_price": 15.50,
      "warehouse_id": 1
    },
    {
      "product_id": 102,
      "quantity_ordered": 100,
      "unit_price": 18.00,
      "warehouse_id": 1
    }
  ]
}

Response (201 Created):

json

{
  "message": "Purchase order created successfully",
  "data": {
    "id": 78,
    "order_number": "PO-202512-00078",
    "status": "draft",
    "supplier": {
      "id": 12,
      "name": "Acme Supplies Inc",
      "email": "orders@acmesupplies.com"
    },
    "order_date": "2025-12-17",
    "expected_delivery_date": "2025-12-24",
    "total_amount": 4900.00,
    "currency": "USD",
    "internal_notes": "Q4 inventory replenishment",
    "line_items": [
      {
        "id": 234,
        "product_id": 101,
        "product_sku": "WIDGET-001",
        "product_name": "Premium Widget",
        "quantity_ordered": 200,
        "quantity_received": 0,
        "unit_price": 15.50,
        "line_total": 3100.00,
        "warehouse_id": 1
      },
      {
        "id": 235,
        "product_id": 102,
        "product_sku": "GADGET-002",
        "product_name": "Smart Gadget",
        "quantity_ordered": 100,
        "quantity_received": 0,
        "unit_price": 18.00,
        "line_total": 1800.00,
        "warehouse_id": 1
      }
    ],
    "created_at": "2025-12-17T10:30:00Z",
    "updated_at": "2025-12-17T10:30:00Z"
  }
}

Approve Purchase Order

Endpoint: POST /api/v1/operations/purchase-orders/{id}/approve

Authentication: Required (Bearer token)

Request Body:

json

{
  "approval_notes": "Approved for Q4 procurement budget"
}

Response (200 OK):

json

{
  "message": "Purchase order approved successfully",
  "data": {
    "id": 78,
    "order_number": "PO-202512-00078",
    "status": "approved",
    "approved_at": "2025-12-17T11:00:00Z",
    "approved_by": {
      "id": 5,
      "name": "Jane Manager",
      "email": "jane@example.com"
    }
  }
}

Error Response (422 Unprocessable Entity):

json

{
  "error": "Cannot approve purchase order",
  "message": "Purchase order must be in pending status to approve. Current status: draft"
}

Send to Supplier

Endpoint: POST /api/v1/operations/purchase-orders/{id}/send

Authentication: Required (Bearer token)

Request Body:

json

{
  "send_email": true,
  "email_message": "Please confirm receipt and expected delivery date",
  "attach_pdf": true
}

Response (200 OK):

json

{
  "message": "Purchase order sent to supplier successfully",
  "data": {
    "id": 78,
    "order_number": "PO-202512-00078",
    "status": "sent",
    "sent_at": "2025-12-17T11:30:00Z",
    "sent_to": "orders@acmesupplies.com",
    "email_sent": true
  }
}

Receive Goods

Endpoint: POST /api/v1/operations/purchase-orders/{id}/receive

Authentication: Required (Bearer token)

See Receiving Goods Guide for detailed receiving process documentation.

Simple Full Receipt:

json

{
  "notes": "Delivery received in good condition",
  "quality_check_passed": true
}

Response (200 OK):

json

{
  "message": "Purchase order marked as received successfully",
  "data": {
    "id": 78,
    "order_number": "PO-202512-00078",
    "status": "received",
    "actual_delivery_date": "2025-12-24"
  }
}

Cancel Purchase Order

Endpoint: POST /api/v1/operations/purchase-orders/{id}/cancel

Authentication: Required (Bearer token)

Request Body:

json

{
  "cancellation_reason": "Supplier cannot meet delivery date - sourcing alternative",
  "notify_supplier": true
}

Response (200 OK):

json

{
  "message": "Purchase order cancelled successfully",
  "data": {
    "id": 78,
    "order_number": "PO-202512-00078",
    "status": "cancelled",
    "cancelled_at": "2025-12-17T14:00:00Z",
    "cancelled_by": {
      "id": 5,
      "name": "Jane Manager"
    },
    "cancellation_reason": "Supplier cannot meet delivery date - sourcing alternative"
  }
}

Error Response (422 Unprocessable Entity):

json

{
  "error": "Cannot cancel purchase order",
  "message": "Cannot cancel purchase order in status: received. Only draft, pending, or approved orders can be cancelled."
}

List Purchase Orders

Endpoint: GET /api/v1/operations/purchase-orders

Authentication: Required (Bearer token)

Query Parameters:

status (string, optional): Filter by status (draft, pending, approved, sent, partially_received, received, cancelled)
supplier_id (integer, optional): Filter by supplier
from_date (date, optional): Filter by order date (Y-m-d format)
to_date (date, optional): Filter by order date (Y-m-d format)
search (string, optional): Search by order number or notes
sort_by (string, optional): Sort field (order_date, total_amount, status)
sort_direction (string, optional): Sort direction (asc, desc)
page (integer, optional): Page number for pagination
per_page (integer, optional): Items per page (default: 15, max: 100)

Example Request:

bash

GET /api/v1/operations/purchase-orders?status=sent&supplier_id=12&per_page=20

Response (200 OK):

json

{
  "data": [
    {
      "id": 78,
      "order_number": "PO-202512-00078",
      "status": "sent",
      "supplier": {
        "id": 12,
        "name": "Acme Supplies Inc"
      },
      "order_date": "2025-12-17",
      "expected_delivery_date": "2025-12-24",
      "total_amount": 4900.00,
      "currency": "USD"
    }
  ],
  "meta": {
    "current_page": 1,
    "per_page": 20,
    "total": 1,
    "last_page": 1
  },
  "links": {
    "first": "/api/v1/operations/purchase-orders?page=1",
    "last": "/api/v1/operations/purchase-orders?page=1",
    "prev": null,
    "next": null
  }
}

Get Purchase Order Details

Endpoint: GET /api/v1/operations/purchase-orders/{id}

Authentication: Required (Bearer token)

Response (200 OK):

json

{
  "data": {
    "id": 78,
    "order_number": "PO-202512-00078",
    "status": "sent",
    "supplier": {
      "id": 12,
      "name": "Acme Supplies Inc",
      "email": "orders@acmesupplies.com",
      "phone": "+1-555-0100"
    },
    "order_date": "2025-12-17",
    "expected_delivery_date": "2025-12-24",
    "actual_delivery_date": null,
    "total_amount": 4900.00,
    "currency": "USD",
    "internal_notes": "Q4 inventory replenishment",
    "line_items": [
      {
        "id": 234,
        "product_id": 101,
        "product_sku": "WIDGET-001",
        "product_name": "Premium Widget",
        "quantity_ordered": 200,
        "quantity_received": 0,
        "unit_price": 15.50,
        "line_total": 3100.00,
        "warehouse_id": 1,
        "warehouse_name": "Main Warehouse"
      }
    ],
    "created_at": "2025-12-17T10:30:00Z",
    "updated_at": "2025-12-17T11:30:00Z",
    "approved_at": "2025-12-17T11:00:00Z",
    "sent_at": "2025-12-17T11:30:00Z"
  }
}

Auto-Reordering - Automated PO generation
Receiving Goods - Detailed receiving process
Inventory Management - Stock level monitoring

Purchase Order Workflow ​

Overview ​

PO Lifecycle States ​

Draft ​

Pending ​

Approved ​

Sent ​

Partially Received ​

Completed ​

Cancelled ​

Business Scenarios ​

Scenario 1: Standard Purchase Flow ​

Scenario 2: Emergency Purchase (Expedited) ​

Scenario 3: Auto-Generated Reorder ​

Scenario 4: PO Modification After Sending ​

Approval Workflows ​

Single-Level Approval ​

Multi-Level Approval ​

Auto-Approval ​

Receiving Process ​

Full Receipt (Single Delivery) ​

Partial Receipt (Multiple Deliveries) ​

Quality Control Integration ​

Integration Points ​

With Inventory Module ​

With Supplier Module ​

With Finance Module ​

Performance Metrics ​

Supplier Performance ​

Procurement Efficiency ​

Best Practices ​

Creating Purchase Orders ​

Approval Process ​

Receiving Process ​

Supplier Management ​

Troubleshooting Common Issues ​

PO Stuck in Pending ​

Supplier Never Received PO ​

Receiving Discrepancies ​

API Endpoints ​

Create Purchase Order ​

Approve Purchase Order ​

Send to Supplier ​

Receive Goods ​

Cancel Purchase Order ​

List Purchase Orders ​

Get Purchase Order Details ​

Related Guides ​

Purchase Order Workflow

Overview

PO Lifecycle States

Draft

Pending

Approved

Sent

Partially Received

Completed

Cancelled

Business Scenarios

Scenario 1: Standard Purchase Flow

Scenario 2: Emergency Purchase (Expedited)

Scenario 3: Auto-Generated Reorder

Scenario 4: PO Modification After Sending

Approval Workflows

Single-Level Approval

Multi-Level Approval

Auto-Approval

Receiving Process

Full Receipt (Single Delivery)

Partial Receipt (Multiple Deliveries)

Quality Control Integration

Integration Points

With Inventory Module

With Supplier Module

With Finance Module

Performance Metrics

Supplier Performance

Procurement Efficiency

Best Practices

Creating Purchase Orders

Approval Process

Receiving Process

Supplier Management

Troubleshooting Common Issues

PO Stuck in Pending

Supplier Never Received PO

Receiving Discrepancies

API Endpoints

Create Purchase Order

Approve Purchase Order

Send to Supplier

Receive Goods

Cancel Purchase Order

List Purchase Orders

Get Purchase Order Details

Related Guides