Generating Purchase Orders

Our PROMAN-erp system has a purchase order system, as any ERP system for manufacturers should. The purpose of this document is to show you how easily you can produce a purchase order.

A purchase order is your commitment to a supplier to pay an agreed upon price for goods or services and at what lead time. Line items on your purchase order fall in three general categories

  1. Parts – components and/or raw material that you intend to put into stock. These items are defined in your system. These dollars end up in inventory (different classes of inventory can have different ledger accounts).
  2. Sub-contracting – these are line items purchased directly to a work order. They may reference a specific sequence (or operation) on your work order. We can alter this a bit for job shop environments and put the cost in a material bucket (for components that do not have a part number in your system, but you want the cost in the work order). Otherwise, the cost are treated as sub-contracting (we also call this outplant cost). These dollars end up in WIP (Work-In-Process)
  3. Expense Items – these line items purchase a service or goods that are expensed directly to the general ledger. These might be services, maintenance, support services, supplies, etc.

The request to purchase something may come from many different sources, so PROMAN-erp gives you a variety of ways to convert these requests into purchase orders.


You can always manually create a purchase order. These can be maintained using this same method regardless of how the order was created. Line items can be deleted and/or added as needed. The resulting order (or change order) can then be transmitted to the supplier through any of several methods; printed, emailed, email with PDF copy, etc. A complete change history on the order can be maintained.

The system supplies a business process that supports requisitions. These can be entered by any system user. The user will have limits to what they can request and where it will be charged to. These requisitions can then go through an approval process. Once fully approved, the requisition can be converted directly into a purchase order.

We also support a “request for price” or (RFP) system. These can be generated from planned orders or manually created. These RFP’s can be sent to multiple suppliers with application PDF drawings attached. Responses from suppliers can be logged in with price options and deliveries. These can then be converted to a purchase order.

There are certain cases where parts can only be purchased from one source and the price is pre-arranged. In these cases, the purchase order can be automatically generated either on-demand or in the NTP (Night-Time-Processor). These can be reviewed and then sent to the supplier. This saves the tedious entry of certain purchase orders and automates the process.

Planned purchase orders can be done in several methods. They might be generated from MRP, manually created, or from a master schedule. Regardless of how the planned order was created, it can then be converted to a Purchase Order when appropriate. These may be as easy as checking a box and then right click to put all the items onto a purchase order.

All of these methods create a purchase order which is then integrated with the balance of the system. It is immediately visible in the system so that other stakeholders are aware that the items are on order.

PROMAN-erp makes the process as easy as possible and provides different options for different business needs. You can use one or all of the above methods as they fit your organization and needs.

See our Purchase Order features page for more information, or contact us for an on-line meeting with a professional installer in this area.