Purchase Orders (PO)

What is the Purchase Orders Module?

The Purchase Orders module manages the full lifecycle of purchase orders in Tawridy -- from creation through approval, dispatch, goods receipt, and completion. POs can be generated automatically from awarded quotes or created manually for direct purchases. A configurable multi-tier approval workflow ensures proper authorization based on order value, while bilingual (English/Arabic) PDF generation enables seamless communication with suppliers across the GCC. Every amendment is tracked with version history, maintaining a complete audit trail for compliance and governance.

How It Connects

Direction	Connected Module	Relationship
In <--	Quotes	Awarded quotes auto-generate PO drafts
In <--	Suppliers	POs are issued to approved (AVL) suppliers
Out -->	GRN (Goods Received Note)	Deliveries against POs are recorded as GRNs
Out -->	Invoices	Supplier invoices are matched to POs for payment
Both	Projects	PO amounts are tracked as "committed" budget in project financials
Both	BOQ	PO line items link back to BOQ items for quantity tracking

Step-by-Step Guide

1. Create a PO -- there are two paths:
   • From an awarded quote: Navigate to the RFQ, click on the awarded quote, and click "Generate PO". Line items, pricing, and supplier details are pre-filled.
   • Manual creation: Go to Procurement > Purchase Orders > New PO. Select the supplier, add line items, and enter pricing manually.
2. Fill in PO details -- verify or enter: delivery address, required delivery date, payment terms, shipping method, and any special instructions.
3. Link to a project (optional) -- select the project and optionally link each line item to a specific BOQ item. This enables budget and quantity tracking.
4. Review totals -- confirm subtotal, VAT (auto-calculated based on supplier TRN and jurisdiction), and grand total.
5. Submit for approval -- click "Submit for Approval". The PO enters the approval workflow based on its value.
6. Approval process -- the designated approver receives a notification. They can Approve, Reject (with reason), or Request Changes.
7. Send to supplier -- once approved, click "Send to Supplier". The system generates a bilingual EN/AR PDF and sends it via email or makes it available on the supplier portal.
8. Track delivery -- monitor the PO status as goods are received. Each delivery is logged as a GRN against the PO.
9. Match invoices -- when the supplier invoice arrives, match it against the PO and GRN (3-way matching) before processing payment.
10. Close the PO -- once all items are received and invoiced, the PO status moves to Completed.

Approval Workflow (Default Configuration)

PO Value (AED)	Approval Level	Action
< 5,000	Auto-approved	PO moves directly to Approved status
5,000 - 50,000	Manager approval	Procurement manager must approve
> 50,000	Director approval	Department director or finance director must approve

TIP

Approval thresholds and routing are fully configurable in Settings > Approval Workflows. You can add additional tiers, require multiple approvers, or set up sequential/parallel approval chains.

PO Status Lifecycle

Draft --> Pending Approval --> Approved --> Sent --> Partially Received --> Completed
                  |                                        |
                  v                                        v
              Rejected                                 Cancelled

Key Fields Explained

Field	Description
po_number	Auto-generated sequential reference (format: PO-YYYY-NNNN).
supplier	The vendor receiving the PO. Must have AVL status = Approved.
line_items	Items being ordered: description, quantity, unit price, total, BOQ link.
subtotal	Sum of all line item totals before tax.
vat_amount	VAT calculated automatically (5% UAE standard rate, configurable by jurisdiction).
grand_total	Subtotal + VAT + any additional charges.
delivery_date	Required delivery date communicated to the supplier.
payment_terms	Agreed payment terms (e.g., Net 30, Net 60, 50% advance).
status	Current PO state in the lifecycle.
approval_level	The approval tier this PO requires based on its value.
amendment_version	Version number tracking amendments (v1, v2, v3...).
project_id	Linked project for budget tracking.
rfq_reference	Source RFQ number, if the PO was generated from an awarded quote.

Amendment Tracking

When a PO needs modification after approval (e.g., quantity change, price adjustment), the system creates a new version:

Version	Change	Changed By	Date	Approval Status
v1	Original PO	Ahmed K.	2026-01-15	Approved
v2	Qty increased: Line 3 (100 --> 150)	Sara M.	2026-02-03	Approved
v3	Unit price updated: Line 1 (AED 45 --> AED 42)	Ahmed K.	2026-02-10	Pending

Tips & Best Practices

TIP

Use "Generate PO from Quote" whenever possible rather than creating POs manually. This eliminates data re-entry errors and maintains a clear audit trail from RFQ to Quote to PO.

WARNING

PO amendments after the Sent status require supplier acknowledgment. The system tracks whether the supplier has confirmed the amended PO. Do not proceed with delivery expectations based on unconfirmed amendments.

TIP

Enable 3-way matching (PO vs. GRN vs. Invoice) in settings to prevent overpayment. The system flags discrepancies in quantity or price between any of the three documents.

TIP

For urgent orders that need to bypass the standard approval workflow, use the "Urgent PO" flag. This escalates the approval notification and adds a visual indicator. Note: urgent POs still require proper approval -- the flag only expedites the process.

FAQ

Q: Can I create a PO without an RFQ? A: Yes. Manual POs can be created directly for known suppliers and agreed-upon pricing (e.g., framework agreements, repeat orders). However, for audit purposes, it is recommended to document the justification for skipping the RFQ process.

Q: What happens if the supplier delivers more than the PO quantity? A: The GRN module will flag the over-delivery. You can accept it (which triggers a PO amendment) or reject the excess quantity. The tolerance percentage is configurable in settings (default: 5%).

Q: Can I cancel an approved PO? A: Yes, but cancellation requires the same approval level as the original PO. If the PO has already been sent to the supplier, the system generates a cancellation notice. Partially received POs cannot be fully cancelled -- only the remaining undelivered items can be cancelled.

Q: Is the bilingual PDF customizable? A: Yes. The PDF template can be customized in Settings > Document Templates. You can add your company logo, modify the layout, adjust font sizes, and configure which fields appear in English, Arabic, or both.

Q: How does VAT calculation work for cross-border GCC purchases? A: Tawridy applies VAT rules based on the supplier's jurisdiction and your company's registration. Reverse charge mechanisms for B2B cross-border transactions are handled automatically when both parties' TRN details are on file.