Create, Manage, and Return/Refund Purchase Orders

TABLE OF CONTENTS

• How to Create a Purchase Order
• How to Manage Purchase Order Life Cycle
• How to Manage Payments in Chart of Accounts against Purchase Order
• How to Return & Refund the Order

In this article, we will cover:

• Create a Purchase Order
• Managing a Purchase Order Life Cycle
• Receive Purchase Order Items on Multiple Locations
• Managing Payments against Purchase Order
• Return and Refund a Purchase Order from a particular location

How to Create a Purchase Order

To create a new purchase order in Asaan Retail:

Step-1: Log in to the Asaan Retail portal.

Step-2: Hover your cursor to the flyout menu on the left > click the Purchasing tab > Click on the Purchases tab from the dropdown menu. 

Or you can access Purchases by typing Purchases in the search bar on the top.

Step 3: In the new window dedicated to the Purchase Order’s management, Click +Add Bill on the top-right corner. 

Step-4: A new pop-up window will appear. Enter all the details in the relevant fields like:

• Supplier (The Supplier you want to purchase from)
• Discount(%) (Discount on the total value of the purchase order - optional)
• Type to Search Product (Search products by Product Name or SKU you want to book as a purchase order)

Once you add a product, more data fields will appear like:

• SKU (Added automatically when you choose a particular product)
• Product Name (Added automatically when you choose a particular product)
• Quantity (Default product quantity will be 1, enter a value according to your order requirements)
• Purchasing Price (Added automatically but can be changed)
• Sub Total (Total Price calculated for the particular product after discount as Number of Products x Discounted Price)
• Discount (Discount on the particular product)
• Actions (Red-colored bin icon to remove the particular product)
  
  

Consider the following example:

• Supplier selected as Abdul Haseeb
• Products added in the order include 1 Alpinebear Travel Bag and 3 Tactical Torches.
• The SubTotal is reduced to 4,800 PKR for Aplinebear Travel Bag after a 4 percent discount and 1,200 PKR for tactical torches after a 50 percent discount on each torch.
• Gross Amount is showing the sum of the total price of selected products without discount, i.e; 5,000 + 2,400 = 7,400 PKR
• The total Discount is 1,400 PKR
  • (2 x 2,500) x 4% = 200 PKR for 2 Alpine bear travel bags (4 percent)
  • (3 x 8,00) x 50% = 1200 PKR for 3 Tactical Torches (50 percent)

(You can also apply an overall discount in the top-right Discount field in case you want to add the same discount for all products you are going to order)

Step-5: Enter Paid Amount (not mandatory & can be entered later)

Step-5: Click Save Bill and your new bill will be listed in a purchase orders profile as:

How to Manage Purchase Order Life Cycle

Step-1: The initial status of the purchase order is Unfulfilled. To receive your purchase order, click on the Red-coloured Unfulfilled button under the Shipment status column. A pop-up window will appear.

Step-2: Select the location of inventory where you want to receive the purchase order.

You can select the same location for all the products in the purchase order by choosing your desired location from “Select locations to apply on the lines below” at the top-right corner.

Or

You can set different locations for each product in the purchase order. 

For instance, choose location 2 for all the products in the purchase order.

Step-3: Click Save.

The purchase order status will change from ‘Unfulfilled’ to ‘Fulfilled’.

The purchase order will be marked ‘Partially Fulfilled’ if you receive delivery of particular products or their partial quantities out of your total order at the particular location. For example, consider the order below.

Upon saving, your purchase order will be marked Partially Fulfilled.

How to Manage Payments in Chart of Accounts against Purchase Order

Step 1: Click on the order number. In the new pop-up window, go to the Purchase Tab. Then, enter the amount to be paid and click the save button. Your order will be marked PAID with the +Post Payment option and a green-colored TICK mark showing the payment status as PAID.

Note: You can also pay a partial amount and get an orange-colored TICK mark for partial payment. You can pay the remaining amount later. 

Flow will then be like ‘Partial Payment > Post that Amount > Increase Paid Amount > Post Remaining Amount’.

Step-2: To post the payment and create a record in the Chart of Account, click on the +Post Payment option below the Green Tick mark under the Payment Status column. A pop-up window will appear like the one below:

Step-3: Click on the + button to add the payment option.

Step-4: Select Account, Choose Payment Option, and Enter Amount > Click Apply.

(You can also add amounts from multiple accounts by adding on the + button below)

Your payment will be posted successfully.

To view a record of your recent transaction in the Chart of Account:

Step-1: Hover your cursor to the flyout menu on the left > click the Financials tab > Click on the Chart of Accounts tab from the dropdown menu.

Step 2: Click on the Cash Drawer (Assets) to check the record of your recent transaction.

Step 3: In the pop-up window, click on the Actions button below. Then, click the View Transactions option from the dropdown menu.

Step-4: Choose Cash Drawer (Assets) from the filter and click View Ledger

All transactions along with the recent transaction will be displayed on the screen as:

To view a record of your recent transaction with respect to the supplier in the Chart of Account:

Step-1: Hover your cursor to the flyout menu on the left > click the Financials tab > Click on the Supplier Ledger tab from the dropdown menu.

In the new window, click on the filter > Select Supplier as Abdul Haseeb > Click View Ledger.

All the purchase order transactions for the supplier Abdul Haseeb will be displayed as:

How to Return & Refund the Order

To return the order:

Step-1: In the Purchases section, click on the Fulfilled button under the shipment status column.

Step-2: On the pop-up window, click on the Return tab.

Step-3: Choose the products and their respective quantities you want to return to the supplier. Adding a location from where you want to initiate a return is mandatory. For example, in the case above there are 25 units of Alpinebear Bag in location 1. 20 bags will be returned to the supplier from location 1 after we click the Save button.

Note: It's not necessary that the supplier is going to refund the same price for the items in which you purchased from them. In such cases, you can change the refund amount accordingly. 

For example, you returned items worth PKR 50,000 to the supplier, but the supplier paid you PKR 40,000 in refund (PKR 2,000 per unit instead of PKR 2,500 as can be seen in the image below). Then the difference amount (PKR 10,000) will be accumulated in losses Chart of Accounts automatically.

Step-4: Click Save.

Your purchase order will be marked as ‘returned’ and the number of products in the inventory will be adjusted automatically.

To declare the payment status as Refunded:

Step 1: Click on the + Post Refund Option.

Step 2: In the pop-up window, choose Account and Payment Method > Enter Refund Amount > Click Apply.

Note: You can choose multiple accounts to get a refund from the supplier. For instance, you can receive 25,000 Rs in cash to your Cash Drawer and 25,000 via digital banking to your HBL account.

Your payment will be declared Refunded successfully. (The blue circular arrow shows that the complete refund payment is posted)