Purchase orders

A purchase order lists the products, prices, and quantities for an order that a business places with a supplier.

Purchase orders also help track details such as incoming inventory counts, inventory costs, payment terms, and estimated times of arrival. Tracking this information helps you set customer expectations for item availability, and informs decisions about restocking and moving inventory between locations.

Create a purchase order

When you create a purchase order, you can save it as a draft to work on later, or mark it as Ordered. After you mark a purchase order as Ordered, your incoming inventory is updated for each of the products on the purchase order.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click Create purchase order.
  3. Select the supplier and the destination for the purchase order. If you need to add a new supplier, then refer to Add a supplier. If you need to add a location, then refer to Create and modify locations.
  4. Select the products that you want to order from the supplier, and then click Select products.
  5. For each product, add the following information:
    • supplier's SKU
    • quantity
    • individual product cost
    • any tax percentages
  6. Optional: Enter any additional information. For example, you might add any of the following details:
    • a reference number
    • the estimated arrival date
    • a note to the supplier
    • any tags to the purchase order
  7. Save the purchase order:
    • If you want to indicate that the purchase order was approved by your supplier, then click the arrow next to Save as draft and then click Save and mark as ordered.
    • If you want to keep the purchase order as a draft, click Save as draft.

If you saved a purchase order as a draft and now need to mark it as Ordered, then open the purchase order and click Mark as ordered.

Add a supplier

After you add a supplier, they are listed in the Select supplier drop-down menu.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click Create purchase order.
  3. In the Supplier section, click the Select supplier drop-down menu.
  4. Click Create new supplier.
  5. Enter the supplier's details, and then click Save.

Edit a supplier's details

When you edit the details of a supplier in a purchase order, the details of the supplier are updated in all existing purchase orders.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click Create purchase order or click the name of an existing purchase order.
  3. In the Supplier section, click the Select supplier drop-down menu, and then choose the supplier.
  4. Click View supplier details.
  5. Click Edit supplier details.
  6. Make any changes to the supplier's details, then click Save.
  7. If you created a new purchase order, then you can delete the draft purchase order.

Edit a purchase order

You can edit a purchase order at any time, even after you have marked it as Ordered. You can’t delete a product from a purchase order that you have already received inventory for.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click the name of the purchase order.
  3. If you've marked the purchase order as Ordered, then click Edit.
  4. Make your changes.
  5. Click Save.
  6. If you've marked the purchase order as Ordered, then choose a reason for your edits, and click Save.

Download a purchase order as a PDF

You can save your purchase order as a PDF to submit to your supplier.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click the name of the purchase order.
  3. Click Export PDF.

Mark inventory as received

After you receive the physical products, you can mark the inventory as received in your Shopify admin. This updates your available inventory levels based on what was received. You can mark inventory as received only after a purchase order is marked as Ordered.

For example, suppose you had 10 products as incoming inventory. If you mark 5 as received, then they would become available inventory in your store, and there would still be 5 as incoming inventory.

If you receive damaged items, then you can mark the order as partially received by rejecting the amount of inventory that was damaged. Any rejected inventory is removed from the incoming inventory.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click the name of the purchase order.
  3. Click Receive inventory.
  4. For each product, enter the inventory that was received and not received.
  5. Click Save.

Adjust the received inventory

You can adjust the received or partially-received inventory on a purchase order. For example, suppose you received inventory but later found that two products were never shipped. You can update the inventory with a negative number, which adjusts the inventory levels and changes the purchase order's status to Partially received.

For example, if you received 10 products but discovered one was missing, then you would enter -1 in the Accepted column for that product.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click the name of the purchase order.
  3. Click Receive inventory.
  4. Next to each product, enter the amount of inventory that you need to adjust in the Accepted or Rejected column. If you need to reduce the number of inventory you had received, then enter a negative number.
  5. Click Save.

Manage purchase orders

After you are finished with a purchase order, there are different actions you can take depending on the current status of the order:

  • If the purchase order is marked as Ordered, then you can close the order. Closing a purchase order before you've fully received the inventory removes the amount of unreceived products from your incoming inventory.
  • If the purchase order is still a draft, then you can delete the purchase order.

Delete a purchase order

You can delete a purchase order while it is still a draft. If a purchase order is marked as Ordered, then you need to close it instead.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders
  2. Click the name of the draft purchase order.
  3. At the bottom of the page, click Delete.
  4. In the confirmation dialog, click Delete.

Close a purchase order

You can close any purchase order after marking it as Ordered. If a purchase order is still a draft, then you need to delete it instead.

Steps:

  1. In your Shopify admin, go to Products > Purchase orders.
  2. Click the name of the purchase order.
  3. Click Close.

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