Project Purchase Order Management Video
The following video shows you the highlights of creating and issuing purchase orders in 4castplus
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Text of Narration
in this video I’m going to show you how to Create and Issue Purchase Orders in 4castplus.
The purchase order represents the contract of engagement between client and vendor on construction projects. It can be used for the purchase of Supply – such as for materials and equipment – as well as the contract definition for hiring subcontractor services.
Managing purchase orders is a key component of the overall 4castplus procurement workflow, and so is highly connected to all other procurement and project management modules.
To get started, I’ll open up my Phase III project. This first takes me to a reporting dashboard where I can run a variety of procurement-related reports. For this video though, I’m going to jump directly to the purchase order management tab. When I click on that, I’m presented with a summary report of all purchase orders whose Dates fall between this date range.
Since this list can grow to be many thousands of purchase orders, there are a number of ways to narrow it down. One of course being the date range; but I’ll also filter this list to show only those POs where I’m the buyer. So I’ll scroll over to the buyer column and I’ll select filter. I just need to type in part of my first name and hit enter. < Filter buyer by Sylvio>
This reduces the list to 3 purchase orders – one Open, one Committed and one In-Revising. A committed PO is one that’s been issued to the vendor. The “In-Revising” PO is one that has been previously committed and issued; but is now being revised; and will again be committed and re-issued once the revision changes have been completed. As you can see here, this PO is already on its second revision – you can have unlimited revisions.
So I’ll click on #4577. And when I do that, it will open more details down below. All reports in 4castplus work in a summary-detail fashion like this.
The bottom report shows the full list of materials, equipment and/or contractor services itemized on this purchase order. The middle panel shows a quick-view report along with an area where I can upload and attach any documents related to this purchase order.
In this bottom report, you can see that some of these materials were awarded from a Request for Quote; and other materials were added directly from a purchase requisition.
Each of these detail items has a full breadth of editable fields including: Unit cost, quantity, a variety of key date fields, optional checkboxes, dropdowns, notes and other text fields. We’ll see in a minute how these fields show up on the printed purchase order form.
I’ll scroll back up and show you how, from here, I can create, edit and duplicate a purchase order. I can also import purchase orders in bulk from an Excel file. I can print the PO – as well as print any historical revision; I can run a variety of reports; I can commit the PO to issue it to a vendor and I can revise a committed PO. I can also submit a purchase order for approval.
So for this example, I’m going to open this PO to edit, since I’ve already filled-in some of the fields. When I click on create or edit a PO, I get this form where I can enter all the details and contract information that make up the entire purchase order contract.
Starting in this area, I can enter Number, Title and Type. The type can be Purchase Order, Release Order or Service Order. In this case I’ve chosen a release order which provides me an area to enter the master service agreement number.
I’ll set the Progress to Draft; and I’ll set the Supplier to Cameron Metals; and choose the supplier contact
I can set the PO currency – which I’ll leave as USD at this exchange rate. The base currency of the project is Canadian dollars, so in the case of this PO, US Dollars is a foreign currency.
I can choose whether this PO is to be issued by my company … or by my client’s company. This is valuable if I’m managing procurement on behalf of my client.
Over here I have a selection of key dates; along with dropdowns to select the responsible roles for this PO.
Now … moving down into the different sections on the left – this is where I can build up the contract details. I’ll show you a selection of these to give you an idea of how they work.
4castplus has many features built-in that are designed to make it very efficient for the buyer to quickly build a PO to be issued. Each of these sections can be pre-configured with multiple dropdown selections. Looking at the Terms & Conditions, for example, I can quickly choose from a selection of pre-populated contract terms. These can be configured as editable which will allow the buyer to override certain text for a PO. Or non-editable where the selection is locked down – as would likely be the case for terms and conditions.
I can also optionally include or exclude each section as part of the PO. For example, if I don’t want to include an Addendum to the terms, I can exclude that by un-checking this box.
I can select whether the PO should be expedited or not; along with the level of expediting required. This setting will flow through to the expediting team; as they’ll only be able to access purchase orders that have been selected to expedite.
I’ll skip down to the Print Order, where I can choose the order that each of these sections should appear in the printed form.
Now I don’t necessarily have to go through all this for every purchase order. To save myself time when I first create a purchase order, I can simply duplicate a previous one so that all these fields in here are already preset for me.
So when I’m happy with my settings, I can click save and close.
Now, to show you what that looks like, I’ll click on Print this Revision. This pops up my PO as a PDF.
I’ll scroll through to show you some of the highlights. There is a Draft watermark here because this PO is not yet committed.
The first page shows the heading information including, buyer, seller, shipping and invoicing details. Along with a signature line at the bottom of the page.
The next page shows the Introduction – which is followed by the full list of detail materials, equipment, and any contractor service items that have been added to the PO. Now as you saw earlier, each item has a full list of editable properties that show up here as part of each line item.
Scrolling further down, we see the contract attachments as specified – Terms and Conditions, Expediting Instructions, Packing, etc. All of it, as you saw, is fully configurable.
Returning back to to the screen now
When I’m ready to issue this PO, I simply need to select it and click on Commit
Now that this PO is committed, it is now visible to Expediting, Receiving and PO Invoicing. It is also now visible in the variety of PO dashboard reports such as the Purchase Order Register and the Cost Code Report for the project controls team. And its line items will be shown in the Items detail report.