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Procore (en-GB)

Create a Purchase Order

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Objective

To create a purchase order in a project's Commitments tool.

Background

In Procore, a Purchase Order (PO) is a documented financial commitment that details the types, quantities and agreed-upon prices for products or services. As part of the procurement process, purchase orders are created by a 'buyer' (for example, a main contractor) and issued to a 'seller' (for example, a subcontractor) to cover the cost of a contract. Once accepted by the 'seller,' a purchase order represents an agreement between the two parties

Things to Consider

  • Required User Permission:
  • Additional Information:
    • Purchase orders can be transitioned into a Variation Request (for 1-tier Variations) or into a Potential Variation (for 3-tier Variations).
    • You can only create a Potential Variation (VAR) from a Purchase Order that's in the 'Approved' status.
    • To learn how to set the accounting method, see How do I set the accounting method for a commitment or main contract?

Steps

When creating a purchase order, complete these steps:

Step 1: Create a Purchase Order

  1. Navigate to the project's Commitments tool.
  2. Click + Create and select Create Purchase Order.
  3. Under General Information, do the following:
    • Sign with DocuSign
      If you have enabled the Procore + DocuSign® integration (see Enable or Disable the DocuSign® Integration on a Procore Project), a tick appears in this box by default. If you do NOT want to sign the commitment with DocuSign, remove the tick. 
    • #
      Enter or validate the unique identifier for the commitment. If you are creating the first commitment of a project, Procore automatically numbers the commitment in sequential order. For example, PO-01-001, PO-01-002 and so on.
       Notes
    • Title
      Provide a descriptive name for the commitment. 
      Note: If your company has enabled the ERP Integrations tool, your integrated ERP system may impose a maximum character limit. See What is the maximum character length for a commitment's 'Title'?
    • Bill To
      Enter information about the company responsible for paying the payment application. The subcontracting company will use this information to send its payment application to the correct company and address.
      Note: This site will auto-populate with the data entered in the most recently created purchase order.
    • Ship To
      Enter the address where the materials should be delivered. In some cases you may want to specify a different location than the actual jobsite.
      Note: This field will auto-populate with the data entered in the most recently created purchase order.
    • Contract Company
      Select the vendor/company who will provide the purchased materials (e.g., American Construction Var.). This vendor/company must exist in Procore's Project Directory. See Add a Company to the Project Directory.
    • Payment Application Contacts
      Select one (1) or more employees of the 'Contract Company' to designate as the payment application contact(s). After saving the purchase order, any users added here will be added to the 'Private' list. You must select a 'Contract Company' before you can select payment application contacts. 
    • Status. Assign a status to the purchase order. Note: The descriptions below describe how a purchase order's status displays in the project's budget. It is assumed you are using the Procore Standard Budget View. To learn more about budget views, see Set up a New Budget View.
      • Approved. Indicates the purchase order has been approved. Purchase orders in the Approved status are reflected in the project's budget in the 'Commitment Cost' column. 
      • Closed. The Closed status is used in two very different ways by Procore clients.
        Important! How the Closed status is used in your environment should always be determined and agreed upon by all users on your project team. Either way, it is important to note that purchase orders in this status are NOT reflected on the project's budget. 
        • Use 1. Closed can be used to indicate the purchase order has been fully invoiced.
          OR
        • Use 2. Closed can be used to mean 'Void.'
      • Draft. The system assigns this status to all new purchase orders by default. Purchase orders in the Draft status NOT reflected on the project's budget. 
      • Partially Received. Indicates that the vendor has filled some, but not all, of the line items on the purchase order. Purchase orders in the Partially Received status are reflected in the project's budget in the 'Commitment Cost' column. 
      • Processing. Indicates the vendor is processing the purchase order. Purchase orders in the Processing status are reflected in the project's budget in the 'Pending Cost' column. 
      • Received. Indicates that the vendor has fulfilled all of the line items on the purchase order. Purchase orders in the Received status are reflected in the project's budget in the 'Pending Cost' column. 
      • Submitted. Indicates the purchase order has been submitted for processing. Purchase orders in the Submitted status are reflected in the project's budget in the 'Pending Cost' column. 
    • Executed
      Place a tick in this box to indicate whether or not the purchase order has been executed.
    • Private
      Choose from these options:
      • Make this visible to only administrators and the following users
        Place a tick in this box to limit the visibility of the purchase order to users with 'Admin' on the Commitments tool and users specified in the Select a Person drop-down list. 
      • Allow these users to see BOQ items
        Place a tick in this box to limit the visibility of the Bill of Quantities (BOQ) items on the purchase order to users with 'Admin' on the Commitments tool and users specified in the Select a Person drop-down list. 
      • Select a Person
        Select one or more people from the list. You can allow non-Admin level users to view the Purchase Order, if desired. Additionally, you can allow selected non-Admin users to have read-only access to the to individual line items under the BOQ subtab.
    • Assigned To
      Select the person from the vendor/company who is responsible for the fulfillment of the purchase order.
    • Default Retention
      Specify the percent of payment retention that will be withheld (e.g., 10).
    • Description
      Provide additional information, as necessary.
    • Attachments
      Attach any related materials such as pricing quotes, receipts, signed purchase orders, etc. You may attach files that have been uploaded to your project or drag and drop files from your local computer.
  4. Under Contract Dates, do the following:
    • Delivery Date. Specify the date when the purchased goods are to be delivered to the location specified in the 'Ship To' field.
  5. Under Additional Information, do the following:
    • Payment Terms. Specify relevant payment conditions, if applicable.
    • Ship Via. Enter the shipping/transport method for materials (e.g., freight, FedEx, etc.).
  6. Choose from these options:
    • Click Create to save the purchase order.
      OR
    • Click Create & Enter BOQ to update the Bill of Quantities (BOQ).

Step 2: Update the Bill of Quantities (BOQ)

There are two ways to update a purchase order's Bill of Quantities (BOQ):

Import BOQ Line Items from a CSV File

If you want to import multiple line items to an BOQ, the Commitments tool provides users with a CSV template that you can download, complete and then upload to Procore. For instructions, see Import Commitment BOQ Line Items from a CSV File.

Add Line Items to the BOQ

 Notes
  • If your company is using the Procore + Integration by Ryvit integration and your Integration by Ryvit system is configured to use the Calculated Method, Integration by Ryvit will NOT allow the use of Lump Sum (LS) as a unit of measurement.
  • If you are using the 'Override Subtotal', you must ONLY input the Subtotal Amount. The Integration by Ryvit integration will then create an 'LS' item in Integration by Ryvit.
  1. Navigate to the project's Commitments tool.
  2. Click the Summary or Detailed tab.
  3. Locate the purchase order or subcontract in the list. Then click Edit.
  4. Click Bill of Quantities.
  5. Click Add Line.
  6. Follow the appropriate steps depending on whether your accounting method is Amount Based or Unit/Quantity Based:
     Note
    To edit your accounting method before adding BOQ line items, see Edit the Advanced Settings Tab on a Commitment. For more information on accounting methods, see How do I set the accounting method for a commitment or main contract?
    1. For Amount Based contracts
      1. Change Event Line Item
        If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
      2. Budget Code
        Select a budget code from the or click Create Budget Code to create a new one. See What is a budget code?
      3. Description
        Enter a description for the line item. For example, type: Monthly Service Fee
      4. Amount
        Enter the amount of the cost.
      5. Billed to Date
        The system automatically calculates the amount billed on the commitment up to the current date.  
      6. Amount Remaining
        Enter the amount that has NOT been billed to the current date. 
      7. Tax Code
        Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
    2. For Unit/Quantity Based contracts
      1. Change Event Line Item
        If you have change events enabled, you can select a change event line item if the commitment needs to be linked to a change event. 
      2. Budget Code
        Select a budget code from the or click Create Budget Code to create a new one. See What is a budget code?
      3. Description
        Enter a description for the line item. For example, type: Monthly Service Fee
      4. Qty
        Enter in the quantity of units.
      5. UOM
        Enter the Unit of Measure (UOM) in the list.
         Notes
      6. Unit Cost
        Enter the Unit Cost in the box provided.
      7. Amount
        The system automatically calculates the subtotal for you, based on the Qty, UOM, and Unit Cost entries. 
      8. Billed to Date
        The system automatically calculates the amount billed on the commitment up to the current date. 
      9. Amount Remaining
        Enter the amount that has NOT been billed to the current date. 
      10. Tax Code
        Enter a tax code to use for this line item. This field only appears if you have enabled the tax codes feature. See How can I use tax codes on a project?
  7. Choose one of these options:
    • Save. Click this button to save your purchase order. 
      OR
    • Save & Email. Click this button if you are ready to forward the purchase order to the subcontractor.

 

See Also