Purchase Orders (PO) Overview

Once the Prime Contract has been established, materials and services are procured using Purchase Orders (POs) and/or Subcontracts. In general, POs are easier to use than Subcontracts since they do not have Retainage (aka Holdbacks). In addition, Subcontracts can have changes which are documented in the Subcontract Change Order (SCO) feature. For POs, the vendor's invoice is simply processed in the Bills feature using the 'PO to Bill Wizard'.

Important Things To Know

  • When POs are created or modified, Sage Construction Management will check if the vendor's profile contains any expired insurance records and will then provide a warning message shown in red.
  • POs require a Prime Contract reference that must be marked Approved with a Signed Date.
  • POs must be marked Approved with an Authorized Date when using the 'PO to Bill Wizard'.
  • Multiple Bills can reference the same PO. In these scenarios, the 'PO to Bill Wizard' will be used multiple times.
  • PO Items can ONLY be tracked Open or Closed using the 'PO to Bill Wizard'.
  • PO Status options occur in the following sequence: (1) Draft (2) Pending Submission (3) Pending (4) Not Approved (5) Approved
  • A PO will appear as a Committed Cost transaction in Project Analytics if it is marked Approved with an Status Date.

Steps To Complete Before Entering POs

  • Optional: POs can be categorized by User Defined Types.
  • Make sure the Vendor that will be issued the PO is listed in the Project Directory.
  • Make sure the Prime Contract that will be referenced on the PO is Approved and has a Status Date.
  • Referencing a Job Cost Code is required when entering PO Items.
  • Optional: Tax Codes can be referenced on PO Items.

PO Add Options

PO Edit Options

Important Things to Know About Editing POs:

  • If a Workflow Rule applies to the PO and the Rule has been initiated or approved already then nothing can be modified unless the Rule is abandoned.

Edit Functions:

See Also