Purchase orders (PO) overview
After the prime contract is in place, materials and services are typically procured through purchase orders (POs) or subcontracts. POs are easier to manage because they do not include retainage, which is also known as holdbacks.
Vendor invoices for POs are processed in the Bills feature using the PO to Bill wizard, which makes the workflow straightforward. Subcontracts, on the other hand, often involve retainage and might require modifications. These changes are managed through the Subcontract Change Order (SCO) feature.
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When you create or modify a PO, Sage Construction Management checks the vendor’s profile for expired insurance records. If any are found, a warning message appears in red.
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Every PO must reference a prime contract that's approved with a status date.
- POs must be approved with a status date before using the PO to Bill wizard.
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A single PO can be linked to multiple bills. In these cases, the PO to Bill wizard will be used multiple times.
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PO status progresses in the following order:
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Draft
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Pending Submission
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Pending
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Not Approved
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Approved
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PO appears as a Committed Cost transaction in Project Analytics after it's marked approved with a status date.
- Optionally, you can use PO types to categorize POs.
- Ensure that the vendor that will be issued the PO is listed in the project directory.
- Ensure that the prime contract that will be referenced on the PO is approved and has a status date.
- Ensure that the job cost codes that will be referenced on the PO items are set up for the project.
- Optionally, if tax codes will be referenced on the PO items, ensure that they're set up in Settings (
) > Company Settings > Taxation.
Add POs
- Add a PO manually
- Add a PO from a work order (WO)
- Add a PO from a change proposal request (CPR)
- Add a PO from a change order (CO)
- Add a PO from and estimate request for pricing (RFP) package
- Add a PO from a standalone RFP package
- Add a PO from the project directory
- Import a PO using a Microsoft Excel file
- Copy a PO