Purchase orders for companies
Purchase orders (POs) are a common way for companies to track and control spending. Purchase order is one of the standard offline payment methods supported in ÃÛ¶¹ÊÓƵ Commerce and Magento Open Source. When B2B of ÃÛ¶¹ÊÓƵ Commerce is installed and Enable Purchase Orders is activated for a company account, all orders are automatically created as Purchase Orders (PO). Company users with the required permissions can create, edit, and delete POs that they create and POs created by subordinate users.
Purchase order flow
Depending on their role, and the order, company users could be subjected to several approval rules. And depending on whether using online or offline payment methods, the flow is slightly different. Company administrators can create orders automatically, bypassing the approval rules. Because storing online payment details during the approval process is a security risk, these details are added after approval and then the purchase order is converted to a real order.
The purchase order workflow for a company can vary in a few ways:
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If no approval rules are set, purchase orders can be placed and the order completed directly.
note note NOTE By default, a Purchase order has been submitted for approvalmessage is always displayed to company users, even when no approval rules are set. When no approval process is required, company users automatically receive an email informing them that the order was created and approved. -
If approval rules are defined by the company administrator, users go through the approval process.
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If multiple approval rules apply to a purchase order, then all unique required approvers must approve it.
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Offline payment details are entered when creating the purchase order.
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Online payment details are entered after the purchase order is approved.
Basic workflow example
Companies use purchase orders to control what employees can purchase on behalf of the company and often set up approval rules to enforce company guidelines. Depending on the approval rules, multiple people might have to approve the order.
- User creates a purchase order for $25,000 worth of goods.
- Their manager must approve.
- Because the order is more than $10,000, the V.P. must also approve.
- Depending on the payment method, after the approvals, the purchase order is converted to an order automatically, or the user returns to enter payment details.
Approval rules
Approval rules are used to control spending based on company guidelines. Examples of approval rules are:
- Any order over $100 needs the approval of your manager.
- Any order over $1000 needs the approval of your manager and the company administrator.
- Any order with more than 30 unique SKUs needs the approval of the company administrator.
With these rules in place for a company, a company user can complete the order immediately when the order is less than $100. To learn approval rule definition, see Approval Rules.
Types of store users
The purchase order workflow can also be different depending on who is doing the purchasing.
- A regular employee may be subject to all approval rules
- A manager could have more buying power and would have different approval rules
- Company administrators can bypass all approval rules and have their purchase orders completed automatically.
All these factors can have an influence on the exact checkout process.
My Purchase Orders
When purchase orders are enabled for a company, the My Purchase Orders item is displayed in left panel for customers logged in to a company user account. There are three tabs that provide different purchase order lists and functions:
- My Purchase Orders: POs created by the customer.
- Company Purchase Orders: POs made by subordinate users within the company (depends on company structure and roles).
- Requires My Approval: (Visible for designated approvers) POs that are waiting for the customer’s approval. The counter shows how many orders are awaiting approval.
For more information about the supported purchase order functions available for company users on the storefront, see My Purchase Orders.
Offline vs online payment methods
Workflows can vary depending on the payment method. To learn more about ÃÛ¶¹ÊÓƵ Commerce payment methods, see Payment Methods in the Sales and Purchase Experience Guide.
Online payments
For security reasons, online stores do not typically want to collect store credit card details while waiting for the approval process to complete. Therefore, if an online payment option is selected, the purchase order creator returns to the store after approval, enters the payment details, and completes the order. Examples of online payments are:
- Credit/Debit Cards
- PayPal
- Braintree
Offline payments
As offline payment methods, such as a money order, are handled outside the website, they are safer. Purchase orders with offline payments can be processed automatically, after any approval process.
Examples of offline payments are:
- Check/Money Order
- Payment on Account
- Cash on Delivery
- Bank Transfers
- Store Credit