How to Create a Purchase Order in Sage 50?

Sage 50 allows businesses to create purchase orders to record planned purchases from vendors before goods or services are received. A purchase order records vendor, item, quantity, price, delivery, and other purchasing details, helping businesses track outstanding orders and compare purchases with received goods and vendor invoices.

In this guide, we’ll discuss how to create a purchase order in Sage 50, enter supplier and item details, edit an existing purchase order, receive items, and track open Sage 50 purchase orders.

What Is a Purchase Order in Sage 50?

A purchase order (PO) in Sage 50 is a transaction used to formally record goods or services you have ordered from a vendor but have not yet received. It captures details such as the vendor, items or services, quantities, prices, order date, delivery information, and applicable taxes, giving your business a clear record of the expected purchase.

Sage 50 purchase orders are also an internal purchase control and commitment. In a typical Sage 50 purchase-order workflow, creating a PO records the planned purchase but does not by itself create the vendor liability recorded through an invoice. You can use it to control purchases, reduce ordering errors, track outstanding orders, and compare ordered quantities with quantities received.

Why Should You Create a Sage 50 Purchase Order?

Creating a purchase order in Sage 50 lets you formally record planned purchases, control vendor orders, track inventory commitments, and compare received goods with supplier invoices. Here are the key benefits of creating and managing purchase orders in Sage 50:

• Control and forecast spending

Plan purchases and record them in advance of vendor invoices so you can track upcoming expenditures and prevent unauthorized or excessive spending.

• Improve project costing

Assign purchases to jobs, projects, or cost codes so that you can allocate expenses accordingly.

• Track inventory and pending orders

Monitor what you have ordered, what remains outstanding, and what your business has received.

• Verify purchases before payment

Compare the purchase order in Sage 50, received goods, and vendor invoice to identify quantity, price, or billing discrepancies.

• Maintain an audit trail

Keep records of purchase commitments and approvals to support internal controls and financial reviews.

What Information Do You Need to Create a Purchase Order in Sage 50?

To create a purchase order in Sage 50, you need accurate supplier, order date, item, quantity, pricing, tax, and delivery information. Here are the key details you should have ready before creating the purchase order:

• Vendor ID or supplier code

Select the correct supplier from your vendor records.

• PO number and dates

Confirm the purchase order number, order date, and applicable “good through” or expiration date.

• Item details

Fill in the item and product codes, descriptions, and quantities of the items or services to order.

• Pricing and cost codes

Enter unit prices and applicable project or job cost codes as needed.

• Delivery and shipping details

Specify delivery address and shipping method or carrier when applicable.

• Terms and additional charges

Review payment terms and add freight, carriage, or other applicable charges.

• Tax information

Confirm the correct tax or VAT information before completing the order.

• References or notes

Include any comments or special instructions that the vendor should note.

How to Create a Sage 50 Purchase Order?

To create a purchase order in Sage 50, select the vendor, enter the order and item details, verify quantities and prices, then save or process the PO. Here are the steps for the Sage 50 purchase order process.

• Open Sage 50 and your company file.
• Go to Vendors & Purchases > Purchase Orders > New Purchase Order. Menu names can vary by edition.
• Select the appropriate Vendor ID to populate the supplier details.
• Enter the order date and Good Through/Due Date, if available.
• Add the required item or product codes and descriptions.
• Enter the quantity and verify each unit price.
• Check the taxes, shipping charges, and total amount.
• Review the PO for incorrect vendor, item, quantity, or pricing details.
• Click Save, Process, or the equivalent option for your Sage 50 edition.
• Print or email the completed purchase order to the vendor.

How to Edit a Purchase Order in Sage 50?

To edit an open purchase order in Sage 50, open the Purchase Orders window, select the required PO from the list, update the necessary details, and save the changes. Here are the steps to edit a purchase order in Sage 50.

• Open Sage 50 and your company file.
• Go to Tasks > Purchase Orders or access Purchase Orders through the Vendors & Purchases navigation center.
• Click the List button to view your existing purchase orders.
• Select the PO you want to modify and click OK to open it.
• Update the required quantities, prices, or line items, and add or remove items when necessary.
• Review the revised purchase order to confirm that the changes are accurate.
• Click Save to record the updates.

Note: Editing options may depend on the PO’s status and whether items have already been received or invoiced. Check the related transactions before changing a processed purchase order.

How to Receive Items Against a Purchase Order in Sage 50?

To receive items against a purchase order in Sage 50, open the Purchases/Receive Inventory window, highlight the vendor, apply the appropriate PO, enter the quantities received, and save. Here are the steps to receive items against a purchase order in Sage 50:

1. Open Sage 50 and go to Tasks > Purchases/Receive Inventory.
2. Select the appropriate Vendor ID from the list.
3. Open the Apply to Purchase Order Number tab. Sage 50 displays this option when the vendor has open purchase orders.
4. Select the relevant Purchase Order Number to bring its ordered items into the receipt.
5. Enter the vendor’s Invoice Number and Date if you received the bill with the shipment.
6. If you have received the items but not the bill, leave the invoice number blank and select Waiting on Bill when available in your edition.
7. Update the Quantity field to match the actual quantity received. For a partial delivery, enter only the quantity delivered.
8. Review the item details, quantities, and other transaction information for accuracy.
9. Click Save to record the receipt and update the applicable inventory and accounting records.

Note: Exact labels and accounting impact will vary by edition of Sage 50 and accounting method. If the vendor sends the balance later, assign the additional quantity to the open purchase order, instead of creating a new order.

How to Find and Track Open Purchase Orders in Sage 50?

You can find open purchase orders in Sage 50 through the Purchase Order Report or by opening individual POs from the Purchase Orders window. Here are the steps to find and track open purchase orders in Sage 50.

1. Open Sage 50 and your company file.
2. Open the Reports/Reporting section available in your Sage 50 edition.
3. Select Accounts Payable or Vendors & Purchases, then open the Purchase Order Report.
4. Use Options or the available filters to narrow the report by open status, date range, or vendor.
5. Review the report to identify purchase orders with outstanding items or quantities.
6. To inspect a specific order, go to Tasks > Purchase Orders or the corresponding Purchase Orders menu in your edition.
7. Compare the Quantity Ordered, Quantity Received, and Quantity Remaining to determine the order’s fulfillment status.
8. Review the Deliveries information, when available in your edition, to track receipts associated with the purchase order.
9. Review the PO status after receiving items. Depending on your Sage 50 edition and workflow, you may need to manually close completed or short-shipped purchase orders.
10. Review open purchase orders regularly to identify delayed deliveries, incomplete orders, canceled purchases, or outdated commitments.

Common Issues When Creating a Purchase Order in Sage 50

Common Sage 50 purchase order issues include missing vendor or item details, incorrect prices, incomplete default fields, and problems saving or editing a PO. Here are the common issues you can encounter when creating a purchase order in Sage 50:

• Purchase order cannot be created
• Purchase order cannot be saved
• Vendor information does not populate
• Item or inventory information is missing
• Purchase order price is incorrect
• Purchase order quantity is incorrect
• Existing purchase order cannot be edited
• Purchase order does not appear in reports
• Received quantities do not match the purchase order
• Purchase order remains open after completion

Best Practices for Managing Purchase Orders in Sage 50

To effectively manage purchase orders in Sage 50, one must have good vendor and inventory data, controlled purchasing, timely receiving, and consistent reconciliation of outstanding orders. Here are the best practices for managing purchase orders in Sage 50:

• Keep vendor, inventory, tax, and pricing records accurate and current.
• Select the correct Vendor ID first to populate the appropriate supplier details and terms.
• Set up defaults for items to minimize typing on descriptions, accounts, tax codes, and regular pricing.
• Assign projects, jobs, or cost codes to purchase lines when you want accurate job costing to occur.
• Receive goods in the system and keep all relevant receiving documents.
• Use three-way matching with the PO, goods received, and supplier invoice before completing the purchase.
• Apply appropriate approval limits and user permissions to control purchasing authority.
• Review open POs regularly and close completed, canceled, or no-longer-required orders according to your Sage 50 workflow.
• Back up your Sage 50 company data regularly to protect purchase and accounting records.

Final Words

You can create a purchase order in Sage 50 by using the Purchase Orders window, selecting the correct vendor, entering item and pricing details, reviewing the order, and saving or processing the PO. You can also manage existing orders, receive items against open POs, and view outstanding quantities using purchase order lists and reports to complete the purchasing process.

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