--- id: CON-COM-ORD-006 name: Purchase Order feature: FEAT-COM-ORD-07 product_area: commerce module: orders revision: 1 status: draft product_intent: proposed implementation_evidence: observed source_sha: services-commerce: c8b66a98e2490617aec38ba5c8165dd9bd0a8f9b react-console: baf6dae382d6f41dce976c7f848667ccc37e076f definition: >- A purchase order records stock requested from a vendor and its receipt progress; related receipt and cost records explain the value of the acquired stock. owned_by: MOD-COM-ORD synonyms: - PO - stock purchase not_to_be_confused_with: - Order — the customer sale created by placement - Purchase order number — the customer’s reference for their purchase - Inventory item — the stock identity managed by inventory facets: - name: Supplier meaning: 'The vendor’s identity, contact information and supplier address.' used_for: Identify the source of acquired stock. - name: Ordered quantities meaning: Requested stock and cost with the quantities received or cancelled. used_for: Explain the outstanding delivery commitment. - name: Recorded delivery meaning: 'An order-linked or direct receipt, its condition and landed cost.' used_for: Recognize incoming stock and its acquisition value. - name: Acquisition cost layers meaning: Received quantities grouped by unit cost and consumed by later stock movements. used_for: Value remaining stock and outgoing units. - name: Relieved and restored cost meaning: The layer value removed on shipment and reinstated on return. used_for: Explain cost of goods sold and its reversal. - name: Layer selection method meaning: FIFO by default or LIFO selected for a business unit. used_for: Determine which acquisition layers supply movement cost. - name: Financial posting facts meaning: 'Once-recorded facts for receipt, shipment, return, correction and count adjustments.' used_for: Connect inventory movements to Accounting. relationships: - to: CON-COM-ORD-002 statement: Incoming stock can satisfy waiting customer backorders; shipment removes the corresponding layer cost. provenance: test source: >- services-commerce:modules/purchasing/tests/integration/services/receiving/purchasing-flow.integration.spec.js#fills the two backorders at the first receipt, oldest first, converting them to committed; the shelf shows 58 available after - to: CON-COM-ORD-005 statement: A return restores inventory at the cost originally relieved for those goods. provenance: test source: >- services-commerce:modules/purchasing/tests/integration/services/receiving/purchasing-flow.integration.spec.js#restores 5 returned units at the relieved cost and place: a restore row naming the relief it reverses, a layer at that cost dated with the original layer, a restore_cogs fact of 5 × that cost lifecycle: - state: Draft meaning: Staff can still edit the purchasing request. how_it_changes: A buyer creates the draft. - state: Issued meaning: The purchasing request awaits vendor delivery. how_it_changes: A buyer issues the purchase order. - state: Partially received meaning: A receipt satisfies only part of the request. how_it_changes: Recording a partial delivery advances receipt progress. - state: Received meaning: Receipts satisfy the requested quantities. how_it_changes: The final required delivery completes receipt progress. - state: Closed meaning: The purchase is concluded and any remainder is cancelled. how_it_changes: Staff close the order after receiving stock. - state: Cancelled meaning: The request is withdrawn before receipt. how_it_changes: Staff cancel it before any delivery is received. acted_on_by: - CAP-COM-ORD-017 - CAP-COM-ORD-018 visible_to: - ACT-COM-019 - ACT-COM-015 evidence: - >- Examined reference: services-commerce:modules/purchasing/tests/integration/services/receiving/purchasing-flow.integration.spec.js#fills the two backorders at the first receipt, oldest first, converting them to committed; the shelf shows 58 available after - >- Examined reference: services-commerce:modules/purchasing/tests/integration/services/receiving/purchasing-flow.integration.spec.js#restores 5 returned units at the relieved cost and place: a restore row naming the relief it reverses, a layer at that cost dated with the original layer, a restore_cogs fact of 5 × that cost supersedes: [] --- # Purchase Order ## What It Is A purchase order describes the association’s purchase of inventory rather than a sale to a customer. It gives purchasing staff a record of what they expect a vendor to supply and what remains outstanding. Deliveries can arrive in parts, so the purchasing record connects the original request to the receipts that satisfy it. This makes shortages and unfinished purchasing visible without rewriting the original request. Vendor information provides the supplier context. Lines specify the stock, quantities and expected costs. Receipt records describe what actually arrives and the landed costs attached to it. Cost layers then carry the acquired value forward as stock moves through shipping, transfer, return or correction. These related records explain both purchasing progress and the financial effect of inventory movement. ## What It Is Not A customer order represents a sale. A customer’s purchase order number is merely the reference they provide for that sale. An inventory item describes the stock identity itself. The vendor purchase order is the association’s purchasing document, and its lifecycle should be interpreted as receipt progress rather than payment or customer delivery progress. ## How It Is Used Purchasing staff prepare the order and issue it when it is ready for the vendor. They record deliveries as stock arrives and review the remaining quantities. Closing or cancelling resolves the purchasing commitment under the applicable conditions. Receipt operations can also bring in stock directly, so the presence of a cost layer alone does not establish that the stock came through a purchase order. Cost records answer a different but connected question: how much value came in and how much leaves with each movement. The costing method determines which layers are relieved first. Returns restore the relieved cost, and corrections create the recorded adjustments needed to explain a changed value. Accounting facts carry those financial consequences to Accounting; the purchasing capabilities describe their calculations and repeat-processing protections. ## Its Facets **Supplier.** The vendor’s identity, contact information and supplier address. Identify the source of acquired stock. **Ordered quantities.** Requested stock and cost with the quantities received or cancelled. Explain the outstanding delivery commitment. **Recorded delivery.** An order-linked or direct receipt, its condition and landed cost. Recognize incoming stock and its acquisition value. **Acquisition cost layers.** Received quantities grouped by unit cost and consumed by later stock movements. Value remaining stock and outgoing units. **Relieved and restored cost.** The layer value removed on shipment and reinstated on return. Explain cost of goods sold and its reversal. **Layer selection method.** FIFO by default or LIFO selected for a business unit. Determine which acquisition layers supply movement cost. **Financial posting facts.** Once-recorded facts for receipt, shipment, return, correction and count adjustments. Connect inventory movements to Accounting. ## How It Relates Incoming stock can satisfy waiting customer backorders; shipment removes the corresponding layer cost. A return restores inventory at the cost originally relieved for those goods. The capability references identify where the detailed behavior is defined; this concept supplies the vocabulary used across those outcomes. ## What It Could Become The product should establish the staff purchasing experience before treating the API as a complete console workflow. The product should make receipt progress and valuation exceptions visible to the people responsible for them. Reconciliation findings should guide investigation of missing cost records rather than imply that an unexplained inventory value has already been corrected.