Purchase Order Management

Purchase Order Management for Automotive & Vehicles Businesses

Raise, approve, and track purchase orders from requisition to goods receipt, with vendor comparison and automatic inventory update on delivery

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Uncontrolled purchasing is one of the most common causes of financial leakage in small and medium businesses. Without a formal purchase order process, it is impossible to know what was ordered, at what price, from which vendor, and whether the delivery matched the order. ASTech ERP introduces a structured purchase workflow without bureaucratic complexity — requisitions can be raised from any department, purchase orders are created with vendor rate comparison, approvals are managed via mobile notifications, and goods receipt updates inventory the moment you mark delivery as complete. The purchase module is connected to your inventory and accounts payable. When a PO is raised, it creates a commitment that is visible in your cash flow forecast. When goods are received, the purchase receipt updates stock automatically. When the vendor invoice arrives, it is matched to the PO and goods receipt — three-way matching that prevents duplicate payments and overbilling. The vendor management section tracks vendor-wise pricing history, delivery performance, and outstanding amounts so you can make better procurement decisions over time.

Why Automotive & Vehicles Businesses Need Purchase Order Management

Automotive businesses — car dealerships, two-wheeler workshops, commercial vehicle service centres, and spare parts dealers — need to manage job cards, spare parts inventory, labour billing, and warranty claims. ASTech ERP provides purpose-built tools for the automotive service and sales workflow.

Key Benefits

Three-way matching prevents fraud and errors

Purchase orders, goods receipts, and vendor invoices are matched before payment is approved. Discrepancies in quantity or price are flagged immediately, preventing overpayment and duplicate invoices.

Vendor rate comparison at the ordering stage

Compare quotes from multiple vendors side-by-side before raising a PO. Historical pricing from past orders is shown alongside new quotes to help you negotiate better rates.

Approval workflows for purchase control

Configure approval rules based on order value — orders below ₹10,000 auto-approve, above ₹10,000 require manager approval, above ₹1 lakh require owner approval. Notifications go via app and email.

Automatic inventory and accounts update

Goods receipt immediately adds items to inventory at the PO price. The corresponding accounts payable entry is created, and vendor outstanding is tracked until payment is made.

How It Works

1

Raise a purchase requisition or PO directly

Team members can raise purchase requisitions for items needed. Alternatively, the inventory module generates automatic replenishment suggestions when stock falls below reorder levels.

2

Select vendor and get approval

Choose a vendor (with rate history visible), set delivery date, and submit for approval as per your configured workflow. Approvers are notified on their mobile app.

3

Record goods receipt on delivery

When goods arrive, record the delivery against the PO. The system checks received quantities against ordered quantities and flags shortages or excesses.

4

Match vendor invoice and process payment

When the vendor sends an invoice, match it to the PO and goods receipt. Any discrepancy is highlighted before payment is processed, ensuring you only pay for what you ordered and received.

Frequently Asked Questions

Can I raise POs in multiple currencies for imported goods?+
Yes. Purchase orders can be created in USD, EUR, and other currencies. The exchange rate is recorded on the PO and the system calculates the INR value for accounts payable and inventory costing. Any exchange difference at payment is booked as forex gain or loss.
How does the system handle partial deliveries against a PO?+
Partial deliveries are supported. Each delivery is recorded as a goods receipt note (GRN) against the PO. The system tracks open quantities per PO line and the PO remains open until all quantities are received or you manually close it.
Can I track delivery performance per vendor?+
Yes. The vendor performance report shows on-time delivery %, quantity accuracy, and invoice discrepancy rate per vendor. This data helps you evaluate vendors objectively when comparing quotes.
How are purchase returns handled?+
Purchase returns are recorded as debit notes against the vendor's purchase invoice. The system removes the items from inventory, reduces the accounts payable balance, and generates a debit note PDF to send to the vendor.
Does ASTech ERP support blanket purchase orders for recurring supplies?+
Yes. Blanket POs allow you to agree on a total value or quantity with a vendor for the year, with deliveries made against the blanket PO over time. Each delivery records the amount consumed against the blanket order.

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