Purchase Orders Management

Overview

The Purchase Orders Management page provides a centralized hub for creating, viewing, and managing all Purchase Orders (POs) in the system. Purchase Orders are the foundational financial instruments that authorize work to be performed for clients and define the budget boundaries within which projects operate. This page serves as the primary interface for finance, account management, and operations teams to maintain the organization's complete PO portfolio.

The page displays POs organized by year with comprehensive filtering, sorting, and export capabilities. Users can create new POs, edit existing ones, assign or remove projects, and delete unused POs. The system supports multiple PO types including standard POs, draft POs, placeholder POs (for estimates), and blanket POs (master agreements covering multiple projects over extended periods).

Location: Navigate to Management from the main navigation menu, then click Purchase Orders in the management section.

URL: /purchaseorders

Access Level: Staff members with internal system access (not available to external customers)

Business Value

Why Does This Matter to the Company?

1. Financial Control Center - Purchase Orders define the budget boundaries for client work. Without proper PO management, organizations risk performing work that exceeds client authorization, leading to unbillable time and revenue loss.
2. Client Contract Compliance - Clients issue POs as formal authorization to bill for services. Managing these instruments correctly ensures the company can invoice for work performed and maintains compliance with client procurement requirements.
3. Cash Flow Visibility - By maintaining an organized PO registry organized by year, management gains visibility into authorized budgets across the client portfolio, enabling better cash flow forecasting and resource planning.
4. Estimate-to-Invoice Integrity - POs created from project estimates lock in quoted pricing. The system maintains the connection between what was promised to clients and what gets billed, reducing disputes.
5. Multi-Year Planning - Year-based organization enables financial teams to manage PO lifecycles, identify expiring agreements, and proactively coordinate renewals with clients.
6. Audit Trail - Every PO with its associated projects, amounts, and date ranges creates a complete financial audit trail for both internal review and client inquiries.

Business Benefits

For Finance and Billing Teams

• Comprehensive PO Visibility: View all POs in one location with key financial metrics including amounts, date ranges, and associated Invoice Groups
• Year-Based Organization: Quickly filter to specific fiscal years for month-end close, audit preparation, or annual reporting
• Export to Excel: Extract PO data for financial reporting, reconciliation, and external system integration
• Delete Capability: Remove erroneously created POs that have no associated projects
• Draft and Placeholder Management: Track POs at various stages from initial drafts through active billing
• Estimate Amount Tracking: See the original estimated amounts alongside approved PO amounts to monitor variance

For Account Management Teams

• Project Assignment Control: Add or remove projects from POs as client relationships evolve
• PO Extension: When projects have billable work extending beyond the original PO end date, extend the PO directly from this interface
• Multiple Invoice Groups: Support POs that span multiple Invoice Groups within a client organization
• Manager Assignment: Designate responsible managers for POs to clarify ownership
• Description and Notes: Maintain PO-level documentation for context and communication

For Operations Teams

• Blanket PO Support: Manage master agreements with enhanced tracking including quote numbers
• Date Range Management: Ensure PO validity periods align with project timelines
• Corporation and Invoice Group Context: See the organizational hierarchy associated with each PO
• Placeholder Identification: Easily identify which POs are placeholders awaiting final client approval

For Company Leadership

• Portfolio Overview: Summary totals for PO amounts and estimates across the entire portfolio
• Type Identification: Quick visual identification of PO types (Draft, Placeholder, Blanket, Quality) through column filtering
• Revision Tracking: Visual indicators for POs that have been revised, including those revised due to expiration
• Historical Access: Navigate through multiple years of PO history for trend analysis

Usage Scenarios

Scenario 1: Creating a New Purchase Order

An account manager receives a new PO from a client for an upcoming project. They navigate to the Purchase Orders page, click the "+" icon in the toolbar, and the PO edit dialog opens. They enter the PO number, amount, start date, end date, and select the appropriate Invoice Group. After setting the description and any additional options (like whether to display the PO number on invoices), they save the new PO. It immediately appears in the grid, ready for project assignment.

Scenario 2: Assigning Projects to a PO

A project has been created and needs to be linked to a client's PO. The account manager finds the relevant PO in the grid and clicks the "Projects" icon (tags). A dialog opens showing two lists: currently assigned projects and available projects. The user moves projects between the lists by clicking assign/unassign buttons. When satisfied, they click Save. The system may prompt if the PO date range should be extended to cover existing billable time on the assigned projects.

Scenario 3: Month-End PO Review

At month-end, the billing manager reviews POs for completeness before closing the billing period. They select the current year tab and review the list for any unusual items. They sort by Invoice Group to work through accounts systematically. For any PO questions, they click directly on the PO number to open the detail dialog, review all settings, and make any necessary adjustments.

Scenario 4: Finding a Specific PO

An account manager receives a client inquiry about PO number "4500123456". They navigate to Purchase Orders, use the search panel to enter the PO number, and the grid filters to show matching results. They click on the row to open the detail dialog and review all information needed to respond to the client.

Scenario 5: Managing Year-to-Year PO Transitions

As the calendar year changes, the finance team needs to manage POs that span years. They review POs from the prior year that extend into the current year, ensure project assignments are correct, and create new POs for clients who issued new purchase orders. The year tabs allow quick navigation between periods to compare and verify continuity.

Scenario 6: Deleting an Erroneous PO

A PO was accidentally created with incorrect information and has no projects assigned. Rather than editing it, the finance administrator decides to delete it. They locate the PO, note that the delete icon is active (indicating no project dependencies), and click delete. After confirming, the PO is removed from the system.

Scenario 7: Extending a PO for Ongoing Work

A project has additional billable work that falls outside the original PO date range. When assigning the project to the PO, the system detects this and prompts whether to extend the PO end date. The account manager agrees, and the system automatically adjusts the PO to cover all billable periods, ensuring time records can be properly invoiced.

Industry Context

Standard Practice in Professional Services

Purchase Orders as Authorization Instruments

In business-to-business professional services, Purchase Orders serve as formal authorization from clients to perform work and invoice for services. They establish:

• Budget Limits: Maximum amounts that can be billed against the PO
• Validity Periods: Start and end dates defining when work can be performed
• Billing Terms: How and when invoicing occurs
• Approval Authority: Evidence of client procurement approval

Agencies must track spending against PO limits to ensure all performed work is billable and within authorized boundaries.

Types of Purchase Orders

Different industries and clients use various PO structures:

1. Project-Specific POs: Tied to individual projects with defined scope and budget
2. Blanket POs: Master agreements covering multiple projects over extended periods (often annually)
3. Time and Materials POs: Open-ended authorization based on hourly billing
4. Fixed Price POs: Predetermined amount for defined deliverables

This system supports all these models through its Draft, Placeholder, Standard, and Blanket PO types.

Enterprise Client Requirements

Large enterprise clients often have sophisticated procurement systems that require:

• PO numbers on all invoices
• Tracking against specific budget codes
• Multiple approval hierarchies
• Detailed spend reporting

The Purchase Orders Management page provides the foundation for meeting these requirements.

Common Industry Challenges Addressed

Challenge: Disconnected Financial Systems
Many organizations struggle with PO information scattered across spreadsheets, emails, and separate systems. This page centralizes all PO data in one searchable, sortable interface.

Challenge: Project-PO Alignment
Ensuring projects are properly linked to POs is critical for accurate billing. The project assignment feature directly addresses this by making assignments visible and manageable.

Challenge: PO Expiration Management
POs that expire while work is ongoing create billing problems. The date range visibility and extension capabilities help prevent this issue.

Challenge: Multiple Invoice Groups
Complex client organizations may have different billing entities within the same company. The system's support for child Invoice Groups on POs handles this complexity.

Business Logic Details

PO Creation and Types

When creating a new PO, users specify key attributes that determine how the PO behaves:

Standard PO

• Has a PO number, amount, and date range
• Directly links to projects for billing
• Represents formal client authorization

Draft PO

• Indicates preliminary status
• Work may be performed but final PO details pending
• Commonly used while awaiting client paperwork

Placeholder PO

• Created automatically when generating estimates
• Links estimated amounts to projects
• Converted to standard PO when client approves estimate

Blanket PO

• Master agreement covering extended period
• Can have multiple projects and estimates underneath
• Often spans an entire fiscal year

Quality PO

• Special type for internal quality-related work
• May have different billing rules

Only one type flag (Draft, Placeholder, Blanket) can be active at a time.

Project Assignment Logic

When assigning projects to a PO, the system performs several validations:

1. Invoice Group Matching: The project's client must belong to an Invoice Group associated with the PO
2. Date Range Alignment: The system checks if project billable time falls within the PO date range
3. Overlap Prevention: Warns if a project would be assigned to multiple POs with overlapping date ranges
4. Extension Prompting: If assigned project has time records outside the PO date range, prompts to extend

The assignment creates a link between the project and PO that affects how time is billed.

PO Extension Logic

When projects have billable time (artwork time or other charges) that extends beyond the PO end date, the system can extend the PO:

1. Detection: When assigning projects, checks if any time records fall after PO end date
2. Artwork Consideration: Specifically checks for artwork time within the original PO period that has related free alterations or brand design time afterward
3. User Prompt: Displays affected projects and suggested new end date
4. Automatic Extension: If approved, updates PO end date to cover all billable time

This prevents situations where work is performed but falls outside PO coverage.

Year Filtering

POs are organized by year based on their end date:

• A PO ending in 2024 appears under the 2024 tab
• The year tabs are generated from all distinct end-date years in the database
• Selecting a year filters the grid to show only POs ending in that year
• The current year is selected by default when the page loads

Deletion Rules

POs can only be deleted when they have no project assignments:

• The delete icon only appears for POs with no linked projects
• If projects are assigned, the icon is hidden
• This prevents orphaning project billing data
• To delete a PO with projects, first remove all project assignments

Key Features

Year Tabs

Purchase Order Grid

Grid Footer

Grid Toolbar

Summary

The Purchase Orders Management page serves as the central hub for managing the organization's complete portfolio of client Purchase Orders. By providing comprehensive creation, editing, project assignment, and deletion capabilities in a year-organized interface, it enables finance, account management, and operations teams to maintain accurate financial records that underpin all billing activities.

Key Capabilities:

• Centralized PO Registry: All POs in one searchable, sortable, exportable interface
• Year-Based Organization: Quick filtering by PO end-date year
• Multiple PO Types: Support for Draft, Placeholder, Blanket, and standard POs
• Project Assignment: Direct control over which projects bill against which POs
• Automatic Extension: Intelligent prompting to extend PO dates when needed
• Comprehensive Details: All PO attributes viewable and editable in one dialog
• Excel Export: Extract data for reporting and reconciliation
• Grid Customization: Show/hide columns, filter, search, and sort as needed

Business Impact:

• Ensures all client work has proper PO authorization
• Prevents billing against expired or exhausted POs
• Maintains audit trail for financial compliance
• Streamlines PO lifecycle management across years
• Provides foundation for accurate revenue recognition
• Supports complex enterprise client requirements

The Purchase Orders Management page transforms what could be scattered spreadsheets and emails into a structured, auditable system that protects company revenue while ensuring client contract compliance. It serves as the financial backbone connecting client authorization to project delivery and invoicing.