Purchase Orders

Purpose: Request a purchase and track its progress from requested to invoiced.

Boundaries: The process starts when a requester creates a purchase order and ends when the good or service is received and Tech Ops processes the invoice.

Timeline: 1 to 2 days for goods or 3 to 5 days for services.

Virtually everything AvidCo buys requires a purchase order. A purchase order specifies the good or service, the cost, and the budget codes. The requester creates a purchase order. In some cases, Tech Ops creates it on their behalf. When a department buys something, the cost is deducted from their operating budget. Capital purchases are deducted from the annual capital budget.

The specifics of the purchase order are derived from the vendor’s quote.

Technology uses Zorio to 1) create purchase orders, 2) track progress from requested to received and send automated Status notifications, and 3) store documents related to the purchase.

Create a Purchase Order

1. Obtain a quote from the vendor and save it in .pdf format.

2. Create a purchase order. Refer to Zorio Fields for details. Select the Vendor from the dropdown box, change the Status to Draft, and fill the Description field. Save. Upon saving, Zorio generates a PO number.

3. On the Details tab, complete fields for Budget #, Project # (if any), Department #, Ship via, and Terms.

4. On the Item Summary tab, select Add New Item > General Item. Refer to the quote for specifics.

5. Save.

6. Write PO Remarks. Save.

7. Check your work. Go to Print to see a user-friendly print preview.

8. Upload the quote to the Attachments tab. Use the correct filename convention.

9. Change the Status to Requested. Save. Upon saving, Zorio sends a Status notification to the requester, approver, and Tech Ops.

10. Once it’s approved, Tech Ops obtains signatures on the PO.

Zorio Fields

To create a purchase order, go to Purchase Orders > Create.

Vendor/Shipping/Billing/Remarks

Vendor. Use the drop-down box to fill the field.

Shipping. The field is filled by default. Correct the shipping address if necessary.

Billing. The field is filled by default. All bills go to HQ.

Remarks. Remarks specify the good or service (what, where, who) and justify the expense to the organization (why). Include the name of the item, location, start and end dates if any, and people and project names, if any. Be comprehensive but succinct. If the cost is shared between budget codes, departments, or locations, note it in Remarks.

Details/Notes/Attachments/Custom Fields/History

Description. Create a brief description of the purchase. The description doesn’t appear on the PO.

Status. Change the Status as the PO progresses from Draft to Received. When a user changes the Status and saves the record, Zorio sends a Status notification to the requester and Tech Ops.

Date Ordered/Date Expected. Complete these fields when the item is ordered.

Budget #. Format as ####-##-####: GL code – Department code – Location code

Project #. Choose from Master PO, check request, project name.

Department #. Enter Department code.

Ship via. Choose from ground, freight, pickup, and digital delivery. For a service, type NA.

Terms. Choose from net 30, credit card, and check request.

Notes. Make a time-stamped note when you take an action on the PO.

Attachments. Attach the quote, signed quote, signed PO, packing slips, and invoices.

Custom Fields. Leave this tab blank.

History. Zorio records the action when an item is added to or edited on the Item Summary, and when the Status changes.

Item Summary/Invoice Details

Item Summary. From the dropdown box, select Add New Item > General Item. Refer to the quote for specifics.

Invoice Details. Zorio populates these fields from the Item Summary. Fill in the # Received and # Invoiced fields.

Track a Purchase Order

1. A signing authority reviews the PO and changes the Status to Approved or Denied. When the Status changes, Zorio sends a notification to the requester and Tech Ops.

2. Tech Ops changes the Status to PO Signed only when both the quote and PO have been initialed and signed. Zorio sends a notification to the requester and Tech Ops. Don’t order until Tech Ops changes the Zorio Status to PO Signed.

3. If the quote is signed, send the signed quote and PO to the vendor.

4. Place the order.

5. In Zorio, fill the Date Ordered and Date Expected fields. Change the Status to Ordered. Zorio sends a Status notification.

6. In Notes, make a note when you take an action on the PO. Examples: Make a note when you send a PO or quote for Finance or Legal review, when you process an invoice, PO reconcile, and when you communicate with staff and vendors. Make a note of start and end dates if any.

7. When goods arrive or service is completed, change the Status to Partially Received or Received as appropriate. Zorio sends a Status notification.

8. Attach the packing slip(s) in .pdf format to the PO in Zorio. Use the correct filename convention.

About Packing Slips

A packing slip proves that the vendor filled the Purchase Order, and it’s OK for AvidCo to pay. When a shipment arrives, check the contents against the packing slip to verify that product descriptions and quantities match. If goods arrive without a packing slip, another record can serve the purpose: a receipt, an invoice, or an email or Zorio note from the requester which confirms that the goods arrived.

Create a Service Purchase Order

If the item requested is a service, requesters create a purchase order as per usual: Obtain a quote, create a PO. Tech Ops verifies that AvidCo has onboarded the vendor. If it’s a new vendor Tech Ops works with the vendor, Legal, and Finance to bring the vendor onboard.

1. Obtain a quote and create the purchase order.

2. Tech Ops sends the CFO the quote, purchase order, and service agreement, noting the agreement expiration date and service agreement number. Refer to Example Emails.

3. Tech Ops solves issues with input from the CFO. Most often this entails correcting budget codes.

4. After CFO review, Tech Ops resumes the standard process.

Create a Capital Purchase Order

A capital purchase is a purchase of equipment or software with a value over $5,000 and a useful life in excess of one year (per AvidCo Purchase Authority). Example capital purchases include replacing a transmitter, buying a vehicle, installing a new content management system, and developing the AvidCo mobile app.

1. Consult with the CFO or Tech Ops regarding appropriate capital budget codes. If the CFO recommends code 1710 – Construction in Progress, Tech Ops recodes the purchase correctly when the invoice arrives.

2. In the Status field, use Capital Requested as shown below.

Create a Master Purchase Order

Master purchase orders are for purchases with a predictable billing schedule and payment amount.

1. To specify a master PO in Zorio, note “Master PO” in Remarks.

2. When the first invoice arrives, change the Status to Partially Received.

3. In Notes, record the invoice number out of total invoices (e.g., “1 of 6”).

4. When the last invoice arrives, change the Status to Received.

About Operating and Capital Budgets

Each department’s operating budget pays for the department’s routine expenses. The capital budget is reserved for equipment or software with a value over $5000 and a useful life in excess of one year. Usually capital purchases are physical goods, but they can be non-physical, such as the development of AvidCo’s mobile app.