Converting PO to Purchase Bill

Converting PO to Purchase Bill

Converting a purchase order to a purchase bill is a key step in your procurement workflow. This process creates a purchase bill from an existing order, transferring all order details while allowing you to make final adjustments before recording the purchase.

When to Convert PO to Purchase Bill

You should convert a purchase order to purchase bill when:

• Goods have been received from the supplier
• Services have been completed
• You're ready to record the purchase in your accounts
• The order is fulfilled or partially fulfilled
• You want to process payment to the supplier

Prerequisites

Before converting a PO to purchase bill, ensure:

• The purchase order exists and is in a convertible status (Pending, Partially Received, or Received)
• All order details are correct
• Supplier information is up to date
• Items and quantities are accurate
• Pricing and discounts are finalized

Step-by-Step Conversion Process

Method 1: From Purchase Order Details Page

1. Navigate to Purchase → Purchase Order → List
2. Click on the order you want to convert
3. Review the order details to ensure everything is correct
4. Click the "Convert to Purchase Bill" button (usually located at the top or bottom of the order details)
5. You'll be redirected to the purchase bill creation page with pre-filled data

Method 2: From Purchase Order List

1. Go to the Purchase Order list view
2. Select the order(s) you want to convert
3. Click the "Convert to Purchase Bill" action button
4. Follow the conversion process

What Gets Transferred

When converting a PO to purchase bill, the following information is automatically copied:

Supplier Information

• Supplier name and contact details
• Billing address
• Delivery address
• Supplier tax information
• Payment terms

Order Items

• All items from the order
• Quantities (can be adjusted if partially received)
• Unit prices
• Discounts (item-level and order-level)
• Tax information

Financial Details

• Subtotal
• Discounts and charges
• Tax calculations
• Total amount

Additional Information

• Reference number
• Order date
• Terms and conditions
• Notes (if applicable)

Editing Before Finalizing

After conversion, you can edit the purchase bill before saving:

Adjust Quantities

• If the order was partially received, adjust quantities to match what was actually received
• Remove items that weren't received
• Add additional items if needed

Update Prices

• Modify unit prices if they've changed
• Adjust discounts
• Update additional charges

Modify Dates

• Set the bill date (defaults to today)
• Update due date based on payment terms
• Adjust delivery date if different from order

Update Other Details

• Change bill number if needed (subject to numbering rules)
• Modify terms and conditions
• Add or update notes
• Change delivery address if required

Partial Conversion

If your order is partially received, you can:

• Convert only the received items to purchase bill
• Adjust quantities in the bill to match received items
• Leave remaining items in the order for later conversion
• Create multiple bills from the same order if needed

Saving the Purchase Bill

Once you've reviewed and made any necessary changes:

1. Click "Save Purchase Bill" or "Create Purchase Bill"
2. The purchase bill will be created and saved
3. The order status may automatically update to "Converted" or "Received"
4. Stock will be updated if stock tracking is enabled
5. Accounts payable will be updated

After Conversion

Once the PO is converted to purchase bill:

Order Status

• The order status typically changes to "Converted" or "Received"
• The order remains in the system for reference
• You can still view the order and its link to the purchase bill

Stock Updates

• If stock tracking is enabled, inventory is updated
• Stock levels reflect the purchase
• Received items are added to inventory

Accounting Impact

• Purchase expense is recorded
• Accounts payable is created
• Tax credit is calculated (input tax credit for GST)
• Inventory cost is updated (if applicable)

Linking and Reference

The purchase bill maintains a link to the original order:

• You can view the original order from the purchase bill page
• Order number is referenced in the purchase bill
• This helps maintain a clear audit trail
• Useful for supplier inquiries and reconciliation

Multiple Bills from One Order

In some cases, you may need to create multiple bills from a single order:

• When items are received in multiple shipments
• When billing different items at different times
• When using different payment terms for different items

To do this:

1. Convert the order to purchase bill for the first set of items
2. Adjust quantities to include only items for the first bill
3. Save the first bill
4. Convert the same order again for remaining items
5. Repeat as needed

Best Practices

• Always review the purchase bill before saving to ensure accuracy
• Verify quantities match what was actually received
• Check that prices and discounts are correct
• Ensure tax calculations are accurate
• Update delivery dates to reflect actual receipt
• Add notes if there are any special circumstances
• Convert orders promptly after receipt to maintain accurate records

Troubleshooting

Can't find the "Convert to Purchase Bill" button?

• Check that the order is in a convertible status (not Draft or Cancelled)
• Ensure you have permissions to create purchase bills
• Verify that the Purchase Bill module is active

Bill amounts don't match the order?

• Check if quantities were adjusted during conversion
• Verify that prices haven't changed since the order was created
• Review discounts and charges
• Check tax calculations

Stock is not updating after conversion?

• Verify that stock tracking is enabled for the items
• Check that the purchase bill was saved successfully
• Review inventory settings

Can't convert a partially received order?

• Ensure you're adjusting quantities to match received items
• Check that at least one item has a quantity greater than zero
• Verify the order status allows conversion

Converting purchase orders to purchase bills efficiently helps you maintain accurate records and ensures timely payment processing with your suppliers!