> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Purchase Orders

> A Purchase Order (PO) is a crucial document in the world of business and commerce. It serves as a formal request made by a buyer to a supplier or vendor to acquire goods or services.

### Advantages of Purchase Order

Purchase orders play a vital role in the procurement process by helping both parties, the buyer and the seller to:

* Ensure your planned expenditure does not exceed.
* Maintain clarity and accountability.
* Provide as a legal record of the agreement.
* Facilitate efficient inventory management.
* Track expenses and provide resolution for any potential disputes.

It is a fundamental tool in ensuring smooth and organized business transactions.

### Purchase Order Life Cycle

Given below are the different states of a Purchase Order.

## PO State | Description

## `Created` | When you create a PO on the Dashboard but do not send it to the vendor.

## `Issued` | When you share the PO with the respective vendor. You can send it directly from the RazorpayX dashboard or you can manually **MARK AS ISSUED** if you choose to send it separately.

## `Partially Billed` | When you **PAY ADVANCE** to the vendor, if required.

## `Billed` | When you complete the payment to the vendor.

`Closed` | After the transaction is complete and goods/services are received, click **MARK AS CLOSED**.

### How it Works

You can initiate a Purchase Order, share it, link it to the payments, all from the RazorpayX Dashboard.

<Steps>
  <Step title="[Create a Purchase Order](#create-purchase-order).">
    [Create a Purchase Order](#create-purchase-order).
  </Step>

  <Step title="[Send the Purchase Order](#send-purchase-orders-to-vendors-via-emai...">
    [Send the Purchase Order](#send-purchase-orders-to-vendors-via-email) to the Vendor.
  </Step>

  <Step title="Link the Purchase Order to the respective invoice and advance payme...">
    Link the Purchase Order to the respective invoice and advance payments.
  </Step>

  <Step title="[Close the Purchase Order](#mark-as-closed).">
    [Close the Purchase Order](#mark-as-closed).
  </Step>
</Steps>

## Add Purchase Order

To add a Purchase Order:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Vendor Payments** → **Purchase Orders**.">
    Navigate to **Vendor Payments** → **Purchase Orders**.
  </Step>

  <Step title="**Create new PO** or **Upload existing PO**.">
    **Create new PO** or **Upload existing PO**.
  </Step>
</Steps>

### Create Purchase Order

Before creating your first Purchase Order, set your **Billing Address** via [Branches](/x/vendor-payments/multi-branch-management) that will appear on the header of the Purchase Order. You can add only 1 billing address.

**Shipping Address** is the same as billing address by default. De-select the **Same as billing address** check box if you want to add a different shipping address. Enter the required details and click **Save**.

Once the addresses are saved click **Done**.

<Steps>
  <Step title="**SELECT** a vendor or add **NEW VENDOR**. It is optional to **+ Ad...">
    **SELECT** a vendor or add **NEW VENDOR**. It is optional to **+ Add Address** of the vendor. Enter the required details and click **Save**.
  </Step>

  <Step title="Select or deselect the **GST applicable vendor**, as required. Ente...">
    Select or deselect the **GST applicable vendor**, as required. Enter the GSTIN.
  </Step>

  <Step title="Review the address, you can **Edit** or click **Next**.">
    Review the address, you can **Edit** or click **Next**.
  </Step>

  <Step title="Enter the **PO Details** as given below. Select the relevant **Cost...">
    Enter the **PO Details** as given below. Select the relevant **Cost Center** and click **Next**.
  </Step>

  <Step title="Enter and verify the **Amount details** and click **Next**.">
    Enter and verify the **Amount details** and click **Next**.
  </Step>

  <Step title="Review the Purchase Order. You can **Edit details**, **Save & close...">
    Review the Purchase Order. You can **Edit details**, **Save & close** or **Save & Send** the Purchase Order.
  </Step>
</Steps>

If you choose to **Save & Send** the PO, enter or verify the **Vendor Email** and add other email ids for carbon copy (**CC**) if required. Click **Send PO** to `Issue` the PO to the vendor.

### Upload Purchase Order

Click **Upload PO**. Select the file from your computer and click **open** or drag and drop the file.
RazorpayX reads the uploaded file and you can review the PO.

You can **Edit details**, **Save & close** or **Save & Send** the PO if required.

## Send Purchase Orders to Vendors via Email

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Vendor Payments** → **Purchase Orders**.">
    Navigate to **Vendor Payments** → **Purchase Orders**.
  </Step>

  <Step title="Select the Purchase Order that you want to share with your vendor....">
    Select the Purchase Order that you want to share with your vendor. In the right pane, click **SEND TO VENDOR**.
  </Step>

  <Step title="Enter the email id and click **Send PO**.">
    Enter the email id and click **Send PO**.
  </Step>
</Steps>

The Purchase Order is sent to the vendor and is marked `Issued`.

## Mark as Issued

If you choose to **Save & close** the Purchase Order and decide to share it through another platform, you can manually mark the Purchase Order issued. You cannot edit a Purchase Order after issuing it. You can pay advances or link the Purchase Order to an invoice only after it is `issued`.

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Vendor Payments** → **Purchase Orders**.">
    Navigate to **Vendor Payments** → **Purchase Orders**.
  </Step>

  <Step title="Select the Purchase Order that you want to issue. In the right pane...">
    Select the Purchase Order that you want to issue. In the right pane, click **MARK AS ISSUED**.
  </Step>
</Steps>

## Mark as Closed

You can choose to close the Purchase Order at any state. It is advised to close the Purchase Order after the transactions are settled.

To close the Purchase Order:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Vendor Payments** → **Purchase Orders**.">
    Navigate to **Vendor Payments** → **Purchase Orders**.
  </Step>

  <Step title="Select the Purchase Order that you want to close. In the right pane...">
    Select the Purchase Order that you want to close. In the right pane, click **MARK AS CLOSED**.
  </Step>
</Steps>

The Purchase Order is closed.

## Cancel Purchase Order

To cancel a Purchase Order:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Vendor Payments** → **Purchase Orders**.">
    Navigate to **Vendor Payments** → **Purchase Orders**.
  </Step>

  <Step title="Select the Purchase Order that you want to cancel. In the right pan...">
    Select the Purchase Order that you want to cancel. In the right pane, select the three-dot menu and click **Cancel PO**.
  </Step>
</Steps>

The Purchase Order is cancelled.

## Purchase Order Approval Workflow

This approval workflow is based on the [cost center](/x/cost-centers) that you have linked to your PO. You can [contact support](/x/support) to setup this approval workflow and assign it to relevant team members.

### Approving a Purchase Order

To approve or reject a Purchase Order:

1. Log in to the [RazorpayX Dashboard](https://x.razorpay.com/auth).

<Info>
  **Handy Tips**
</Info>

You can either find the Purchase Orders waiting for your approval on the Dashboard or follow the steps below.

2. Navigate to **Vendor Payments** → **Purchase Orders**.
3. Hover over the required Purchase Order `In Approval` and click **APPROVE** or **REJECT** or select it to view more details and click **APPROVE** or **REJECT** on the right-pane.
   1. If you click **APPROVE**, the following screen is displayed. Enter comments and click **Approve**.

   2. If you click **REJECT**, enter the reason for rejection and click **Reject**.

### View the Purchase Order Workflow

To view the approval workflow after it is setup:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to the profile icon → **My Accounts & Settings** → **Workf...">
    Navigate to the profile icon → **My Accounts & Settings** → **Workflow** → **Purchase Orders**.
  </Step>

  <Step title="Click **View Workflows** and select the cost center for which you w...">
    Click **View Workflows** and select the cost center for which you want to view the workflow.
  </Step>
</Steps>