Purchasing Overview

Purchasing in WorkGuru is designed to be very flexible to suit a number of project requirements around purchasing stock and services, ensuring the accounting is automated correctly in the background.

Purchase Orders in WorkGuru can exist in 3 stages:

1. Draft - Draft purchase orders are a saved order that can be edited at any time.
2. Approved - Approved purchase orders are the state that should be used when you have formally sent the order to the supplier. Approved orders can only be edited by reverting back to draft. You can also set purchase value limits on how much a staff member can raise orders for.
3. Received - Received purchase orders are completed in that you have physically received the goods or services you have ordered. As WorkGuru is a FIFO/Perpetual inventory system, you can cost or re-cost orders correctly after they have been received. This lets you ensure the landed cost is always correct even if you are getting invoiced by the supplier or landed costs after receiving the order.

There are 2 related but independent workflows to finalize a purchase order in WorkGuru. As WorkGuru is a proper perpetual/FIFO inventory system, you can receive and cost orders independently of each other.

1. Received- You can receive stock into WorkGuru in any scenario by telling it exactly what has been received when it has been received.
   • Fully received - You receive all the order in one shipment
   • Less than ordered - You receive less than ordered
   • More than ordered - You receive more than ordered
   • Different than ordered - You receive different or equivalent to ordered.
2. Invoiced - You can cost the order accurately in WorkGuru by updating the order to match the supplier's invoice quantities and pricing EXACTLY. This ensures that the costings on projects is correct, inclusive of landed costs so profit is accurate and orders imported to Xero are ready to reconcile without any double handling.

The purchasing workflows generally break down into the following 4 scenarios:

1. Stock Purchase Orders - Stock orders are orders for FIFO or NonStock products that aren't associated to a particular project number. When received:
   • FIFO SKU quantities on a stock order will increase to the stock on hand (SoH) quantity and value in WorkGuru, these stock lines will be coded to the WorkGuru Inventory account in the accounting system.  
   • NonStock SKU quantities will be treated as an expense line in the accounting system. They do not increase SoH.
2. Project Purchase Orders - Project orders are purchases orders that are associated with a particular project and are treated as disbursements. For this purchase order, it is assumed that all the costs are being attributed as an expense to that project.  Project POs as a disbursement on the project are able to be marked as billable and invoiced from the project.  This is perfect for easily invoicing sub-contracting work on a project for example. Note - Project purchase orders handle the account coding differently. As they are classed as disbursements and the assumption is all the SKUs on the orders are being used on the assigned project, FIFO SKUs on project orders do NOT increase the SOH in WorkGuru or code to the inventory in the accounting system. All project orders are classed as expenses. If stock is remaining after project completion, it can be adjusted back into a warehouse via a stock adjustment. As the cost of the stock is captured against the PO and subsequent project, it's recommended to adjust in with a unit cost of 0.
3. Advanced Purchase Orders - Advanced purchase are an extension of project POs. They allow you to raise one purchase order for a supplier's line items from multiple projects. A key feature of the advanced PO is that when received, the costs are automatically applied as a disbursement on all the projects whose line items are on the advanced PO without having to manually apply costs on the individual projects.
4. Landed Cost Purchase Orders - Landed cost orders are purchases raised for expenses that you have been invoiced for when landing your stock POs. Examples include shipping/freight, duties and customs expenses. These orders are raised like other purchases and costed against the suppliers invoice. The difference is the value of these orders are attributed back to an allocated PO containing the products. In landed cost purchase orders, the SKUs, even if they are NonStock, are coded to the WorkGuru inventory account in the accounting system as they are increasing the value of the products on the attributed POs SKUs. The costing is split by qty and value.

Once a purchase order has been received, you can then send the data to Xero.