When you order goods from a supplier, Rhythm can show that stock as on order before it arrives. When the shipment comes in, you record a receipt to move the quantity from on order to on hand. This article explains both steps, plus how to receive goods that arrive without a purchase order already on file.
When to Use This
Record a purchase order as soon as you place an order with a supplier. This shows that more stock is already coming and helps prevent someone from ordering the same item again by mistake. Record a receipt when goods physically arrive, whether or not you already recorded a purchase order for them. To correct a count that is not tied to a supplier order, see Adjust and Transfer Stock instead.
Warning
To ship an order, Rhythm needs receipt history for that stock, not just an on-hand count. Staff have seen on-hand inventory with no receipt behind it, such as after loading starting inventory counts or making an adjustment that raised the on-hand total directly. Without the receipt, the stock may not have the cost data fulfillment needs, which can block Rhythm from creating a shipment or cause a cost-of-goods-sold error. If a product shows on-hand inventory but has no receipt behind it, record a purchase order and receipt for that quantity before shipping it.
Prerequisites
- Permission to record purchase orders, to use Create Purchase Order or Record Purchase Order, or permission to receive stock, to use Receive Inventory. Ask your Commerce administrator if a button is unavailable to you.
- The item must have inventory tracking turned on.
Record a Purchase Order
- Go to Orders & Inventory › Inventory.
- To record an order for any item, select Create Purchase Order from the overview. To start from an item you already have open, go to its Product Inventory 360 page and select Record Purchase Order, or choose the same option in Product Inventory Options.
- If you started from the overview, search for the item under Search for Merchandise.
- Under Destination of Goods, choose the stock record for this order, or choose A new destination. Then pick a warehouse, a bin if that warehouse has bins turned on, and a SKU if the item uses one.
- Enter the number ordered in Quantity and the cost for each item in Unit Cost. You can also set a Date, which defaults to today, and add Notes.
- Select Process Purchase Order.
Result
Rhythm shows "Purchase order processed successfully.", and the destination stock record's On Order total increases by the quantity you entered.
Warning
Rhythm does not currently record the supplier, an order number, or a status for the purchase order. The purchase order stays open and available for receiving until it has been fully received.
Receive Stock Against an Open Purchase Order
- Go to Orders & Inventory › Inventory.
- To receive stock for any item, select Receive Inventory from the overview. To start from an item's own page, select the same button on its Product Inventory 360 page, which appears while something is on order for that item, or choose Receive Inventory in Product Inventory Options.
- If you started from the overview, search for the item under Search for Merchandise.
- Under the dropdown labeled Select a purchase order to which this receipt should be applied, choose the order the goods belong to.
- Rhythm fills in Quantity with the amount still outstanding on that order. Adjust it if you received less than the full remaining amount.
- Optionally set a Date and add Notes.
- Select Receive Inventory.
Result
The order's received quantity increases, its On Order total decreases, and the stock record's On Hand total increases by the amount you received. If the item has orders waiting on backordered stock, the incoming units fill those first; anything left over becomes available to sell.
Tip
A purchase order stops appearing in the list after everything on it has been received. If you never fully receive an order, it stays open indefinitely because Rhythm has no way to close or cancel a purchase order early.
Receive Stock That Has No Purchase Order on File
- Open Receive Inventory the same way as above.
- In the purchase-order dropdown, choose Create a new purchase order instead of an existing order.
- Enter the Unit Cost for the new order, then choose the destination stock record the same way you would for a new purchase order.
- Enter the Quantity received, optionally set a Date, and add Notes.
- Select Receive Inventory.
Result
Rhythm records a purchase order for the amount you entered and a receipt against it in one action, so the item's history shows both the order and its arrival.
Use this method to give existing on-hand stock a receipt to stand on, such as after loading a starting inventory count or making an adjustment that raised the on-hand total without a receipt behind it. Fulfillment and cost-of-goods-sold calculations depend on that receipt history before the stock can be shipped.
Warning
Recording a receipt this way always requires an amount in Quantity. If you select Create a new purchase order and submit without entering a quantity, Rhythm refuses to process the receipt.
Limits and What Can Stop a Save
- A receipt cannot exceed what is left on its purchase order. Rhythm tells you how much remains and refuses a receipt for more than that.
- A receipt must match the same item, warehouse, and bin as its purchase order. Rhythm refuses a mismatched receipt. If the warehouse has bins turned on, you must choose a bin to receive against; a warehouse with bins turned off does not ask for one.
- A destination without a stock record is created for you, starting at zero, before the purchase order or receipt is applied to it.
Related Reading
To see stock levels and movement history before and after ordering or receiving, see View Stock Levels and Movement History. To understand when an item needs reordering, see Monitor Stock Levels and Reorder Alerts. To correct a count that is not tied to a supplier, see Adjust and Transfer Stock.