Feature

Purchase orders

A purchase order is your written promise to buy at an agreed rate and quantity. Cashflow OS makes one with your logo, letterhead and signature, shares it with the supplier as a PDF on WhatsApp or by email, and can post the purchase order into TallyPrime so your books know what is on the way.

Rate and quantity in writing
Branded PDF to the supplier
PO posted into Tally
Check deliveries against it

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Who it’s for

Who uses purchase orders

ManufacturersRaw material and packing bought in regular lots
Traders and distributorsStock orders to principal companies and wholesalers
RetailersSeasonal and festival buying from several suppliers
Owners and purchase managersOrder placed on a call, confirmed in writing
Godown and stores staffCheck what arrives against what was ordered
Purchase clerksMatch the supplier's bill rate with the PO
Contractors and project buyersMaterial ordered per site with delivery dates
Restaurants and institutionsWeekly orders to fixed vendors

Pain → fix

The problems purchase orders solves

What goes wrong without it, and what changes with Cashflow OS.

The problem"Same rate as last time" on the phone
The bill arrives at a new rate and there is nothing in writing.
With Cashflow OSA branded PO with rate, quantity and date
Make the PO from your Tally items and share it as a PDF so the supplier has the terms in writing.
The problemShort supply noticed after the bill is entered
Four rolls missing and the bill paid in full.
With Cashflow OSGodown checks the delivery against the PO
With the PO on the phone, receiving staff count against it and record a receipt note in Tally.
Create Tally vouchers from your phone
The problemBooks do not know what is on the way
Stock looks low and someone orders the same thing twice.
With Cashflow OSPO posted into Tally as a voucher
Once writing is on, the purchase order goes into Tally through the connector, and Tally validates it.
The problemSupplier bills ₹3 more than agreed
Small rate differences on large quantities quietly add up.
With Cashflow OSRates on the PO to check the bill against
The purchase clerk compares the billed rate with the PO and raises a debit note if needed.
The problemBills from orders fall due unnoticed
Payment terms were agreed on a call and nobody remembers them.
With Cashflow OSPayment period on the PO, dues in payables
Bill-wise payables with ageing show when the bills from these orders are due.
Payables tracking
The problemNot sure what to reorder
Orders are placed on memory, not on what is moving.
With Cashflow OSCheck stock summaries before raising POs
Stock and item summaries from Tally show what is moving and what is low.
Financial reports from Tally

What it does

What you can do with purchase orders

A branded purchase order in a minute

How it works. Pick the supplier, add items from your Tally items with quantities and agreed rates, and add terms such as delivery date and payment period. The PDF carries your logo, letterhead and signature.

Supplier sees the same item names you stock
Rate, quantity and date in writing
Terms set once and reused

In practiceA Rajkot manufacturer orders 2,000 five-ply boxes at ₹38, 40 stretch film rolls at ₹410 and 300 BOPP tapes at ₹42, delivery by Friday.

Shared on WhatsApp or email

How it works. Send the PO as a PDF on WhatsApp or by email from the phone or the web app, while you are still on the call with the supplier.

Supplier has the order the same minute
PO number to quote on the delivery
Works from the supplier's office or the road

In practiceAfter agreeing rates on a call, the owner shares PO-0412 with Shree Packaging on WhatsApp before hanging up.

Into Tally, then the rest of the buying chain

How it works. With writing switched on, the PO is posted into Tally as a purchase order voucher. Receipt notes, purchase vouchers and debit notes can also be made from the app as goods and bills arrive.

Books know what is pending from suppliers
Receipt note entered at the godown on delivery
Tally validates every entry and gives reasons

In practiceThe godown records 36 of 40 film rolls received; the clerk spots tape billed at ₹45 instead of ₹42 and raises a ₹900 debit note.

Into Tally, then the rest of the buying chain

Know what to order and when it is due

How it works. Before raising POs, check stock and item summaries from Tally. After billing, payables with ageing show when each supplier is due.

Reorder based on what is moving
Payment dates planned, not remembered
Suppliers paid on time earn better terms

In practiceEvery Monday, the purchase manager checks fast movers in the item summary, raises five POs and reviews next week's payables on Friday.

Guide

Purchase orders: the full guide

How it works day to day, who does what, and the points to watch.

Why write a purchase order at all

Many small businesses order on a phone call: "send 50 bags, same rate as last time". It works until it does not. The supplier sends 45 bags, or bills at a new rate, or delivers a week late, and there is nothing in writing to point to. A purchase order fixes the three things that cause most supplier disputes: what was ordered, at what rate, by when. It also gives the person receiving goods at the godown something to check the delivery against. For a standard layout, see purchase order format, and for how it differs from the selling side, sales order vs purchase order.

What Cashflow OS does

A branded document: your logo, colours, letterhead, signature, and bank and UPI details on the PDF.
Items from your Tally books, so the names the supplier sees match the items you will receive into stock.
Sharing on WhatsApp or by email from the phone or the web app.
Purchase order voucher in Tally: once writing is switched on, a purchase order can be created in Tally through the connector. Tally validates it like any other entry.
The rest of the buying chain: receipt notes, purchase vouchers and debit notes can also be created from the app, so receiving and billing do not wait for someone at the Tally PC.

A worked example: checking a delivery against the PO

A small manufacturer orders packing material:

Item	Ordered	Rate	Received	Billed rate
Corrugated boxes 5-ply	2,000	₹38	2,000	₹38
Stretch film roll	40	₹410	36	₹410
BOPP tape	300	₹42	300	₹45

With the PO on the phone, the godown spots four rolls short and the purchase clerk spots tape billed ₹3 higher than agreed: ₹900 on 300 rolls. Both go back to the supplier with the PO as evidence, and a debit note or a corrected bill follows. Without the PO, the bill would most likely have been entered as received.

A weekly buying routine

Purchase orders work best as part of a rhythm rather than one-off documents. A routine many small businesses can follow:

Monday: look at the stock and item summaries for fast-moving items and anything near its reorder level. Our guide on reorder levels and safety stock explains how to set those levels.
Monday afternoon: raise POs for what is needed, with rates agreed on the phone, and share them on WhatsApp so the supplier has them the same day.
On delivery: the godown checks quantities against the PO and records a receipt note.
When the bill arrives: the purchase clerk checks rates against the PO before the purchase voucher goes into Tally.
Friday: review payables due next week so suppliers who delivered on time are also paid on time.

Paying on time against clean POs is often what earns a small buyer better rates and priority supply in a shortage season.

Who uses it

Owners and purchase managers who place orders while at the supplier's office or on a call.
Manufacturers buying raw material and packing material in regular lots.
Traders and distributors placing stock orders with principal companies or wholesalers.
Godown staff who check what arrives against what was ordered.

Tips

Always write the rate. A PO without rates protects only the quantity.
Put the payment period on the PO. It sets expectations before the bill arrives and helps when you later review payables.
Number POs in one series and quote the PO number on the receipt note.
Close old POs. At month-end, check what was ordered but not received and either chase or cancel it.
Watch the payables side. Bill-wise payables with ageing show when the bills from these orders fall due; see payables tracking.

What it does not do

It does not send the PO to the supplier's own software; the supplier receives a PDF.
It does not write into Tally unless the owner has switched writing on and the connector is running.
It does not approve or reject supplier bills on its own; matching is still a human check, made easier by having the PO to hand.
It does not make payments to suppliers.

This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.

Set-up

Start using purchase orders in 4 steps

Works on top of your TallyPrime — nothing to migrate, no second set of books.

1
Switch on the documents module and set your logo, letterhead and signature
2
Pick a supplier, add items, quantities and agreed rates
3
Add delivery date and payment period, then share the PDF
4
Switch on writing to post POs and receipt notes into Tally

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Buyer’s checklist

What to look for in purchase orders software

Whatever you choose, check these before you commit.

Items picked from your stock list, so names match what you receive
Rate, quantity, delivery date and payment terms on every PO
A branded PDF shared on WhatsApp or email from the phone
The PO recorded in your accounting books, not only as a PDF
Receipt notes and purchase bills entered against what was ordered
Debit notes for short supply or rate differences without delay
One PO number series, quoted on deliveries and bills
Payables with ageing, so bills from these orders are paid on time

Plans

Simple yearly plans

14-day free trial on your own books
3-year term saves up to 25%
Premium modules (catalogue, field force, price lists, store…) priced extra

Start free trial Get the price for your business

Compare all plans

Growth₹3,000/year + GSTBooks, reports, outstanding and sharing
Pro₹5,000/year + GSTEverything in Growth, plus entries into Tally
Pro+₹7,000/year + GSTEverything in Pro, plus e-invoice and e-way bill

Why Cashflow OS

Why use purchase orders in Cashflow OS

From your Tally itemsItems and suppliers come from your TallyPrime books.
Looks like your businessLogo, letterhead, signature and terms on every PO.
Posted into TallyPurchase order vouchers go into Tally once writing is switched on.
The whole buying chainReceipt notes, purchase vouchers and debit notes from the app as well.
Payables in viewSee when the bills from your orders fall due.
14-day free trialRaise a PO from your own items first. Entries into Tally need a Pro plan or above.

Questions about purchase orders

Can the purchase order go into Tally as well?

Yes. Purchase orders are among the voucher types Cashflow OS can create in Tally, once writing is switched on for the company.

Can I put my bank and UPI details on the PO?

Yes. Documents can carry your bank and UPI details along with your logo, letterhead and signature.

Can I record goods received from the phone?

Yes, as a receipt note in Tally, once writing is on. Tally validates the entry.

Is it only on the phone?

No. Documents can be made on the phone app or the web app.

Can I convert a PO into a purchase bill?

When the bill arrives, record the purchase voucher from the app once writing is on, checking rates against the PO, or in Tally as usual.

Do price lists apply to purchase orders?

No. Price lists set selling rates for your customers. On a PO you enter the rate agreed with the supplier.

Does the supplier need Cashflow OS?

No. The supplier receives a PDF on WhatsApp or email.

Can staff raise POs without the owner seeing?

Access depends on the role you give each person, and the owner can see the team's activity.

What if Tally refuses the PO?

Tally validates each entry. A refused entry comes back with Tally's reason, such as a missing item or ledger, so you can fix it.

Can I raise a PO for an item not in Tally?

Create the item in Tally first, or from the app if writing is on, so the receipt note and bill match.