What is a Purchase Order?

The Short Version

A purchase order (PO) is a record you create in CrafterBy when you buy materials or supplies. It captures: what you ordered, which supplier you ordered it from, how much you agreed to pay, and when you expect delivery. When the goods arrive and you mark the PO as Received, your material stock levels are updated automatically.

A PO Is Not an Invoice

This distinction matters: a purchase order is your internal record of a buying transaction. It is not a legally binding document you send to a supplier (though some businesses do use POs that way). Your supplier will send you their own invoice — that is a separate document. In CrafterBy, the PO is for your own tracking and stock management.

A Practical Example

You make scented candles and you are running low on fragrance oils. You email your supplier and place an order: 1 litre of vanilla at EUR 14.00/L and 1 litre of sandalwood at EUR 14.00/L. Total: EUR 28.00.

You then create a Purchase Order in CrafterBy:

• Supplier: Fragrance Warehouse
• Line item 1: Vanilla Fragrance Oil, 1L, EUR 14.00
• Line item 2: Sandalwood Fragrance Oil, 1L, EUR 14.00
• Status: Sent

When the parcel arrives three days later, you mark the PO as Received. CrafterBy adds 1L to your vanilla stock and 1L to your sandalwood stock. The cost per unit in your material records is updated, which flows through to accurate product cost calculations.

What Purchase Orders Track

• What you ordered — specific materials and quantities
• From whom — linked to a supplier contact
• At what price — unit price per line item, total order value
• When — order date and expected delivery date
• Delivery status — Draft, Sent, Partial, Received, Cancelled
• Payment — amounts paid, payment dates, outstanding balance

Why Use Purchase Orders

• You always know what is on order and when to expect it
• Stock is updated automatically when deliveries arrive — no manual adjustment needed
• You have a clear record of what you paid, which feeds into accurate cost calculations
• Your supplier history is centralised — one place to check prices, volumes, and delivery reliability