Real-world example: Purchase orders for Ace's Pickleball Paddle Business. They use a co-man for ordering finished goods.
Ace Paddle Co. sells pickleball paddles. Their manufacturer handles the entire production process, from sourcing raw materials to assembling the finished paddles. They use Settle Purchase Orders (POs) to order their finished goods.
Scenario: Ace is about to do another run of their popular "Ace Pro Spin product. They need to place an order with their manufacturer, "PaddlePro Manufacturing," for 20,000 more paddles.
Create a purchase order:
Ace creates a new purchase order by clicking the +Create Purchase Order button from the Purchase Orders section in the left-hand navigation.
PaddlePro Manufacturing is selected as the vendor.
The following is added to the PO:
Product: Ace Pro Spin Paddle
Quantity: 20,00
Unit Price: $27.40, the agreed-upon price per paddle with PaddlePro
Expected Delivery Date: The date PaddlePro anticipates shipping the order
Destination: East Coast Hub, which is the location where these paddles will be delivered and shown as in-stock within their Settle Location
Submit the PO:
Once Ace has reviewed the details, they'll submit the Purchase Order by including their vendor contact information. They've also included a note on the PO giving their co-man some additional details about this order. An email w/PDF copy of this PO is sent to PaddlePro Manufacturing for processing.
Receive the goods and confirmation receipt:
When the shipment of Ace Pro Spin paddles arrives from PaddlePro Manufacturing, Ace receives a packing slip confirming that 20,500 items are in the shipment.
Process a Goods Received Note (GRN):
Manual GRN for a non-WMS location: The destination for Ace is a manually managed location within Settle. Upon verifying the received quantity (20,500 paddles) and their condition, Ace creates a Goods Received Note (GRN). They'll create the GRN by finding the corresponding Purchase Order and clicking Receive then Create GRN. They'll note the received quantity of 20,500. This action will increase the inventory of the Ace Pro Spin paddle in that manually managed location.
Create payments for this PO:
Before Ace receives their first bill from PaddlePro, they'll create a standalone deposit on this PO. This will link their deposit payment to this PO.
Roughly 14 days later, Ace receives their first invoice from PaddlePro Manufacturing for this order. They'll add the bill and then link it to the Purchase Order as well. This helps keep all related documents together for accounting and record-keeping purposes.
Key takeaways for this workflow:
Focus on finished goods: Because Ace's manufacturer is turn-key, the POs will primarily be for the finished pickleball paddles that are ready for sale.
GRN process varies with Integration: Since Ace isn't using a WMS integration, they'll do manual GRNs for their POs.
Invoice linking for records: Linking the vendor invoice to the PO ensures Ace has a complete record of the transaction for accounting and reconciliation.
🤯🤯 Want to see this in action for yourself? Connect with your Settle representative for a demo.