Video 18 of 26 · Move the Money

Purchase Orders

Set up the supplier, raise and approve the PO, send it, change it, then process the supplier invoice through to Xero

← Inbox to Xero: How the Money Flows Process Supplier Invoices →

Watch the Purchase Orders video — Watch the Purchase Orders video on YouTube

Watch the video walkthroughhttps://youtu.be/vR4lhUTthsw

In this walkthrough, you'll raise a purchase order in the Deep Space web app, get it approved and sent, and then process the supplier's invoice against it, all the way to Xero. Use a PO for suppliers, hire and materials. For trades on a schedule of values with progress claims, use a subcontract instead.

The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)

Build an Estimate and Proposal Win
Multi-Trade Tender Win
Set Up Your Workspace Set Up
Add Users and Give Them Access Set Up
Company Settings: Get Your Documents Ready Set Up
Connect Xero and Map Your Cost Codes Set Up
Folder Templates and Project Documents Set Up
Document Templates vs Contract Templates Set Up
Email Templates and Sending Documents Set Up
Head Contract Setup Set Up
Build Your Programme Set Up
Subcontracts: Award to Executed Set Up
DS Site: Invites, Inductions and Site Sign-on Build
Drawings to Site and Subbies Build
Run Your Programme on Site Build
RFIs, Notices and the Project Inbox Build
Inbox to Xero: How the Money Flows Move the Money
Purchase Orders Move the Money
Process Supplier Invoices Move the Money
Subbie Claims: Inbox to Payment Schedule Move the Money
Retentions and Security Move the Money
Variations, End to End Move the Money
Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
Progress Claims to Your Client Move the Money
Budget and Forecasting Govern
Delegation of Authority Govern

Before your first PO

Can't find your supplier in the PO? Check its type in the Company Directory. It needs to be Supplier, or Subcontractor a — Can't find your supplier in the PO? Check its type in the Company Directory. It needs to be Supplier, or Subcontractor and Supplier. A company tagged Subcontractor only won't show up.

Compliance is set under Admin, Company Settings, Commercial. Warn and allow means a non-compliant supplier shows a warni — Compliance is set under Admin, Company Settings, Commercial. Warn and allow means a non-compliant supplier shows a warning but you can still raise the PO. Allow without warning skips it.

Here's that warning. It tells you exactly what's missing, like an unverified tax ID or induction. Click Continue anyway, — Here's that warning. It tells you exactly what's missing, like an unverified tax ID or induction. Click Continue anyway, or cancel and fix the company's Compliance tab first.

Raise the PO

Go to Commercial, Purchase Orders, PO Register, and click New Purchase Order.

Give it a name, then pick the supplier. The PO number fills in automatically, and the project comes from the one you're — Give it a name, then pick the supplier. The PO number fills in automatically, and the project comes from the one you're in.

Don't know the price yet, like a counter purchase? Tick Price TBC to raise it at zero dollars. It's priced from the firs — Don't know the price yet, like a counter purchase? Tick Price TBC to raise it at zero dollars. It's priced from the first invoice and held back from Xero until then. Choose budget coding per line or one code for the whole PO, set GST, or pull lines straight from a supplier price list.

Enter the rate and quantity, then pick the cost code. Each code shows its revised budget and what's remaining, so you ca — Enter the rate and quantity, then pick the cost code. Each code shows its revised budget and what's remaining, so you can see straight away if this PO fits.

Totals include GST. Your company terms and conditions attach automatically. Click Save Draft to come back to it, or Send — Totals include GST. Your company terms and conditions attach automatically. Click Save Draft to come back to it, or Send to Approval.

Approve it

Your Delegation of Authority decides who approves. This PO is under the twenty five thousand dollar threshold, so the co — Your Delegation of Authority decides who approves. This PO is under the twenty five thousand dollar threshold, so the commercial check is skipped and it goes straight to the project manager. The budget position shows what's committed, what's pending, and what's left on the cost code after approval.

Approvers find it in My Approvals, the clipboard icon at the top. Everything waiting on you is under Pending my action.

Open the approval route to Approve, Reject, or Delegate. If the project has no Delegation of Authority of its own, the w — Open the approval route to Approve, Reject, or Delegate. If the project has no Delegation of Authority of its own, the workspace default is used.

Send it

Once it's approved, click Send to Supplier.

Pick the document template for the PO. Your own branded template, or the system default. Customise and view lets you che — Pick the document template for the PO. Your own branded template, or the system default. Customise and view lets you check the PDF before it goes.

The supplier's email comes from the Company Directory. Add anyone else who needs it, then click Send. It goes from Deep — The supplier's email comes from the Company Directory. Add anyone else who needs it, then click Send. It goes from Deep Space with the PDF and your terms attached.

Change or close it

Need to edit an approved PO before it's invoiced? Revert to Draft, make your changes, and send it back for approval.

Once work is underway, raise a variation instead. Create Variation adds or takes away value, goes through approval, and — Once work is underway, raise a variation instead. Create Variation adds or takes away value, goes through approval, and the revised total updates.

Order came in under? Close out releases whatever is left on the PO back to the cost codes, with one approved variation. — Order came in under? Close out releases whatever is left on the PO back to the cost codes, with one approved variation. Lines already fully invoiced are left alone, and Xero isn't touched.

Process the invoice

Supplier invoices emailed to your Deep Space invoice address land in the Invoice Inbox. Everything you're processing liv — Supplier invoices emailed to your Deep Space invoice address land in the Invoice Inbox. Everything you're processing lives in the Invoice Register.

Got one in your own inbox? Click Upload PDF in the Invoice Register and drop it in. A photo works too.

KAI reads the invoice and matches it to the PO, here ninety nine percent, on the PO number, supplier, line and rate. It — KAI reads the invoice and matches it to the PO, here ninety nine percent, on the PO number, supplier, line and rate. It also checks the supplier's tax number and bank details against the directory.

Check what KAI pulled out: invoice number, dates, amounts, GST and line items. Click Edit to fix anything, like the wron — Check what KAI pulled out: invoice number, dates, amounts, GST and line items. Click Edit to fix anything, like the wrong company name on a branch invoice.

Confirm the record type. Supplier Invoice for this one. A credit note goes against the PO the same way and reduces what' — Confirm the record type. Supplier Invoice for this one. A credit note goes against the PO the same way and reduces what's been invoiced.

Authorise and push to Xero

Click Complete Review, then Send for Authorisation.

It goes through your invoice approval workflow. Once the final approver signs off, Deep Space authorises it and pushes t — It goes through your invoice approval workflow. Once the final approver signs off, Deep Space authorises it and pushes the bill to Xero automatically. If the push fails, a Push to Xero button appears on the record so you can retry.

For month end, use the status tabs. Needs Review, Coded, In Approval, Authorised. Anything not yet Authorised hasn't rea — For month end, use the status tabs. Needs Review, Coded, In Approval, Authorised. Anything not yet Authorised hasn't reached Xero.

Admins can tune KAI matching in Company Settings. KAI only links an invoice to a PO by itself above the threshold. Anyth — Admins can tune KAI matching in Company Settings. KAI only links an invoice to a PO by itself above the threshold. Anything less is a suggestion for you to review.

Common questions

My supplier isn't in the PO list.

Open it in the Company Directory and set its type to Supplier, or Subcontractor and Supplier.

My supplier isn't in the PO list. — Open it in the Company Directory and set its type to Supplier, or Subcontractor and Supplier.

Compliance is blocking my PO.

Update the company's insurances and induction, or ask your admin to set non-compliant commitments to Warn and allow.

Compliance is blocking my PO. — Update the company's insurances and induction, or ask your admin to set non-compliant commitments to Warn and allow.

The invoice is more than the PO.

You'll see a warning that it exceeds the order line. Raise a PO variation for the extra and get it approved, then authorise the invoice.

The invoice is more than the PO. — You'll see a warning that it exceeds the order line. Raise a PO variation for the extra and get it approved, then authorise the invoice.

The bill isn't in Xero.

It only goes once the final approver authorises it. Check the invoice's status, look for a Push to Xero button, and check your draft bills in Xero.

The bill isn't in Xero. — It only goes once the final approver authorises it. Check the invoice's status, look for a Push to Xero button, and check your draft bills in Xero.

We got a proforma invoice.

Process it so you can pay, then attach the tax invoice when it arrives and add a note, so the record matches.

We got a proforma invoice. — Process it so you can pay, then attach the tax invoice when it arrives and add a note, so the record matches.

Quick reference

Supplier type and compliance first
New Purchase Order, code to budget
Approve via DoA in My Approvals
Send to Supplier, or vary or close out
Upload or forward the invoice, KAI matches it
Authorise and it pushes to Xero

Need a hand? Email help@deepspacegroup.ai

← Inbox to Xero: How the Money Flows Process Supplier Invoices →