Purchase Order to Stocked Inventory

Use this workflow when an approved purchase order is delivered for stock. It joins the supplier’s delivery, physical inspection, receipt, put-away, landed-cost review where relevant, and bill approval before the inventory and payable are considered settled.

Where this workflow fits

This workflow suits importers, distributors, wholesalers, and manufacturers. A purchasing decision and approved PO start this path. Accepted inventory serves replenishment or fulfillment; approved bills go to the weekly AP payment plan.

Featured capabilities

• Purchasing & Accounts Payable: Verify purchasing documents and supplier bills.
• Receiving & Bin Locations: Record actual receipt and accepted stock location.
• Duty and Tariff Landed Cost: Review import costs against actual charges.
• Inventory & Products: Check quantity, condition, and stock disposition.
• Extensiv 3PL Fulfillment: Review the partner’s actual receiving or shipping result where connected.

People and preparation

Purchasing and receiving need the approved purchase order, expected supplier delivery, facility, product identification, and any lot, serial, or quality requirements. Finance needs the supplier billing and landed-cost policy.

Process areas and stages

1. Prepare for arrival

   Owner: Purchasing and receiving. Input: Approved PO and supplier confirmation.

   Work and decision: Review the approved purchase order, supplier confirmation, expected arrival, receiving facility, and any lot, serial, or quality requirements. Confirm expected date and quantities with the supplier and receiving team. Identify the destination and special handling before a carrier arrives.

   Evidence and handoff: PO and receiving instructions define what should be checked.

2. Receive the delivery

   Owner: Receiving. Input: Physical goods, packing information, and PO.

   Work and decision: Receive the delivered goods against the purchase order. Record actual quantity, condition, lot or serial details, and any shortage or damage. Count and inspect the delivery against the order. Record actual received quantity, lot or serial details, and damage or shortage; contact purchasing for a discrepancy instead of recording undelivered goods.

   Evidence and handoff: Purchase receipt and exception evidence pass to put-away and supplier follow-up.

3. Put away accepted stock

   Owner: Warehouse. Input: Accepted physical goods.

   Work and decision: Put accepted goods into the appropriate Bin Location and keep rejected or pending goods separate according to your inventory policy. Place accepted goods in the assigned Bin Location where warehouse management applies. Keep rejected or pending items separate under local policy and do not offer them as ready-to-pick stock.

   Evidence and handoff: Current stock and Bin Location records support the next supply or fulfillment decision.

4. Review import costs

   Owner: Purchasing and finance. Input: Receipt and duty, freight, or customs support.

   Work and decision: Review duty and tariff estimates when imported goods use landed-cost setup. Match actual supplier, customs, and freight bills through the normal bill process. Compare estimated duty or tariff amounts with actual charges and supplier documents where landed cost is used. Investigate a missing or disputed charge before relying on inventory cost.

   Evidence and handoff: Landed-cost review and associated bills hand off to AP.

5. Approve the supplier bill

   Owner: Accounts payable. Input: PO, actual receipt, and supplier invoice.

   Work and decision: Review the supplier bill against the order and receipt, resolve differences, and approve it for payment. Hand approved bills to Weekly AP Cash Management. Match invoiced items, quantity, price, and extra charges to what was ordered and received. Resolve discrepancies with purchasing and the supplier before payment approval.

   Evidence and handoff: Approved bill passes to Weekly AP Cash Management.

6. Reconcile partner receiving

   Owner: Warehouse coordinator. Input: Extensiv receipt where configured.

   Work and decision: When Extensiv operates the warehouse, send the eligible receipt and review the returned receiving result before treating inventory as available. Send eligible receiving work to the partner and review the returned actual quantity and status. Do not treat an outbound request as an accepted physical receipt.

   Evidence and handoff: Partner receiving result agrees with stock records or has a named exception.

Variations and exceptions

A short or damaged delivery remains an open supplier and inventory exception. Payment approval does not itself release disputed stock, and physical acceptance does not itself approve a disputed bill.

Completion and review

The purchase order, receipt, inventory quantity and location, landed-cost review, and supplier bill are traceable. Exceptions are assigned before stock is made available or a supplier payment is released.

Related workflows

• Source to Pay: from business need to supplier payment
• Weekly AP Cash Management