OFBIZ-13240 - Getting issue details... STATUS
1. Introduction


In Apache OFBiz, the Material Requirements Planning (MRP) engine identifies inventory shortages and generates purchase requirements to ensure materials are available for production. The next step is to create a Purchase Order (PO) to procure these items.

This guide walks you through the Purchase Order workflow, from viewing MRP-generated requirements, generating and refining the Purchase Order, assigning responsible parties, and approving the final order. You will also learn how to configure order details, such as shipping instructions, order terms, and internal notes.

2. Viewing Requirements Generated by the MRP Engine

Before creating purchase orders, it’s essential to understand what materials are needed. The MRP engine calculates these based on stock levels, sales orders, and production plans. Once reviewed and approved,  these requirements are used to generate purchase orders.

2.1 Review and Approve Product Requirements

  1. Go to Order > Requirements > Approve Requirements.

  2. In the Find Not Approved Requirements section, click Find.
    Apply the following filters:
    Requirement Type ID = Product Requirement (to approve only external requirements)

      All proposed requirements will be displayed.

         

    3. Select the checkbox of the requirement(s) you want to approve.

         

2.2 Changing Requirement Status

  1. Click the Requirement ID of the item you want to update.

         

      2. In the Status Id dropdown, select the appropriate status based on the item’s current stage.

         

         
          Note: Statuses can be updated to reflect the item's progress.

     3. Click Submit to save the update.

     4. Return to the Approve Requirements page and click Submit to complete the approval.

     5. All listed requirements are approved. You can now proceed to create Purchase Orders for these quantities.
 
         
     

3. Creating Purchase Orders

Once requirements are approved, group them by supplier and convert them into Purchase Orders. Follow the steps below to complete the process.

3.1 Find Approved Requirements by Supplier

This screen displays the number of approved product requirements grouped by supplier. For each supplier, it provides an option to prepare a purchase order.

If the required items come from multiple suppliers, each is shown in a separate row. A purchase order can be created for each supplier directly from this screen.

  • Navigate to Order > Requirements > Find Approved Requirements by Supplier.



  • In the BILL TO CUSTOMER PARTY ID field, select your company name. This designates your company as the purchasing party.

            BILL TO CUSTOMER PARTY ID represents your company within Apache OFBiz and indicates who will be billed for the purchase.
          In this context, Apache OFBiz treats your company as the customer in the procurement process.

  • In the FACILITY ID field, select Web Store Warehouse. This indicates the destination warehouse for the incoming inventory.

    The Facility ID identifies the location such as a warehouse, where the items will be received and stored.

  • Click Prepare Order to generate a draft Purchase Order.



3.2 Refine the Draft Purchase Order

  • Select the items to include in the Purchase Order.
  • Click Purchase Order Quick Entry.


            Note: The QUANTITY column shows values suggested by the MRP engine. You can adjust them as needed, However, you can edit quantities in step 3.7 too. 

  • The Draft Purchase Order screen will open, listing all selected items.


3.3 Assign Parties to the Purchase Order

A Party can be an individual, organization, or group. This field is optional and should be used only when a third party needs to be  involved.

In this context, it refers to the person or team responsible for reviewing or managing the purchase order.

Select Group if the order needs to be managed by multiple people.

  • Go to the Parties tab on the draft Purchase Order screen.



  • In the Select Type of Party to Associate with Order field, choose Person.



  • In the Identifier field, select the individual: Robert Smith.



  • Under Select Role For Party, choose Approver, then click Add.

     

  • The selected party will now appear in the order, confirming successful assignment.


Depending on the organization’s workflow, different roles can be assigned at various levels, such as Reviewer, Approver, or Content Member, each with specific responsibilities in the process.

The Approver is the person responsible for approving Purchase Orders based on specific criteria, such as order amount, product type, or job position. These criteria vary from business to business. In this case, Robert is the designated Approver for the Purchase Order.

3.4 Add Supporting Order Details


This section is optional. Businesses can use it to add notes or adjust the delivery date as needed. These supporting details are typically set during the creation of the purchase order.

  • Navigate to the Options section.


            Provide the following details to complete the order:

    • Internal Note: Visible only to internal users. Used for recording comments or instructions related to the order.
    • Shipping Note: Visible on packing slips or for the shipping team. May include delivery preferences or handling instructions.
    • Shipping Estimate Amount: An estimated cost for shipping, useful for quoting before finalizing.
    • Ship All at Once or As Available: Indicates if items should be shipped together or as they become available.
    • Desired Delivery Date: This date is automatically set by the MRP engine based on the time defined in the routing task. It indicates when the item should arrive at the warehouse to meet production or order requirements.

                       Note: If the Purchase Order is created manually, this date can be set as per specific business needs.

    • Special Instructions: Any specific delivery, packaging, or carrier-related preferences from the customer or sales team.

         


3.5 Assign the Shipping Address

This section allows you to add or update the shipping address. It indicates the location where the received items should be stored.

  • Go to the Shipping tab

     

  • Select Facility where the received items should be stored. This determines the final destination of goods after receipt.



    Note: Apache OFBiz provides the option to split a Purchase Order across multiple warehouses by creating separate Ship Groups. For simplicity, all items in this example are directed to a single warehouse.

3.6 Add Order Terms

Order Term refers to the agreement between both parties such as payment terms, shipping terms, or other conditions. While setting this is optional, it helps clarify expectations and streamline the order process.

  • Go to the Order Terms section.



  • Fill in the required fields:



    • Term Type: For example, Payment Terms, Shipment Terms, or Discount Terms.
    • Term Value: Numeric value, such as a discount percentage.
    • Term Days: Days after the order/invoice date when the term applies.
    • Text Value: Free-form explanation, e.g. 30% advance, 70% on delivery.
    • Description: Short description for internal clarity.

  • Click Add to display the terms in the list below.


3.7 Update Item Quantities or Prices

  • Go to the Order Items section to update quantities or prices:





    • Edit the Quantity or Unit Price as required.
    • Click RECALCULATE ORDER to update the total amount.
    • Click FINALIZE ORDER.

4. Reviewing and Approving the Purchase Order

  • Once all details are finalized, review the complete Purchase Order for accuracy.







  • Click APPROVE ORDER to confirm and mark it as approved


Once the purchase order is approved, it is ready to be sent to the supplier.
Apache OFBiz offers multiple options for this:

  • A PDF version of the purchase order can be generated and emailed to the supplier directly from the system.
  • Integration with third-party systems via APIs  is available to automatically sync the purchase order with the supplier's ERP system.
  • Alternatively, suppliers can view the purchase order on their dedicated portal customized as per requirements built within the Apache OFBiz environment.

5. Conclusion

The Purchase Order is now fully created and approved, with all key details such as items, quantities, shipping instructions, and terms properly recorded. This ensures the order is clear, organized, and ready for the next stage in the process.

Up next, the workflow continues with Inventory Receiving, where the ordered items are checked in and stored, followed by Invoice Creation to begin the payment process. These steps help keep your procurement and production activities running smoothly in Apache OFBiz.