How to raise a purchase order in Xero and get it approved

Short answer

1. In Xero go to Purchases > Purchase orders > New purchase order.
2. Add the supplier, dates and lines.
3. Save it as Awaiting approval.
4. An approver approves it.
5. Send the PO to the supplier with its number.

Before you start

You need the supplier set up as a contact in Xero. You need to know the account code and tax rate for each line. You need to know who in your business approves spend, and whether their Xero role allows approving POs. If you want the full picture, set the approval limits first. Our guide to a delegation of authority matrix helps.

The manual way in Xero

1. Go to Purchases > Purchase orders. Click New purchase order.
2. Choose the contact. Set the date and the delivery date. Add a delivery address and instructions if the supplier needs them.
3. Add the lines. For each, enter a description, quantity, unit price, account and tax rate. Add tracking categories if you use them.
4. Check the amounts are set as tax exclusive or tax inclusive to match the supplier’s quote.
5. Click Save as draft if you are not ready, or submit it for approval so the status reads Awaiting approval.
6. An approver opens the PO and approves it. The status changes to Approved.
7. Email the PO to the supplier from Xero or print it to PDF.

The limits: Xero approval on a PO is a single step. It does not route a $500 PO and a $50,000 PO to different people. If your policy needs that, you enforce it by hand or use a tool on top.

The Pulsify way

Pulsify works with Xero for purchase orders. It does not support POs for MYOB.

1. In Settings > General, an Admin switches on Purchase orders. Xero must be connected.
2. Click Add PO and fill in the supplier, dates, delivery details and lines. Or forward a PO you already have and Pulsify reads it.
3. Send it for approval. It follows your Purchase orders approval rules, which can use supplier, amount, GL account or a tracking category such as a job.
4. On final approval Pulsify creates the PO in Xero. Pick whether it lands as Draft, Awaiting Approval, Approved or Billed under “Submit PO as”.
5. Download the PDF and send it to the supplier. Pulsify does not email suppliers.

Approved POs sync back from Xero. When the invoice arrives, Pulsify can match it to the PO.

Worked example

Example Plumbing Supplies needs materials for a job.

Line	Qty	Unit price	Ex GST
50 mm PVC pipe 6 m	30	$42.00	$1,260.00
PVC elbow 50 mm	60	$3.50	$210.00
Delivery	1	$60.00	$60.00
Total ex GST			$1,530.00

GST is $153.00, so the PO is $1,683.00 inclusive. Under the company rule, POs over $1,000 need the operations manager. The buyer raises it, the operations manager approves it, and the PO number PO-3105 goes to the supplier. A month later the invoice quotes PO-3105 and matching takes seconds rather than a hunt through email.

Common mistakes

• Sending the PO before approval. The supplier delivers, and the approver finds out later.
• Leaving the delivery line off. Freight then shows up on the invoice as a line not on the PO.
• Raising POs after the invoice arrives. A PO raised after the fact does not control spend. It is only paperwork.

Next step

Try an invoice to see POs and bills in one place. Or book a call to find out how customers have saved hours per week after switching.

Read the purchase orders guide for setup. The free purchase order generator makes a PO document if you only need a template. For a buyer’s view, see purchase order software in Australia.