# Facility to Create Purchase Orders on Stock Level and Formula Basis

YouTube:  [Supplier wise Purchase Order on the base of Minimum/Maximum Level basis](https://youtu.be/vRLTjpljmCo?si=-W-dnbCIl2tWoKeo)<br>

### 🧾 **Introduction**

In inventory management, timing is everything⏱️. Placing orders too late can lead to stockouts, while ordering too early can tie up capital in excess stock. **Reorder Levels (ROL)** provide an effective solution by allowing businesses to automate the purchase order process based on inventory thresholds📉📦.

This guide walks you through the entire setup—right from defining reorder levels to generating purchase orders automatically. The process ensures your inventory stays at **optimal levels**🎯without constant manual tracking.

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### 📌 **What is a Reorder Level?**

A **Reorder Level (ROL)** is a predefined quantity set for an item in stock. When the stock quantity falls to or below this level, the system triggers the need to reorder📉🔔.

It acts as a **buffer**, helping your business maintain continuity in operations and customer satisfaction😊.

> 🧠 **Example:**\
> If the **Reorder Level** is set at **600 units**, and current stock is **294 units**, the system will automatically calculate and generate a **Purchase Order** for the remaining **306 units**.

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### 🛠️ **Step-by-Step Configuration & Usage**

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#### 🔹 **Step 1: Define Reorder Level for an Item**

1. 📁Navigate to the **Main menu**, click on **Setup**,  then expand **Setup items, and** click on **Setup Item Multiple Pack/Sizes.**
2. 🧾Select the desired **Item**.
3. 📦Open the **Pack Size Details** tab.
4. 🔢Find the field labeled **Order Level**.
5. ✍️Enter the appropriate **Reorder Level** quantity based on historical sales, lead time, and safety stock.
6. 💾Click **Save**.

> 💡 Tip: Set ROLs based on average consumption and supplier lead times for best results.

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#### 🔹 **Step 2: Link the Item with Supplier and Company**

📌Proper supplier linkage is essential to ensure that the purchase orders are directed to the correct source👨‍💼🏢.

**✅ Link Supplier with the Company**

1. Go to: **Setup**, then expand **Party wise Settings** and select **Supplier + Companies** option.
2. 👤Choose the relevant **Supplier**.
3. 🏷️Select the **Brand/Company** the supplier provides.
4. 💾Click **Save**.

**✅ Link Supplier with Specific Items**

1. Go to: **Setup**, then expand **Party wise Settings** and select **Supplier + Items** option.
2. 👤Choose the **Supplier Name**.
3. 📦Select the **Item(s)** you wish to associate with that supplier.
4. 💾Click **Save**.

> 🔄 This mapping ensures that when an item’s stock hits its reorder level, the system knows which supplier to contact.

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#### 🔹 **Step 3: Create Purchase Order Based on Stock Level**

1. 🛒Go to: **Order Processing** and click on **Purchase Order Stock Level Basis** option.
2. 📦Choose the order generation type:
   * **Item-wise** – if you want to create orders for specific items.
   * **Supplier-wise** – to batch items together by supplier.
3. 👤Select the **Supplier** from the dropdown.
4. 🏬Choose the relevant **Godown (warehouse)**.
5. ⚙️Click **Generate Order**.

> 📊 The system calculates the quantity needed based on the reorder level and current stock.\
> If ROL = 600, and current stock = 294, the system suggests ordering **306 units**.

6. 🧐Review the order.
7. 💾Click **Save Order** to confirm✅ and initiate the purchase process.

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#### 🔹 **Step 4: Customize Purchase Order Calculation Settings**

If you'd rather base your orders on **maximum stock levels** instead of reorder levels, follow these steps:

1. 📁Go to: **Configuration** and then select **Other Settings**
2. 🔧Choose the logic for **Purchase Order Quantity Calculation**:
   * 🟢**Reorder Level.**
   * 🟣**Maximum Stock Level.**
   * ⚙️Other custom-defined criteria (if available)
3. 💾Save your settings.

> ⚙️ This flexibility allows businesses to tailor ordering behavior based on their inventory strategies🎯.

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### 📊 **Illustrative Scenario**

| Parameter         | Value            |
| ----------------- | ---------------- |
| Reorder Level     | 600 units        |
| Current Inventory | 294 units        |
| Required Quantity | 306 units        |
| Supplier          | ABC Distributors |
| Godown            | Main Warehouse   |

> ✅ System auto-generates a Purchase Order for 306 units from ABC Distributors for the Main Warehouse.

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### ✅ **Benefits of This Process**

* 🧠Automated stock monitoring.
* ❌Prevents stockouts.
* 🛒Streamlines purchase order generation.
* 🧾Reduces manual errors.
* ⏱️Saves time and 📈boosts procurement efficiency.

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### 🏁 **Conclusion**

By setting **reorder levels** and **linking suppliers accurately**, your business gains a powerful, automated inventory control mechanism🛠️in **Logic ERP**. This ensures that stock is replenished at the right time and in the right quantity, supporting uninterrupted operations.

Keep your shelves stocked, orders flowing, and customers happy—all while optimizing your working capital 💡📊.


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