# Purchase Order - Stock Levels Basis

**YouTube:** [Supplier wise Purchase Order on the base of Minimum/Maximum Level basis.](https://www.youtube.com/watch?v=vRLTjpljmCo)

## Supplier wise Purchase Order on the base of Minimum/Maximum Level basis.

Logic ERP allows you to automate your purchase order process by defining **Re-Order Levels** for stock items. This feature helps maintain optimal inventory by automatically triggering purchase orders when stock falls below the defined threshold.

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#### **Step-by-Step Guide**

**1. Define the Re-Order Level**

* Navigate to Setup\Setup Items and the click on **"Setup Items Multiple Packs/Sizes".**
* Select the desired **Item**.
* Go to the **Pack Size Details** section.
* Enter the **Re-Order Level** (minimum stock level that triggers a new order).
  * **Note:** If the Order Levels column is not visible, enable it through Column Locks.

<figure><img src="/files/dXYtdEfqjps6CZCIHQVE" alt=""><figcaption></figcaption></figure>

**2. Link Supplier with Item**

* Navigate to Setup\Party Wise Settings and the click on **"Supplier + Companies".**
  * **Step A: Supplier + Companies**

    * Select the **Supplier Name**.
    * Choose the **Item Brand** to link.

    <figure><img src="/files/kgAfj58h9HNnBDviA7FL" alt=""><figcaption></figcaption></figure>

    * Click **Save**.
  * **Step B: Supplier + Items**

    * Select the **Supplier Name** again.
    * Choose the **Item** to link.

    <figure><img src="/files/6p5xTZrEEJkZZSDRsWnh" alt=""><figcaption></figcaption></figure>

    * Click **Save**.

**3. Generate Purchase Order Based on Stock Level**

* Go to **Order Processing > Purchase Order (Stock Levels Basis)**.
* Under **Generate Order**, choose:
  * **Item-wise** or
  * **Supplier-wise** (let’s proceed with Supplier-wise).
* Select the relevant **Supplier**.
* Choose the **Godown**.
* Click on **Generate Order**.

💡 **Example:**

* Re-Order Level set: **600 units**
* Current stock: **294 units**
* System auto-generates a **Purchase Order for 306 units**
* Click **Save Order** to finalize the purchase order.

**4. Configure Purchase Order Quantity Basis**

* To change the basis of quantity calculation (e.g., **Maximum Level** instead of Re-Order Level):
  * Go to **Configuration > Other Settings**.
  * Choose the basis for quantity calculation:
    * **Re-Order Level**
    * **Maximum Level**
    * **Custom Logic**

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#### **Benefits**

* Prevents stockouts by maintaining minimum inventory levels.
* Saves time by auto-generating purchase orders.
* Offers flexibility to calculate order quantities based on different stock levels.
* Ensures smooth procurement and supplier coordination.


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