Understanding Purchase Order Form

Unit Allocation

Overview

The Unit Allocation section provides a comprehensive visual representation of how products from your purchase order flow through the entire supply chain. This powerful visualization tool helps you understand exactly where every unit of every product is located at any given time, from the moment you place an order until it reaches its final destination.

Understanding the Sankey Diagram

The Unit Allocation feature uses a specialized type of flow diagram called a Sankey chart. This diagram shows the movement of units through different stages of your supply chain using flowing lines of varying thickness. The thicker the line, the more units are flowing through that particular path.

Key Components

Order Node

At the top of the diagram, you’ll see the Order node, which represents your complete purchase order. This node shows the total number of units you’ve ordered across all products. The value displayed here should match the sum of all product quantities in your order.

Product Nodes

Below the Order node, you’ll see individual Product nodes. Each product in your purchase order appears as a separate node, showing how many units of that specific product were ordered. When you hover over a product node, you’ll see detailed information including:

Product name and display name
ASIN (Amazon Standard Identification Number)
SKU (Stock Keeping Unit)
Total units ordered
Current composition showing how many units are at the supplier, in transit, and in warehouses

Supplier Nodes

Supplier nodes represent the suppliers who are fulfilling your order. Each supplier node displays:

Supplier name and display name
Total units allocated to that supplier
Units currently on hand at the supplier location
Units in transit from the supplier
Units that have already reached warehouses

The system aggregates all products from the same supplier into a single supplier node, making it easy to see your total relationship with each supplier at a glance.

Transit Nodes

Transit nodes show products that are currently being shipped. Each transit node represents a specific shipment and displays:

Shipment identifier
Shipment type (e.g., air freight, sea freight, ground transport)
Number of units in that specific shipment
Expected transit information

The diagram shows the flow from suppliers to transit nodes, helping you track which shipments contain which products and how many units are in each shipment.

Warehouse Nodes

Warehouse nodes represent fulfillment centers or warehouses where your products have been received. Each warehouse node shows:

Warehouse name and location information
Number of units currently stored at that warehouse
Which products are stored there

This helps you understand your inventory distribution across different storage locations.

Unallocated Node

If there are units that have been ordered but not yet allocated to any shipment or warehouse, they appear in an Unallocated node. This typically happens when:

Products are still being prepared at the supplier
Shipments haven’t been created yet for those units
There’s a delay in the allocation process

The Unallocated node helps you identify potential bottlenecks or delays in your supply chain.

Reading the Flow

The diagram uses color-coded flows to represent different stages:

Blue flows: Represent movement from suppliers
Orange flows: Represent products in transit
Purple flows: Represent products in warehouses
Green flows: Represent product-level aggregations
Red flows: Represent order-level information
Gray flows: Represent unallocated units

The width of each flow line is proportional to the number of units flowing through that path. A thick line indicates many units, while a thin line indicates fewer units.

Interactive Features

Hovering Over Nodes

When you hover over any node in the diagram, a detailed tooltip appears showing:

Complete information about that node
Breakdown of units by category (supplier, transit, warehouse)
Related product information
Links to related entities

Hovering Over Flows

When you hover over a flow line connecting two nodes, you’ll see:

The number of units flowing through that connection
Which specific products are included in that flow
Product details including names, ASINs, and quantities

Use Cases

Tracking Order Fulfillment

Use the Unit Allocation diagram to verify that all ordered units have been properly allocated. If you see a large Unallocated node, it may indicate that shipments need to be created or that there’s a delay in processing.

Identifying Supply Chain Bottlenecks

By examining the flow patterns, you can identify where units are accumulating. For example, if you see many units at suppliers but few in transit, it might indicate a shipping delay.

Verifying Shipment Contents

The diagram helps you verify that shipments contain the correct products and quantities. You can trace from a product node through to specific transit nodes to see exactly which shipments contain that product.

Managing Multi-Supplier Orders

For orders with multiple suppliers, the diagram clearly shows how units are distributed across suppliers, making it easy to track fulfillment from each source.

Warehouse Distribution Analysis

See how your inventory is distributed across different warehouses. This is particularly useful for understanding regional distribution and planning for future orders.

Understanding Statistics

The diagram includes summary statistics showing:

Total Ordered: The complete quantity ordered across all products
At Supplier: Units currently at supplier locations
In Transit: Units currently being shipped
In Warehouse: Units that have reached warehouses
Unallocated: Units not yet assigned to shipments

These statistics provide a quick overview of your order status without needing to examine the detailed flow.

Best Practices

Regular Monitoring: Check the Unit Allocation diagram regularly, especially after creating new shipments or receiving inventory updates.
Verify Completeness: Ensure that the sum of all flows equals your total order quantity. Any discrepancies should be investigated.
Track Changes Over Time: The diagram updates as your order progresses, so you can track the movement of units through your supply chain over time.
Use for Reporting: The visual representation is excellent for sharing order status with stakeholders who need a quick understanding of fulfillment progress.
Identify Issues Early: Large unallocated quantities or unexpected flow patterns can indicate problems that need attention.

Common Scenarios

Scenario 1: New Order

When you first create an order, you’ll typically see:

All units flowing from the Order node to Product nodes
Products flowing to Supplier nodes
Most units in the Unallocated category until shipments are created

Scenario 2: Active Fulfillment

As shipments are created and products move:

Units flow from Supplier nodes to Transit nodes
Transit nodes show active shipments
Some units may already be in Warehouse nodes

Scenario 3: Near Completion

As your order nears completion:

Most units are in Warehouse nodes
Few units remain in Transit
Minimal or no Unallocated units
All flows should trace back to the original Order node

Troubleshooting

If the diagram doesn’t display correctly or shows unexpected values:

Refresh the Data: Use the refresh button to update the diagram with the latest information
Check Order Status: Ensure the order has been saved and shipments have been properly linked
Verify Shipment Links: Confirm that shipments are correctly associated with the purchase order
Review Product Allocations: Check that products have been properly allocated to shipments

The Unit Allocation diagram is a powerful tool for understanding and managing your purchase order fulfillment process. By providing a clear visual representation of your supply chain, it helps you make informed decisions and identify potential issues before they become problems.

Inventory Trends

Overview

The Inventory Trends section provides sophisticated forecasting and analysis tools to help you understand how your inventory levels will change over time based on historical sales data and your purchase order. This feature combines past performance with future restocking plans to give you a comprehensive view of your inventory trajectory.

Purpose and Benefits

Inventory Trends helps you answer critical questions:

When will my inventory run out if I don’t restock?
How much inventory will I have when my purchase order arrives?
What is my optimal restocking date to avoid stockouts?
How do my sales patterns affect my inventory needs?

By visualizing these trends, you can make data-driven decisions about order timing, quantities, and inventory management strategies.

Key Components

Estimated Arrival Date

The foundation of the Inventory Trends analysis is the Estimated Arrival Date. This is the date when you expect the products from your current purchase order to arrive at your warehouses and become available for sale. You set this date using the date picker in the Inventory Trends section.

The system uses this date to:

Calculate when new inventory will be added to your stock
Project inventory levels after restocking
Determine how long your current inventory will last
Plan for optimal restocking timing

Historical Inventory Data

The system analyzes up to 52 weeks of historical inventory data for each product in your purchase order. This data includes:

Starting Balance: The inventory level at the beginning of each week
Receipts: New inventory received during the week
Warehouse Transfers: Inventory moved between warehouses
In-Transit Inventory: Products being shipped between locations
Vendor Returns: Products returned to suppliers

This comprehensive historical view helps the system understand your inventory patterns and predict future needs.

Sales Velocity

Sales velocity represents how quickly you’re selling products. The system calculates this in two ways:

Historical Sales Velocity: Based on actual sales data from the past 30, 60, or 90 days
Manual Sales Velocity: You can input a custom sales velocity if historical data isn’t available or if you want to model different scenarios

The sales velocity is typically expressed as units sold per day or per week. For example, if you sell 10 units per day, your weekly sales velocity would be approximately 70 units.

Inventory Projection Chart

The main visualization is a line chart showing:

Historical Inventory Levels: Past inventory levels based on actual data
Projected Inventory Levels: Future inventory levels based on sales velocity
Restock Event: A vertical line and marker showing when your purchase order will arrive
Stockout Prediction: Where and when inventory might reach zero

Understanding the Chart

Historical Data (Left Side of Chart)

The left portion of the chart shows your actual historical inventory levels. This data comes from your warehouse management system and represents real inventory movements over the past year. The line typically shows:

Fluctuations as inventory is sold
Spikes when new inventory arrives
Trends indicating whether inventory is generally increasing or decreasing

Projected Data (Right Side of Chart)

The right portion extends the historical trend into the future. The projection assumes that your sales velocity will continue at the current rate. The projection line shows:

Declining Trend: If sales velocity exceeds zero, inventory will decrease over time
Steady State: If sales velocity is zero, inventory remains constant
Restock Impact: A sudden increase when your purchase order arrives

Restock Event Marker

A prominent vertical line and marker indicate your Estimated Arrival Date. When you hover over this marker, you’ll see:

The exact date of arrival
Expected inventory level after restocking
Quantity being added to inventory

Stockout Prediction

If the projection shows inventory reaching zero before your restock date, the chart will highlight this critical information. The stockout date is calculated using the formula:

[ \text{Stockout Date} = \text{Current Date} + \frac{\text{Current Inventory}}{\text{Daily Sales Velocity}} ]

This helps you understand if you need to expedite your order or adjust quantities.

Sales Velocity Calculation

The system calculates sales velocity using historical data when available. The calculation considers:

[ \text{Sales Velocity} = \frac{\text{Total Units Sold}}{\text{Number of Days}} ]

For example, if you sold 300 units over 30 days: [ \text{Sales Velocity} = \frac{300}{30} = 10 \text{ units per day} ]

The system may use different time periods (30, 60, or 90 days) depending on data availability and to account for seasonal variations.

Inventory Projection Formula

The projected inventory at any future date is calculated as:

[ \text{Projected Inventory} = \text{Current Inventory} - (\text{Sales Velocity} \times \text{Days Until Date}) ]

When your purchase order arrives:

[ \text{Inventory After Restock} = \text{Projected Inventory at Arrival} + \text{Order Quantity} ]

Multi-Product Analysis

For purchase orders with multiple products, the Inventory Trends section displays a separate chart for each product. This allows you to:

Compare inventory trends across different products
Identify which products need more urgent restocking
Understand how different products have different sales velocities
Plan for products that may have seasonal variations

Marketplace-Specific Analysis

If your purchase order includes products for multiple marketplaces, the system provides separate analysis for each product-marketplace combination. This is important because:

Different marketplaces may have different sales velocities
Inventory is tracked separately by marketplace
Restocking needs may vary by region

Each chart is clearly labeled with both the product name and the marketplace to avoid confusion.

Manual Sales Velocity Input

When historical data isn’t available or you want to model different scenarios, you can manually input a sales velocity. This is useful for:

New products without sales history
Products with irregular sales patterns
Planning for promotional campaigns that might change sales velocity
Testing “what-if” scenarios

To use manual velocity:

Locate the sales velocity input field for the product
Enter your expected daily or weekly sales rate
The chart will update immediately to show projections based on your input

Interpreting the Results

Healthy Inventory Levels

A healthy inventory projection shows:

Inventory remains above zero until restock arrives
Adequate buffer between stockout date and restock date
Smooth transition when new inventory arrives

Warning Signs

Watch for these warning signs:

Stockout Before Restock: Inventory reaches zero before your order arrives
Low Buffer: Very little inventory remaining when restock arrives
Rapid Decline: Steep downward slope indicating high sales velocity

Optimal Restocking

The ideal scenario shows:

Inventory reaches a low but safe level just before restock
New inventory arrives before any stockout occurs
Smooth inventory curve without dramatic fluctuations

Use Cases

Planning Order Timing

Use Inventory Trends to determine the best time to place your next order. If the projection shows you’ll run out of stock in 30 days, and your typical order takes 45 days to arrive, you know you need to order earlier or expedite shipping.

Quantity Planning

By seeing how long your current inventory will last, you can determine if your order quantity is sufficient. If you’re ordering 100 units but selling 10 per day, your order will only last 10 days, which may not be enough.

Seasonal Planning

Historical data helps you understand seasonal patterns. If you see that sales velocity increases during certain months, you can plan larger orders or earlier restocking for those periods.

Multi-Marketplace Strategy

For products sold in multiple marketplaces, compare the trends to understand which markets need more inventory and when.

Best Practices

Update Estimated Arrival Date Regularly: As shipping dates change, update the estimated arrival date to keep projections accurate.
Review Historical Patterns: Look at the historical data to understand your typical inventory cycles and sales patterns.
Consider Multiple Scenarios: Use manual sales velocity to model different scenarios, such as increased sales during promotions.
Monitor Closely Near Stockout: If projections show potential stockouts, take action early to expedite orders or adjust quantities.
Compare Products: Use the multi-product view to identify which products need the most attention.
Account for Lead Times: Remember that the Estimated Arrival Date should account for production time, shipping time, and warehouse processing time.

Advanced Features

Aggregated Shipment Data

When your purchase order is linked to shipments, the system can show more detailed projections that account for:

Multiple shipments arriving at different times
Partial restocking as shipments arrive
Different quantities in different shipments

This provides a more accurate picture than assuming all inventory arrives at once.

Inventory Buffer Recommendations

Based on your sales velocity and lead times, the system can suggest optimal inventory buffer levels to maintain. This helps you avoid both stockouts and overstocking.

Troubleshooting

If the Inventory Trends section doesn’t display or shows incorrect data:

Check Product Selection: Ensure products are properly selected in your purchase order
Verify Historical Data: Confirm that historical inventory data is available for the products
Set Estimated Arrival Date: The chart requires an estimated arrival date to generate projections
Check Marketplace Settings: For multi-marketplace orders, ensure marketplace information is correctly configured
Refresh Data: Use the refresh function to update with the latest inventory and sales data

The Inventory Trends feature is an essential tool for proactive inventory management. By combining historical performance with future planning, it helps you maintain optimal inventory levels, avoid stockouts, and make informed decisions about your supply chain.

Additional Costs

Overview

The Additional Costs section allows you to track, allocate, and manage all expenses associated with your purchase order beyond the base product costs. This comprehensive cost management system helps you maintain accurate financial records, understand your true cost per unit, and make informed pricing decisions.

Understanding Additional Costs

Additional costs are any expenses related to your purchase order that aren’t included in the base product price. These can include:

Shipping and freight charges
Customs duties and import taxes
Insurance costs
Handling fees
Storage charges
Packaging costs
Quality inspection fees
Documentation fees
Currency conversion fees
Any other expenses related to getting your products from supplier to warehouse

Types of Additional Costs

Order-Level Costs

Order-level costs are expenses that apply to the entire purchase order as a whole. These are typically fixed amounts that don’t vary based on the number of products or units. Examples include:

Fixed shipping charges for the entire order
Order processing fees
Documentation fees for the complete order
Base insurance premiums

When you add an order-level cost, you can choose how it’s distributed across products:

Even Distribution: The cost is divided equally among all products in the order. If you have a $100 shipping fee and 5 products, each product gets$ 20 allocated.

[ \text{Cost Per Product} = \frac{\text{Total Order Cost}}{\text{Number of Products}} ]

By Quantity Distribution: The cost is distributed based on the quantity of each product. Products with higher quantities receive a larger share of the cost.

[ \text{Cost Per Product} = \frac{\text{Total Order Cost} \times \text{Product Quantity}}{\text{Total Order Quantity}} ]

Product-Specific Costs

Product-specific costs are expenses that apply only to certain products in your order. These might include:

Special handling fees for fragile items
Additional customs duties for specific product categories
Product-specific insurance
Special packaging requirements

When adding a product-specific cost, you select which products it applies to. The cost is then allocated only to those selected products.

Shipment-Level Costs

Shipment-level costs are expenses associated with specific shipments. Since purchase orders can have multiple shipments, these costs are tracked separately for each shipment. Examples include:

Freight charges for a specific shipment
Customs clearance fees for a particular shipment
Handling fees at a specific port or warehouse
Insurance for a specific shipment

Shipment costs can be allocated in two ways:

Fixed Shipment Costs: A fixed amount applies to the entire shipment, distributed across all products in that shipment.

Per-Unit Shipment Costs: Costs that vary based on the quantity of products in the shipment. These are multiplied by the quantity shipped.

[ \text{Total Shipment Cost} = \text{Fixed Cost} + (\text{Per-Unit Cost} \times \text{Quantity Shipped}) ]

Adding Additional Costs

Step 1: Access the Additional Costs Section

Navigate to the Additional Costs section in your purchase order form. This section is typically located in an accordion that you can expand to view and manage costs.

Step 2: Add a New Cost

Click the “Add Cost” or similar button to create a new additional cost entry. You’ll be prompted to enter:

Cost Name: A descriptive name for the cost (e.g., “Sea Freight”, “Customs Duty”, “Insurance”)
Amount: The monetary value of the cost
Applies To: Whether the cost applies to all products, specific products, or a specific shipment
Distribution Method: How the cost should be allocated (for order-level costs)
Cost Type: The category of the cost (helps with reporting and analysis)

Step 3: Configure Cost Allocation

For order-level costs, choose your distribution method:

Even Distribution: Simplest method, divides cost equally
By Quantity: More accurate for costs that scale with product quantity

For product-specific costs, select which products the cost applies to from your order’s product list.

For shipment costs, the system automatically associates the cost with the relevant shipment based on your order’s shipment configuration.

Step 4: Save the Cost

Once configured, save the cost. It will immediately be included in your order’s financial calculations and appear in the cost breakdown.

Cost Allocation and Calculation

Understanding Cost Allocation

The system automatically calculates how additional costs affect your total cost per unit. This is crucial for understanding your true profit margins and setting appropriate selling prices.

For a product with base cost and additional costs:

[ \text{Total Cost Per Unit} = \text{Base Product Price} + \frac{\text{Allocated Additional Costs}}{\text{Product Quantity}} ]

Example Calculation

Let’s say you have:

Product A: Base price $10, Quantity 100 units
Product B: Base price $20, Quantity 50 units
Order-level shipping cost: $300

With even distribution:

Product A allocation: $300 ÷ 2 =$ 150
Product B allocation: $300 ÷ 2 =$ 150
Product A cost per unit: $10 + ($ 150 ÷ 100) = $11.50
Product B cost per unit: $20 + ($ 150 ÷ 50) = $23.00

With quantity-based distribution:

Total units: 100 + 50 = 150
Product A allocation: $300 × (100 ÷ 150) =$ 200
Product B allocation: $300 × (50 ÷ 150) =$ 100
Product A cost per unit: $10 + ($ 200 ÷ 100) = $12.00
Product B cost per unit: $20 + ($ 100 ÷ 50) = $22.00

Viewing Cost Breakdown

The Additional Costs section provides detailed breakdowns showing:

Total Additional Costs

A summary showing the sum of all additional costs for the order. This helps you quickly understand the total impact of additional expenses.

Cost by Category

Costs grouped by type (shipping, customs, insurance, etc.) so you can see which categories are driving your additional expenses.

Cost by Product

For each product, you can see:

Base product cost
Allocated additional costs
Total cost per unit
Total cost for the product

Cost by Shipment

For orders with multiple shipments, you can see costs broken down by shipment, helping you understand the cost structure of each shipment.

Editing and Managing Costs

Editing Existing Costs

You can modify any additional cost by:

Locating the cost in the cost list
Clicking the edit button
Modifying the name, amount, or allocation settings
Saving the changes

Changes to costs automatically update all related calculations throughout the order.

Deleting Costs

To remove an additional cost:

Find the cost in the list
Click the delete button
Confirm the deletion

The cost will be removed from all calculations. Note that you may want to keep a record of deleted costs for historical accuracy, so consider this before deleting.

Cost History

The system maintains a history of cost changes, allowing you to see how costs have evolved over time. This is useful for:

Understanding cost trends
Auditing cost changes
Identifying unexpected cost increases

Cost Types and Categories

Shipping and Freight

Costs related to transporting products from supplier to warehouse:

Sea freight charges
Air freight charges
Ground transportation
Fuel surcharges
Port fees

Customs and Duties

Costs related to importing products:

Import duties
Customs clearance fees
Value-added tax (VAT)
Tariffs
Brokerage fees

Insurance

Costs for protecting your shipment:

Cargo insurance premiums
Liability insurance
Product-specific insurance

Handling and Storage

Costs for managing products:

Warehouse handling fees
Storage charges
Palletization fees
Labeling and marking costs

Documentation

Costs for required paperwork:

Commercial invoice preparation
Certificate of origin
Export/import licenses
Compliance documentation

Best Practices

Accurate Cost Tracking

Record All Costs: Don’t forget small costs - they add up. Even small fees can significantly impact your margins when multiplied across many units.
Use Descriptive Names: Name your costs clearly so you can easily identify them later. “Sea Freight - Container FCL” is better than “Shipping”.
Categorize Properly: Use appropriate cost types to enable better reporting and analysis.
Update Regularly: As you receive invoices or new cost information, update the additional costs section promptly.

Cost Allocation Strategy

Choose Appropriate Distribution: Use quantity-based distribution for costs that scale with quantity (like customs duties), and even distribution for fixed costs (like documentation fees).
Consider Product Characteristics: Some products may legitimately incur higher costs (e.g., fragile items needing special handling). Use product-specific costs for these cases.
Review Allocation Regularly: Periodically review how costs are allocated to ensure it still makes sense as your order evolves.

Financial Planning

Budget for Additional Costs: When planning your purchase order, estimate additional costs upfront. A good rule of thumb is to add 15-25% to base product costs for typical additional expenses.
Track Cost Trends: Monitor how additional costs change over time to identify trends and plan for future orders.
Compare Across Orders: Compare additional cost percentages across different orders to identify opportunities for cost optimization.

Integration with Other Sections

Summary Section

Additional costs are automatically included in the Summary section’s financial calculations. The grand total shown in the summary includes all additional costs.

Payments Section

Additional costs can be tracked separately in the Payments section, allowing you to manage payments for product costs and shipping costs independently.

Reporting

Additional costs data is used in various reports to provide:

True cost analysis
Profit margin calculations
Cost trend analysis
Budget vs. actual comparisons

Common Scenarios

Scenario 1: Simple Order with Single Shipment

For a straightforward order with one shipment:

Add order-level shipping cost
Add any customs duties
System automatically allocates costs across products
View total in Summary section

Scenario 2: Complex Order with Multiple Shipments

For orders with multiple shipments:

Add shipment-specific costs for each shipment
Add order-level costs that apply to the entire order
System tracks costs per shipment and per order
View breakdown by shipment in cost details

Scenario 3: Products with Different Cost Structures

When some products have unique costs:

Add product-specific costs for those products
Add general order-level costs for shared expenses
System calculates accurate per-unit costs for each product
Review product-level breakdown to verify allocations

Troubleshooting

Costs Not Appearing in Calculations

If additional costs aren’t showing in your totals:

Verify the cost has been saved
Check that the cost amount is greater than zero
Ensure the cost is properly associated with the order or shipment
Refresh the page to update calculations

Incorrect Cost Allocation

If costs seem to be allocated incorrectly:

Review the distribution method selected
Verify product quantities are correct
Check that product-specific costs are assigned to the right products
Recalculate or refresh to ensure latest data is used

Missing Cost Categories

If you need a cost category that doesn’t exist:

Check if there’s a similar category you can use
Use a generic category and note details in the cost name
Contact support if you need new cost categories added

The Additional Costs section is essential for maintaining accurate financial records and understanding your true product costs. By properly tracking and allocating additional expenses, you can make better pricing decisions, improve profit margins, and maintain comprehensive financial visibility across your purchase orders.

Payments

Overview

The Payments section provides comprehensive payment tracking and management for your purchase order. This feature allows you to record, schedule, and monitor all payments related to both product costs and shipping costs, giving you complete visibility into your payment obligations and status.

Understanding Payment Management

Purchase orders typically involve two main types of payments:

Order Payments: Payments for the products themselves (base product costs plus order-level additional costs)
Shipping Payments: Payments for shipping, freight, and shipment-related additional costs

The Payments section manages both types separately while providing a unified view of your overall payment status.

Payment Status Types

Paid (PAYED)

Payments marked as “Paid” represent money that has already been transferred. These payments:

Have been completed
Reduce your outstanding balance
Are included in the “Total Paid” calculation
Show the actual payment date

Scheduled (SCHEDULED)

Scheduled payments are future payments that you’ve planned but haven’t yet made. These payments:

Represent future obligations
Are included in cash flow planning
Show the scheduled payment date
Help you track upcoming payment deadlines

Overdue (OVERDUE)

Overdue payments are scheduled payments that have passed their due date without being paid. These payments:

Require immediate attention
Are highlighted in the interface
Help you identify payment issues
May affect your supplier relationships

Payment Overview Dashboard

At the top of the Payments section, you’ll see a summary dashboard showing four key metrics:

Total Paid

This shows the sum of all payments that have been marked as “Paid” for both order and shipping costs. This represents money that has already left your account.

[ \text{Total Paid} = \text{Paid Order Payments} + \text{Paid Shipping Payments} ]

Remaining

The Remaining amount shows how much you still owe on the purchase order. This is calculated as:

[ \text{Remaining} = \text{Grand Total} - \text{Total Paid} - \text{Total Scheduled} ]

A positive remaining amount means you still have outstanding obligations. A zero or negative amount means you’ve paid everything (or overpaid).

Scheduled

This shows the total of all scheduled (future) payments. This helps you understand your upcoming payment obligations.

[ \text{Total Scheduled} = \text{Scheduled Order Payments} + \text{Scheduled Shipping Payments} ]

Overpaid

If you’ve allocated more money in payments than the total order value, the overpaid amount is shown. This can happen if:

You’ve scheduled payments that exceed the order total
You’ve made payments that were larger than necessary
There were order changes that reduced the total after payments were recorded

[ \text{Overpaid} = \max(0, \text{Total Allocated} - \text{Grand Total}) ]

Adding Payments

Adding Order Payments

To record a payment for product costs:

Navigate to Order Payments: Open the “Order Payments” section in the Payments accordion
Click “Add Payment”: This creates a new payment entry
Enter Payment Details:
- Amount: The payment amount in the order’s currency
- Payment Date: The date the payment was made (for paid) or will be made (for scheduled)
- Status: Select Paid, Scheduled, or Overdue
- Beneficiary: Select who the payment is being made to (supplier, freight forwarder, etc.)
Save the Payment: The payment is immediately added to your payment tracking

Adding Shipping Payments

To record a payment for shipping costs:

Navigate to Shipping Payments: Open the “Shipping Payments” section
Click “Add Payment”: Create a new shipping payment entry
Enter Payment Details: Similar to order payments, but these apply specifically to shipping costs
Save the Payment: The payment is tracked separately from order payments

Payment Allocation

Understanding Payment Allocation

When you make a payment, you need to specify what it’s paying for. The system allows you to allocate payments to:

Specific Products: Allocate a payment to cover costs for specific products
Specific Shipments: Allocate a payment to cover costs for specific shipments
Order-Level Costs: Allocate to general order expenses
Shipping Costs: Allocate to shipping and freight expenses

Allocating to Products

For order payments, you can specify which products the payment covers. This is useful when:

Making partial payments for specific products
Paying suppliers for products as they’re completed
Managing payments for products from different suppliers

Allocating to Shipments

For shipping payments, you can allocate to specific shipments. This helps when:

Different shipments have different payment terms
You’re paying freight forwarders per shipment
Shipments arrive and are paid for at different times

Managing Payment Status

Marking Payments as Paid

When you’ve actually made a payment:

Find the payment in your payment list
Change the status from “Scheduled” to “Paid”
Update the payment date to the actual payment date
The system automatically updates all calculations

Scheduling Future Payments

To plan for future payments:

Create a new payment entry
Set the status to “Scheduled”
Enter the planned payment date
Enter the expected amount
The payment is included in your scheduled payments total

Handling Overdue Payments

If a scheduled payment passes its due date:

The system may automatically mark it as “Overdue”
Overdue payments are highlighted in the interface
You should either:
- Mark it as paid if payment was made
- Update the date if payment is delayed
- Contact the supplier to resolve any issues

Payment Details and Information

Payment Card Information

Each payment is displayed in a card showing:

Payment Amount: Clearly displayed in the order’s currency
Payment Date: When the payment was made or is scheduled
Status Badge: Color-coded indicator (green for paid, blue for scheduled, red for overdue)
Beneficiary: Who the payment is being made to
Allocation Details: What the payment covers (products, shipments, etc.)

Payment History

The system maintains a complete history of all payments, including:

Original payment entries
Status changes
Amount modifications
Date updates

This history helps with:

Auditing payment records
Resolving disputes
Understanding payment patterns
Financial reporting

Payment Calculations and Totals

Order Payment Totals

The system calculates several totals for order payments:

Total Paid: Sum of all paid order payments
Total Scheduled: Sum of all scheduled order payments
Total Allocated: Sum of all order payments (paid + scheduled)

These totals help you understand:

How much you’ve paid for products
How much you still owe for products
Your total product payment obligations

Shipping Payment Totals

Similarly, shipping payments are totaled:

Total Paid: Sum of all paid shipping payments
Total Scheduled: Sum of all scheduled shipping payments
Total Allocated: Sum of all shipping payments

Combined Totals

The dashboard shows combined totals that include both order and shipping payments, giving you a complete picture of your payment status for the entire purchase order.

Payment Workflows

Standard Payment Workflow

A typical payment workflow might be:

Order Placement: Purchase order is created
Initial Payment Scheduled: Schedule a deposit payment (e.g., 30% upfront)
Deposit Paid: Mark the deposit as paid when payment is made
Production Milestone: Schedule payment for when production is complete
Production Payment: Mark as paid when milestone is reached
Shipping Payment: Schedule payment for when shipment is ready
Final Payment: Schedule final payment for when goods are received
Complete: All payments marked as paid, order complete

Partial Payment Scenarios

The system supports partial payments, allowing you to:

Make multiple payments toward the same order
Track progress toward full payment
Manage payment schedules with multiple installments
Handle situations where payments are split across different beneficiaries

Best Practices

Payment Planning

Schedule Payments Early: Set up your payment schedule when creating the order to help with cash flow planning
Align with Milestones: Schedule payments to align with order milestones (deposit, production complete, shipment ready, goods received)
Account for Payment Terms: Consider supplier payment terms (Net 30, Net 60, etc.) when scheduling payments
Plan for Currency: If dealing with foreign currency, account for exchange rates and potential fluctuations

Payment Tracking

Update Promptly: Mark payments as paid as soon as you’ve made them to keep records accurate
Verify Amounts: Double-check payment amounts against invoices before recording
Maintain Documentation: Keep payment confirmations, receipts, and invoices for reference
Review Regularly: Periodically review your payment status to ensure everything is up to date

Financial Management

Monitor Cash Flow: Use scheduled payments to forecast your cash flow needs
Track Overpayments: Watch for overpaid amounts and resolve them promptly (request refunds or apply to future orders)
Reconcile Regularly: Compare your payment records with bank statements and supplier invoices
Use for Budgeting: Payment data helps with budgeting for future orders

Integration with Other Sections

Summary Section

Payment information is integrated with the Summary section, showing:

How payments affect your order totals
Remaining balance calculations
Payment status in order overview

Additional Costs

Payments can be specifically allocated to cover additional costs, helping you track which payments cover which expenses.

Order Status

Payment status can influence order status. For example, orders with overdue payments may be flagged for attention.

Common Scenarios

Scenario 1: Standard Payment Terms

For orders with standard payment terms (e.g., 50% upfront, 50% on delivery):

Schedule initial 50% payment for order placement
Mark as paid when deposit is transferred
Schedule remaining 50% for delivery date
Mark as paid when goods are received

Scenario 2: Milestone-Based Payments

For orders with milestone payments:

Schedule payment for each milestone
Mark payments as paid as milestones are reached
Track progress through payment status

Scenario 3: Multiple Shipments, Multiple Payments

For orders with multiple shipments:

Create shipping payment for each shipment
Pay for shipments as they’re prepared
Track which shipments have been paid for

Troubleshooting

Payments Not Showing in Totals

If payments aren’t appearing in calculations:

Verify the payment has been saved
Check that the payment amount is greater than zero
Ensure the payment status is set correctly
Refresh the page to update calculations

Incorrect Remaining Balance

If the remaining balance seems wrong:

Verify all payments have been recorded
Check that payment amounts are correct
Ensure the grand total includes all costs
Review payment allocations

Overdue Payment Alerts

If you’re seeing overdue payment alerts:

Review the payment date
Mark as paid if payment was made
Update the date if payment is delayed
Contact the supplier if there are issues

The Payments section is crucial for maintaining accurate financial records and managing cash flow. By properly tracking all payments, you can ensure timely payments to suppliers, maintain good relationships, and keep accurate financial records for your purchase orders.

Summary

Overview

The Summary section provides a comprehensive financial overview of your entire purchase order. This centralized dashboard consolidates all cost information, payment status, and key metrics into a single, easy-to-understand view. It serves as your primary reference point for understanding the complete financial picture of your order.

Purpose and Value

The Summary section helps you:

Understand the total cost of your purchase order
See how costs are distributed across different categories
Track payment status and remaining balance
Make informed decisions about pricing and profitability
Provide stakeholders with a clear financial overview
Identify cost optimization opportunities

Main Components

Order Summary Header

At the top of the Summary section, you’ll find a prominent header card displaying:

Order Title and Status: Shows the order name and current status (draft, confirmed, in production, completed, etc.). This helps you quickly identify which order you’re viewing.

Grand Total: The most important number - the complete total cost of your purchase order. This includes:

All product costs
All additional costs
All shipment costs

The grand total is displayed prominently in large, bold text with the order’s currency.

Total Items: Shows the total quantity of products ordered across all items. This gives you a quick sense of the order’s scale.

Visual Cost Breakdown Bar: A horizontal bar chart showing the proportion of different cost types:

Green segment: Base product costs
Orange segment: Shipment costs
Blue segment: Additional costs (order-level)

The relative sizes of these segments help you quickly understand your cost structure. Hovering over each segment shows the exact amount and percentage.

Shipment Indicator: If your order has associated shipments, a badge shows the number of shipments, helping you understand the order’s complexity.

Detailed Cost Breakdown

Product Subtotal Section

This expandable section shows the total cost of all products in your order. When expanded, it reveals:

Base Product Cost: The sum of all product prices multiplied by their quantities. This is calculated as:

[ \text{Base Product Cost} = \sum (\text{Product Price} \times \text{Product Quantity}) ]

For each product, this shows the base price before any additional costs are applied.

Order-Level Additional Costs: Any additional costs that apply to the entire order are listed here. Each cost shows:

Cost name (e.g., “Customs Duty”, “Documentation Fee”)
Cost category badge (indicating it’s an order-level cost)
Cost amount

These costs are typically distributed across all products in the order.

Product Subtotal Total: The sum of base product costs plus order-level additional costs. This represents your total product-related expenses before shipment costs.

Shipment Costs Section

This expandable section details all costs related to shipping and freight. When expanded, it shows:

Shipment-Level Costs: Costs associated with specific shipments. For orders with multiple shipments, costs are broken down by shipment. Each shipment shows:

Shipment identifier (clickable link to shipment details)
Individual cost items for that shipment (e.g., “Sea Freight”, “Port Fees”)
Cost category badge (indicating it’s a shipment cost)
Cost amount

Product-Allocated Shipment Costs: Some shipment costs are allocated to specific products based on quantity or other factors. These show:

Which products the costs apply to
The allocation method used
The cost per product or per unit

Shipment Costs Total: The sum of all shipment-related expenses across all shipments.

Cost Allocation Details

The Summary provides detailed information about how costs are allocated:

Per-Product Breakdown: For each product, you can see:

Base product price
Quantity ordered
Base product cost (price × quantity)
Allocated additional costs (both order-level and product-specific)
Allocated shipment costs (if applicable)
Final cost per unit
Total cost for that product

Weighted Cost Calculations: For complex allocations, the system calculates weighted averages. For example, if shipment costs are allocated based on product quantities:

[ \text{Weighted Cost Per Unit} = \frac{\sum (\text{Product Quantity} \times \text{Allocated Cost})}{\text{Total Quantity}} ]

This ensures that products with higher quantities receive proportionally more of the allocated costs.

Financial Metrics

Cost Categories

The Summary breaks down costs into clear categories:

Base Product Costs: The fundamental cost of products before any additional expenses
Order Additional Costs: Expenses that apply to the entire order
Shipment Costs: All shipping, freight, and shipment-related expenses

Understanding these categories helps you:

Identify where costs are coming from
Find opportunities to reduce expenses
Make better pricing decisions
Compare costs across different orders

Cost Percentages

The visual breakdown bar shows what percentage of your total cost comes from each category. For example:

70% base product costs
20% shipment costs
10% additional costs

This helps you understand your cost structure and identify if any category is unusually high.

Payment Integration

Payment Status Summary

The Summary integrates with the Payments section to show:

Total Paid: How much you’ve already paid toward this order Total Scheduled: How much you’ve committed to pay in the future Remaining Balance: How much you still owe

These figures help you understand your payment obligations and cash flow needs.

Payment vs. Cost Comparison

The Summary helps you see:

Whether you’ve paid the full amount
If there’s a remaining balance
If you’ve overpaid (and by how much)

This is crucial for financial reconciliation and ensuring all obligations are met.

Product-Level Details

Individual Product Summary

For each product in your order, the Summary can show:

Product Information:

Product name and display name
ASIN and SKU
Product image (if available)

Quantity Information:

Units ordered
Units received (if order is in progress)
Fulfillment percentage

Cost Information:

Base price per unit
Allocated costs per unit
Total cost per unit
Total cost for the product

Inventory Context (if available):

Current inventory levels
Sales velocity
Days of inventory remaining

Advanced Features

Cost Visualization

The Summary includes visual representations of costs:

Stacked Bar Chart: Shows how different cost types contribute to the total, making it easy to see the composition at a glance.

Proportional Segments: The visual breakdown uses proportional sizing, so you can immediately see which cost categories are largest.

Interactive Tooltips: Hovering over cost elements shows detailed information, including exact amounts and percentages.

Detailed Cost Analysis

For deeper analysis, the Summary provides:

Cost Per Unit Calculations: Shows the true cost per unit after all allocations, which is essential for pricing decisions:

[ \text{True Cost Per Unit} = \frac{\text{Base Price} + \text{Allocated Additional Costs} + \text{Allocated Shipment Costs}}{\text{Quantity}} ]

Margin Analysis: By comparing your true cost per unit to your selling price, you can calculate your profit margin:

[ \text{Profit Margin} = \frac{\text{Selling Price} - \text{True Cost Per Unit}}{\text{Selling Price}} \times 100% ]

Cost Trends: For repeat orders, you can compare costs to identify trends and opportunities for optimization.

Supplier Information

The Summary displays key supplier information:

Supplier Name: The supplier fulfilling the order Supplier Currency: The currency used for the order (important for multi-currency operations) Supplier Details: Additional supplier information if available

This context helps you understand the order’s origin and manage supplier relationships.

Marketplace Information

For orders with marketplace associations, the Summary shows:

Marketplace Countries: Which countries/markets the order is destined for Marketplace Count: How many marketplaces are involved Marketplace Details: Additional marketplace information

This helps you understand the order’s destination and distribution scope.

Order Status Integration

The Summary reflects the current order status:

Draft Orders: Show estimated costs and allow for planning Confirmed Orders: Show committed costs In Progress Orders: May show partial fulfillment and updated costs Completed Orders: Show final, actual costs

The information displayed adapts based on the order’s stage in the fulfillment process.

Export and Reporting

Summary Data Usage

The Summary data is used throughout the system for:

Financial Reports: Summary information feeds into financial reports and analytics Budget Planning: Cost data helps with future budget planning Performance Analysis: Comparing summaries across orders helps identify trends Stakeholder Reporting: The summary provides a clear overview for management and stakeholders

Data Accuracy

The Summary automatically updates when:

Products are added or removed
Quantities are changed
Additional costs are added or modified
Payments are recorded
Shipment information is updated

This ensures the summary always reflects the current state of your order.

Best Practices

Regular Review

Check Summary Regularly: Review the summary whenever you make changes to ensure costs are accurate
Verify Calculations: Periodically verify that the grand total matches your expectations
Compare Across Orders: Use summary data to compare costs across different orders and identify patterns
Monitor Cost Trends: Track how costs change over time to identify opportunities for optimization

Cost Management

Understand Cost Structure: Use the breakdown to understand where your costs are coming from
Identify High-Cost Areas: Look for categories that are unusually high and investigate why
Optimize Allocations: Review cost allocations to ensure they’re fair and accurate
Plan for Additional Costs: When creating orders, account for typical additional cost percentages (usually 15-25% of base costs)

Financial Planning

Use for Budgeting: Summary data helps with budgeting for future orders
Cash Flow Planning: Payment information in the summary helps with cash flow forecasting
Pricing Decisions: True cost per unit helps you set appropriate selling prices
Profitability Analysis: Compare costs to revenue to understand profitability

Common Scenarios

Scenario 1: Simple Single-Product Order

For a straightforward order:

Summary shows base product cost
Minimal additional costs
Single shipment cost
Clear, simple total

Scenario 2: Complex Multi-Product, Multi-Shipment Order

For complex orders:

Summary aggregates costs across all products
Shows breakdown by shipment
Displays weighted cost allocations
Provides detailed drill-down capabilities

Scenario 3: Order with High Additional Costs

When additional costs are significant:

Summary highlights the proportion of additional costs
Shows detailed breakdown of what’s driving costs
Helps identify if costs are reasonable or need optimization

Troubleshooting

Totals Don’t Match Expectations

If the grand total seems incorrect:

Verify all products are included
Check that quantities are correct
Review additional costs
Verify shipment costs are included
Check for any cost allocation issues

Missing Cost Information

If some costs aren’t showing:

Verify costs have been saved in the Additional Costs section
Check that shipments are properly linked
Ensure payment information is up to date
Refresh the page to update calculations

Incorrect Cost Allocations

If cost allocations seem wrong:

Review the allocation method selected for additional costs
Verify product quantities are correct
Check shipment associations
Review cost distribution settings

The Summary section is your command center for understanding the complete financial picture of your purchase order. By providing a comprehensive, accurate, and easy-to-understand overview, it helps you make informed decisions, manage costs effectively, and maintain financial control over your purchase orders.

Conclusion

This documentation covers the five major sections of the Purchase Order Form: Unit Allocation, Inventory Trends, Additional Costs, Payments, and Summary. Each section plays a crucial role in managing your purchase orders effectively. By understanding how to use these features, you can optimize your supply chain operations, maintain accurate financial records, and make data-driven decisions about your inventory and purchasing.

Remember to:

Review each section regularly as your orders progress
Keep information up to date for accurate calculations
Use the visualizations and breakdowns to identify opportunities
Integrate insights from different sections for comprehensive order management

For additional support or questions about specific features, refer to the in-app help or contact your system administrator.