How to Receive Services from a Purchase Order
1. Overview
Service Receiving is the process of confirming that a service ordered through a Purchase Order has been delivered or completed.
Services are different from physical goods because they normally do not require:
Store selection
Batch numbers
Expiry dates
Physical stock movement
Some services may also not be associated with inventory at all. In such cases, the accountant can receive the service to confirm that it has been delivered for financial and purchasing purposes without creating an inventory movement.
The service must be received against the appropriate Purchase Order so that the system can track the quantity ordered, received, and remaining.
2. Why Is Service Receiving Important?
Receiving a service is important because it confirms that the vendor has fulfilled the service that was ordered.
It helps the organization to:
Confirm services delivered by vendors.
Track ordered and received quantities.
Identify services that are still pending.
Support financial and accounting processes.
Maintain an accurate Purchase Order history.
Prevent payment processing for services that have not been confirmed as received.
Maintain an audit trail between the Purchase Order and the received service.
For services that are not associated with inventory, receiving provides a way for the accountant to confirm the service without affecting stock.
3. Requirements to Receive a Service
Before receiving a service, make sure the following requirements are met.
3.1 Purchase Order Service Exists
A Purchase Order must exist for the service.
3.2 Service Is Added to the Purchase Order
The service that was ordered must be included in the Purchase Order by selecting service section.
3.3 Vendor Is Selected
The Purchase Order service must have the correct vendor.
3.4 Purchase Order Is Submitted
The Purchase Order service must be submitted after it has been created.
3.5 Purchase Order service need to be Approved
If an approval process is configured, the Purchase Order service must be approved before the service can be received.
The Purchase Order service should reach:
Waiting Delivery
3.6 Service Has Been Delivered or Completed
Only receive the service after the vendor has actually delivered or completed it.
4. Step-by-Step Guide
4.1 Open Purchase Order
Go to:
Purchase → Purchase Order
The Purchase Order screen will display the available Purchase Orders.
If you need to create a new service Purchase Order, click the Plus (+) icon.
4.2 Create a Service Purchase Order
Click the Plus (+) icon to create a new Purchase Order.
Select:
Services
This allows you to create a Purchase Order for services instead of physical goods.
4.3 Select the Vendor
Select the vendor who will provide the service.
Example:
Make sure the correct vendor is selected before adding the service.
4.4 Add the Service
On the right side of the Purchase Order screen, use the Search field to find the service you want to purchase.
Search for the service.
Select the service from the results.
The selected service will be added to the Purchase Order.
Enter the required quantity and price.
Example:
The system calculates the total amount.
4.5 Save the Purchase Order service
Before saving, review all Purchase Order information.
Check:
Vendor
Issue Date
Due Date
Currency
Service
Quantity
Unit
Price
Total Amount
Click Save.
The Purchase Order will be created with the status:
Draft
Example:
5.6 Submit the Purchase Order service
Open the saved Purchase Order and review the information.
When everything is correct, click Submit.
If an approval process is configured, the status changes to:
Example:
The Purchase Order is now waiting for the assigned approver to review it.
5.7 Approve the Purchase Order
The assigned approver reviews the Purchase Order.
If the Purchase Order is approved, it moves to:
The service can now be received when it has been delivered or completed.
5.8 Open the Approved Purchase Order
Go to:
Purchase → Purchase Order
Find the approved Purchase Order.
Open the Purchase Order with the status:
Waiting Delivery
Example:
Review the service before receiving it.
5.9 Receive the Service
From the approved Purchase Order, select the option to receive the service.
The receiving screen allows you to record the service that has been completed.
For example:
If the entire service has been completed, select:
Receive All
The system will set the quantity to the full pending quantity.
5.10 Enter Service Completion Details
Enter the information for the service that was completed.
Date
Enter the date on which the service was delivered or completed.
Quantity Done
Enter the quantity of service that was actually completed.
Example:
Partial Service
If only part of the service was completed, enter the actual completed quantity.
Example:
Do not enter the full quantity unless the entire service has been completed.
5.11 Confirm the Service Receipt
Review the receiving information before confirming.
Check:
Service
Date
Quantity Done
If everything is correct, click the Checkmark (✓) to confirm the receipt.
If you do not want to proceed, click the Close (X) button.
After confirmation, the service is recorded as received.
6. Service Receiving Workflow
The complete process is:
7. What Happens After Receiving?
After the service receipt is confirmed, the received quantity is recorded against the Purchase Order.
Fully Received
The Purchase Order has no remaining service quantity to receive.
Partially Received
The remaining 200 can be received later when the service is completed.
8. Inventory-Linked vs Non-Inventory Services
Not every service is associated with inventory.
This distinction is important when receiving services.
8.1 Inventory-Related Items
Physical goods affect inventory when they are received.
Example:
8.2 Non-Inventory Services
A non-inventory service does not create or increase physical stock.
Example:
Examples include:
For these services, an accountant can receive the service from the approved Purchase Order even though the service is not associated with inventory.
Key Difference
Type | Receiving Details | Inventory Movement |
|---|---|---|
Goods | Quantity, Store, Batch, Expiry | Yes |
Inventory-Related Item | Quantity and applicable inventory details | Yes |
Non-Inventory Service | Date and Quantity Done | No |
Always verify the date and quantity before clicking the Checkmark (✓).
Quick Reference
Step | Action | Result |
|---|---|---|
1 | Go to Purchase → Purchase Order | Purchase Order screen opens |
2 | Click + | Create Purchase Order |
3 | Select Services | Service Purchase Order |
4 | Select Vendor | Vendor added |
5 | Search and select Service | Service added |
6 | Enter Quantity + Price | PO total calculated |
7 | Save | Draft |
8 | Submit | Waiting Approval |
9 | Approve | Waiting Delivery |
10 | Open approved PO | Purchase Order ready for receiving |
11 | Receive Service | Receiving screen opens |
12 | Enter Date | Service completion date recorded |
13 | Enter Quantity Done | Quantity completed recorded |
14 | Select Receive All if fully completed | Full pending quantity selected |
15 | Click ✓ Confirm | Service received |