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Purchase Orders to Inventory: Managing Your Supply Chain

Learn how purchase orders flow into inventory updates, automatically recalculating recipe costs and product prices across your bakery.

Purchase Orders to Inventory: Managing Your Supply Chain

This article explains how BakeOnyx helps you manage your bakery's supplies from ordering to receiving, and how those changes automatically update your stock and product costs.
  • Understand the step-by-step process of creating and receiving purchase orders.
  • Learn how receiving inventory automatically updates your stock levels.
  • Discover how changes in ingredient costs flow through to your recipes and product prices.

The Purchase Order Workflow

BakeOnyx streamlines your ordering process so you always know what you have and what it costs. Here’s how it works:

Step 1: Check Your Stock Levels

Before you order, it’s good to know what you already have.
  1. Navigate to the Ingredients page at /dashboard/ingredients.
  2. Here you'll see a list of all your ingredients and their current stock levels.
  3. Ingredients that are running low will show a Low Stock Alert if their quantity has dropped below the Reorder Point you’ve set.
  4. For a look ahead, visit the Inventory Predictions page at /dashboard/inventory/predictions. This can help you spot ingredients that might run low soon based on upcoming sales orders.

Step 2: Create a New Purchase Order

When you're ready to order, follow these steps:
  1. Go to the Purchase Orders section at /dashboard/purchase-orders.
  2. Click the New Purchase Order button.
  3. Select a Supplier from your existing list. You can manage your suppliers on the Settings page at /dashboard/settings/suppliers.
  4. Add items to your order:
    • Click Add Item.
    • Choose the Ingredient you want to order.
    • Enter the Quantity you need.
    • Input the Unit Cost you expect to pay.
  5. BakeOnyx will automatically create a unique PO number for you, like PO-231027-001.
  6. Your new purchase order will start with a status of Draft.

Step 3: Send the Order to Your Supplier

Once you've added all your items and are happy with the details:
  1. Change the PO status to Ordered.
  2. You can then choose to Print the purchase order or Export it as a PDF to send to your supplier.

Step 4: Receive Your Shipment

When your ingredients arrive:
  1. Go back to the Purchase Orders page at /dashboard/purchase-orders.
  2. Find the relevant purchase order and click to open it.
  3. Click the Receive button.
  4. For each ingredient that arrived, enter the actual Quantity Received.
  5. You can also add any relevant Quality Notes here.
Note: You don't have to receive the entire order at once. If only part of your shipment arrives, you can log the partial quantity. The PO status will automatically update to Partial Received, and you can receive the rest later.

Step 5: Automatic Stock Updates

As soon as you log the quantities received, BakeOnyx automatically updates your ingredient stock levels. Your inventory counts will now reflect what you actually have on hand.

Step 6: The Cost Cascade Begins

This is where the magic happens! When you receive ingredients at a different cost than you initially planned:
  • BakeOnyx updates the cost of that specific ingredient.
  • Then, it automatically recalculates the cost of every recipe that uses that ingredient.
  • Finally, it updates the cost of every product that is made from those recipes.
This ensures your food cost reports and product pricing are always based on your most current ingredient expenses.

Purchase Order Statuses

Your purchase orders move through a clear lifecycle:
  • Draft: You are still creating the order.
  • Ordered: You have sent the order to your supplier.
  • Partial Received: Some, but not all, of the items on the order have arrived.
  • Received: All items on the order have been fully received.
Tip: Always double-check the quantities you enter when receiving an order against the supplier's delivery note. Accurate receiving is key to accurate inventory and cost calculations throughout BakeOnyx.

Purchase Orders vs. Direct Stock Adjustments

It's important to use the right tool for the job:
  • Use Purchase Orders when you are ordering items from a supplier. This process tracks costs, quantities, and receiving dates, providing a clear record.
  • Use Direct Stock Adjustments (found on the individual ingredient page at /dashboard/ingredients/[id]) for quick fixes like correcting an inventory count, logging waste, or reconciling stocktakes. Direct adjustments don't involve supplier costs or order details.

Key Concept: The Cost Cascade

This powerful feature means you don't have to manually update costs. When an ingredient's purchase price changes:
  1. The ingredient's unit cost is updated.
  2. All recipes using that ingredient have their total cost recalculated.
  3. All products made from those recipes have their costs updated.
  4. Your reports and profit margins automatically reflect these changes.

Next Steps

Now that you understand how purchase orders impact your inventory and costs, explore these related topics:

The summary, FAQ, and statistics in this section were compiled from public sources and reviewed by the BakeOnyx editorial team. AI-assisted research.

Frequently Asked Questions

How does receiving a purchase order update my inventory?▾

When you receive ingredients against a purchase order in BakeOnyx, the system automatically adds the received quantities to your current stock levels. This immediate update ensures your inventory reflects actual on-hand amounts, preventing stockouts and over-ordering. The process is designed to be quick, allowing for partial receipts if a full order isn't delivered at once.

How does BakeOnyx recalculate costs after receiving a PO?▾

Upon receiving ingredients, BakeOnyx uses the actual price paid to update the cost of that specific ingredient. This new cost then cascades through your recipes. If an ingredient's price changes, BakeOnyx automatically recalculates the cost of all recipes that use it, ensuring your recipe costing remains accurate and up-to-date.

What happens to product prices when ingredient costs change?▾

BakeOnyx's cost cascade feature automatically updates your product prices when the underlying ingredient costs change. Once a new ingredient cost is established upon receiving a purchase order, the system recalculates associated recipe costs. These updated recipe costs then inform and adjust your final product selling prices, maintaining profitability.

Can I handle partial shipments with purchase orders?▾

Yes, BakeOnyx fully supports partial receiving for purchase orders. If a supplier only delivers part of your order, you can log the quantities actually received. The purchase order will be updated to reflect the partial shipment, often moving to a 'partial_received' status, and you can manage the remaining items later.

How do I know when to create a new purchase order?▾

BakeOnyx provides low stock alerts on the ingredients dashboard. When an ingredient falls below its designated reorder point, you'll see an alert. This prompts you to navigate to the purchase orders section to create a new PO, select a supplier, and add the necessary items to replenish your stock efficiently.

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