This article explains the difference between Purchase Orders and Expenses in RedTeam Go, including Expenses marked as Field Purchase Orders (Field POs), and helps you choose the right one for each purchase.
Which one should you use?
Use a Purchase Order when you order materials or equipment from a vendor before you buy them.
Use an Expense when the purchase is already paid, for example with a company credit card.
Use an Expense marked as a Field PO when you receive a vendor invoice that you will pay later and no Purchase Order was issued.
| Purchase Order | Expense | Expense marked as a Field PO |
Use it for | Ordering materials or equipment before you buy them | A purchase that is already paid | A vendor invoice you will pay later, with no PO |
Where | Commitments > Purchase Orders | Accounting > Expenses | Accounting > Expenses, with Assign PO# / Commitment# when approved checked |
Sent to the vendor | Yes, by email, and the vendor can sign it | No | No |
PO number | Yes | No | Yes |
Payment Method | Not used (the PO has Terms) | Required | Leave blank |
Approval | The Project Manager signs it | The Project Manager approves it, then the accountant accepts it | The Project Manager approves it, then the accountant accepts it |
Purchase Orders
A Purchase Order is a formal order you send to a vendor before materials or equipment are delivered. Use one when you want the vendor to confirm the items, price and delivery details, for example a material order for a scheduled delivery.
You create it from Commitments > Purchase Orders > New Purchase Order.
The vendor list only includes companies whose trade has a material, equipment or other cost code.
Line items use the project's material (.M), equipment (.EQ) and other (.O) cost codes.
When you click Sign, you can Digitally Sign, Approve Without Signing or Sign Later. When you sign, RedTeam Go emails the PO to the vendor unless you check Do Not Send Email When Signed. The vendor logs in to view and sign it.
Once you sign the PO, its amount counts as a committed cost for the project. It can take several hours to appear on the Job Cost Statement.
After a PO is signed, you can use Add To PO to order more items under the same PO number, Import a copy signed outside RedTeam Go, or Void it.
Note: If a Purchase Order is more than the budget for its cost code, RedTeam Go adjusts the budget for that cost code and notifies the accountant.
For step-by-step instructions, see How do I create a purchase order?.
Expenses
An Expense records a purchase that has already been paid, such as a hardware store run on a company card. Nothing is sent to the vendor.
You add it from Accounting > Expenses > Add Expense.
Choose the Payment Method used to pay for the purchase.
The Vendor can be any company in your contact database.
Split the total across cost codes with Add Cost Entry Line. Each cost code must already be in the project budget. Labor (.L) codes are not available.
To enter an expense for someone else, select them in Submitted By. You can also attach the receipt.
For step-by-step instructions, see How do you add expenses on the RedTeam Go website.
Expenses marked as Field POs
A Field PO is an Expense with Assign PO# / Commitment# when approved checked. You enter it in Accounting > Expenses like any other Expense, but it gets a PO number. Use it for a vendor invoice that you have received but not paid, when no Purchase Order was issued. Monthly equipment rentals and site services are common examples. A Field PO is not sent to the vendor or signed by the vendor.
Step 1: Click Accounting > Expenses > Add Expense.
Step 2: Enter the Project, Vendor, Invoice #, Total and cost codes. Leave Payment Method blank.
Step 3: Check Assign PO# / Commitment# when approved, then click Save or Save and Approve.
Note: The PO number is assigned as soon as you save. After that, the Field PO cannot be changed back into an Expense, so decide before you save.
If your company uses the QuickBooks integration, also check Upload as Vendor Bill to send the Field PO to QuickBooks as a bill. For details, see QuickBooks Online - PO's, Expenses, and Subcontracts, Sub CO's and Sub Bills.
How to tell them apart on a project
Go to Commitments > Purchase Orders. Purchase Orders, Field POs and Subcontracts share one list and one number sequence. The Type column shows PO, Field PO or Subcontract. Expenses are listed separately in the Expenses section below.
In Accounting > Expenses, a Field PO shows its number in the PO # column, and an Expense shows Expenses. A Field PO appears on the project's Purchase Orders page once it is approved.
To learn how Project Managers approve Expenses and Field POs, see How do you approve expenses as a PM.