> ## Documentation Index
> Fetch the complete documentation index at: https://meganharrisonconsulting.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Create a Purchase Order Commitment

> Create a purchase order commitment for materials, equipment, or vendor services in Alleato PM.

Use a purchase order commitment when the project needs to issue a PO for materials, equipment, or vendor services and track that commitment inside the project budget.

A **purchase order (PO)** is a commitment between your company (the buyer) and a vendor (the seller) for specific goods or services at agreed prices. Reach for a PO when you're ordering materials, equipment, or one‑off vendor services; use a [subcontract](/help/articles/commitments) instead when you're contracting trade labor. Both are *commitments* and both roll up into your project budget as **committed costs**.

## Before You Start

**Who can do this:** you need access to the project's **Commitments** tool. Entering or viewing Schedule of Values amounts requires the appropriate commitment permissions on the project.

Have these details ready:

* The project you are working in
* The vendor or contract company
* The PO title and PO number
* The line items you need to add to the Schedule of Values
* Any supporting files, such as a quote, proposal, or signed PO backup

If the vendor is not available in the contract company search, add the company in [Company Directory](/help/articles/company-directory) first.

## Create the Purchase Order

1. Open the project.
2. Select **Commitments** from the sidebar.
3. Select **Create** and then choose **Purchase Order**.

The purchase order form opens at `/[projectId]/commitments/new?type=purchase_order`.

## Complete General Information

Fill in the fields in **General Information**. **Title**, **Contract #**, and **Status** are required — the rest are optional.

* **Title** *(required)*: Enter a short name for the PO.
* **Contract #** *(required)*: Enter the PO number. Alleato prefills a draft number you can keep or replace; it must be unique within the project.
* **Status** *(required)*: Choose the current workflow status (defaults to **Draft**). Options are Draft, Out for Bid, Out for Signature, Approved, Complete, and Terminated.
* **Contract Company**: Select the vendor. Optional on a PO, but recommended so the PO ties to a company.
* **Default Retainage (%)**: Enter retainage only if this PO should hold back a percentage of each payment.
* **Assigned To**: Select the internal Alleato owner responsible for the PO.
* **Description**: Add scope notes, delivery notes, or quote context.
* **Executed**: Turn this on only if the PO is already fully signed.

## Enter Bill To and Ship To Details

In **Bill To / Ship To**, complete the purchasing and delivery information:

* **Bill To**: Select the billing company and billing contact, then confirm the address fields.
* **Ship To**: Select the receiving company and receiving contact, then confirm the delivery address fields.

Review the auto-filled address details before saving. Update them if this order should bill or ship to a different address than the default company record.

## Add Payment and Shipping Details

In **Payment & Shipping**, enter:

* **Payment Terms** such as `Net 30`
* **Ship Via** for the delivery method or carrier

These fields help accounting and field teams understand how the PO should be processed and delivered.

## Attach Backup Files

In **Attachments**, upload the files that support the PO, such as:

* Vendor quote
* Signed purchase order
* Proposal or scope sheet
* Delivery or equipment backup

Add attachments before you save so the record is auditable from the start.

## Add Contract Dates

In **Contract Dates**, fill in the dates your team needs for tracking:

* **Contract Date**
* **Delivery Date**
* **Signed PO Received Date**
* **Issued On Date**

Only enter the dates that are relevant to this purchase order.

## Set Privacy and Contacts

In **Privacy & Access**:

* Add **Invoice Contacts** if vendor billing should route to specific people.
* Add **Access for Non-Admin Users** only if this PO is private and specific users need access.
* Turn on **Private** if the PO should not be visible to all project users.
* Turn on **Allow these non-admin users to view the SOV items** only when those selected users should also see line-item values.

Use these settings carefully. A private PO stays hidden from most users unless they are explicitly added.

## Build the Schedule of Values

### Set the accounting method first

At the top of the **Schedule of Values**, Alleato shows the PO's accounting method — **unit/quantity** by default. Click **Change to Amount-based** if you'd rather enter lump-sum amounts than quantity × unit cost.

Set this **before you add any line items**. The accounting method also applies to the PO's change orders and invoices, and it can't be changed once line items exist.

### Add the line items

In **Schedule of Values**, add the line items that make up the PO total.

For each line item, enter:

* **Budget Code**
* **Description**
* **Qty**, **UOM**, and **Unit Cost** when using unit/quantity accounting
* **Amount**

The form calculates totals as you build the line items. Use **Add Line Item** until the full PO scope is represented.

Before saving, confirm:

* Every line item is assigned to the correct budget code
* The total matches the approved PO or vendor quote
* Any warning about unbudgeted line items has been resolved or intentionally reviewed

## Save the Purchase Order

1. Review the full form one more time.
2. Select **Create Purchase Order**.
3. Return to the Commitments list and confirm the new PO appears with the correct vendor, title, number, status, and total.

## After You Save

Open the new purchase order and verify:

* The header information matches the source document
* The Schedule of Values total is correct
* The attachments are present
* Privacy and invoice contacts are set correctly

If the PO should affect committed costs immediately, make sure its status and execution state match your project workflow.

## Common Issues

* **Vendor not found**: Add or activate the vendor in [Company Directory](/help/articles/company-directory), then return to the PO form.
* **Budget code warning**: The line item is not mapped to the current project budget. Update the line or add the needed budget code before approval.
* **Wrong bill-to or ship-to address**: Update the address fields on the form before saving.
* **PO total does not match the quote**: Review the SOV line items and confirm quantity, unit cost, and amount on each row.

## Related Articles

* [Commitments (Subcontracts and Purchase Orders)](/help/articles/commitments)
* [Commitments Reference](/help/articles/commitments-reference)
* [Company Directory](/help/articles/company-directory)
* [Budget Overview](/help/articles/budget-overview)