As indicated by the title, this article will discuss everything there is to know about creating a Magento 2 purchase order payment method. Before we move to the steps, let’s first gain an understanding of the term itself.
What is a Purchase Order (PO)?
Let’s make it easier to understand this payment method. It is like a detailed shopping list which a buyer sends to the seller or in other words, a formal request to purchase a product or service. The document details what the buyer intends to buy, the quantity, and how much they will pay for it. Of course, other details are included in this document, including the delivery date, time, and payment terms.
The below image shows a sample PO.
Source: Shopify
Depending on your requirements, you can tailor the PO accordingly.
How does a Purchase Order?
In most cases, the process is as follows:
It is pertinent to mention that the PO is authorised and issued in advance by the company that is making the purchase. In other words, there is no exchange of payment at this stage. Customers can only use the PO payment method, if the configured conditions are met, like minimum/maximum order total & selected countries.
Why Set Up Magento 2 Purchase Order Payment Method?
As a store owner, you should consider setting up this payment method due to the following reasons:
Clear Expectations
Every party to the transaction is aware of what is being sold, the quantity, and payment terms. This leaves no room for ambiguity.
Legal Protection
Whether it is an online business or a brick-and-mortar store, disputes can arise. A PO can prove valuable in supporting one’s argument during any dispute.
Inventory Management
As an online store owner, one way to attract and retain customers is by improving the user experience. By offering them a PO payment method, the buyers can keep track of what they have ordered and when it is to be delivered. This allows them to manage their inventory efficiently.
Payment Restrictions Pro
The Magento 2 Payment Restrictions extension allows you to limit payment methods based on shipping, customer groups, product attributes, and other conditions, optimizing costs and offering relevant payment options.
Purchase Order Management Magento – How to Configure the PO Payment Method?
Setting up the PO payment method in Magento 2 is a straightforward process and involves the following steps.
Step 1: Configure Payment by Purchase Order:
- Login to your Magento 2 admin panel
- Navigate to Stores -> Configuration
- Expand Sales -> Payment Methods
- Expand Purchase Order and fill the following fields:
Enabled: Change it to Yes. This will activate the Purchase Order at the frontend.
Title: You can enter any Title to help customers identify this payment method during checkout.
New Order Status: Set this to Pending until payment is authorized.
Payment from Applicable Countries: Set this to one of the following.
- All Allowed Countries: Customers from all countries specified in your store configuration can use this payment method.
- Payment from Specific Countries: When you choose this option, a list of all the countries appear and you can select specific countries to make this payment method available for them only.
Minimum Order Total: Set the minimum total amount that is required to qualify for this payment method.
Maximum Order Total: Similar to the minimum order total, set the maximum total amount that is required to qualify for this payment method.
Step 2: Position the Purchase Order on Checkout Page
Sort Order: Enter a sorting number to specify the position of Purchase Order (PO) payment method during checkout. (0 = first, 1 = second, 2 = third, and so on.)
Step 3: Save the Purchase Order Configuration
When complete, click Save Config.
This configuration will display the PO payment method in the list of payment methods in the checkout step.
Final Thoughts on Magento Purchase Order Management
That’s it for this tutorial. If you have any issue in setting purchase order payment method in Magento 2, then ask our expert Magento support team.
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