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How to create an outsourced purchase order (OPO)

Set up outsourced purchase orders (OPOs) in Katana for efficient external manufacturing.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over a week ago

Set up outsourced purchase orders in Katana to efficiently manage external manufacturing—especially when you supply the raw materials, and your contractor completes the assembly.


What is an OPO?

An outsourced purchase order (OPO) is used when a product is made by a contractor, but you provide and track the ingredients (materials/subassemblies).

  • Products and materials can both be purchased via OPOs.

  • Be sure Buy is enabled on the item card.

  • To track ingredients, enable both Make and Buy.

    Screenshot showing the Buy Make checkboxes on a product card

How to create an OPO

Screenshot showing where the quick-add option for an OPO is located
  1. Click + Create in the global navigation.

  2. Select + Outsourced purchase order.


Fields on an OPO

Screenshot showing the fields on an OPO

Field

Description

Supplier (required)

The contractor handling production. Must be selected to add items.

Expected arrival

Auto-calculated using default lead times. Can be adjusted.

Created date

Defaulted to today, but editable.

Order #

Auto-generated by Katana (e.g., OPO-001) — can be edited.

Order currency

Based on the supplier’s currency (multi-currency).

Ship to

Receiving location (only editable if you have multiple Buy-enabled locations).

Track ingredients in

Location where ingredient stock is tracked. Must have “Make” enabled.


Line item columns

Screenshot showing the line items table on an OPO

Column

Details

Item (required)

Product or material being purchased. Create new materials inline if needed.

Quantity (required)

Purchase amount (supports 5 decimal places).

Price per unit

Contractor fee excluding tax or ingredient cost. Default from item card.

Total price

Auto-calculated (Qty × Price per Unit), or manually override.

Tax %

Select from preconfigured tax rates (Settings > Tax Rates).

Ingredients

Availability status for required ingredients based on the selected location.

You can also add Additional costs rows (e.g., freight, custom fees).


Add missing items from supplier

When a Supplier is selected:

  • Katana checks your stock for items purchased from them.

  • If there are negative stock levels, Katana shows a notification at the bottom.

    popup showing products that are missing from supplier

  • Click Add them... to review and optionally add them all at once.

    popup showing products that are missing from supplier

Quantities will automatically update based on what’s missing.


Track ingredients tab

Screenshot highlighting the Track ingredients tab on an OPO

This tab becomes available when you:

  • Add a product with both “Make” and “Buy” enabled.

What you'll see:

Note: Changes to the default Product recipe on a product card will not apply to open outsourced purchase orders for that product.


How product cost per unit is calculated

Product cost per unit = (Total price + Ingredient costs) ÷ Order quantity

If you add Additional costs, Katana will calculate a landed cost.


Ingredient availability

  • In stock

  • Expected

  • Not available

  • No recipe!

  • Not applicable

Status is based on the “Track ingredients in” location and reflects:

  • Existing sales and manufacturing orders.

  • Expected arrival dates for other OPOs.

Changing an order’s Expected arrival date can affect availability.


Inventory intel

Screenshot showing the Inventory intel window

Click an ingredient’s status to:

  • View In stock, Expected, and Committed quantities.

  • See all related MOs and OPOs, sorted by priority.

  • Identify if your current OPO will receive the needed ingredient.


Additional notes

  • Add comments to OPOs for internal tracking, instructions, or links.

  • OPO printouts will include company and shipping address info (though it's not shown in the OPO card).


Your feedback is invaluable. Let us know your thoughts on this article or anything in Katana you'd like to see improved: [email protected]

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