How Fulfillment Hub USA Uses Purchase Order Statuses (ShipHero WMS)

At Fulfillment Hub USA, we rely on ShipHero’s purchase order (PO) tools to manage inventory from vendor all the way to the warehouse shelf. The default PO statuses are helpful, but on their own they don’t always provide the level of visibility our teams need across purchasing, warehouse operations, and sales.

That’s why we use custom purchase order statuses. With a tailored set of statuses, we can mirror our real procurement workflow, keep everyone aligned on what’s happening with each PO, and avoid surprises for our clients.

ShipHero’s Default PO Statuses

ShipHero includes three default PO statuses. At FHU we keep these intact and layer our own custom statuses on top.

Pending
Used for open purchase orders that are still waiting to be delivered or processed by the warehouse.
The quantities on Pending POs are automatically included in On Order and Sell Ahead.
Canceled
Used when a purchase order is canceled and is no longer expected to arrive.
Quantities on Canceled POs are removed from both On Order and Sell Ahead.
Closed
Used when a purchase order has been fully received and processed.
Quantities on Closed POs are also removed from On Order and Sell Ahead.

How to Create a Custom PO Status

Important: Do not recreate ShipHero’s default statuses (such as Pending, Closed, or Canceled). Renaming or duplicating these can cause data issues. Only create new custom statuses that support your specific workflow.

To add a custom PO status in the FHU environment using ShipHero:

Go to the Purchase Order Statuses page in ShipHero.
Click + Add Status.
Give the status a clear, meaningful name
(for example: “Waiting for Manager Approval,” “In Transit,” “Awaiting QC,” “Partial Shipment”).
Decide whether this status should count product quantities toward:
- Sell Ahead
- On Order
Click Save Changes.

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ShipHero Add Status screen

Understanding On Order & Sell Ahead

When you define a new status, you must choose whether it affects On Order and Sell Ahead. These toggles are critical for accurate inventory, purchasing, and sales planning.

On Order
Represents how many units are currently on an open purchase order with your vendors.
This is primarily for internal visibility so the team knows what is scheduled to arrive.
Sell Ahead
Represents quantities that are allowed to be sold before they physically arrive at the warehouse.
Sell Ahead values are pushed to your e-commerce channels (Shopify, Amazon, etc.) so you can safely presell inventory based on inbound POs.

Configuring these correctly per status ensures that operations, purchasing, and sales all see reliable numbers.

Example Purchase Order Workflows

Below is an example of how Fulfillment Hub USA can structure a procurement workflow using custom statuses. Each status represents a clear step in the lifecycle of a PO—from initial draft to final receipt—while controlling whether On Order and Sell Ahead are enabled.

Example of custom PO statuses in a workflow

Example Custom Statuses Configured in ShipHero

Example PO Status	Example Procurement Process Defined
Waiting for Purchase Manager Approval:	A draft purchase order that still requires sign-off from the Purchasing Manager. Sell Ahead and On Order are disabled at this stage because the PO has not been formally approved.
Approved to Send to Vendor:	The purchase order has been approved internally but has not yet been sent to the vendor. Sell Ahead and On Order remain disabled until the PO is officially shared with the vendor.
Sent to Vendor:	The Purchasing team has sent the PO to the vendor. On Order is now enabled for internal tracking, but Sell Ahead stays disabled to avoid overselling in case the vendor cannot fulfill the full request.
Vendor Confirmed:	The vendor has confirmed receipt of the PO and has committed to the quantities. At this point, both On Order and Sell Ahead are enabled, allowing the commercial team to presell inventory if desired.
In Transit:	The vendor has shipped the PO and it is on its way to the warehouse. The team can update tracking details and the expected arrival date in the PO so the warehouse can plan resources. On Order and Sell Ahead remain enabled, giving full visibility to inbound stock and any active presales.
Received at Warehouse:	The PO has arrived at the FHU warehouse and is being received and processed by the inventory team. Until the PO is fully closed, On Order and Sell Ahead remain enabled for the remaining items tied to that status, ensuring alignment between inbound processing and available-to-promise figures.