Why is it important to use PO's when ordering?
As well as giving details of the items or services ordered purchase orders state the agreed price, date of delivery and terms of payment. They serve as a record of any requisition made and can be critical in a dispute between the two parties.
Purchase orders are raised by the buyers but, dependent on the value of the order, will sometimes need to be authorised by a more senior member of staff.
Many organisations now use an online purchase order system to generate purchase orders as it automates all the processes involved. An online purchase order system is also a more reliable way of managing purchase orders as they are stored electronically and cannot be lost or misfiled. As PO’s are such important documents it is essential to have a system which controls the raising of them and ensures that all the relevant information has been provided.
It is also possible to match up supplier invoices to the original purchase order using a purchase order and invoice approval system which is a much more efficient and cost effective way of processing the invoices for payment.
For further advice on how to generate and manage purchase orders please click here or call Cloud B2B solutions on 0800 840 3336.
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