A purchase order is a source document used by the purchasing department to place an order for a vendor or supplier. In other words, this is the contract that a buyer drafts to purchase goods from a seller.
A purchase order typically contains the following information:
- date of the order;
- shipping date;
- discount terms;
- name of the buyer and seller;
- description of the goods;
- price of the ordered goods;
- PO number.
The more detailed information is described in the Purchase order, the more effective will the procurement process be.
Using Purchase Order in Precoro one can solve following problems:
- shorten time for making orders, using cataloging;
- recording of all pre-submitted requests for purchase from different departments;
- tracking and managing orders of the enterprise;
- planning of future deliveries referring to already submitted orders for all types of purchases;
- control costs of the company, making company's budget and the identification of unexpected expenses of the enterprise.
How do our clients use Purchase Order?
A purchase order is created by the purchase manager or office manager, depending on the purchasing process in the company. A purchase order is created either from scratch or by using already submitted Purchase Requests. The client sets up the hierarchy of approves for the control of the needs of goods, vendor selection and accordance between PO and appropriate budget. If this process is set up in Precoro, every Purchase Order must be approved at all levels of hierarchy. Once it is done, PO can be sent to the supplier for fulfillment.