A Purchase Order is a source document used by the purchasing department to place an order for a product or a service from a vendor or supplier. In other words, this is the contract that a buyer drafts to purchase goods/services 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 the information is described in the Purchase order, the more effective the procurement process will be.
By using Precoro's Purchase Orders one can solve the following problems:
- expedite the order-making process, using catalogs;
- record all the pre-submitted requests for purchases from different departments;
- track and manage orders for the company;
- plan for future deliveries by referring to existing submitted orders for all types of purchases;
- control company costs, budget, and identify any unexpected expenses of the enterprise.
How do our clients use a Purchase Order?
A purchase order is created by the purchase manager or office manager, depending on the company's specific purchasing process. A Purchase Order can be created either from scratch or by using a pre-existing Purchase Requisition. The client sets up the hierarchy of approvals for the control of the needs of goods, vendor selection, and in accordance between PO and appropriate budget. If this process is set up in Precoro, every Purchase Order must be approved at all levels of the hierarchy. Once all approvals have been made, the PO can be sent to the supplier for fulfillment.