Purchase order a formal document issued by a company to a vendor or supplier, specifying the details of a purchase, including the quantity, price, and terms. A purchase order serves as a legally binding agreement between the company and the supplier. It ensures that purchases are authorized, budgeted, and properly documented before payment is made. Companies use POs to manage procurement and control expenses. It includes type, quantity and agreed price for product or services required.
It helps track expenses, manage budgets, and ensure proper record-keeping in procurement processes. Businesses use POs to authorize purchases before payment is made.
Purchase order is created as follow ups to approved:
- Internal employee request
- Planned maintenance activity
- Inspections or audits
- Sales order
Authorization to issue purchase order depending on the type of business. Trigger requests can be submitted by any one of employee. Once purchase request is reviewed and approved by authorised manager, an official work order to complete the job is issued.
How to create a purchase order?
- See instructions on how to create a purchase order