What is an electronic purchase order system?
Every business, regardless of size, needs to control costs and one way of doing this is by good management of purchasing activities. One of the most efficient ways of ordering goods and services is to invest in an electronic purchase order system which will automate the purchasing processes from raising a purchase order through to reconciliation of the relevant invoices.
An electronic purchase order system will track all purchases and prevent any unauthorised spending as well as detecting any duplicate orders. Drop down lists of suppliers’ details reduces typing errors and speeds up the process considerably.
A workflow system ensures that PO’s are sent to the relevant people for approval and escalated to a second level if the approver is absent. Purchase invoices can be matched to the purchase order as soon as it is received and can be stored electronically along with other documentation relating to the order. One of the most useful features, however, is the ability to run real time reports allowing the Finance Department to view expenditure for a specific period which gives them tighter control on cash flow and budgets.