Why is it important for businesses to have a purchase order system?
A purchase order is a legally binding document and provides suppliers with proof that services or products were ordered. Purchase orders also provide confirmation of costs as they can be matched up to invoices and delivery notes.
In addition, the raising of purchase orders assists accounts payable by giving the ability to track expenditure and alerting them to how much will need to be paid out at certain times.
Traditionally, a purchase order will contain the following information:
·A purchase order number
·Products or services offered
·Any specific terms and conditions
The most efficient way of producing purchase orders is by using an online purchase order system. This standardises the process and ensures that all users are following the same instructions and are accurately providing all the details which are required. The IPC Group has developed a purchase order and purchase invoice approval system (POPIAS) which not only facilitates the raising of purchase orders electronically but also has the functionality to automatically link and route accompanying invoices for approval.
For further information on POPIAS, please call us on 08081 45 46 47.