What is Purchase Order & Why You Need It?
Every company must make a purchase. As your business grows, good documentation of those purchases will be even more important. You will need a way to track your purchase and protect your business legally if problems arise with the seller.
But even if you keep every purchase transaction, without the support of a reliable system, it can be a very inconvenient thing. This is why it is so important for you to start with a purchase order system.
What is a purchase order system?
The purchase order is the buyer’s documentation of the seller containing the ordering request. When the seller approves the purchase order, it will serve as a legal agreement between the buyer and the seller.
Small businesses usually do not really need this system. But along with the growth of your business, this can be something very important. Why? Because on a large scale business there are usually many people involved in purchase orders. Because of these large number of people involved this will also be a lot of possible errors that can happen.
But before you start implementing this system on your business, it’s good for you to know more about how this purchase order system can help your business.
Sometimes, because of the many people involved in the handling of purchase orders, it is not uncommon to have the same order or often we are familiar with duplicate orders. But with this system, you can minimize those duplicate orders and save more of your money.
Since a purchase order is a legal agreement between the buyer and the seller, it can protect you against fraud.
Keeping track of incoming orders by matching purchase orders will help you simplify the warehouse management process. In addition, the recording of a transaction is an asset when you conducting an audit.
Acumatica Cloud ERP – Purchase Order System?
The best system can always meet your business needs. Like Acumatica Cloud ERP an integrated business software solution that has a purchase order system inside. The purchase order system on Acumatica Cloud ERP comes with important features such as:
- Drop Shipments
- Vendor Selection & Performance Analysis
- Audit Trail
- Automatic Payment Vouchers
- Landed Cost Functionality
- Reporting & Drill Down
- Simplified Item Tracking