Purchase Order Processing Overview
A Purchase Order is what a company uses to place orders with suppliers or vendors, and to deliver goods to the company's businesses or warehouses. The purchasing process is a multi-step process that begins with entering the purchase order. Once the purchase order is entered into the system, it is then approved so that it can be sent to the vendor. After it is approved, the purchase order is printed and sent off to the vendor or supplier.
When the vendor has filled the purchase order, they inform the company and send the items. At this point, the company has to receive the purchase order. When the outstanding purchase order is received, the quantity of items received are confirmed or adjusted with the quantity stated on the original purchase order and inventory is updated accordingly. Then the purchase order is ready to be paid through the Payment Processing Method once the invoice has arrived from the vendor.
Here is a list of each step in Processing a Purchase Order:
- Entering a Purchase Order
- Entering Items on a Purchase Order
- Approving a Purchase Order
- Printing a Purchase Order
- Receiving a Purchase Order