Purchase Order literally implies a final monetary agreement released by the vendor against the list of items purchased. The purchase order can be considered as the most common terminology in the Purchase Cycle. The purchase cycle starts when the need is felt to replenish the inventory back in the store. Then, the needs are specified to ensure the right product with the right quality is delivered to customers . These needs are defined as per the norms kept by the organization.
Then the most authentic and reliable source of order delivery, i.e. vendor, is selected, by analyzing previous orders and receipts. Then a market survey is made to have an idea of the prices for the inquired items. After successfully accomplishing all these steps, the Purchase Order is prepared.
The purchase order is a well-documented agreement between the buyer and the seller, which particular item is to be issued under the defined terms and conditions, and the item issued has the recommended specifications and so on. Purchase Order contains all the important information like the billing address, the shipping address, shipping date, all terms and conditions relevant to the product.
Benefits of Purchase Management System: Purchase Order
Purchase Order is the most authentic and legalized document in the Purchase Cycle. It can even be used in case of any conflict between the vendor and the buyer, or any kind of information lag.
Purchase Order contains in it all the important details like the address, due delivery date, item list and their specifications and all kind of terms and conditions.
Online Purchase Order management makes the process automated, thus ensuring the same information is channelled in all departments of the organization.