Having a purchase order app can be beneficial for your business; from making sure the right information goes to your suppliers, to having an overview of your stock levels, it makes sense to have a system that works seamlessly.
Using a purchase order system will also save you time and money.
Here are some more reasons why you should have a purchase order app.
Get orders right the first time
Sending a purchase order (PO) to your supplier is a legal offer to buy their products or services. If your supplier accepts the purchase order, it usually forms a contract between you and your supplier. No contract exists until they have accepted the PO.
POs provide an accurate documentation of what has been ordered in case of a dispute. A PO lists the item description, quantity, price, discounts, delivery instructions if applicable and the date of ordering. This leaves less margin for error than a verbal order.
Making sure the details are correct on the PO will help when it comes to dealing with payments.
Manage projects and purchases
An order can be placed for a single project or several projects at the same time.
When goods or services are ordered for a project, the project reference should be applied to the order, to link the goods on order with the project.
This will automate the allocation of stock and application of costs to the project at each stage of the purchase order life cycle. If you want accurate POs, you must calculate actual purchase order quantities and determine costs before a project commences.
Save your employees’ time
When your suppliers send an invoice that references your PO number, your employees won’t have to see if the bill is legitimate. A contract is formed when your supplier accepts your PO, thus eliminating any dispute.
The PO process has already ensured that it is legitimate and the proper accounting of it should be simple. The invoice would be entered to your accounting system referencing your original PO, recording delivery and updating your stock levels seamlessly.
Help you streamline your stock
An effective PO system will show you your financial commitment on inventory. Current stock levels, stock on hold, reorder levels and free stock are all areas that many businesses do not have clarity or control on, leading to stock shortages.
Purchase ordering will allow you visibility on all these areas along with cost prices and sales prices.
Discover your super suppliers
Many businesses do not know who their best suppliers are. Who do they order most of their products from? What was the cost of previous products and should they be receiving preferential discounts?
A great purchase order app leaves none of these questions unanswered, allowing for business control and clarity.
Want to use a PO system for your business to manage your orders? Reach out to us and we will assist you.