In case the vendor accepts the order and delivery date is confirmed, the final details are sent to the receiving department.The supplier either accepts the order or declines it, in which case a reason must be provided and sent back to the buyer.The vendor or the supplier is automatically notified and invited to review the purchase order.The requisition then needs to be approved by a manager or the finance department or any other required officer before the PO is created and sent to the supplier.The process begins with recording the purchase orders basic details and creating the requisition for internal approval.The illustrated purchase order process flow is explained below: Let us look at the complete purchase order process flow. Businesses are free to devise a process that suits their business needs. The purchase order process flow or cycle differs from business to business and sometimes, a business may follow different order process for different products. ![]() Sample purchase order format Purchase order process flow ![]() Shipment address or delivery location where the goods are required.Name of the vendor to whom the purchase order is being sent.Quantities i.e., (kg, meters, numbers etc.,).Below are details that usually forms part of purchase order: Purchase orders contain the details ranging from products that are ordered to shipping address. There is no question of right or wrong, as long it meets the business needs, you are free to follow any purchase order cycle. It is also possible one may simply raise a purchase order without the need for approval because the procurement process followed by the business does not need it. ![]() The journey mentioned above is a complete cycle that you get to see in bigger business and business who are well-organized. Once the purchase order is accepted by the vendor, it becomes a legally binding document which outlines the required items, the agreed-upon price, delivery expectations and payment terms. Once the approval is given, the PO is sent back to the requisitioner i.e., the concerned department and from there it is sent to the supplier for his acceptance. The purchase order procedure commences with the order approval which is enacted by the approver on the request raised by the department which is in need of the raw material. The purchase order is also called as ‘PO’ Purchase order procedure
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