We have seen many organizations do purchase order data entry, also known as purchase order entry. Though many might be aware of what a purchase order data entry is. We should also know the steps involved in the purchase order process. So the primary intention of this blog is to give you an idea of the various steps involved in the purchase order process so that you will be aware of more than just the basic terms, like purchase order entry, the next time you go for a purchase.
Purchase Order Process
We all purchase goods and services from various
goods and service providers. We must learn that purchase order processing is a
small part of the procurement process. Purchase order comprises identifying and
confirming your actual needs before buying something. Payment processing and
auditing are two activities under the purchase order process.
5 Steps of the Purchase Order Process.
1. Purchase Requisition Creation
In the first step, the concerned requisitioner prepares the required documents to approve the purchase. He/ she can then make the necessary alternations or even cancel it before receiving the approval.
2. Issuing the Order
Then the purchase order is created after agreeing upon the necessary terms and conditions. In large purchases, firms should request a proposal from the suppliers. This order is issued once a financial authority approves the purchase. Once that is done, the PO is issued electronically to the suppliers.
3. Getting The Supplier Approval
The supplier will ask for amendments if the order needs changes, like correcting errors or anything else. And once the buyer makes the required changes, the supplier approves it via a suitable e-procurement platform or an e-mail.
4. Purchase Review
The supplier then delivers the product after performing the required service. The buyer then revises it to see if it is up to the mark. The buyer then records the arrival of goods using a 'goods received' note. At the same time, the buyer signs off services when it is up to the mark.
5. Payment
Once the payment is received, the next step is to
match it with the purchase order. If everything looks correct, the buyer makes
the payment per the agreement. Thus, the purchase order process is not limited
to purchase
order entry, a.k.a purchase order data entry.
