A purchase order system is a way of accounting for and reconciling your company’s purchase orders for goods and services from an external source. An automated and well-organised purchase order system is the heart of any purchase to pay solution.

Show goods and services ordered but not received.

Using purchase order software shows all the purchases that have been made but that have not been fulfilled by the supplier. This helps your procurement manager account for outstanding financial commitments.

Prevent over budget purchasing.

When all outstanding financial commitments are clearly documented and matched against the department budget, over budget purchasing becomes virtually impossible. This saves your company money and maintains good relationships with your suppliers.

Three way matching.

With online purchase order software like Purchase Control, it is possible to perform automated reconciliation with three documents in the purchase to pay process: the purchase order, the order receipt, and the supplier invoice. This practice reduces the risk of erroneous invoicing or receiving the incorrect item, type or quantity. Overall this process helps save time and money.

Delegate responsibilities and manage access.

Defining clearly and enforcing the responsibilities and access levels in the purchasing process reduces the risk of discrepancies in receiving and accounts payable. A full audit trail of all purchasing operations ensures compliance with your company’s procurement policies.

Maintain a running history of transactions with suppliers.

A record of purchase history allows for repeat orders, saving your purchasing department time and energy. Reporting on pricing history gives your procurement manager the data necessary to evaluate the actual costs and benefits of purchasing with a certain supplier.

Governments and super suppliers.

Most government agencies and very large multinational suppliers (super suppliers) require receipt of a purchase order for any purchasing operation.

How do purchase order systems work?