The purchase order is an internal control tool of the business which helps to prevent impulsive actions and fraud in relation to purchases. It distributes the different phases of the purchase operation between different people.
A purchase order is a request sent to a supplier for certain articles at an agreed price. It sets out the payment and delivery terms.
With the purchase order the supplier is being authorised to deliver the articles and to submit an invoice.
Before delivery the business must have set up a sufficiently flexible process of requests and authorisations to ensure that the benefit in terms of internal control significantly outweighs the cost of the internal bureaucracy generated by the procedure. In this context e-mail plays an essential role as it assists with the rapid and concise transmission of both the form setting out the purchasing requirements and the necessary authorisation, which is sent both to the supplier and to the Office. It is the Office that is responsible for the outsourced supplier payment service.
The purchase order constitutes the first step in our management area. Once approved, the Office initiates the second phase: administration of payments. In this phase we start the relationship with your business’s suppliers, creditors and banks and deal with it until the final settlement of the debts owed.