Corporate Purchase Order System
- The purchase order is opened by a request, the person making the request does not have to enter a vendor or a price. The department head then can approve or cancel the request. At this time the vendor has to be selected and the price entered.
- When the invoice for the purchase is received, the department head or accounts payable department confirms that the item and price is correct. If all is ok the purchase order is confirmed and sent to payables.
- If the decision is make to have a purchase order for any and all invoices before they will be paid, the confirmation of the purchase order is also the automatic entry into accounts payable.
- If the decision is made to require the purchase order the following has to happen.
- The G/L codes have to be entered with each purchase order line. The serial numbers for each whole good on the purchase order must be entered and is forced to be accurate. Purchase orders and stock orders from the parts department are downloaded into the purchase order system automatically.