PURCHASING > Purchase Orders >
A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer.
You can create new POs in your PO Work Area.
Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a one-off contract between the buyer and seller, so no contract exists until the purchase order is accepted.
Background and Purpose
There are several reasons why companies use Purchase Orders.
Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers, and sellers are protected in case of a buyer's refusal to pay for goods or services. Purchase Orders also help a purchasing agent or department manage incoming orders and pending orders. Purchase Orders also are an economical choice for a business because they help to streamline and standardize the purchasing process.
Electronic Purchase Orders
Many Purchase Orders are no longer paper-based, but rather transmitted electronically. SpendMap offers a variety of options for sending POs electronically.
Order Status and History Tracking
Regardless of how (or if) you send copies of Purchase Orders to suppliers, when POs are processed in SpendMap, various areas in the system will be updated with the new PO information, including PO Status, Item History, and various other areas and reports, so you will have a complete history of your purchases for future analysis and planning.
