In handling every stage of a purchase transaction, there are many applications we can use. There are plenty of ever-evolving trends we always want to get caught up.
We all have such gut to be in the trendiest development that we often forget the most important thing in the procurement realm – purchase orders. Email threads and verbal commitments are not enough to acquire business success. It takes more than just orders. You need that sticky stuff known as purchase orders to keep the buyer-seller relationship intact.
Wonder how you can track your orders and receive payments hassle-free? This is what you will be learning today.
What is really a Purchase Order
A legally binding document between a buyer and a seller is called a purchase order. It is a detailed purchase agreement outlining the terms of the payment and basically the delivery date. Each element mentioned in this order is meant for a specific goal and that every single aspect keeps your company together.
A purchase order simply makes everything work together. It is typically used if you, as a buyer, want to purchase supplies. In this process, the supplier delivers the purchased items right before the payment. There could be risks but there is a legal protection companies often used to.
Why Use Purchase Orders
When it comes to WooCommerce inventory management and payment tracking, a purchase order is of top importance. It helps suppliers make a possible comparison with all the inventory terms for accuracy.
Here are some other advantages of purchase order businesses need to keep in mind.
Avoids Surprising Price Increase
A supplier can’t automatically change the price without letting the buyer know the supposed change. Both parties should always agree upon the price adjustments for clarification.
Ensures Clear Communication
When there is miscommunication, a purchase order clears it up. It ensures that all the details of a purchase are communicated upfront so you and the supplier could avoid conflicts and confusions in the long run.
Enables the Matching of Purchases
Having a unique purchase order number can help everything that is ordered and delivered go with. Your company can easily see which purchases were made and transacted when you use a purchase order system.
Keeps Invoices in Check
It’s hard to make repeat orders without documentation. A purchase order keeps every invoice in check so it would be easy for you to pay items and order products again in the agreed price.
Offers Efficient Operations
If purchase orders were not invented, companies would find it difficult to check orders across different systems. Enforcing budget and accountability wouldn’t also be this simple. This means there are more time and money to save with less effort.
How to Use Purchase Orders at Its Best
A purchase order is a key part in business. It prevents financial discrepancies and streamlines the order, delivery, shipment, and payment process. This gives audit trails a magic.
WooPOS has all the purchase order functionalities you need to keep accurate records of every inventory movement. The next time you think about purchase orders, think POS and you will have the power to keep business puzzles together!