![]() Keep in mind that purchase orders are different from invoices. But this back-and-forth is necessary for preventing errors and ensuring all of the information is correct. That’s because both the buyer and vendor must approve the PO, which can take several rounds of internal and external modifications. If accounting approves the purchase requisition, the purchasing department will send a document called the purchase order (PO)-the official, external-facing purchase request-to the vendor.Īpproving purchase orders can be a time-consuming process-especially for organizations with a manual P2P process. Next, the department must create a purchase requisition, an internal-facing request for purchase that accounting must review. marketing, HR, sales, etc.) identifying what’s required, which potential vendor is the best fit, and how much the goods or services will cost. This first step involves the applicable department (e.g. While the process can vary a bit from one organization to the next, the P2P process usually follows these overarching steps:īefore an organization can procure and pay for goods and services, they must first determine what they actually need.
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