Electronic Purchase Orders
For most companies, the purchase order process is a manual task, particularly evident in small businesses and rapidly expanding enterprises. In the context of small businesses, a manual approach is often sufficient due to their relatively limited purchases throughout the year. However, as a business scales up, managing the creation and tracking of these documents becomes increasingly challenging. This is precisely where an electronic purchase order system, facilitated by efficient purchasing software, can offer valuable assistance.
With that said, what is an electronic purchase order?
The electronic PO is the next step in business automation
An electronic purchase order, also known as a digital purchase order, is the modern equivalent of an old-fashioned paper purchase order. In most cases, it has the same information as its paper counterparts. However, it's more convenient for both buyers and sellers. For one thing, the purchase order software that created each document will automatically archive it. This means that the issuer and supplier do not need to keep track of paper.
Another benefit of this automation is that the seller or vendor of goods can use the information to create an invoice. They can also use it for shipping confirmations and packing slips. Otherwise, with a paper PO, the vendor’s staff has to copy the information onto a new document by hand. With data entry being automated, there is much less opportunity for errors and fraud.
An electronic PO system helps with budgets and bill paying
Generally speaking, electronic purchase orders are issued within more comprehensive purchasing software. For example, ControlHub handles most purchasing tasks in the same software suite. In fact, it even helps with AP automation by expediting the approval of invoices after goods have arrived at your company's address. This way, your staff we'll have very few manual tasks and can focus on more important things.
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