What is a PO Number?
A P.O., also known as a purchase order number, is a unique number assigned to a specific transaction, usually when exchanging goods and services. You’ll typically find a P.O. number on a purchase order document, which is legally binding.
PO numbers are important for admin and finances in various ways: For example, a purchase order number can help you manage your inventory, give a clear overview about the payment that’s due, and ensure prices are agreed upon, with no one going back on their word.
The most important part of P.O. numbers and purchase orders? They’re legal documents, which means they protect every transaction.
How to Make a PO Tracking Number
To create a P.O. number, you can create templates and manually assign purchase order numbers to purchase orders and invoices with every new transaction. But keep in mind that this process is ideal if you have a small business. But what if you have a large business with a much higher volume of transactions?
To save time and avoid a major headache, you can use a cloud-based accounting solution to automatically assign individual purchase orders unique P.O. numbers.
What Is a PO Number Invoice?
You might have heard someone refer to a purchase order as a P.O. number invoice. But the two aren’t the same thing. A purchase order outlines what has been agreed, and is created by the buyer, at the beginning of the transaction process. In contrast, an invoice comes at the end of the process, outlining what needs to be paid—for example, when you invoice a supplier. This initiates the invoicing process, while the buyer creates a purchase order.
We Can Help
ControlHub, coupled with its efficient purchasing software, simplifies the process of creating purchase orders and managing accounts payable by offering a free Purchase Order generator. This tool enables you to effortlessly generate distinctive purchase orders whenever the need arises, without any complications. Give it a try and witness firsthand the considerable time it can save for you.
