{"id":4406,"date":"2013-09-06T06:47:08","date_gmt":"2013-09-06T04:47:08","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4406"},"modified":"2013-09-01T06:47:54","modified_gmt":"2013-09-01T04:47:54","slug":"a-purchase-order-in-a-nutshell","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/a-purchase-order-in-a-nutshell\/","title":{"rendered":"A purchase order in a nutshell"},"content":{"rendered":"

A purchase order or a \u201cPO\u201d in short stands for a process before the purchase transaction itself. It is one thing to make a purchase, but thinking a few steps before the act itself is what the PO is about.<\/span><\/span><\/p>\n

A purchase order is either a procedure in place in your business (or one you can implement) or it\u2019s at least an idea of what you may want to consider before making the transaction. It includes:\u00a0<\/span><\/span><\/p>\n

o\u00a0\u00a0\u00a0\u00a0Defining the \u201cneed\u201d for the purchase and reasoning behind making the expense (or investment if we consider buying assets). I think it\u2019s always good to take a step back and consider twice why we really want to make the purchase (unless it\u2019s buying everyday goods and services);<\/span><\/span><\/p>\n

o\u00a0\u00a0\u00a0\u00a0Having price estimations if applicable, i.e. for bigger investments asking price offers (and possibly also conditions if applicable) from potential suppliers;<\/span><\/span><\/p>\n

o\u00a0\u00a0\u00a0\u00a0Getting proper approval from respective people responsible for types of expenses;<\/span><\/span><\/p>\n

o\u00a0\u00a0\u00a0\u00a0Knowing your expenses that your company potentially will incur over the coming period(s).<\/span><\/span><\/p>\n

The last point is especially important when it comes to accruals and we will explain it later on. So essentially in a nutshell a purchase order is a proposal for a transaction that gives an outsider an idea of why we need it, how much it will cost for us and reflects the respective authorization.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A purchase order or a \u201cPO\u201d in short stands for a process before the purchase transaction itself. It is one thing to make a purchase, but thinking a few steps before the act itself is what the PO is about. A purchase order is either a procedure in place in your business (or one you […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,80],"tags":[],"class_list":["post-4406","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-10-purchases-and-payables"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t