Self-designed Purchase Order System keeps very effective management control on current and future company expenditure with appropriate approval controls in place and aligned with company policy. It helps with visibility on accruals and commitment accounting, with transparency on viewing unfulfilled orders, or orders fulfilled but not yet invoiced.
Features | Benefits |
Approval is placed at the start of the procurement process and not at the end when the invoice is due |
Principal benefit of approving costs before expenditure has been committed, reducing any surprise element which makes for an incredibly efficient purchase order process in a controlled manner |
All actions are handled electronically |
Ensures minimal delays between procurer, authorising manager and supplier. Ends the use of a paper trail, which is prone to delays through “lost” documents and potential absence of authoriser from the office and therefore allows for a continuous work flow. |
It helps with accruals and commitment accounting, rather than just leaving the accountant to depend upon the incomplete picture of just invoices received |
Reduces potential errors and mistakes being made in the accounting process, thereby providing a much more efficient and robust accounting system. Easy viewing on unfulfilled orders and committed orders fulfilled but not yet invoiced |
The system allows for value limits to be set for each authoriser, with single or multi-approval rule sets, all controlled within an authorisation matrix. |
Provides proper procurement control by enforcing company policies allowing orders to be raised against approved suppliers |
Allows budgetary holders to apply costs to the correct dept/expense code at the requisition stage, rather than letting account staff do it upon receipt of invoice |
Ensures information through the account system is processed in a correct and efficient manner |
Easy process to see who is ordering, at what expenditure and for what products |
Improves managerial controls |
Unique Purchase Requisition numbers are automatically generated and upon approval, a unique Purchase Order number is generated |
Reliable accounting process controls in place |