Purchase order
In Arabic أمر الشراء
A document a buyer sends to a vendor stating the items, quantities, prices and terms of an intended purchase.
In plain words
The purchase order fixes what you agreed before the goods arrive. The receipt is then checked against its quantities, and the vendor’s bill against its prices.
Most businesses require approval before an order goes out, so someone other than the buyer agrees to the spend. Once approved, the order should not change without going back through that step.
The common mistake is ordering by phone and raising the purchase order after the goods arrive. The order then records what came, not what was agreed, and there is nothing left to check against.
- 50 ctn × SAR 40.00
- SAR 2,000
- 20 ctn × SAR 65.00
- SAR 1,300
- Subtotal
- SAR 3,300
- VAT 15%
- SAR 495
- Order total
- SAR 3,795
In Axon Suite
How Axon Suite handles it
A purchase order in Axon Suite starts as a draft, is submitted, and is approved by a user whose role holds approval rights. Until then, no goods can be received against it and no bill can draw on it.
Feature
Approved before the goods arrive
A purchase order starts as a draft, is submitted, and is approved by a user whose role holds approval rights on purchase orders. Until then, no goods can be received against it and no bill can draw on it.
Open: Approved before the goods arrive