Elements of a good Purchase Order System

The main purpose of a purchase order system is to buy inventory at an expected price, track the status of inventory on order, and eliminate fraudulent purchases.  There are two ways to handle purchase orders.  A purchase order system can be manual or computer automated.  Both will accomplish the same goal, but the computer automated system will save time and eliminate the problems associated with a manual purchase order system.  Most over the counter accounting software programs have a built in purchase order system.  A typical purchase order form will include the vendor name and address, ship to information, purchase order number, item numbers or inventory part numbers, item or inventory part description, quantity, and price.  When a purchase order is created it includes a purchase order number.  This PO number is your companies first line of defense from fraudulent charges, and it is your main avenue of looking back at previous purchases.  Once the inventory items have been received they should then be entered into inventory in the accounting software, even if the bill has not been received for the items ordered.  This will at least keep your inventory count accurate.  Once you receive the bill for the items purchased, it should be compared against your purchase order.  The main reason for this step is to make sure the amount you were charged for the items, is the amount you expected to be charged.  If it is not, you may need to update your pricing.

Quickbooks includes a good Purchase Order System in its accounting software.  For assistance with your Quickbooks software contact a Certified Quickbooks ProAdvisor

If you need a customized solution for integration with Quickbooks, or if you are looking for quality work order software that integrates with Quickbooks, give one of our software engineers a call at 1-866-437-7824.

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