Three Important Answers About PO Documents

Bogdan Büchner

When someone is planning to purchase products or services, they will often use a PO document to make their intentions known. This document is sent from the intended buyer to the one with the item for sale. While PO documents are a fantastic and important part of business life, some people doubt their usefulness. Listed below are three questions and answers about using a PO document.

1. Is the Document Necessary or Simply the PO Number?

Frequently, buyers will only provide the seller with a PO number. While this is often enough, providing the entire PO document is best. As a whole, the document explains the amount, products, services, and prices that the buyer is authorizing. By providing the entire document, buyers and sellers both understand what is expected in the transaction.

2. How Can Giving a PO Protect Buyers?

When you plan to make a purchase, a PO document guarantees that you will receive only what you want. The PO helps your accountant to match a supplier’s invoice to the right project and account manager. When you give a PO, you will be able to look over what has been ordered, delivered, invoiced, and paid. These PO documents makes it much easier to keep up with revenue records on a monthly and yearly basis. A PO can help you keep up with any financial commitments and products that you have promised to purchase. When you have a PO number, your accountant can make sure that the invoice total matches the PO number and this enables them to go forward with the purchase.

3. What if You Choose to Go Without a PO Document?

When you decide to opt out of a PO document, you’re weighing your accountant down with additional work. While this may not seem like a big deal to you, your accountant will be required to spend extra time asking for your approval on purchases and their extra work may ultimately cost you more money. A lack of PO documents can also cause disputes in your financial reporting and disrupt your business’ income statistics.

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