Without a paper trail, information can get lost in the process. With a paper trail for purchase orders, it is easier for companies and suppliers to generate and check the accuracy of invoices. Without purchase orders, it will be harder for companies to invoice correctly. Then, companies can go back and tabulate their costs down the line. Purchase orders should have numbers so they can be placed in order. Having purchase orders also makes it easier to track expenses. This makes it easier for companies to go back and audit their previous purchases to see how much money was spent and where it was spent. With purchase orders, there is a paper trail of all prior orders. ![]() They include: Clear Information for Auditing There are several significant benefits of a purchase order. In contrast, a Seller sends an invoice AFTER placing an order and demands payment for the goods purchased.Īlternatively, an Invoice is used as a receipt when the Buyer has paid for the goods ordered. ![]() Invoice: What’s the Difference?Ī Buyer sends a Purchase Order BEFORE payment is made to request the Seller deliver a certain number of goods officially. ![]() Credit cards can replace purchase orders to help with record keeping and the documentation of purchases, although they don’t act as a legal contract between the supplier and the vendor.Creates additional documentation and steps to the purchasing process, which may create more work for your staff.
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