A purchase order is a written contract that a buyer sends to a seller to spell out exactly what products or services they want the seller to provide. It is an important tool that is used on a daily basis in most businesses to reorder items that they are short on in their warehouse and to stay ahead of changes in inventory levels and other key business figures.
Purchase orders usually contain a great deal of information, including:
- Billing and shipping addresses
- Individual and total costs
- Order and delivery dates
- Number and types of products ordered
THE PURPOSES OF PURCHASE ORDERS
Purchase orders can be used for a variety of purposes, not just ordering new products. They can also be used to receive products into your warehouse and return products that are damaged or obsolete. You can even create a purchase order to outsource a job, such as modifying or repairing a product. When the job is completed, you can receive the refurbished product back into your warehouse either with a new part number or with the same part number that it had before, depending on how much it has changed and how you want to categorize it.
Because purchase orders are such an important part of managing inventory, it makes sense that businesses should look for ways to make them easier to create and organize. That is where purchase order software comes in.
THE POWER OF PURCHASE ORDER SOFTWARE
Purchase order software speeds up the process of generating purchase orders by saving vendor information, product ID numbers, prices, and a lot of other data that is essential when it comes to ordering items. So when you need to order a part, all you have to do is select the right vendor and product, and the purchase order system will automatically populate the form with the rest of the details. The only things really left are to enter how many products you want to receive and where they should be sent to.
With the right software tools, you can set up automatic reorder points on each and every item in your warehouse. Assign a certain quantity and a default vendor to each item. That way, the software will automatically generate purchase orders for items that fall below their reorder point and they will order more from the right vendors, based on your saved settings. This saves you many steps so that you don’t have to manually order more parts or products. Instead, it ensures that all of that is done for you. Simply issue the purchase orders that are generated for you and you should be able to maintain a healthy inventory level at all times.
Receiving and returning inventory with purchase order software are even faster than placing orders. The information is already stored in the original purchase order, so you just have to go in and make a few changes.
Purchase order software helps companies save time by making it faster and easier to order and receive inventory. Fishbowl offers user-friendly purchase order software that also includes many other useful features to help you manage your inventory more efficiently. Start using Fishbowl in your business today by signing up for a free trial.
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Purchase orders are documents used to spell out the details of transactions between buyers and sellers. These include billing and shipping addresses, item names and costs, and order and delivery dates. There are other uses for purchase orders, such as product repairs and outsourcing jobs. Purchase orders can be created and issued digitally using software.