Purchase order, shortened as PO, is an essential document which is made by buyers to sellers. This particular form comprises product or services information requests. In detail, purchase orders typically encompass the type of goods, quantity, total prices, contact, time, and shipping address. By documenting purchase orders, both buyer and seller can conduct transactions in a more organized way. Moreover, if it comes to a large amount of business dealing, the role of this document is important to help ensure accurate and secured transactions. Additionally, after suppliers receive a purchase order, they commonly send back a subsequent invoice containing payment terms.
The Purchase Order Functions
Initially created during transaction, there are several purposes of generating purchase orders, such as:
- Assure the conformity of the orders received and sent
- Record and monitor financial activities
- Control internal inventory status and stock
- Comply with the company authorization and regulation
- Manage the procurement procedural process
The Purchase Order Workflow
The finance department, accounting unit, or the responsible team typically oversees multiple steps in purchase order management, as follows:
- Issuance: Creating purchase orders to address required goods from other divisions in need.
- Approval: Verification, compliance, and authorization by the finance manager.
- Negotiation: Discussion to finalize arrangements on prices, installment scheme, and payment method.
- Documentation: Inputting and record-keeping the document into general ledger.
- Shipment: The delivery of products from suppliers as per the designated schedule and location.
- Payment: Making payment in accordance with the agreed-upon payment plan.
The Tips for Effective Purchase Order Management
It’s mandatory for businesses to keep track of their financial histories. But the most challenging part is to handle an extensive and wide range of document load while maintaining operational efficiency. One of AI products, called OCR (Optical Character Recognition) tool, has contributed to supercharge various sectors nowadays, including how it works to transform the accounting process. Take a closer look at the specific steps outlining how you can achieve performance excellence with OCR.
1. Digitally archives
Preserving the transaction documents in a digital repository helps you to navigate the amounts of data easily. By adopting Fintelite OCR tool, experience automated extracts and inputs important details from your handwritten or printed files.
2. Establish proper review and approval flow
To make the monitoring process run more efficiently, settle up an authorization flow between the manager and administrator. Fintelite OCR has been developed with access control, regulating edit and approval permissions.
3. Seamless integration
For further processing, you may need to deliver the extracted data to another system. Supported with a complete export feature, Fintelite OCR enables you to select and download the data into customized formats and various templates, allowing you to easily transfer to Google Sheets, Excel, and Accounting Platform.
Fintelite OCR: Effortlessly Extract Your Documents in Seconds
Fintelite OCR arises as the right solution to improve accuracy and speediness in data extraction. Covers multiple document types, convert your scanned data into digitally editable version. By automating data entry with our tool, the team can channel increased focus on strategic tasks, creating a more optimal and productive workforce. Sign up today to enjoy one-month free use of our OCR dashboard. Click here to register.
