Purchase order process flow
- Create a purchase order.
- Send out multiple requests for quotation(RFQ)
- Analyze and select a vendor.
- Negotiate contract and send PO.
- Receive goods/services.
- Receive and check invoice (3-Way Matching)
- Authorize invoice and pay the vendor.
- Record keeping.
What is the PO process?
The PO process is a part of a broader procurement process that includes confirming and specifying the actual need for goods or services before embarking on the purchase. It also includes processing payments and auditing results.
What are the five major steps in the purchasing process?
Here are the five stages you'll go through when buying anything.
- #1 – Problem or Need Recognition. The buyer recognizes a problem or need that has to be addressed. ...
- #2 – Information Search. ...
- #3 – Alternative Evaluation. ...
- #4 – Purchase Decision. ...
- #5 – Post-Purchase Behavior.
