Purchase Order Systems Definition
A purchase order system is a computerized system used by businesses to streamline the purchasing process. This system automates the creation and tracking of purchase orders, and can be integrated with other business systems such as accounting and inventory management.
Purchase orders are created when a business decides to buy goods or services from another company. The purchase order system will generate a document that includes all the relevant details of the transaction, such as the items being purchased, quantity, price, delivery date, and payment terms.
Once the purchase order is sent to the supplier, they will confirm the order and begin preparing the goods for shipment. The purchase order system will then track the progress of the order and provide updates to both the buyer and seller. When the goods are received by the buyer, they can be invoiced through the system and payment can be made accordingly.
