Purchase Order Management

Purchase Order Management

Purchase order management is the process of creating and tracking purchase orders. A purchase order (PO) is a document that a buyer creates to request goods or services from a seller. POs are usually created after the buyer and seller have negotiated terms and conditions, and they detail what the buyer will purchase, how much they will pay, and when they expect to receive the goods or services.

Once a PO is issued, it becomes a legally binding contract between the buyer and seller. The seller is obligated to provide the goods or services specified in the PO, and the buyer is obligated to pay for them. POs can be tracked manually or using software that automates the process.

PO management includes creating POs, issuing them to sellers, tracking their status, and receiving and inspecting the goods or services purchased. It also involves managing payments, resolving disputes, and cancelling orders if necessary.