Digital Purchase Orders
Initiating a digital purchase order with your inventory software is the preferred method of transmitting an order to a vendor. As customer expectation grows, so too should your resources to meet demand with adequate inventory supply, the key to remaining competitive.
The trick to keeping inventory stocked at the right levels is sending over a purchase order when inventory dips to set reorder points. At the predetermined reorder point, you can generate a purchase order manually or automatically using SOS Inventory software.
The automation of this process is more reliable than tracking inventory levels by hand and leaves no room for human error. (The process is also referred to as an electronic purchase order system).
Simplifying the Purchase Order Process
When your inventory system is integrated from end to end, generating purchase orders from a sales order is easy to do.
A purchase order is a form that businesses use when requesting products from vendor for goods or services in exchange for payment. The purchase request will indicate payment terms, delivery, cost per unit, etc.
When using SOS Inventory as your digital purchase order software, everything you do in your SOS account will synchronize with purchase orders in QuickBooks Online when you enable the feature in your account (enabled by default).
Initially, your purchase order will not affect your financial report as it is a non-posting transaction. Once you have received the goods from the vendor and logged them into your account, the purchase order will close automatically. (A manual option is always available, too).
You can also process blanket purchase orders, open-ended POs with a set price but no specific quantity. Simply check off the “Blanket PO” option on the form when you enter it into your account.
By managing the flow of information to and from the vendor, updating the system when product arrives and synching to QuickBooks Online, you get complete end-to-end control of your digital purchase orders for greater accuracy and timely acquisition of inventory.
How Do Manual and Digital Purchase Orders Compare?
| Data accuracy and consistency | Higher more accurate and consistent than manual ones because they can be programmed to ensure that all necessary fields are completed and that all data is consistent with other systems. | Lower due to manual input of information. |
| Time and effort | Less time and effort because they can be created, approved, and transmitted electronically, eliminating the need for physical copies to be printed, signed, and mailed. | More time and effort since information is not populated nor shared with other related files such as sales orders. |
| Bottlenecks | Fewer bottlenecks because they can be processed faster and with fewer manual steps, reducing the likelihood of delays or errors. | More bottlenecks due to the information being controlled by the person who created the purchase order. |
| Data storage | Easier and more efficient because they can be saved electronically and easily searched, eliminating the need for physical storage space and manual record-keeping. | More difficult and less efficient. Information may be siloed on a single computer. |
| Compliance and audit | Easier to track and audit because they can be programmed to include specific fields and follow specific rules, making it easier to ensure compliance with regulations and internal policies. | Harder to track and audit depending on the filing system of the individual who created it. |
| Vendor relationship | Reduction of errors makes it easier to track and process orders, and providing more transparency into the purchasing process. | Strained vendor relationships caused by delays or errors that affect business operations. |
SOS Inventory Purchase Order Form Customizations:
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Inventory Purchase Order You can set your purchase order to auto populate with a purchase order number.
- Enter a tracking number.
- Process blanket purchase orders.
- Specify terms.
- Choose ship to location from drop down of multiple locations.
- Customize message to vendor.
- Generate item receipt from digital purchase order.
A digital purchase order system will eliminate the worry of not ordering on time and coming up short on raw materials. Automating these processes with SOS Inventory saves time and money with consistent inventory ordering to prevent production slowdowns.
- Automate a repetitive task to save time.
- Ensure supply keeps up with demand. Avoid unpleasant surprises that crop up when your team is busy!
Customers have become accustomed to fast delivery and instantaneous gratification. Keeping up with consumers’ high expectations requires tools that help your business perform tasks faster and more efficiently.
SOS Inventory goes above and beyond processing your digital purchase orders as a software platform that manages everything from supply chains, manufacturing, inventory, sales orders, fulfillment, and finances. You don’t need to acquire software specifically as an electronic purchase order system; you only need one affordable cloud-based inventory software to do everything your business needs.
