What is the benefit of using purchase orders?


Using purchase orders is generally a good business practice and provides several of the following benefits:

  • Provides control over the purchase of goods or services
  • Ensures that the pricing, quantity, and materials or services ordered is what is actually billed
  • Approves the commitment of a purchase by authorized employees
  • Adds fiscal control to your purchasing
  • Can provide visibility into your purchasing amounts and quantities including:
    -identifying opportunities for quantity discounts with vendors
    -quantifying purchase commitments with your vendors
  • Can enhance your internal control systems:
    -match price, quantity and item using three-way match of PO, invoice and receiving report
    -identify price discrepancies
    -only allow authorized employees to make purchase commitments


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