Why Small to Medium Size Businesses Need Purchase Orders
Purchase orders ensure an audit trail for all vendor transactions, keeping both employees and vendors on the same page. Purchase orders are legally binding documents that tell the vendor what is needed, when it’s needed and at what price. Any purchase is an expense incurred to your business, and accounting for each expense is crucial to staying aware of your profits.
Why are manual procedures inefficient?
Producing and tracking all the forms that are part of the purchase cycle can become tedious and time consuming. Paperwork can be easily lost, damaged or accidentally destroyed. With the paper process, it is often difficult to spot duplicate requests, excessive purchases or missed transactions. Imagine having to stall your business’ workflow due to not having the key items needed to complete your orders. This happens more than you may think, due to the lengthy manual procedures required to generate a purchase order. Such procedure may include, requesting quotations, order acknowledgements and procuring requisitions just to name a few. With many other tasks on their plate staff members may wait until stock levels have run very low or are completely diminished before they may place these orders and take on the daunting task of completing these lengthy processes.
Make it Automatic
With Sage 100 all you need to do is input the vendor’s information and the minimum quantity level preferred and the software will take care of the rest. Whenever your on-hand quantity falls below a specified amount, the Purchase Order module will automatically generate a purchase order, according to your specifications, to the correct vendor ensuring that you never run out of key items. Since the process is automatic, there is no need to worry about mistakes that can arise from the potentially long paper processes. Not o