A purchase order is the contract between a buyer and seller that details the exact goods to be exchanged in a particular inventory purchase. It’s the document that details what merchandise is to be ordered and all the information surrounding that transaction. SMEs carry out purchase orders all the time, usually without thinking and generally without calling them “purchase orders”. To most small businesses it’s just a part of doing business, ordering more stock. But if we look at the purchase order in isolation, separate from other administrative tasks, we see there are a few common features and trends in the way they’re completed.
Purchase orders are always documents, comprised of payment dates, delivery dates, inventory price and quantity. They include stock identification numbers, shipment details and other basic information SMEs must manually extract from their inventory management system. Even if they’re exported from stock management software purchase orders always require time for some information entry or checking.
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