Mastering Purchase Order Fundamentals

Today’s fast-paced demands are requiring the rethinking of the standard paper processes and the use of electronic systems to facilitate decentralized desktop ordering, with just-in-time delivery while weighing the risks to internal controls.

Purchase Order Fundamentals will be an interactive experience covering the basics of a current procurement office and how purchase order systems are used. The topics covered will give you an understanding of purchasing processes and how to avoid common mistakes. 

The experienced Professional and Manager will be able to discuss interactively and share their experiences and ask questions to enhance their current operations with fresh ideas. 

Increase your knowledge and enhance your skills with an in-depth discussion surrounding the world of purchase orders. Walk away with a better understanding of the PO process, the best practices for working with POs and strategies that will help you avoid the errors that commonly occur in the PO process.

Purchase Orders can be a cause for much confusion and potential errors.  This is a great training program for the new procurement professional and the seasoned one may pick up some new ideas as well. It also covers payments and delivery so those in accounts payable and the receiving dock may benefit as well. Learn best practices and how to avoid problems when creating a purchase order.

Join Kenneth Jones as he walks you through the Purchase Order process from A to Z and clears up common misconceptions and helps you avoid common pitfalls. 

• Understand how to initiate the PO process
• Learn best practices for receiving orders
• Gain knowledge of the proper payment procedures
• Lean how to properly track deliveries and proactively avoid issues
• Understand the online ordering process as it relates to POs
• Gain a better understanding of the processes used with procurement cards
• Walk away with the confidence to avoid the most common pitfalls presented by the PO process

The benefit of Using a Purchase Order System

• A Purchase Order is a Contract
• Creating A Purchase Requisition
• Maintaining a vendor Database
• Maintaining Internal Account Records
• Receiving Merchandise
• Payment of Invoices
• Tracking the Process Using a computer
• Keeping Records for Future Use

Types of information to include on the Purchase Order

• Vendor Record Information
• Delivery and Contact information
• Product or Service description
• Basic Contract Information
• Freight Terms
• Delivery dates
• Payment Term
• Coding for Accounting
• Information for property/asset tracking
• References to your terms and conditions
• Authorized Signature of Agent

Types of Purchase Orders

• Purchase Order for Commodities
• Purchase Orders for Services
• Blanket or Standing Purchase Orders
• Confirming Purchase Orders
• Reimbursements
• No Order Payments
• Procurement Card Orders
• Online Electronic Orders

Purchase Order Pitfalls

• Ordering Outside the Purchase Order Process
• Vendor Quotes
• Conflicting Terms
• Timeliness of Ordering
• Managing Paper
• Decentralized VS Centralized Processes
• Proofreading the Document
• Tracking Order Delivery
• Approval Layers
• Internal Controls
• Cost of Processing

• Buyers
• Purchasing Agents  
• Accounts Payable Staff
• Shipping & Receiving Staff
• Equipment Management Staff