Overview

Purchase orders are legally binding documents, ensuring clear communication and accountability between customers and suppliers. 

Purchase Orders provide many benefits:

• purchases are approved by a delegate prior to orders being placed;

• purchases are feasible and within the business units’ budget; and

• future commitments are visible as encumbrances in management reports

Purchase orders are recommended for most purchases over $5k.

Purchase Orders can be raised in three different ways:

To better understand the account payable workflow when a purchase order is raised and receipted, please find the workflow here.