A Purchase Order (PO) is a commercial document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services. Purchase orders can be an essential part of enterprise resource planning (ERP) system orders. Companies use purchase orders for several reasons. Purchase orders allow buyers to communicate their intentions clearly and explicitly to sellers. They may also help a purchasing agent to manage incoming orders and pending orders.
Purpose of Purchase Order Report
PO report can be understood according to persona of the application. When a purchase agent want to find out detail of each purchase order or transaction, agent is interested mostly on tracking the order. This means agent wants to know the status of the PO and how this PO is affecting sales or inventory or productions. On the other hand, a purchase agent also wants to know overall trend of purchasing, purchase by vendor, purchasing budget, bill payment, and others. A PO System must support both types of reporting.
Purchase Order Summary
The Purchase Order (PO) summary report provides summary information about purchase orders. It is intended to be used by purchasing agents so they can quickly see the status of purchase orders
Purchase by Vendor
The Purchase Order by Vendor report provides the summary of monthly order amount that are ordered by the agent to each vendor. It also provides you the yearly total of the amount that you purchased from each vendor.
Cost Center and Budget
Cost center and budget report enables you to control the purchase budget for each cost center or account. The report provides you the trend of expenses in each budget category and remaining budget amount for future purchase.
Bill Payment Summary
Each bill is connected to a purchase order. This report summarized status of each bill. It contains the amount billed by the vendor or supplier, payment made so far, due and overall status of each bill.
Purchase Order Tracking
Purchase Order Tracking is important aspect of purchasing processes. It ensures that goods are received in time and in accurate quantity. It also ensures that you pay only once and in time for the goods that you purchase. In addition, you should be able to put controls like beyond a predefined amount, a PO needs approval, and define the approval process.