send purchase order to guru electronics for 100 tv rs. 10000/- each. stock kept at warehouse after delivery.
Answers
Answer:
Purchase order procedure
The purchase order procedure commences with the order approval which is enacted by the approver on the request raised by the department which is in need of the raw material.
Once the approval is given, the PO is sent back to the requisitioner i.e., the concerned department and from there it is sent to the supplier for his acceptance.
Once the purchase order is accepted by the vendor, it becomes a legally binding document which outlines the required items, the agreed-upon price, delivery expectations and payment terms.
The journey mentioned above is a complete cycle that you get to see in bigger business and business who are well-organized. It is also possible one may simply raise a purchase order without the need for approval because the procurement process followed by the business does not need it.
There is no question of right or wrong, as long it meets the business needs, you are free to follow any purchase order cycle.
Details of purchase order
Purchase orders contain the details ranging from products that are ordered to shipping address. Below are details that usually forms part of purchase order:
Products that are ordered
Quantities i.e., (kg, meters, numbers etc.,)