PO (Purchase Order)
What is a PO or purchase order? And what does it mean in the context of IT asset management and IT procurement?
A purchase order (PO) is a formal document a buyer issues to a vendor to approve a purchase. It outlines key details such as quantities, pricing, delivery dates, and payment terms, essentially serving as a formal agreement before the transaction begins.
POs also matter in IT procurement. Here’s why:
- Clear documentation: POs create a paper trail for what was ordered, when, and from whom.
- Budget control: Each PO can be tied to a specific project, department, or budget line for better tracking.
- Fewer errors: With all details clearly stated upfront, the chance of miscommunication drops.
- Faster approvals: Automating PO workflows can speed up procurement and reduce bottlenecks.
- Audit readiness: POs help with compliance and reporting by keeping purchase records organized and searchable.
At Dots, POs can be made part of the ordering process. Companies can choose whether a PO is required before orders are placed. If your finance department requires every laptop to be tied to a PO, Dots can enforce that rule. This ensures compliance and reduces confusion between IT and finance. The platform also makes it easy to attach PO numbers to specific orders, so when reports are exported or invoices are reconciled, the information is already aligned. For companies operating in multiple countries, POs can help maintain a consistent approval process across regions. At Dots, we treat POs as part of transparent procurement. They are flexible enough to fit different company policies while still keeping the process smooth for IT managers.
