What is purchase order processing?

Purchase order processing is the workflow involved in creating, approving, and managing purchase orders within an organization. It typically begins when a department identifies a need for goods or services and submits a purchase requisition. Once approved, a purchase order is generated and sent to the supplier, who fulfills the request and issues an invoice. Proper purchase order processing ensures accurate record-keeping, budget control, and timely procurement of necessary items. The process also helps prevent errors and unauthorized spending.