Purchase Order in simple terms is the contract drafted by the buyer when purchasing goods from the seller. The purchase order number is matched to the purchase invoice to confirm whether the buyer is charged the right amount for the goods and to check the goods ordered and the goods received are the same.

Benefits of making Purchase Order:

• Keep track of the goods that will be delivered and compare them to the invoices to ensure accuracy

• Avoid duplicate of orders and keep track on what has been ordered from whom

• Purchase Orders serve as legal documents and help avoid any future disputes regarding the transaction

Steps to be followed to convert Purchase Order to Purchase Invoice:

1. Go to 'Inventory' ---> select 'Proforma'

2. Click the type, in drop select 'Purchase Order'

3. Give the required 'Supplier Code' by tapping 'Enter' and select the supplier

4. At the 'Product Name' column fill in the required product, its quantity and necessary details and then press F2 to save it

5. Go to 'Inventory' ---> click 'Purchase'

6. Give the 'Invoice Number' as you wish randomly and then go to the 'Supplier Code' column and press 'Enter'. There will be a list of suppliers, select the supplier

7. Keep the cursor at 'Product Name' and press Ctrl+P, a 'Purchase Order' box will appear, select 'YES' and the enable/disable it

8. Click on 'OK' and then you will see the product that will appear for which you have made a purchase and then click on F2 to save it

Thus, a purchase order helps you procure stocks on time and satisfy your customers!