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How to Increase Efficiency with PO Templates - Automated PO form templates with Prokuria

When it comes to purchase orders, the last thing you want is for your information not to be formatted in a way that can be easy to build and create for you, but it may be created manually, as well. The main difference between these two options lies in what information needs input; date/address will already be included on the form if done via a programmed process while all those pieces need to be entered separately or filled out elsewhere before compiling everything into one document when someone creates their own manual version.


How to Increase Efficiency with PO Templates


Table of contents

  1. Purchase order definition

  2. What is a purchase order template?

  3. How do you format a purchase order?

  4. Types of Purchase order templates

  5. Disadvantages of using Excel/Word-based purchase order templates

  6. How to automate purchase order creation

  7. Benefits of purchase order automation

  8. Track and manage purchase orders better using Prokuria



Purchase order definition


A purchase order is a business document that allows buyers and sellers to agree on the details of their transaction. The PO's summary contains information about products or services along with price, so it must be clear for both parties exactly what they're agreeing upon before anything can happen - no confusion allowed here!


Purchase orders are a business's way of communicating what they want from sellers. It can also relay how orders and shipments should be handled, as well as provide an official record (or contract) in case anything goes wrong with delivery or payment.


Purchases Orders systems ensure that the multiple parties overseeing handling purchases inventory account management have things properly documented so that there is no confusion about who’s responsible for what; this means that if one person cannot get back to you then others will know where to look!



What is a purchase order template?


The purchase order template is a pre-designed, customizable form that you may use as-is or customize for your needs. Using templates allows you to speed up the creation of new Purchase Orders and avoid beginning from scratch with each one, ending up with different fields like item name and quantity needed depending on what it's going to be used for.


A purchase order template can be a great way for your procurement team to streamline the process of creating these documents. With most SMBs using existing MS Office or Google Docs templates, this saves you time in getting your PO forms completed and ready.


A purchase order template will typically include:

  • Buyer name, logo, address

  • PO number

  • Seller name, address, the contact information of the service provider

  • Order details: The date of purchase, items bought, and their total value or price per unit (if they are not sold individually)

  • The payment details (Unit price, total PO value, adjustments, and payment terms).

  • Additional terms and conditions

  • Signature line and date (seller must be notified in case of issues with the order).


How do you format a purchase order?


A purchase order might be written in several styles, but there is no fixed rule regarding its formatting. The following form may serve as a basic guide:

  • The purchase order header is the first record in a purchase order. It includes information such as the company name, address, PO date, and purchase order's number;

  • Supplier information: This section includes the name and address of the vendor as well as your specific contact's name and address;

  • Ship to: Choose a destination for the item, the method of delivery, the conditions under which it will be shipped, and when it must be delivered;

  • The order details: Provide a line item for each product in the order, including the product code or SKU, item name, and description. Also include the number of items required, price per unit, and required delivery date for each unit;

  • Summary: A subtotal, any applicable discounts, shipping costs, taxes, and finally, the overall sum should be filled out on the purchase order form.


Types of Purchase order templates


Functionally, there are two types of Purchase Order Format: Computerized and Manual.


Computerized Purchase Order Template


The first type of purchase order is Computerized Purchase Order Templated. This can be generated by using an automated system such as Prokuria to build and create this for you, but it may be created manually, as well. The main difference between the manual and automated options lies in what information needs to be added to each PO. For example, date/address will already be included on the form if done via a programmed process; on a manual process all the data items need to be inputted separately or filled out elsewhere before compiling everything into one document.


When it comes to ordering supplies, the last thing you want is for your information not to be formatted in a way that can easily be tracked and organized. The automated PO system will fix this problem by automatically filling out all needed fields when any order goes through!


Manual Purchase Order Template


A Manual Purchase Order Template is the second type of purchase order template. This document can be created using an automated system, but it will not always include all sections that are typically found on computerized ones--the main difference between these two formats again comes down to convenience - with a manual generation process there may need input from you or other sources before compiling everything into one PO itself if needed (date/address).


The most difficult part about creating a purchase order is trying to put all the information into one document. It can be tricky remembering exactly what needs to go where and you may end up with mistakes that could potentially cost money or time if they are not caught before sending out an official-looking piece of paper called "a PO." A manual Purchase Order format should include everything necessary for doing business - including any special notes, signatures & dates needed by clients!



Also, there are four other main types of purchase orders:

Standard purchase order


The main challenge with purchase orders is that they are often too complex and time-consuming to fill in or do not offer enough information for the supplier. This means some businesses simply do not use them at all - which can be bad news because this type of document could provide an easy way of ensuring you get your best possible price!


Planned purchase orders


Every procurement team knows the importance of planning, but procrastination can be your worst enemy. Making a purchase order in advance can seem like such an arduous task that many entrepreneurs prefer to put off until they absolutely need something for their company or project timeline. And placing orders with external suppliers may not take days - oftentimes this process only takes hours! This means if you are ordering from multiple bidders on similar items (which seems likely) then there could potentially come a point where one bidder is able to deliver sooner than yours and lost revenue will happen without even realizing what went wrong.

Blanket purchase orders


When you are trying to negotiate prices with suppliers, it can be hard to get them all on board at once. Blanket Purchase Orders are useful because they allow your company to buy several products from a single supplier and still lower their rates - these types of purchase orders only need one agreement instead of multiple individual ones which makes things much easier both for buyers as well sellers involved in such transactions.


If ever tried negotiating contracts before then know just how difficult this process used to be!


Contract purchase orders


Contract Purchase Orders are the perfect way to buy large volumes of products in advance, so you always have what your business needs without having to pay more than needed for each item. CPOs allow businesses with limited funds or resources time after they purchase items off an as-needed basis, while still being able to save money by getting discounts on top orders just like big companies do!


 
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Disadvantages of using Excel/Word-based purchase order templates


If your purchase orders are based on Excel spreadsheet templates to regulate spending, there is a good chance you are performing below your full potential and profitability. Here are six everyday situations that businesses confront because of preconceived notions about Excel-based PO templates:


1. Formatting issues


Changing the size of a certain field may jeopardize the alignment of your entire template. If the data you need to input into a specific field is greater than the space available, the whole template will shift to keep up with it and move things where you do not want them to be.


2. Accuracy


The most difficult aspect of using templates for a purchase order form is inputting correct information into spreadsheets. Inaccurate data makes it impossible to make effective plans and any reports or judgments produced based on this info will be nothing more than educated guesses!


3. Synchronization


Every purchase order template must be modified manually when there is a policy or procedure change. When data is pulled, compiled, and combined manually from many sources, it takes a long time to ensure real-time data sync.


4. Storage


It may appear to be a simple process to store all spreadsheets in a single folder. However, if the person who handled this previously did not organize POs effectively, you are in big trouble. Finding a spreadsheet on someone's local drive or archived files is difficult.


5. Auditing


When your purchase orders are trapped in file cabinets or on a local disk, the entire crew will be sidelined for a few weeks while they go through heaps of digital and physical folders aimlessly to complete an audit.


6. Reporting


Decisions on manual reports generated from Excel/Word purchase order form template data might lead to costly blunders with significant ramifications.


How to automate purchase order creation

There is no doubt that an automated purchase order system is a valuable tool for any organization.


It is all about planning. When it comes to implementing automated PO creation, here are some things to consider:

  • Remember to make sure your purchasing team members are kept up to date with the latest information so they can provide feedback on what works and what does not. They will be on the ground working with this new system, so they should use some of the latest tools available!

  • Define your purchasing policy. This is enforced by a good PO system, but it is critical that you state what this policy will be.

  • Define your company's position on the following topics: The place of purchasing, how you choose which suppliers to utilize, buyer/seller interactions, which categories will require purchase orders, and who should have purchasing rights.


Benefits of purchase order automation

Automation software for procurement will save businesses from making costly purchasing mistakes by providing them with consistent processes in place throughout their organization that is centralized around digitizing every aspect surrounding it.


By automating the purchase order process, you can:

  • Reduce human error: Even the most efficient employees have bad days, so errors are inevitable when entering data manually;

  • Save time: Time can be saved by automating PO processing. Communication is also improved by automation. There may be a delay of days or weeks with manual processing since internal employees discuss procurement concerns. When one email goes unanswered, the whole procedure might come to a halt. A digital procurement system includes built-in communication procedures, reminders, and alerts to ensure that communication runs smoothly;

  • Save money: You can save money by using automation to keep track of all your suppliers' information in one location, so there is no need to search for form details. You may customize and automate the purchase order creation process and categories;

  • Streamline your process: There is no need to fax or email. Orders are delivered immediately, and a copy is retained automatically;

  • Increase security: Filing cabinets are not the most secure location for important documents. Automated systems keep records safer and may be configured to allow only those with appropriate permissions access to them;

  • Reduce waste: Less paper means less money and benefits the environment. This helps improve your green credentials.


Track and manage purchase orders better using Prokuria


Excel/Word-based purchase order templates are prone to manual errors and discrepancies. If unchecked, these discrepancies have the power to shake up an organization's foundations with extravagant spending that could lead to enormous stress on behalf of purchasing teams as well as IT departments who will constantly be under pressure from their workloads because there is no way for them automate tasks like creating digital POs in one go without taking additional time out which would cause more problems than saving you money!


Wouldn't it be nice if the purchasing staff could spend less time on paperwork like data collation and management? They could focus more of their efforts on doing real work, which would make everyone's life easier.


Prokuria has a solution for purchase order management that is designed to get the job done without any errors. You can test out the platform before committing fully to paid service by creating a free account here. There is no need to provide your credit card information when creating a new account!


You can contact us today and see how easy it is to start using our PO software!