Operations - Raising and Managing a Purchase Order

Pull the procurement requirement from the active job or works order: product spec, quantity, required delivery date, and the job reference the cost belongs to.

Confirm preferred supplier pricing for this product category. If no preferred supplier is on record, issue RFQs to at least two suppliers before committing to an order.

Raise the PO with full detail: PO number, supplier name, itemized spec with product codes, quantity, agreed price, delivery date, delivery address, payment terms, and job reference.

Send the PO to the supplier and request written acknowledgment confirming they can deliver as specified. Chase within two working days if no acknowledgment is received.

Count all goods against the PO before signing the delivery note. Note shortages or damage on the note before signing. Record the delivery note against the open PO.

Compare the supplier invoice against the PO and the delivery note. If quantity and price match both, approve for payment. Raise any discrepancy in writing before approving.

Confirm all supplier costs are captured against the correct job record before the customer invoice is raised.

Sync approved costs to the accounting platform. Confirm job margin reflects verified supplier costs before the job record is closed.

We place orders verbally and only raise the PO afterward - by then the supplier has sometimes invoiced at a higher price and we have nothing written to dispute it.

Purchase orders get raised without linking them to a job, so we cannot tell which costs belong to which project until month-end reconciliation.

Supplier invoices get approved and paid before anyone checks them against what was ordered or what was actually delivered.