Can someone explain to me why it is important to have a P.O. System?
Why P.O. System is important?
Answers
It is the same reason why you are using a computerized GL system and not a T-account or a 15 column worksheet.
There are so many reasons why you would. Proper control, auditing, checks and balances, approval process to name a few. The only reason I can think why you may not is a single owner small company. Someone needs to be approving what is being spent and why.
Once a well defined PO system is created in organisation attached with detailed policies and procedures guiding employees to follow a process for every purchase, shall create an atmosphere of absolute transparency, internal control every time a purchase is made. PO system also define the process for when to buy, what to buy, where to buy, and how much to buy which makes it easier for top
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