Processing Changes and Creating POs

This process saves time on completing purchase orders and updates process changes more efficiently.

Workflow Steps

Step 1 - Create Purchase Requisition

A department submits a requisition for goods or services, which is approved by their manager.

Step 2 - Generate & Dispatch Purchase Order (PO)

Once the requisition is approved, the procurement team generates a formal Purchase Order from the requisition and sends it to the vendor.

Step 3 - Submit Change Order Request

If changes are needed to the original PO (e.g., quantity change, delivery date change), a formal change order request is submitted with justification.

Step 4 - Approve & Issue Revised PO

The change order is routed through the same approval process as the original requisition. Once approved, a revised PO is issued to the vendor, and the original PO is updated.

The Purpose of Processing Changes and Creating POs

This workflow manages the process of creating and modifying Purchase Orders (POs). It ensures that all purchases are properly authorized and documented with a formal PO. It also provides a structured process for handling changes to existing POs, such as quantity or price adjustments, ensuring that these changes are also formally approved and tracked, which is crucial for accurate financial reporting and invoice matching.