Excel template purchase order tracking
Everything You Need to Know About Purchase Order Tracking
Article written by: Ranita Mukherjee
Purchasing is a software application that is used to view the status of purchase orders. It helps the businesses in managing the entire PO cycle right from creation to approval. These trackers help in weeding out the inefficiencies from order processing. Earlier, purchase order tracking was done manually. But now, with the introduction of a purchase order tracking system, it serves many benefits as compared to the earlier one.
Advantages of purchase order tracking
Following are some of the benefits of purchase order tracking:
- It helps in saving more time by automating the purchase order creation along with routing and approval
- It offers the best way of storing along with making access to make purchase orders.
- It helps in maintaining the whole process properly so that inventory cannot be reinvented every year.
- All the things are in compliance with the policies along with regulations and contracts.
- It helps in tracking all the elements of purchasing along with making the payment in an easy way.
- It helps in cutting down the manual labor cost along with paperwork associated with the process.
- With this system, the purchasers obtain all the important details like order date along with vendor info and original purchase request in a single click.
- It helps in saving the company from both time and money.
- It helps in simplifying the record-keeping process.
Factors to consider for purchase order tracking
Purchase order tracking is considered the best option for successful procurement which helps in increasing the overall organizational performance. If it is not done correctly, the organization will not run into profit. There are some important points that need to be considered for purchase order tracking.
Purchase orders act as legal requirements between the purchaser and the seller. It helps in binding the order that has been requested by the purchaser that helps in saving them the sudden increase in their prices. Apart from that, purchase order tracking also helps you in getting protection from duplicate orders and other payment issues.
How to use Purchase order tracking electronically?
There are many ways by which you can easily track the purchase order electronically. Microsoft excel based systems are commonly used for procurement and inventory management.
Let us take a look at the working of this system:
- Use of excel for purchase order- In order to set up a purchase order tracking system, then use of excel is the correct option. It is easy for the company employers to buy or purchase the procurement tracking excel for which template is there for Purchase order tracking. The main benefits of using excel include the error-free part which is not possible when someone is using purchase orders. The tension of losing down the document is also removed. The reports which are generated in Excel can be easily shared via mail and the benefit associated with this functioning of this system is, it can be tracked and retrieved easily.
- Organized system of procurement- These systems are not meant for generating purchase orders but also help in tracking along with integrating with other departments. They are running on a cloud-based system which helps in allowing the real-time order tracking process from any location and device. These orders can be easily linked with invoices that help in removing the danger of mixing up the payments for the order which is made.
- Best system of inventory management- These systems are the same as procurement systems that can be used for inventory management. The cloud-based system of inventory will help in boosting the process of automation along with security and real-time tracking.
Thus we can say that the system or purchase order tracking electronically will prove more useful than manually providing a couple of benefits to the company. The company benefits with its use as it is successful in saving time along with money, as compared to the manual process. The documents which are maintained manually are not safe in nature. On the other side, all the documents which are done electronically are fully safe and secure. If anyone wants to take out the details about the same, they can easily view the record of the past that will help them to show the real status of purchase order inventory.
Advantages of using Purchase Order Tracking
- Helps in reduction of time- With this system discussed above, there is reduction of time. Other benefits include:
- There is less entry in the manual process.
- It allows digital and secure approval of processes.
- It helps you in updating all the important information that will help in saving more time.
- Less time is spent on making invoices.
- Less time is spent in tracking all the commitments which are there to control the budget.
- This helps in updating real-time information.
- Gives quality of data- Excel and word are the best solutions in managing the tracking order, but when it comes to Purchase Order Tracking, these are the best solutions as this system will ensure the real-time information along with ensuring the correct PO number that is assigned to different purchasers.
- Helps in controlling procurement to pay process- all the important information is easily added with the purchase order that covers:
- Information that is related to the invoices which are in processing mode.
- Information about the billing along with the allocation of the different costs.
- Quotes files are attached with the purchase order.
- Control of cost- Purchase order tracking system helps in controlling the cost that eventually proves fruitful for the business. With that system, you will be invested less which indirectly helps in controlling the cost. Along with that, it helps in making the budget where all the things are controlled in the best manner. Due to this, there is less time spent in reporting which is required urgently when all the things are done manually. All the work is finished in the given time and there are no chances of delay.
- Helps in planning- Records prove fruitful in the areas of planning where they help in the process of anticipation along with planning for the future. They provide a clear status about the performance of the company that provides you access to the best tools which make the task of examining the latest trends in the product along with market cycles and the spending of the company. All the information is automatically generated.
- Handling of expenses that are Unexpected- It is the best system for expenses that are unanticipated in the future. It introduces such expenses that help organizations in the areas of budgeting along with planning and department communications.
- Helps in providing legal protection- It serves as the best mode for legal documents. It provides an agreement between the seller and the buyers. Purchase order tracking also helps you in protecting yourself by giving legal records that are ordered by the company. It saves you from the extra cost which is expected to rise in the future. If you have important documents then, in that case, the company employer is liable to answer all their questions regarding the order made and the solution that has been given for the potential issues.
- Helps in understanding the vendors-This system helps in understanding the vendors. Employers will be able to store along with sorting the information about the vendors. They will also set the policies regarding the items that are ordered by the vendor. It also helps in checking the status of the vendors whether they are delivering the order in time or not. Additionally, it also helps in catching the poor vendors who do not help in providing the order on time. Thus, with the help of this system, the entire process of vendor tracking and monitoring can be made easier and smoother.
- Improvement in inventory- Ordering the inventory is the first process and this system will prove fruitful in managing the inventory in the best way. It will help you in tracking the records of the products which are ordered and arriving at the company. You have the best option in matching them against the invoices. It will help them in checking the accuracy which will help you in incoming the inventory part.
- Records and reports- In order to run a business effectively and efficiently, it is the main motive of the organization to monitor all the activity of the business along with its operation part. A good, well-planned, and effectively implemented Purchase Order Tracking will help you in tracking all the extra expenses of the business along with making the important decisions regarding the investments along with spending. It will also help in putting together all the data and help in generating the true reports that will help the companies in taking important decisions regarding planning and policy implementation. If the reports generated by them are accurate and less time-consuming.
There are many companies that are providing the main services of the PO tracking system which will prove more effective for the business. There are many companies who are spending a tremendous amount of time in generating the reports and hence they fail to do so. Some of the good points while using the purchase order system include the following:
- Faster purchasing process- it will help in managing the locations of the different people along with help in access to your inventory. With this system, purchase order can be easily made which can be sent to suppliers with a single click.
- MOQ- Software will prove best in assorting all the product groups which will help you in giving the Pos that are easily approved by both customers and suppliers.
- Smart system- The purchase order system is best as it will help in the atomic generation of the PO that carries out the right details about the inventory. It will also help in the prevention of stock-outs which indirectly helps in meeting the demands of the clients. It is the best and effortless solution.
Thus Purchase Order Tracking is the best solution for the company where they will be giving many benefits to the employers and company people. It will help them in many areas which are not possible with a manual system.