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Why P.O. System is important?

Can someone explain to me why it is important to have a P.O. System?

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

It is the same reason why you are using a computerized GL system and not a T-account or a 15 column worksheet.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

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.

Sachin Gupta
Title: Head - Mobile Data
Company: Tata Teleservices limited
(Head - Mobile Data, Tata Teleservices limited) |

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 management to improve level of trust in the organisation.

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