Why we need PO's and how to raise one.
This policy sets out why Finally Agency uses purchase orders and how to request one.
The link to the Purchase Order form can be found here.
What is a Purchase Order
A PO is a written confirmation of an order and a legally binding contract between the buyer and the seller.
It's used to establish the terms of the transaction, including the items, quantities, prices, payment terms, and delivery details
Why do we need a Purchase Order
- They help keep cashflow forecasting accurate
- Help maintain and manage preset budgets
- Make managing purchases easier as we grow
When you need a Purchase Order - Anything above £100
- Outsourced work - translation, filming
- Goods sold i.e business cards, printing
- Client trips - hotels, travel
- Internal trips - travel, workspace booking
- Training
If you are unsure if something needs a PO please request one and I will let you know if it is needed or not.
Process
Agree cost internally (where applicable)
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Agree on a cost with the supplier
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Complete the purchase order request form
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Spend will be authorised
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PO will be raised in Xero
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PO number issued
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Give the supplier the PO number so this is used on the invoice
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Send invoice to accounts@ email
FAQ about the form
- Email - the person raising/requesting the PO e.g. Caroline
- Company - the supplier the PO is for, e.g Mersudin
- Reference - if the supplier needs you to include a reference, add it here
- Item or services purchased - what service is the PO for? e.g. external SEO work
- Cost (excluding VAT) - the cost of the service you are requested the PO for
- Client or Internal - if it's for a client, you need to raise a ticket in Forecast; if it's an internal expense, then you don't
- Description - A description of what the PO is for. Add as much detail as you can here.
- When will we be invoiced for this work (date) - this does not need to be exact, but when asking for a quote for the item or service, ALSO ask when they will invoice and the payment terms. e.g. work taking place on the 11th of the month, an invoice will be one week later with 30-day payment terms.