Introduction

Purchase and Suppliers, Make Informed and Well-Considered Purchase Decisions.

Terminology

1. Purchase Invoice: It can be used to prove that something was bought and how much was paid for it.

2. Purchase Order(PO): It is a document generated by the buyer through the purchase department in order to authorize a purchase transaction. The buyer will match the PO number in the invoice to the PO.

3. Local Purchase Order(LPO): It is a document issued by a buyer to a local seller for purchasing the products or services on the spot. There are two cases:

Case.1 Purchase is made from unestablished seller (Without Invoice): In this case, LPO and other documents are issued to Vendor employee (buyer, who is the employee of organization).

Case.2 Purchase is made from established seller (With Invoice): In this case, LPO is issued to Vendor employee (buyer, who is the employee of organization) and other documents like material voucher and invoices issued to established seller (registered vendor).

4. Job Work Order(JWO): It is usually a task or a job for a customer that can be scheduled or assigned to someone.