Purchase Order Processing Checklist

The Purchase Order Processing Checklist is a comprehensive list of tasks and steps that need to be
followed during the purchase order process. The checklist ensures that all purchase orders are
accurately processed, tracked, and fulfilled. The checklist covers details such as verifying the
purchase order, checking inventory availability, obtaining quotes from vendors, confirming pricing
and delivery dates, obtaining approvals, generating purchase orders, tracking shipments, and
reconciling invoices. The checklist helps the purchasing department to ensure that all necessary steps
are taken to complete the purchase order process efficiently and accurately, and to avoid any errors or
delays. By following the checklist, organizations can improve their purchasing process, reduce costs,
and increase efficiency.

Purchase Order Processing Checklist

Received
Approved
Recorded
Closed
Verify the purchase request and obtain necessary approvals.
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Create a purchase order with all relevant details.
See Instructions
Priority - Medium
Complexity - Medium
Description
This task involves creating a purchase order with all relevant details. A purchase order is a document
that a buyer sends to a seller to request goods or services. It includes information such as the item or
service being purchased, quantity, price, delivery date, and payment terms. The purchase order serves
as a legally binding agreement between the buyer and seller.
Gather all relevant information for the purchase order, such as the items or services to be purchased,
quantity, price, delivery address, payment terms, and any special instructions.
Open the purchase order template or software tool.
Fill in the necessary fields in the purchase order, ensuring accuracy and completeness of information.
Verify the information entered and make any necessary corrections or adjustments.
Review the purchase order to ensure it complies with any internal purchasing policies or guidelines.
Obtain any required approvals or signatures as per the organization's purchasing process.
Save the completed purchase order and assign it a unique identifier or reference number.
Communicate the purchase order to the relevant parties, such as the seller or vendor, through the
preferred method (e.g., email, fax).
Keep a copy of the purchase order for record-keeping purposes.
Monitor the progress of the purchase order and follow up with the seller if necessary.
Close the purchase order once the goods or services are received and any necessary payments are
made.
Send the purchase order to the supplier.
See Instructions
Track the purchase order status and delivery date.
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Receive the goods or services and verify them against the purchase order.
See Instructions
Priority - Medium
Complexity - Medium
Description
This task involves receiving the goods or services that have been ordered and verifying them against
the purchase order. It ensures that the correct items have been delivered and that they meet the
specified requirements.
Receive the goods or services from the supplier.
Check the received items against the purchase order to ensure that the quantities and descriptions
match.
Inspect the quality and condition of the received goods or services to ensure they meet the specified
requirements.
If any discrepancies or issues are identified, notify the supplier or relevant personnel and follow the
appropriate resolution process.
Update the purchase order or related documentation to reflect the received goods or services.
Approve the received goods or services for payment.
See Instructions
Record the received goods or services in the inventory or accounting system.
See Instructions
Priority - Medium
Complexity - Medium
Description
This task involves recording the goods or services that have been received in the inventory or
accounting system. It is an essential step in the purchase order processing to ensure accurate tracking
of inventory and financial records.
Access the inventory or accounting system.
Navigate to the section or module for recording received goods or services.
Enter the relevant information for each received item, such as item codes, quantities, and values.
Ensure accuracy and double-check the entered data.
Save or submit the recorded information.
Verify that the recorded information is updated in the inventory or accounting system.
Resolve any discrepancies or issues with the supplier.
See Instructions
Priority - Medium
Complexity - Medium
Description
This task involves resolving any discrepancies or issues with the supplier in the purchase order
processing. It requires identifying and addressing any problems or inconsistencies in the order, such as
incorrect quantities, pricing errors, missing items, or delivery issues. The goal is to ensure that the
purchase order is accurate and meets the requirements before proceeding with further processing.
Review the purchase order and compare it with the supplier's invoice or confirmation.
Check for any discrepancies in quantities, pricing, items, or delivery dates.
Contact the supplier to discuss and clarify any issues or discrepancies.
Document all communication and actions taken to resolve the issues.
Update the purchase order with the correct information and ensure it reflects the agreed-upon
resolution.
Communicate the resolution to relevant stakeholders, such as the purchasing department or finance
team.

Close out the purchase order in the system.

See Instructions
Priority - Medium
Complexity - Low
Description
This task involves closing out a purchase order in the system. It requires updating the purchase order
status, ensuring all necessary documentation and approvals have been received, and finalizing any
financial transactions related to the order.
1. Access the purchase order processing system.
2. Locate the purchase order that needs to be closed out.
3. Verify that all necessary documentation and approvals have been received and recorded.
4. Update the purchase order status to 'Closed' in the system.
5. Finalize any financial transactions related to the order, such as issuing payment or recording
invoice receipt.
6. Double-check that the purchase order status has been successfully updated and all necessary actions
have been completed.
7. Close out the purchase order record in the system.
Conduct periodic audits of the purchasing process to ensure compliance with policies and procedures.
See Instructions
Priority - Medium
Complexity - Medium
Description
This task involves conducting periodic audits of the purchasing process to ensure compliance with
policies and procedures. It is important to regularly review the purchasing process to identify any non-
compliance issues and take corrective actions. The audits should assess whether the purchasing
activities align with the established policies and procedures, such as obtaining multiple quotes,
adhering to budget limits, and following the approval hierarchy. The audits should also verify the
accuracy and completeness of purchase orders, including proper documentation, vendor selection, and
contract terms. By conducting these audits, the organization can ensure that the purchasing process is
efficient, transparent, and compliant with internal and external regulations.

Review the organization's purchasing policies and procedures to understand the expected
standards and requirements.
Identify the key controls and checkpoints in the purchasing process that need to be audited.
Develop an audit plan outlining the scope, objectives, and methodology of the audit.
Gather relevant data and documentation, such as purchase orders, invoices, contracts, and vendor
information.
Conduct interviews with key stakeholders involved in the purchasing process, such as procurement
officers, finance personnel, and department heads.
Perform testing and analysis of the selected purchase orders to ensure compliance with policies and
procedures.
Document any non-compliance issues identified during the audit and recommend corrective actions.
Prepare a comprehensive audit report summarizing the findings, recommendations, and any actions
taken or planned.
Present the audit report to management and stakeholders, highlighting the key findings and proposed
actions.
Follow up on the implementation of corrective actions and monitor the effectiveness of the purchasing
process improvements.
Repeat the audit process every quarter to ensure ongoing compliance and continuous improvement.