Along the same lines as last weeks post Quotes with Xero, if you run inventory in your Xero file you can easily generate purchase orders.

While many small businesses do not use purchase orders on a regular basis, you might find them useful if they fit within your operating system.

For example, I have one client who purchases the majority of his inventory (for both use in repairs and for retail sales), from one primary supplier.  In order to streamline his processes, when setting up each inventory item, he has used the same codes and names for each item as his supplier.

This enables him to select the item as part of a purchase order and the supplier knows exactly what he’s talking about.

The use of purchase orders can be beneficial for trade type businesses used in a similar manner as quotes – as the quote is prepared, a purchase order for the goods required can be prepared at the same time.

Each purchase order is able to be converted into an invoice once the goods have been received – of course this eliminates double handling of the transaction which is a great time saver.

For more information on using purchase orders in Xero, please get in Contact.

Regards