Re: Purchase Orders vs Purchase Cards

Hello Nathan...

Purchase Orders are still very alive and kicking, despite the use of
Purchase Cards. P.O.'s allow for an element of audit control in the
purchasing process and Q.A., something that Purchase Cards do not lend
themselves to. You can audit a Purchase Card acquisition, but only after
the fact. P.O.'s allow for a pre-check of the purchase before the order
goes out the door. Also, I doubt you are likely to see a Purchase Card
that has a credit balance in the six figures or higher in order to make a
purchase, something which is not uncommon on P.O.'s.

Have a good day.


Blake Moorcroft
Developer - Corporate
Russell A. Farrow Limited
1980 Ambassador Drive, PO Box 333, Windsor, Ontario N9C 3R4
Bus: 519-966-3003 ext. 566, Fax: 519-966-9870
blake.moorcroft@xxxxxxxxxx




Nathan Andelin <nandelin@xxxxxxxxx>
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05/06/2009 11:39 AM
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Subject
Purchase Orders vs Purchase Cards







Are organizations still writing Purchase Orders? Or, are they buying with
Purchase Cards? My gut feel is that most organizations are issuing
Purchase Cards (Visa, Mastercard, etc.) to employees, assigning various
credit limits to cardholders, and having people order directly from vendor
web sites, rather than going through a PO approval process. But I thought
I'd ask.

I'm in the middle of designing a database for a Purchase Order system -
part of a new IBM i Financial Accounting system. Purchase Orders have
long been a standard component of enterprise financial accounting
packages, but I sometimes question their relevance in a world where so
many vendors are putting up shopping cart applications on their web sites.

Thanks,

Nathan.