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[Music] [Applause] welcome to today's video last week we concluded the inventory module if you haven't seen those videos please do check out our inventory playlist and today we starting with a new module and that is the purchase order we're going to talk about what is a purchase order and we're going to take a look at the business process flow for a purchase order in cisb with that said let's get started with today's video firstly what is a purchase order let's say for example you want to sell cookies to your friends and you make a list of the cookies that you want to sell then you send it to a bakery a purchase order is that list it tells the bakery exactly what kind of cookies you want to sell and how many cookies you want to sell so that they have them prepared before you can come in to buy them secondly it makes sure that you pay for what you get sometimes the bakery might accidentally give you more cookies than you ordered or even less cookies than you ordered the purchase order helps you to check and make sure that you pay for the cookies that you have received thirdly it helps you to plan ahead the store can see how many cookies they need and they can order in advance before they run out of cookies simply put a purchase order is a special list that helps you keep track of what you need and how much it will cost you now let's take a look at the business process flow of a purchase order in sisbro Step One requisition the first step in the process is creating a requisition this is a document that identifies the need for an item or a service so what it normally entails is the details of the service or the item the quantity required and the department requesting the purchase once a requisition is submitted it will need to be approved by a designated Authority step two is the purchase order creation once the requisition is approved it is then used to create a purchase order a purchase order which is a document that is sent out to suppliers that outlines the items or services that is required the quantity the price and the delivery date step three is sending the purchase order so once the purchase order has been created you can then send it to your supplier by printing a copy of the purchase order and then mailing it to the supplier or you can electronically send it to the supplier via spr step four receiving Goods when receiving goods or services from the supplier it needs to be inspected to make sure it matches the purchase order both the quantity and the quality should be inspected step five authorizing supplyer invoice once the goods or services have been received and inspected the supplier will send an invoice the invoice will be reviewed and approved before pay payments are made step six payment of supplier invoice once the supplier invoice has been approved then payment can be made the payment method will depend on the terms of agreement that you have with the supplier we have reached the end of today's video please be sure to like comment which videos you like to see next subscribe and hit that notification Bell so that you don't miss out on our new videos if you want to learn more about our product offering be sure sure to check out the link in the description below and thank you again for watching this [Applause] video