Purchase Orders

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PGM
PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
in General accounting discussion
A fun topic...

We currently have an order pad, of 3 part forms with pre-printed order numbers. Downside is its too easy for someone to get hold of the forms, order something there not authorised to, and possibly not even return the forms so we can't tie an invoice up to an order.

People are complaining heavily at the new system, which involves filling an order number request form in, the new accounting system generates the number, and we then give the person the order number.

My worry is I'm being overly controling with the new system, but the old one seems to be abused to the point of making is useless. Any thoughts? Please :001_smile:

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  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
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    Yes, you're right, they're wrong. Tell them a purchasing system with no control method is a purchasing system out of control and unnecessary expenditure will result in decreased profitability thus potentially destabilising the company in the current economic climate.

    Baffle them with BS but ultimately, accountants understand it because accountants know they're right.

    I'll comment in depth further tomorrow as right now I'm going out but wanted to post a quick response first.
  • mikes
    mikes Registered Posts: 254 Dedicated contributor 🦉
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    I don't think that you are overcontrolling the new system. It's always the same when a process that everyone is used to changes. They always complain that it is too difficult or not necessary ie they are too lazy to send the forms back. By using a computerised method is better, you have better control over what is being ordered and can tie it up better like you said.

    Stick to it and blow the wingers.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    blobbyh wrote: »
    accountants understand it because accountants know they're right.

    I like the quote! :001_smile:

    Thanks for the feedback blobby and mikes, you start to doubt yourself after so many complaints.

    You're both right about control being needed.

    I was worried about the delays that could be caused, whilst they wait for their order request form to be processed. And if a system like that is ok, although the delays are caused more by peoples bad planning than the system itself.

    Thanks again, thats enough work, time to go out!
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    You haven't said how long it's taking you to issue the order numbers - if you're not processing the requests regularly enough then you're just creating more problems, and if you spend your whole day being interrupted by processing them individually then you're not going to be working very efficiently. Is there a way that people could access an order number instantly for themselves? How about you use the pre-numbered forms but keep a list of the numbers next to it and get people to write their name next to the number they've taken? Or, could you create a simple spreadsheet that everyone can access which lists the order numbers and people write their name alongside the next avaliable number when they place an order?
    Jodie
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    JodieR wrote: »
    You haven't said how long it's taking you to issue the order numbers - if you're not processing the requests regularly enough then you're just creating more problems, and if you spend your whole day being interrupted by processing them individually then you're not going to be working very efficiently. Is there a way that people could access an order number instantly for themselves? How about you use the pre-numbered forms but keep a list of the numbers next to it and get people to write their name next to the number they've taken? Or, could you create a simple spreadsheet that everyone can access which lists the order numbers and people write their name alongside the next avaliable number when they place an order?
    Jodie

    We currently have a system of pre numbered sheets, but potential problems include anyone in the company being able to pick up an order sheet, to any supplier they like, fill details in wrong, and not return the sheets to finance before the invoice arrives, if at all!

    It turns into a constant battle to get it done properly. And we give up...

    New system would force people to do it properly, and we were planning on producing the number at least once per day.
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
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    I introduced a system similar to the one Jodie is speaking about where authorised people pick their P/O number from an Excel log to go on their P/O form. While this may sound like putting the cart before the horse it's because I wanted it to be their responsibility to do this, I want them to fill the forms out, not me, while all purchases over a certain limit have to be authorised by the office manager and above a secondary limit, by the Financial Controller or FD. This is recorded in the Excel log by temporarily unlocking a password protected cell. Small purchases under a certain limit - in our case £25 - don't have to be authorised to cut down on admin time, however a form still has to be completed and submitted to accounts for filing, awaiting the invoice. Rejected forms still have to be submitted to keep the numbering sequence complete with missing numbers routinely hunted down to prevent 'secret' purchases.

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