How to Edit a Purchase Order After Receiving
Editing a purchase order (PO) after receiving goods can be a necessary task in various business situations. However, it's essential to understand the potential implications and follow proper procedures to ensure accuracy and compliance.
Why might you need to edit a purchase order after receiving?
There are several scenarios where you might find yourself needing to adjust a PO after receiving the goods:
- Quantity Discrepancies: The delivered quantity might differ from the ordered quantity, requiring adjustments to reflect the actual received amount.
- Price Changes: The supplier might have offered a different price than originally agreed upon, necessitating a price update on the PO.
- Product Modifications: The received goods might have different specifications or features than originally ordered, requiring adjustments to the PO details.
- Shipping Errors: Mistakes in shipping details, such as incorrect delivery addresses, might require modifications to the PO for accurate record keeping.
- Late Deliveries: If the goods were delivered later than the original delivery date, you might need to update the PO to reflect the actual delivery date.
How to Proceed with Editing a Purchase Order:
1. Document the Discrepancies:
- Thoroughly review the received goods against the original purchase order.
- Create a detailed log documenting any discrepancies in quantity, price, specifications, or delivery dates.
- Gather any relevant supporting documentation, like delivery receipts, invoices, or communication with the supplier.
2. Communicate with the Supplier:
- Contact the supplier immediately to discuss the discrepancies and request a resolution.
- Clearly explain the reason for the requested changes and provide all necessary documentation.
- Collaborate with the supplier to find a mutually acceptable solution.
3. Obtain Approval:
- Depending on your company's internal policies, you might require approval from your purchasing department or a supervisor before making any changes to the PO.
- Ensure all approvals are documented and filed appropriately.
4. Make the Necessary Changes:
- Carefully revise the PO to reflect the agreed-upon changes, ensuring accuracy in quantity, price, specifications, and delivery dates.
- Update the PO status to indicate the changes made and the reason behind them.
5. Maintain a Detailed Audit Trail:
- Always keep a record of all changes made to the PO, including the date, reason for the change, and the parties involved in the decision.
- This audit trail is crucial for transparency, accountability, and potential future reference.
Important Considerations:
- Company Policies: Always refer to your company's purchasing policies and procedures regarding PO editing.
- Legal Implications: Be aware of any legal implications related to PO editing. In some cases, changing a PO after receiving goods might require a revised contract or agreement with the supplier.
- Audits and Reporting: Understand the impact of PO changes on financial audits, inventory management, and internal reporting.
- Supplier Relationships: Maintain clear communication with your supplier to ensure a mutually beneficial and transparent process.
Example of a PO Edit:
Imagine you ordered 100 units of a specific product, but only received 95. You would need to edit the PO to reflect the actual received quantity of 95. You should also update the PO status to reflect the discrepancy and the reason for the change.
Conclusion:
Editing a purchase order after receiving goods is a complex process requiring careful consideration and thorough documentation. By understanding the reasons for editing a PO, adhering to internal policies, and communicating effectively with the supplier, you can ensure accuracy, transparency, and compliance in your procurement process.
