What is the final step in the Purchase Order process?

The final step in the Purchase Order process is to bill the purchase order. This step involves generating an invoice that reflects the goods or services received as per the terms of the purchase order. Once the items have been delivered, the next phase is to ensure that the financial records accurately reflect this transaction through invoicing. Billing the purchase order is crucial, as it formally concludes the procurement transaction and triggers payment to the vendor. This also allows companies to match the invoice against the purchase order and receipt for accuracy, ensuring proper financial control and record-keeping.

Receiving ordered items comes before the billing stage, as items must first be verified and accepted upon delivery to ensure they meet the order's specifications. Approving the purchase order is part of the initiation process, but it occurs early on, before the order is fulfilled. Creating a purchase requisition is the precursor to the purchase order itself, serving as a request to procure goods or services. Thus, billing the purchase order represents the final administrative and accounting step in completing the procurement cycle.