The Purchase Order Process for Small Business (2026)
What a purchase order is, why it protects you, and how to run a simple PO process that controls buying and stock.
A purchase order (PO) is a formal request to a supplier to deliver specified goods at agreed prices. It turns buying from ad-hoc to controlled — and links directly to your stock and payments. Here is how to run it well.
Why use POs
A PO records exactly what you ordered, at what price and quantity, so deliveries and invoices can be checked against it. It prevents over-ordering, price surprises and disputes.
The simple flow
- Raise a PO to the supplier from your reorder points
- Receive goods and check against the PO (GRN)
- Match the supplier invoice to the PO and GRN
- Update stock and payables automatically
Connect it to stock and cost
When POs, goods receipt and stock share one system, your inventory and landed cost update as goods arrive. MyGroce supports purchase orders, goods receipt and landed-cost tracking.
Frequently asked questions
What is a purchase order?
A formal request to a supplier specifying goods, quantities and prices. It lets you check deliveries and invoices against what you ordered. MyGroce lets you raise POs, receive goods and update stock automatically.
Keep reading
- Inventory software for small business
- Supermarket & grocery billing for small business
- All MyGroce features
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