We shared with you some sub-processes of a customer purchase order process in the last post.
Elaborating further on the other components of the process, validation is important.
Verifying and validating the order
- In case of pre-specified rules, both general and customer specific, validating the PO based on these rules and communicating with the customer on the same if needed is an important process.
- Regular customers will have some trends available. One validation point can be the normal levels of orders of various regular customers.
- For non-regular / one time customers, credit history may be important. You will have various credit rating agency databases available from which you may be expected to extract specific details.
- The safest validation is the payment status. If you received the payment for the upfront, you just need to ensure that the shipping address is valid.
- Other forms of validation include checking the payment terms and the approvals of the same by the sales organization.
Forwarding the details to the billing and delivery departments for execution
- The next and final step could be informing the billing department to raise the invoice and the sales execution team to get the order executed and delivered.
- Quite often this may directly be triggered by the ERP system and may not need any action from the PO team as such.
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