Purchase order system with approvals built in
Many companies already have a purchase order system of sorts: a Word template, a shared spreadsheet that hands out the next number, and an unwritten rule about who has to say yes. It works until the company passes a few dozen people who buy things. Procurer replaces that improvised setup with a purchase order system where approval, budget and numbering are part of the PO itself, not a separate conversation.
Signs you have outgrown your current PO system
- Two people used the same PO number last month, or a number was skipped and nobody knows why.
- Suppliers deliver goods that nobody in finance knew were ordered.
- Approvals are emails that say "ok" with no amount in them.
- Invoices arrive with a PO number that does not exist in the spreadsheet.
- The controller spends the first days of every month asking who ordered what.
- The auditor asks for evidence of approval for a selection of payments and the evidence is a chat screenshot.
If three or more of these are familiar, the problem is not discipline. It is that the system allows purchases to happen outside it.
Designing a purchase order system that people follow
A PO system works when following it is easier than going around it. These are the design decisions that make the difference, and how Procurer makes them for you.
- One entry point: every purchase starts as a request, and only an approved request can become a PO. There is no blank PO form that bypasses approval.
- Thresholds that match risk: small, routine purchases get one approval; large or unusual ones get more. Procurer templates start with manager approval over 1 000 USD and finance over 10 000 USD, and you adjust from there.
- Budget on the screen: the approver sees what is left before saying yes.
- Automatic numbering: the number is assigned when the PO is issued, from one sequence per legal entity, so gaps and duplicates cannot happen.
- A clear rule for invoices: an invoice without a valid PO is held, not paid. Announce this rule once, and requests start arriving on their own.
- Low cost of access: every employee who buys anything has a login, because the plan is priced per company.
Our guide on purchase requisition vs purchase order explains why the request and the PO are separate steps.
Approval thresholds in a typical purchase order system
| Amount | Standard policy in Procurer templates |
|---|---|
| Under 1 000 USD | Budget owner only |
| 1 000 to 5 000 USD | Budget owner, then department head |
| 5 000 to 25 000 USD | Department head, then finance |
| Over 25 000 USD | Department head, finance, then CFO |
- Under 1 000 USD
- Standard policy in Procurer templatesBudget owner only
- 1 000 to 5 000 USD
- Standard policy in Procurer templatesBudget owner, then department head
- 5 000 to 25 000 USD
- Standard policy in Procurer templatesDepartment head, then finance
- Over 25 000 USD
- Standard policy in Procurer templatesDepartment head, finance, then CFO
These are starting points, not requirements. On Team you can use up to 2 approval steps; on Business and above there is no limit, and conditions can add steps by category (software needs IT), by supplier (new suppliers need purchasing) or by project. Detailed design advice is on purchase order approval workflows.
Moving from a spreadsheet to a real PO system
Switching does not need a big-bang cutover. A controller at a company of 150 people can typically do it like this.
- Keep the spreadsheet read-only from a fixed date and set Procurer's next PO number to continue the sequence.
- Import suppliers from accounting or a CSV, and import any open POs that still await delivery or invoice.
- Start with one department that buys often, such as operations or IT, for one week.
- Add the remaining departments, then tell suppliers that invoices must quote a Procurer PO number and go to your Procurer inbox.
- From the next month-end, run accruals from the open PO list instead of the spreadsheet.
Purchase order system pricing
- Team: 149 USD a month or 1 488 USD a year. Up to 25 user accounts, 2 approval steps, 250 POs a month, budgets, receiving, QuickBooks Online and Xero sync.
- Business: 299 USD a month or 2 988 USD a year. Up to 100 user accounts, unlimited approval steps and conditional rules, three-way matching, invoice capture by email, 2 legal entities, 1 500 POs a month.
- Scale: 699 USD a month or 6 948 USD a year. Up to 300 user accounts, 5 legal entities, NetSuite and Sage Intacct, supplier portal, SSO, unlimited POs.
- Enterprise: custom approval matrices, segregation of duties, SAML SSO and SCIM. Talk to sales.
What is a purchase order system?
A purchase order system is the process and software a company uses to create, approve, number, send and track purchase orders to suppliers, and to check supplier invoices against them.
Do small purchases need a PO?
That is your choice. Many companies set a floor, for example no PO needed under 250 USD, and handle those purchases by card. Procurer lets you define categories and amounts that skip the PO step.
Can each legal entity have its own PO numbers?
Yes. Each legal entity has its own sequence and prefix. Business includes 2 legal entities, Scale 5, and Enterprise has no limit.
Can we attach quotes and specifications?
Yes. Requesters attach quotes, specifications or contracts to the request, and the attachments stay with the PO and the invoice.
Do approvers need to log in to approve?
Approvers can approve from the email notification or, on Business and above, directly in Slack or Microsoft Teams. Every decision is still recorded on the PO.
Retire the PO spreadsheet
Create your account, continue your current PO numbering and issue approved POs from day one.