Notesale: Turn your study into money

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What is a Non-PO (Non Purchase Order)?
If you are curious to find out what a non-PO or Non Purchase Order is, you are probably already
familiar with its opposite — the PO (Purchase Order)
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Typically, multiple approvals are
sought before a Purchase Order is created
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The Differences between the Non-PO and PO by Considering a Practical
Example
Maurice heads a small team at a mid-sized company construction company
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After weeks
of interviewing a long list of candidates, Maurice comes to a decision
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Maurice tells his immediate boss that the company would need to set up the new employee with
a desk and a laptop before he can be expected to begin working
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A few days later, the same request is approved, and is ultimately sent to
someone in the Finance department for a final approval
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Now that all the approvals are in place, Maurice contacts the purchasing manager and asks him
to purchase the approved goods
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By the time the new employee joins the company, his desk and laptop are already waiting for
him in the office, and everything proceeds smoothly
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Maurice has just been informed by his team that
one of their construction sites is running short of cement
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Unless the required quantity of
cement is obtained, the crew would be unable to complete the project in time
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And so, he takes matters in his own hands: he
contacts his boss, and explains the situation to him
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The cement is obtained just
in time, and the construction crew is able to finish their project in time
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Now that we have been able to draw a distinction between the two, let’s consider the
implications of using a non-Po (Non Purchase Order) over a Purchase Order because, in this
situation, it’s the implications that matter the most
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When the vendor finally sends an invoice
for the order to the construction company, it is received by the Accounts Payable department
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In order to do this, the clerk checks with the company’s Purchasing Manager
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In the latter case, Maurice created the Purchase Order (again, note here that the Purchase Order is
really a non-PO or Non Purchase Order) himself; he alone has the Purchase Order
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Naturally, the Purchasing Manager does not have the Purchase Order, and
probably has no knowledge that it was Maurice who ordered the cement
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Predictably, they would have to check with each
and every member of the company — a time consuming, not to mention frustrating and
inconvenient process — if they ordered the cement
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It is important to note that Approvals are not meant to keep you waiting
The notion that approval routing — stated more simply, the process of getting all stakeholders to
approve a planned purchase — is a time consuming process does not really hold water
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And
naturally so — a request for a purchase, when written on paper, would need the signature of
every stakeholder who has to approve the purchase; the same piece of paper would be circulated
across departments and different corners of the office — the process would be even more time
consuming if these stakeholders work in different areas or offices
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As such, the non-PO (Non Purchase Order) isn’t really an industry term
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