Purchase Orders

Apr 18

Purchase Orders (POs) help associations formally document smaller procurements. As a best practice, virtually everything that the association spends money on should trigger a purchase order (though there are a few exceptions).
Purchase orders (POs) are documents issued from the organization to a vendor. They formalize requirements and pricing, and serve as legally binding documentation. It is a form of proof that shows what goods or services were ordered. If there is some confusion later on about what was supposed to be provided, the PO can provide a clear answer. POs are just as important for vendors as they are for boards and managers.
POs usually capture the following information:

The association’s name and address
The vendor’s name and address
Delivery information such as where goods are being dropped off and who will receive them
A detailed description of the quantity and unit price for each product or service being requested
A purchase order number
Payment terms, delivery terms, acceptance terms
Approval by the association
Approval by the vendor

Purchase orders are great for commodity-style purchases when the condo or HOA can easily identify exact numbers. Depending on the purchasing policy, they may require approval from the board.
Purchase orders are not to be confused with work orders. A work order is started when a particular task or job must be completed. But a purchase order is created when an association is purchasing materials or services. Work orders are created after a service request is approved, where there’s a scheduled repair that needs to be taken care of, or when something breaks down unexpectedly. Work orders capture all of the key information about the job in one document. Together, work orders and purchase orders give the association more information about the scope and cost of a job.
Purchase orders are a great option when the association needs more than an invoice, but not something as formal as a multi-page contract.

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