What are Purchase Orders?

What are Purchase Orders?

Purchase Orders - aka POs, aka P.O.'s - refer to the document your eCommerce business generates and keeps on record every time you need to purchase more inventory from a certain supplier. When you create a Purchase Order in SkuVault, you input all the information that your company and your supplier requires, such as terms, pricing info, shipping info, products, etc. You can then email the PO to your supplier(s) from directly within SkuVault - the PO will be flagged as sent in the system. Upon receipt, your supplier follows the parameters set down by the purchase order, and ships out your requested product accordingly.

How does Receiving work?

How does Receiving work?

Receiving is intrinsically related to purchase orders; when receiving, you are receiving the product as specified in the purchase order. You check the purchase order number (aka PO#) from the original purchase order against the shipment, and you scan the new product into SkuVault. SkuVault checks the received items against the purchase order - from there you can check discrepancies, move the products to locations, and more.

Cost Averaging

Cost Averaging

Cost averaging is a setting in SkuVault that helps you to keep an accurate running seller cost of your inventory. SkuVault takes the seller cost (the cost that the seller pays the vendor) from your PO, and, upon receipt of that order, SkuVault averages your current seller cost with the incoming cost on the PO. The average is weighted to quantity, thus providing a more accurate estimate into what the product actually costs you over time. Cost averaging is a big help when it comes to accounting & reporting - if you only do reports off your current seller costs, then you're not getting an accurate picture of your profits. SkuVault's cost averaging elimates the time spent manually crunching these numbers, because SkuVault automates the entire process. Letting SkuVault handle your cost averaging also greatly reduces the chance for human error within in the process, since the calculations are done automatically.

Benefits of using SkuVault for Purchase Orders & Receiving

Benefits of using SkuVault for Purchase Orders & Receiving

Using a formal inventory management system to process your purchase orders and receiving procedures helps to eliminate human error - both on your end, as well as on your suppliers' end. Collecting your purchase orders and receiving records in this way also allows you to look at your data in a more cohesive way. Coordinate your purchasing with your sales reports to make sure that you're making informed purchasing decisions, and only sourcing products that are yielding a good turn.