Quick Guide To Raising A Purchase Order
Raising a purchase order isn’t just ticking boxes—it captures your requisition details, secures budget sign-off and spits out an official PO inside your procurement tool. This locks in costs, keeps a real-time eye on spend and makes sure suppliers know exactly what’s expected.
Below is a high-level view of each core phase.
Overview Of Purchase Order Steps
Here’s a quick snapshot: every phase, its purpose and the key actions you’ll take.
| Step | Purpose | Key Actions |
|---|---|---|
| Requisition | Gather needs | Enter project code, specs, dates |
| Approval | Secure budget | Route to finance and management |
| Issuance | Create PO number | Generate document, assign unique ID |
| Monitoring | Track spend | Update statuses, reconcile invoices |
Use this as your compass for what to do, when and why.
Common Pitfalls And Quick Checks
• Cross-check cost codes against your project budget.
• Confirm supplier contact details and agreed payment terms.
• Attach quotes or SOWs so everything stays transparent.
• Ensure VAT settings comply with HMRC guidelines.
These simple checks prevent last-minute headaches and costly fixes later.
Real-World Impact
Teams that adopt a standard PO flow see dramatic results. A London post-production studio we know halved their approval time within weeks of switching to this process.
"Cut approval times by up to 50% when you follow this clear, standardised process."
And it’s not just speed—industry benchmarks show a 30% reduction in invoice disputes once POs become routine. Hit go on these steps and watch supplier onboarding become painless.
Understanding Key Purchase Order Elements
A purchase order does more than request goods; it locks in terms, keeps budgets in check and ticks compliance boxes. Get these elements right, and you set the stage for smooth post-production workflows.
Must Have Fields
- PO Number: A unique identifier that keeps everything traceable
- Issue Date: The anchor for delivery milestones
- Supplier Details: Full address and contact information to avoid mix-ups
- Item Description + Project Code: Ties each line back to the right budget
- Unit Cost & Quantity: Lays out the exact spend you’re committing to
- Payment Terms: Sets clear due dates and safeguards cash flow
- Delivery Date: Tracks when you need those assets in the edit suite
Even a tiny omission here can skew your cost reports. One team once missed a project code and ended up scrambling to reallocate £2k of editing charges.
Real Examples And Fixes
A VFX studio I worked with accidentally entered the wrong unit cost, stalling their vendor’s start date by two weeks. A quick call to clarify numbers and update the PO resolved it overnight.
Key Takeaway: Tracking every field accurately saves both time and money.
Data Fields And Audit Trail
Project codes double as an audit trail that HMRC inspectors will appreciate. Clear, itemised descriptions helped one post-house avoid a £15k VAT dispute last quarter.
To illustrate broader market health, the S&P Global UK Manufacturing PMI hit 50.2 in November 2025—the first expansion since September 2024. Manufacturers attribute this uptick to sharper approval processes and reliable forecasts. Discover the full report on Trading Economics.
Structuring Data For Clarity
Set up your spreadsheet or database so each column maps to an accounting code. Consistent naming lets finance slice reports by department or client in seconds.
Automated validations can flag missing delivery dates or blank cost fields. Other handy routines include:
- Updating PO templates quarterly to account for supplier shifts
- Using drop-down menus for payment terms to eliminate typos
- Linking your PO log with invoicing software for seamless three-way matching
These tweaks free finance from chasing missing details—and keep shoots and deliverables on track.
Avoiding Common Omissions
Always verify supplier VAT numbers before issuance. Even digital services deserve clear delivery instructions.
Mark intangible services explicitly so accounts payable doesn’t miscategorise them. A final sign-off checklist is your last line of defence against errors.
With these checks in place, raising a purchase order becomes a simple, reliable routine—every single time.
Initial Setup For Your Purchase Order
Before you send out a purchase order, pull together every critical detail. It slashes back-and-forth emails and helps you stay on budget. Gather:
- Project Code as it appears in your finance system
- Service or Equipment Specifications with exact make, model or scope
- Delivery Dates synced to key production milestones
- Budget Centre Identifier or cost centre code
Locking these in means your PO practically writes itself. Your team won’t have to chase missing fields halfway through the process.
Requisition Details To Collect
Imagine a boutique post-production house. They bundle talent fees, music licences and work order numbers into a single PO. No more split invoices. Vendors see everything at once, and finance never has to stitch data together later.
That clarity stops last-minute surprises and cements what’s been approved. Plus, consistent entries mean your audit trail stays rock solid.
Standard templates with full requisition data cut email threads by 50% and errors by 30%.
Choosing Your Purchase Order Template
Pick a template that mirrors your reporting style—maybe it highlights resource booking IDs or marks out edit milestones. Then customise it so every field feeds straight into your finance platform.
- Add drop-down menus for your most common cost codes
- Reserve spots for supplier VAT numbers and file attachments
- Create custom fields for project-specific notes
These tweaks free up hours of manual entry and nearly eliminate slip-ups. Always let your workflow shape the form, never the other way around.
Set Up Cost Codes And Approval Limits
Link each cost code to its budget line so reconciliation happens without extra emails. A brief, clear label next to every code stops finance teams from guessing.
Here’s a quick look at approval thresholds:
| Order Value | Approval Required |
|---|---|
| Under £500 | Team Lead |
| £500–£5,000 | Budget Manager |
| Above £5,000 | Director |
Next, fold your supplier contacts right into the template. That way you won’t scramble for VAT IDs or email addresses at the last minute.
- Supplier Name exactly as shown on their invoice
- Valid Email and phone contact
- HMRC-Registered VAT Number
- Preferred Delivery Address
Final Checks Before Issuing PO
Do a quick preflight: make sure PO numbers haven’t been used before. Check that all attachments are in place, signatures are collected, and tax rules are observed.
Next Steps For Your Procurement Workflow
When your PO fields and approvals are set up, link your template to Freespace scheduling tools. This step triggers automatic notifications, three-way matching and live spend tracking.
Learn more about budget control and spend management in our detailed Freespace budgeting and controlling guide for finance and production teams today.
Managing Approval Workflow And Compliance
Nothing derails a post-production timeline faster than an approval bottleneck. By mapping out a transparent process, you’ll see exactly how to raise a purchase order without hiccups. This pathway carries requests from project leads through finance checks all the way to final sign-off.
Common checkpoints include:
- Project manager vets the requisition and aligns it with budget limits.
- Finance team verifies VAT details and HMRC compliance.
- Department head gives the final green light.
Automating alerts and setting clear SLAs can slash approval times by 40% in a mid-sized editing suite.
"Clarity in routing rules reduced our back-and-forth approvals by 40%."
Getting SLAs signed off prevents approval queues. For example, have project leads commit to an 8-hour turnaround on weekdays.
Key SLA targets:
- Manager review within 8 hours
- Finance compliance check in 24 hours
- Final sign-off in 48 hours
Configuring Conditional Routing Rules
When urgency strikes, conditional routing pushes high-priority POs straight to senior managers. Tags and flags highlight fast-track requests so finance teams can prioritise VAT checks.
The infographic below visualises how templates and cost codes minimise approval loops:
Try these effective tactics:
- Define response time SLAs at every approval stage
- Attach quotes or SOWs to reduce email back-and-forth
- Automate reminders for any pending approvals
Ensuring Complete Attachments
Missing documents are the silent killers of smooth approvals. Always include:
- Supplier quotation or scope of work
- Budget allocation summary
- VAT certificate, if required
- Any relevant contract references
This simple checklist removes follow-up delays and clarifies cost breakdowns.
Maintaining Audit-Ready VAT Logs
Spot-on VAT records guard against HMRC penalties. A digital system captures every approval timestamp automatically, keeping attachments and VAT numbers linked to each PO.
| Aspect | Manual Process | Automated Flow |
|---|---|---|
| Approval Time | 5 days | 3 days |
| Error Rate | 8% | 1.5% |
| VAT Record Errors | Frequent | Rare |
A mid-size editing suite cut approval time by 40% and reduced VAT corrections by 60%.
You can learn more about refining PO flows in our workflows category on Freespace blog.
Avoiding Common Pitfalls
Tiny mistakes often trigger big hold-ups. A missing VAT number or blank delivery date can pause the process instantly. Prevent these by:
- Validating project codes before submission
- Ensuring delivery dates are filled in
- Requiring price quotes as attachments
- Checking vendor contact details are current
Measuring Success
Track metrics like approval time and error rates monthly. Dashboards reveal bottlenecks so you can drive continuous improvement. One post-house trimmed another 20% of approval hours in just a quarter by fine-tuning its dashboard alerts.
These steps give you full control over every stage of how to raise a purchase order.
Automating Purchase Orders With Freespace
Manual data entry gobbles up hours each week and lets avoidable mistakes creep in.
Let me walk you through how Freespace can take over purchase order creation, invoicing, resource bookings and cost allocation across your post-production projects.
- 80% error reduction achieved by one London post-production team
- 5-day approval cycle cut to 1 day with automated alerts
- Real-time spend tracking that stops budget overruns in their tracks
- Audit-ready logs captured automatically, no extra steps required
Connect Finance Systems
Kick off by linking your accounting software to Freespace’s procurement module.
• Enable API access in your finance system settings.
• Map custom fields—project codes, departments, VAT numbers—to your PO template.
• Run a quick test entry to confirm everything lines up.
• Schedule nightly synchronisation so no update slips through the cracks.
These integrations free finance teams from manual uploads and slash reconciliation time.
Trigger Approval Alerts
Next, set up conditional routing rules in Freespace.
• Orders under £500 ping team leads immediately.
• Purchases between £500 and £5,000 go to budget managers.
• Anything above £5,000 is escalated to department heads.
You can also flag high-priority shoots or tight deadlines for instant sign-off.
Case Study Production Team
A mid-size VFX house we work with saw data entry mistakes drop by 80% once they automated POs. They connected their legacy ERP in minutes and fired off their first automated order within the hour. Booking emails for editing suites and camera kits fell by 60%.
Key outcomes included:
- 80% reduction in errors
- 40% faster invoice matching
- £3k saved each week on resource bookings
Screenshot Of Automated PO Workflow
Below is a screen capture showing the automated purchase order interface in Freespace and the approval status dashboard:
This view highlights live status updates, pending approvals and a breakdown of cost allocations by project.
Set Budget Alerts
Fine-tune your guardrails with smart notifications. You’ll get alerts when:
- Spend hits 75% of the allocated budget
- An invoice mismatches by more than 5%
- Forecasted costs exceed your weekly budget
| Metric | Manual Process | Automated Flow |
|---|---|---|
| Approval Time | 5 days | 1 day |
| Error Rate | 8% | 1.5% |
| Overspend Events | Frequent | Rare |
“Centralised alerts gave us clarity and control; we caught overspend before it happened.”
This turns reactive budget checks into proactive management, so no single PO bursts your budget unexpectedly.
Pull Real-Time Supplier Reports
With real-time dashboards, you’ll spot late shipments or billing oddities at a glance.
• Visualise delivery SLAs against inventory levels
• Compare supplier performance by average lead time
• Generate PDF reports for your weekly team catch-up
This keeps procurement and production perfectly aligned on delivery schedules.
Centralise Invoicing And Cost Allocation
Bring multiple POs into one neat invoice pack.
• Combine POs into single client invoices automatically
• Allocate costs to projects and budget centres with built-in rules
• Dispatch PDF invoices via email in one click
No more manual invoice creation—your spend aligns with client billing in real time.
Generate Audit-Ready Logs
Every PO action is timestamped and stored in Freespace.
• System logs record approvals, edits and comments
• Attach quotes, invoices and VAT certificates automatically
• Export audit trails in CSV or PDF formats in seconds
These logs simplify HMRC compliance and support internal audits without any extra workload.
Learn more about seamless procurement and invoicing on our Freespace features page to see how these tools slot into your existing workflows.
Automating purchase order creation centralises procurement and lets your creative teams stay focused on delivering outstanding media.
Common Mistakes To Avoid And Expert Tips
Working in a busy post-production environment, even the most seasoned pros can trip up when raising purchase orders. An outdated PO template might omit new VAT rules or critical fields. A typo in the project code? Suddenly finance is scrambling to reconcile costs.
“A clear PO template and strict version control cut our error rate by a third,” shares a London post producer.
Common Mistakes And Solutions
It’s amazing how quickly suppliers disappear from your system when the catalogue isn’t updated. Or how a one-line description can turn into a guessing game—suppliers unsure what you need and when you need it.
Blindly trusting a static VAT rate can also land you in HMRC’s crosshairs.
To avoid these pitfalls, build in a quick cross-check before finalising your PO. A second pair of eyes on VAT, project codes and specs can save you hours of rework.
- Refresh supplier lists monthly to lock in current SKUs.
- Swap free-text entries for itemised drop-down menus to eliminate ambiguity.
- Enable VAT reminders in your procurement tool so rate changes pop up immediately.
In Q3 2024, UK garment SMEs recorded a 123% rise in PO volume and 128% sales growth. They lean on cloud-based inventory integration to cut order errors by 25% and boost supplier transparency. This surge wasn’t just restocking—it reflects genuine market confidence. Learn more in the ONS trade bulletin.
Version Control And Approval Workflows
When template edits go untracked, chaos follows. Skipping an approval workflow for high-value orders leaves budgets exposed.
Key Insight: Automating conditional routing can save up to 40% of finance team time.
Here’s a quick comparison table:
| Error Type | Consequence | Prevention |
|---|---|---|
| Forgotten attachments | PO stalled | Mandatory attachment fields |
| Wrong Incoterms | Customs delays and fees | Pre-set shipping terms list |
| Late approvals | Project hold-ups | SLA-driven notifications |
Set simple SLAs—eight hours for a manager sign-off, 24 hours for finance checks—and hold everyone to them.
Expert Tips For Smooth Procurement
Bring every new hire up to speed with a 20-minute, hands-on walkthrough of your PO checklist. It pays to be consistent.
- Host a quarterly PO walkthrough with your finance team.
- Tag urgent requests with a colour code to fast-track approvals.
- Archive old templates in a locked folder so only the current version circulates.
- Update your PO form the moment legislation changes.
- Review error rates monthly and tweak processes accordingly.
One mid-size VFX studio I know slashed back-and-forth corrections by 40% simply by flagging urgent orders. Over time, these little habits make raising a purchase order second nature—boosting supplier confidence and safeguarding project budgets.
Why wait? Start refining your PO routine today.
Frequently Asked Questions
Need quick clarity on raising a purchase order in post-production and media workflows? This FAQ covers template selection, urgent orders, supplier tracking and cost-code integration.
How Do I Pick The Right Template?
List key fields—project code, budget centre, resource IDs—and trial a few layouts with your team to find a natural fit.How Can Urgent Orders Cut Through Delays?
Tag them as high-priority in your procurement system and set up conditional routing so senior managers get notified without pause.How Do I Log Supplier Acknowledgements?
Attach a standard response form and configure automated reminders if it’s not returned within two business days.How Do I Integrate Cost Codes With Finance?
Map your project codes to GL accounts, run small test batches and review the ledger entries before a full rollout.What Approval Thresholds Make Sense?
Establish clear limits: under £500 for team leads; £500–£5,000 for managers; above £5,000 for directors.
“A clear FAQ and checklist cut our follow-up emails by 60%,” says a London post-producer.
Additional Tips
One studio boosted its PO accuracy by reviewing fields each month and syncing vendor catalogues directly with their finance platform. A small habit that made a big impact.
Ready to master purchase orders with AI-native scheduling? Try freispace now at freispace
