Which document typically follows the issuance of a purchase order in the procurement process?

After a purchase order is issued in the procurement process, the next logical step is to record the receipt of goods that were ordered. This action is documented through a goods receipt.

When the ordered goods arrive at the company, a goods receipt is created to confirm that the items have been received in the correct quantities and conditions as specified in the purchase order. This document plays a critical role in inventory management, as it updates the inventory levels in the system and serves as a basis for the subsequent stages of the procurement process, including invoice verification and payment processing.

The goods receipt is essential for maintaining accurate stock levels and ensuring that the company’s financial records reflect the proper inventory holdings. Additionally, it establishes a connection between the purchase order and the eventual invoice receipt, facilitating a streamlined procurement process.