Complex Procurement process involves multiple steps and unique to the requirement.
What is a Purchase Order?
A purchase order [PO] is a legal form used by a customer and sent to a vendor for an order. A purchase order specifies items, quantities, prices, and credit terms for a purchase from the vendor. A PO becomes a legally binding document when a vendor accepts the purchase order.
The main purpose of a purchase order from a customer is to initiate a business order for specific goods or services with a vendor. An approved purchase order states the agreed terms and offers legal protection for both the party.
Purchase order items, quantity, and prices (and receiving information) are matched with an invoice by the customer to ensure that the items have been ordered and billing is correct before paying the vendor.
Purchase orders are sequentially numbered and provide an audit trail in the system.
Why Do You Need a Purchase Order?
Issuing a purchase order results in better approval processes, spend management, and internal control over purchases. Purchase orders are numerically controlled with a sequential PO number on each form for internal control.
How Does a Purchase Order Work?
The purchasing process includes creating purchase orders (POs) after receiving an approved purchase requisition and getting vendor bids.
The 10 steps in the purchase order process and approval workflow
The purchase order process is:
• Create a purchase order for the selected vendor
• Purchasing approves the PO
• Send the PO to the vendor
• Vendor confirms acceptance of the received PO
• Customer receives ordered goods or services
• Vendor invoices customer for products shipped or services delivered
• Customer completes 3-way matching of documents
• Customer approves the invoice
• Customer pays the approved vendor invoice
• Close PO Saving Changes...
I have no doubts that purchase order process is a business process. It's also a complex activity with many steps. I am also sure it's often a process in a project, but not a project itself.
Purchase order process falls under PMBOK 6th procurement management. Following what is written in chapter 12 “The Project Procurement Management processes involve agreements that describe the relationship between parties - a buyer and a seller.” This includes a simple purchase of a labor or service as well as a complex procurement process that continuously supplies a project with required resources. Saving Changes...
Depends on your scope: per PO? or at a higher, macro level? A PO could be a process input or process output depending where that PO document is in the process, or depending on a stakeholder. Saving Changes...
