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7.3 Purchase Order (PO) Management

7.3 Purchase Order (PO) Management

  • The Legal Contract: A PO is not just a request; it is a binding contract.
  • The Acknowledgement: The strict rule that a PO is not "placed" until the supplier provides a written Acknowledgement with a confirmed delivery date and price.
  • PPV (Purchase Price Variance): Managing the delta between "Standard Cost" (quoted) and "Actual Cost" (paid). Who authorizes the variance?
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