Sachin Sharma, founder of Precare Dash, explains why managing staged deliveries breaks spreadsheets and accounting software. When one purchase order arrives in multiple shipments, vendors get paid late and relationships suffer. A system that matches each receipt to the original PO instantly solves invoice delays and gives finance teams real visibility into what's actually arrived.
Are you struggling with keeping track of all the staged deliveries when the vendor sends the same product in 10 different shipments? If you answer yes, then this video is for you. Most companies struggle with keeping track of receipts against the purchase orders when they are delivered over a period of time for various reasons, which then leads to either a, not understanding whether the product was actually received and you land up holding the invoice, not paying the vendor and that leads to poor vendor relationship. So in this video I'm going to break down first of all, why it matters why it is happening to begin with. Number two is what you can do to keep track of staged deliveries or multiple receipts against a single purchase order. If you're joining me for the first time, welcome. My name is Achin Sharma. I am the founder of Precare Dash, where we help growing companies automate their purchasing and AP processes. So let's talk about staged deliveries. Why it happens, right? So first of all, that's the reality. It's not always that you're going to order. Let's say you ordered hundreds of widgets, right? Or one type of widget. Sometimes the vendors are running low on stock so they will ship what they already have and then rest is back ordered or just because you know the of the sheer size of the delivery, it has to be shipped across the multiple shipments and so on. So what lands up happening is now same purchase order line has let's say 10 receipts. And if you're using, let's say spreadsheets for tracking it, it just becomes hard to keep track of every single line and how many receipts are against that. Most of the accounting systems that are out there, like QuickBooks and so on, are not even designed to handle multiple receipts and so on. So how do you go about solving this problem? This simple solution is having a system that can capture multiple receipts receipts or support multiple receipts. So imagine let's say you order some a hundred widgets of something, right? Let's say 100 reams of paper, right? It's keep life simple. And now the first shipment came and there's 10 of those. So the first receipt is for those 10, right? And then the second shipment came, let's say that's for 20. So now you have two receipts against the same line. And if you're just keeping track in spreadsheets, it's just hard to manage it, right, because of the share volume. So a purchasing system can help you handle that. Now if you do that, here are a couple of things you will notice. Number one is your invoices will be processed fast. Because now when you receive the invoice for that shipment, you have a receipt to match to and the purchase order to match to. So let's say, let's say you order 100, you receive 10, and the invoices for 10. So all matches. Great. Pay the invoice, next one comes is for 20 and so on, right? So you are now looking at individual invoice level, but also now you can aggregate and say out of 100, how many we have received and what is yet to receive. Right? So when finance is looking at understanding accruals, right, so what do we need to accrue for against the committed spend? This report is super helpful then to understand and say like, okay, we order 100, we only receive 50. 50 is yet to be received and invoiced. So you can plan for that from a cash flow standpoint, right? So to summarize, if you have multiple deliveries against the same purchase order, used a purchasing system to automate this process so that one, you can match the invoices faster and pay the vendors on time. Number two is you can run your accruals effectively to understand what's committed and what is yet to be invoiced. If you're struggling with multiple deliveries against the same purchase orders, use the link below to schedule a time with our product specialist and we'll walk you through how we can solve that for you. I hope you like this video and I'll see you next time.
