Paper-based purchase orders slow everything down. Approvals take too long, visibility is limited, and mistakes creep in.
If your team still relies on spreadsheets or email for purchasing, it’s time to modernise the process with digital purchase orders.
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A digital purchase order replaces paper forms with a structured, online system that automates approvals, tracks every request, and keeps finance and operations aligned.
The result is a faster, more transparent, and more accurate purchasing process — one that gives Accounts Payable total control of spend before an invoice even arrives.
In this guide, you’ll learn:
- What a digital purchase order is
- Why businesses are switching from manual to automated systems
- How to set up your own digital purchase order process
- The key features to look for in purchase order software
- And how Zahara helps you put it all into practice
Digital purchase orders aren’t just a technology upgrade — they’re a smarter way to manage spend, improve compliance, and prevent late payments and fraud.
What is a Digital Purchase Order?
A digital purchase order is an electronic document that records the details of a purchase between a buyer and a supplier. It works just like a traditional paper PO — but it’s created, approved, and tracked entirely online.
Each digital purchase order includes all the key information:
- Purchase order number
- Supplier details
- Item name and description
- Quantity and price
- Department or project code
- Delivery date
- Approver and requester details
When managed through purchase order software, every step happens in one system — from the initial request to final approval. Once approved, the PO can be automatically shared with the supplier, ensuring clear expectations from the start.
Why Businesses Are Moving to Digital Purchase Orders
Manual processes rely on emails, spreadsheets, and paper forms. These methods work for small volumes but quickly become slow and error-prone as your business grows.
Digital purchase orders remove those issues by:
- Eliminating manual data entry and rekeying errors
- Centralising all requests, documents, and approvals in one dashboard
- Giving managers real-time visibility into who’s spending what
- Ensuring every purchase follows your approval rules
- Providing a full audit trail for compliance and reporting
With automation, purchase orders move faster, approvals are tracked, and Accounts Payable gains earlier visibility of upcoming costs — helping to avoid late payments and unapproved spending.
A digital process also supports hybrid and remote teams, letting employees create or approve POs from anywhere using a secure cloud system.
How to Set Up a Digital Purchase Order System (Step-by-Step)
Implementing digital purchase orders doesn’t have to be complex. With the right plan, your business can go from spreadsheets to a fully automated approval process in a matter of weeks.
1. Build a Business Case
If your purchasing process still relies on emails or paper forms, automation will quickly pay for itself.
Start by calculating your average number of purchase orders per month and the estimated cost of processing each one manually.
Then, show the potential savings from using purchase order software — typically, businesses cut processing costs by 50% or more when they switch to digital purchase orders.
2. Choose the Right Software
Focus on tools that solve your specific challenges, such as:
- Slow or inconsistent approvals
- Poor visibility of spend
- Lost or duplicate orders
- Manual data entry and rekeying
When comparing providers, look for:
- A central dashboard for tracking all requests
- Configurable approval workflows
- Cloud-based access and mobile support
- Integration with your accounting system
- Comprehensive audit trail and reporting
Zahara combines all these features, helping teams approve, track, and control spending in one platform.
3. Customise Your Forms
Set up your digital purchase order template to include key details like:
- Purchase order number
- Supplier name and contact
- Description, price, and quantity
- Department or project code
- Approver details and delivery date
This ensures every order follows a consistent format and meets your internal compliance standards.
4. Design Your Workflow
Next, define how purchase orders move through your organisation.
Import supplier lists, account codes, and project data. Connect your purchase order system to your accounting software so financial data flows automatically.
In Zahara, workflows are flexible — you can route approvals by department, spend limit, or project, ensuring the right people sign off before money is committed.
5. Set Approval Limits
Create an approval matrix that reflects your business rules.
For example:
- Team leaders can approve up to £500
- Department heads up to £5,000
- Directors for anything higher
This keeps spending under control and ensures accountability at every level.
6. Build Supplier Catalogues
Catalogues make purchasing faster and more accurate.
You can set up:
- Internal catalogues — fixed-price items your business buys often
Zahara supports both, helping staff raise purchase requests quickly while maintaining full control of costs.
7. Test Key Scenarios
Before rollout, test common purchasing workflows:
- Are approval chains triggered correctly?
- Are users notified in real time?
- Are prices and vendor details accurate?
Testing ensures confidence and helps resolve any setup issues early.
8. Train Your Team
Run short, focused training sessions — ideally 30 minutes or less.
Use real examples from your departments and record sessions so employees can revisit them later.
In larger organisations, appoint a few “Zahara champions” who can guide others and encourage adoption.
9. Track Adoption
Once live, monitor how users are interacting with the new system.
Measure:
- How many new purchase orders are created weekly
- How long approvals take
- Supplier satisfaction with the process
10. Improve Over Time
After implementation, gather feedback and refine your workflows.
As your business grows, new departments or suppliers can be added seamlessly.
Digital purchase orders evolve with you — not against you.
Benefits of Digital Purchase Orders
Switching to digital purchase orders isn’t just about going paperless — it’s about transforming how your business manages spend, approvals, and supplier relationships.
1. Save Time and Reduce Costs
Manual purchase orders eat up valuable hours.
A digital system automates approvals, notifications, and data entry.
Businesses using purchase order software typically see:
- 50%+ reduction in PO processing time
- Fewer invoice disputes
- Lower administrative costs
The time saved can be redirected toward supplier management and financial planning.
2. Gain Full Visibility of Spend
Digital purchase orders give you a real-time view of spend by department or project.
Zahara provides a single dashboard showing:
- Total spend
- Pending and approved orders
- Supplier activity and history
- Payment status
That visibility helps finance teams plan cash flow accurately and prevent overspending.
3. Strengthen Supplier Relationships
Delays in purchase order approvals can damage supplier trust.
Digital systems speed up approvals and improve communication.
By combining digital POs with invoice processing and scheduled supplier payments, Zahara streamlines the entire purchase-to-pay process.
4. Improve Accuracy and Compliance
Paper-based systems increase the risk of human error.
Digital systems store everything in one place for easy auditing.
Zahara’s Accounts Payable automation software links every PO to its related invoice and supplier, ensuring full traceability and compliance.
5. Enable Better Cash Flow Planning
Digital purchase orders give you visibility of all committed spend, helping you plan payments with precision and negotiate better terms.
With Zahara, finance teams can see liabilities before invoices arrive — turning financial management from reactive to proactive.
Top Features to Look for in a Digital Purchase Order System
Not all digital purchase order systems are built the same.
The best connect finance, procurement, and operations in one unified platform.
Key features include:
- Custom approval workflows
- Real-time notifications
- Role-based permissions
- Cloud-based access
- Automated matching
- In-depth reporting
- Integration with finance systems
Zahara delivers all these capabilities in one secure, scalable platform.
Digital vs Paper Purchase Orders
By choosing Zahara’s purchase order software, businesses gain visibility, control, and automation without the admin burden.
Wrapping It Up
Switching to digital purchase orders saves time, reduces manual work, and gives finance teams complete visibility of spend before invoices arrive.
By moving away from paper-based approvals, your business can:
- Control budgets more effectively
- Improve communication between departments
- Strengthen supplier relationships
- Eliminate duplicate or unauthorised purchases
- Build a full audit trail for compliance
Zahara’s purchase order software makes this transition simple.
Combine it with invoice processing and Accounts Payable automation for complete control of your purchase-to-pay cycle.
Frequently Asked Questions About Digital Purchase Orders
What is a digital purchase order?
A digital purchase order is an electronic document used to record a purchase between a buyer and a supplier.
Systems like Zahara’s purchase order software automate the process for speed, accuracy, and compliance.
How do digital purchase orders work?
They’re created in a central system where staff submit requests, managers approve them, and suppliers receive the final order automatically.
Every step is logged for visibility and auditing.
What are the benefits of digital purchase orders?
The main benefits include faster approvals, reduced paperwork, real-time visibility, stronger compliance, and better supplier relationships.
Zahara’s AP automation software brings these advantages together in one platform.
Can digital purchase orders integrate with accounting systems?
Yes — Zahara connects with Xero, QuickBooks, and Sage, and more, so approved purchase orders automatically sync with invoices and budgets.
How do I choose the best digital purchase order software?
Look for tools with workflows, mobile access, and reporting.
Zahara offers all these features to help finance teams simplify purchasing and control spend.
✅ Book a demo to see Zahara in action and simplify your purchasing process today.
