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Acquiring open POs from another entity
Our business is purchasing some inventory and open purchase orders from another business ("Company B"). The open purchase orders have all been partially or fully pre-paid per the terms with the vendor. We want to pay Co. B to cover the deposit/pre-payment they have made to the PO vendors, then when we receive the goods they're ours and we're done.
Basically Co. B will close the POs that we "buy" and we will re-key them into our system pending receipt.
I realize this may sound like a strange arrangement and it would be easier to wait for the items to be received by the other company and then just buy the inventory but this is not an option.
Steve Klett | Senior Developer
NetValue Technology
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