Increasing a purchase order (PO) 2172



  • I was wondering if anyone knew if there was some sort of SOX rule or regulation that limits the amount a PO can be increased. The purchasing manager at my work says the maximum increase is 25% and can only be increase once. Does anyone know where it would state this? Or if he is just flat out wrong? Thank you in advance.%0AMoy



  • Nothing in SOX would dictate that. Your internal company policies would dictate what changes could be made to a PO.



  • I feel that there is often confusion between controls and SOX tests. It may be helpful to bear in mind that controls are those the company set up in order to detect errors, protect assets, and ensure accuracy of financial reporting. What SOX does, is to enforce those controls that management has designed and implemented.



  • I was wondering if anyone knew if there was some sort of SOX rule or regulation that limits the amount a PO can be increased. The purchasing manager at my work says the maximum increase is 25% and can only be increase once. Does anyone know where it would state this? Or if he is just flat out wrong? Thank you in advance.%0AMoy %0A1. There is no rule or regulation on this.%0A2. Unless you have a specific company procedure to this effect your purchasing manager is really talking nonsense. If you do have such a procedure then it is … not very sensible.%0A3. You can obviously circumvent this ‘control’ by issuing a second PO.%0AWhat we must never lose sight of in the SOX world is that filling business requirements needs to be a commerical business decision - albeit subject to appropriate approvals and authorities. A plant manger shouldn’t be restricted in getting the raw materials he needs because a PO can only be increased by 25%


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