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Good evening and welcome to JustAnswer.comIncreasing the thresholds to more accurately reflect the cost of projects will enable departments to operate more efficiently and with greater flexibility.
When should purchase orders be used?Due to the administrative cost of preparing and handling the purchase order document, purchase orders for less than $3,000 should be used only when the commodity, conditions, or amount of the procurement precludes use of a simpler award method.
Purchase orders give a financial auditor more of a paper trail in testingthe status of the internal control (or lack of it) in your organization. Ifyou are subject to having financial audits performed, purchase orders may beessential. They require that some level of management approves allpurchases for the company by signing off on them.
Here is a link to help understand why purchase orders are important!http://www.brightpearl.com/sites/default/files/14-reasons-why-placing-purchase-orders-is-so-important.pdf
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