From PO to Payment: What is the Full SKU Lifecycle?

LearnMay 20, 20254 min read
Ankur Thakkar, Product Marketing @ Settle

Behind every SKU lies a lengthy paper trail, from the initial purchase order to the final payment. If you’re a new operator managing inventory and payables for a CPG brand, understanding the PO to payment process is crucial for improving cash flow, maintaining strong vendor relationships, and ensuring smooth operations.

This guide breaks down the entire SKU lifecycle and shows how Settle helps streamline the process so you’re not juggling spreadsheets, emails, and manual processes.

The SKU Lifecycle: Your Purchase Order to Payment Process

Every SKU has a story. From the moment you place a purchase order to the day you issue payment, here's how inventory flows through your business.

PRO TIP: Returns, backorders, and partial shipments complicate this process. A single SKU might require multiple bills or split payments, which adds more room for error if your system isn’t built for it.

Key Terms New Operators Should Know

Here’s a quick cheat sheet:

  • SKU: Stock keeping unit. A unique identifier for each product.
  • PO (Purchase Order): The document that kicks off the order.
  • AP (Accounts Payable): The team or process managing what you owe.
  • GRN (Goods Received Note): Confirmation of received inventory.
  • Net Terms: The agreed-upon number of days to pay an invoice.
  • 2-Way/3-Way Matching: PO + Invoice (+ Received Inventory).
  • Landed Cost: The total cost, including shipping, taxes, and fees.
  • Inventory Turnover: How quickly stock sells and is replaced.

Why PO-to-Payment Visibility Matters

Supply chains are complex, and most teams operate across various disconnected tools, including email, spreadsheets, accounting platforms, and ERPs. Without a connected view of what’s been ordered, received, and paid, it’s nearly impossible to:

  • Forecast cash flow accurately
  • Take advantage of early-pay discounts
  • Avoid duplicate payments
  • Track what’s missing or delayed

When you’re growing fast, these small misses become major roadblocks. Clear supply chain visibility is key.

Carnivore Snax is a prime example of what happens when you get it right.

By streamlining raw material intake and controlling their US-based supply chain, they could go from purchase order to product in under a week. That efficiency and clear SKU-level visibility helped them control margins and maintain a positive cash flow, even during unexpected operational shutdowns.

How Settle Simplifies the Lifecycle

Settle helps early-stage and scaling brands with inventory and AP automation by streamlining the accounts payable workflow and reducing manual errors. Here’s how:

  • Centralizes your POs, invoices, and payments in one place
  • Automatically matches documents to reduce errors and time spent reconciling
  • Tracks bill due dates and schedules vendor payments
  • Improves inventory cash flow management so you can make better decisions

Instead of manually searching for paperwork or checking if an invoice has been paid, everything is in a clean, centralized accounts payable workflow.

Lunar Hard Seltzer is a great example of how streamlined AP can power growth.

Founders Kevin Wong and Sean Ro were bogged down by hours of manual work just to keep their records accurate. Switching to Settle saved them at least 5 hours a month and simplified audits with auto-classified bills and a clean, centralized accounts payable (AP) system. Now, the team spends less time managing payables and more time expanding their product line and growing the brand.

Tying the Loop on Your SKU Lifecycle

The SKU lifecycle isn’t just about inventory but visibility, timing, and smart inventory cash flow management. When you connect the dots from purchase order to payment, you make better decisions and scale confidently.

Settle makes it easier to stay on top of every moving part, so you can spend less time buried in ops and more time growing your business.

Simplify your SKU workflow, reduce errors, and stay ahead of cash flow. Try Settle’s free Launch Plan and get organized fast.

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