Automatic coding that is pre-configured in the solution, based on previous invoices from the same supplier or cost center.The processing of non-PO invoices can also be highly automated by adopting a modern AP automation solution. When the data, obtained via OCR capture, on a PO invoice matches the data on the purchase order and goods receipt, the AP automation solution can perform automatic matching and no one in accounts payable (or anywhere else in the organization) needs to touch the invoice. Intelligent matching of PO invoices can support an end-to-end fully automated and touchless process. In a modern, cloud-based solution, both types of invoices would be handled and automated by the same system, which also covers the invoice data capture via Optical Character Recognition (OCR) as well as the supplier payment process. There are considerable opportunities to automate the processing of both PO invoices and non-PO invoices, thereby removing manual, error-prone steps in the accounts payable process and achieving increased efficiency and control. Today, accounts payable automation systems are available for companies of all sizes in every industry. Once all necessary invoice approvals have been obtained, the invoice returns to accounts payable for final booking and payment. Often, there is an internal approval hierarchy stipulating that invoices of a certain amount will need to pass multiple approval steps within that hierarchy. If invoice details are scarce, this can be a tricky operation.
Usually, the accounts payable team will apply coding and identify the correct approver, based on the information on the invoice and their best knowledge. If a deviation is identified in the matching process, the invoice will be sent to the buyer for review and action.Ī non-PO invoice, on the other hand, has not been pre-approved and will, therefore, need to go through an invoice approval process within the buying organization.
PURCHASE ORDER AND INVOICE DIFFERENCE MANUAL
As a result, a PO invoice can be automatically processed for payment as long as all details match the information on the purchase order and goods receipt, without the need for manual review and approval. non-PO invoices, mainly when it comes to the invoice approval process.Ī PO invoice is, in fact, a pre-approved invoice since the purchase, supplier, and amount were approved as part of the requisition process leading up to the purchase order. The accounts payable process is different for PO vs. What is the Invoice Approval Process for PO vs. These types of invoices are often called expense invoices and are used for various indirect purchases.
Non-PO invoices do not have a purchase order associated with them, and are the result of spend outside a regulated procurement process. PO invoices typically include invoices for purchases of direct material. In most cases, companies will perform a three-way invoice matching to verify that the PO invoice details match both the purchase order and the goods receipt registered in the procurement or ERP system upon reception of goods or services. Arriving at accounts payable, the PO invoice is matched against the purchase order to ensure that all details correspond. What is a PO Invoice?Ī PO invoice should include the purchase order number and details of the goods or services provided as agreed between the buyer and supplier. In the case of purchases made outside the regulated purchase process, a non-PO invoice, also called an expense invoice, is sent from the supplier. When a purchase requisition process is in place, the purchase will be triggered by a pre-approved purchase order (PO) that is sent to the supplier. The difference between PO and non-PO invoices lies in the purchase that generated the invoice.
The Difference Between PO and Non-PO Invoices Discover the differences between these two types, and why the invoice approval process differs depending on the type. There are two main types of supplier invoices: purchase order-based invoices, also called PO invoices, and expense invoices (or non-PO invoices). Accounts payable is responsible for managing the processing of supplier invoices, from reception of the invoice, through coding and approvals, until the payment is posted in the ERP or financial system and ready for payment.
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