Once all necessary approvals have been obtained, the invoice is processed for payment. This often involves multiple steps and may require approval from several different people within the organization, depending on the amount of the invoice and the company's internal approval hierarchy. Since non-PO invoices are not pre-approved, they undergo an approval process. This includes checking the details of the invoice, verifying that the goods or services were received, and confirming that the invoice amount is within the company's spend limit. The accounts payable department reviews the invoice. The vendor or service provider sends a non-PO invoice for the goods or services provided. These purchases are usually made as and when the need arises, without going through the standard PO process. Non-PO invoices often arise from smaller, regular expenditures, reimbursements for employee expenses, or legally contracted services. Service invoices The PO invoice procurement process Reimbursement for employee parking or driving fees A purchase order is a request by a buyer to a seller to provide goods or services, while an invoice is a document issued by the seller to the buyer that serves. Reimbursement for employee travel expenses Non-PO invoices are also used to make payments to suppliers when a particular invoice is within the company’s spend limit. Owing to the nature of indirect procurement, non-PO invoices are generally not pre-approved. Such invoices are also known as expense invoices, and usually indicate any indirect purchases made by a business. Invoices for normal goods What is a non-PO invoice?Īs the name suggests, a non-PO invoice is one that doesn’t have a corresponding purchase order. This ensures that there are no inconsistencies between the original purchase order and the PO invoice. When PO invoices are received by the AP department, they are matched against the corresponding purchase order. PO invoices contain details about the goods or services procured, and a matching purchase order number. These invoices are generated after the approval of a purchase order. A PO invoice is one that has a purchase order attached to it.
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