Invoiced offers comprehensive features for creating and managing purchase orders (POs), streamlining the procurement process. This documentation guides you through generating purchase orders, tracking them, and utilizing them for two-way and three-way matching, ensuring that your payments are accurate and correspond to the goods and services received.
Purchase orders are formal documents issued by a buyer to a vendor, detailing the products or services ordered and the agreed-upon price. Invoiced allows businesses to create, send, and manage POs directly within the platform, providing a seamless link between procurement and accounts payable.
- Automated PO Creation: Quickly generate purchase orders based on vendor and inventory information.
- Tracking and Management: Monitor the status of each PO, including outstanding, fulfilled, and partially fulfilled orders.
- Matching: Utilize POs for two-way and three-way matching to verify invoice accuracy before payment.
- Log into your Invoiced account.
- Navigate to the Purchase Orders section to access PO management tools.
- Click on the Create Purchase Order or similar button to start a new PO.
- Fill in the necessary details, including vendor information, order date, and expected delivery date.
- Add items to the PO by selecting products or services from your inventory list or manually entering details such as description, quantity, and price.
- Ensure all information matches the agreement with your vendor for accuracy and compliance.
- Review all details of the PO for accuracy.
- Once confirmed, save the PO and send it to the vendor via email directly from Invoiced or download it for manual distribution.
- Tracking Status: Monitor the status of each PO from issuance to fulfillment. Update the status as you receive confirmations or deliveries from the vendor.
- Modifications: If changes are needed, edit the PO directly in Invoiced, ensuring all modifications are communicated to and acknowledged by the vendor.
Two-way matching involves comparing the PO with the invoice received from the vendor to verify that the billed products or services and the agreed-upon prices match.
- Compare the PO and Invoice: Ensure that the invoice details accurately reflect the PO terms, including quantities and prices.
- Approval for Payment: Once matched, the invoice can be approved for payment, indicating that the vendor has fulfilled the order as agreed.
Three-way matching adds an additional layer of verification by including the receiving report in the comparison process, ensuring that the order was received as billed.
- Gather Documents: Collect the PO, the vendor's invoice, and the receiving report detailing what was actually delivered.
- Compare Documents: Verify that the invoice matches the PO details and that the goods or services listed on the receiving report correspond to both the invoice and the PO.
- Approval for Payment: If all three documents align, approve the invoice for payment. Discrepancies should be resolved before proceeding.
- Clear Communication: Ensure that all PO terms are clearly defined and agreed upon by both parties before issuance.
- Document Organization: Keep all related documents (POs, invoices, receiving reports) organized and accessible for efficient matching and verification.
- Regular Review: Periodically review open POs to track fulfillment status and address any pending issues promptly.
By leveraging Invoiced's purchase order functionality, businesses can enhance their procurement processes, improve financial accuracy, and establish a solid foundation for accounts payable operations.