PO INVOICE MEANING MANUAL

While POs and invoices may be printed and mailed, they are most commonly sent digitally. Oftentimes, people confuse the real meaning of purchase orders (POs) and inventory, because they both handle the communication and terms of payment agreements. Wait, what’s exactly the difference between purchase orders and invoices? Specifically, if your eCommerce business handles physical inventory, then you will deal with both purchase orders and invoices. All of this “paperwork” (whether printed or virtual) requires excessive time and understanding. See step 9.Running an eCommerce business accurately and efficiently requires a ton of documentation. Inspection information such as quantity accepted or rejected is recorded into the Oracle inspection form.ĭuring the online approval invoice process, the invoice quantity and amount is matched to the purchase order and receiving and inspection information to ensure that tolerances are met.Ī hold is placed on the invoice. The following table outlines the 4 way matching process: In 4 way matching an invoice is matched to the corresponding purchase order for quantity and amount, receiving, and inspection information. The 4 way matching process is used when an operating location is using online receiving and inspection. Goods or services ordered through a purchase order are received by central receiving or the appropriate operating location department.Ī query is performed in the purchasing module, receiving form (transaction screen) to find the appropriate purchase order.ĭata is entered and saved into the Oracle receiving form (transaction screen) including quantity received.ĭelivery of goods is recorded in Oracle and then manually performed for receipt by end user (this would be done if using central receiving).Īn invoice is created in the accounts payable module and matched to the purchase order created in the purchasing module.ĭuring the online invoice approval process, the invoice quantity and amount is matched to the purchase order and receiving information to ensure that tolerances are met.Ī hold is placed on the invoice. The following table outlines the 3 way matching process: In 3 way matching an invoice is matched to the corresponding purchase order for quantity and amount and to receiving information. The 3 way matching process is used when an operating location is using online receiving. Once the hold is resolved or released, the invoice approval process must be repeated and if all tolerances are met, the invoice is approved for payment.

PO INVOICE MEANING MANUAL

The reason for hold must be resolved or a manual release of the hold must be processed.

No holds are placed on the invoice and the invoice is approved for payment.Ī hold is placed on the invoice. The following table outlines the 2 way matching process:Īn invoice is received from a supplier (vendor) for payment of goods or services ordered through a purchase order.Īn invoice is created in the accounts payable module and matched to a purchase order.ĭuring the online invoice approval process, the invoice quantity and amount is matched to the purchase order to ensure that tolerances are met.

In the 2 way matching process quantity and amount on the invoice are matched to the quantity and amount on the corresponding purchase order. The default setting for all invoices is 2 way matching, if 3 or 4 way matching is required it must be set on each purchase order when it is created. Refer to ' Tolerances' and ' Invoice Holds' for more information. The invoices must meet matching tolerances or a hold is placed on the invoice and payment cannot be made until the hold is resolved or manually released. Invoices are matched to purchase orders (2 way matching), receiving information (3 way matching), and inspection information (4 way matching) as applicable. Matching is a process performed for goods and services ordered through a purchase order that takes place during the online invoice approval process. Two, Three, and Four Way Matching Two, Three, and Four Way Matching What is Matching?

Po invoice meaning