All 24 Invoice Processing questions
More in Invoice Processing
What is invoice processing in accounts payable? What key data fields must be captured from a supplier invoice? What is invoice coding? What does 'three-way match' mean in one sentence, and why does invoice processing depend on it? What is the difference between an invoice and a receipt? What is a self-billing invoice? Walk through the journal entry when a supplier invoice is recorded. What is a duplicate invoice and how do you prevent duplicate payments? How does electronic invoicing (e-invoicing) and OCR improve AP processing? What are invoice exceptions and how are they handled?
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Accounts Payable & Receivable › Invoice Processing

What is the difference between a PO and a non-PO invoice?

Beginner

Answer

A PO invoice references a purchase order raised before the goods or services were ordered, so it can be matched automatically to the PO and goods receipt. A non-PO invoice has no prior purchase order (common for utilities, rent, or professional fees) and must be coded and routed for manual approval by the appropriate budget holder.
Real-world example Office rent arrives as a non-PO invoice routed to the facilities manager, while raw-material invoices are PO-based and auto-matched.

Common follow-ups: Why do non-PO invoices carry more risk? | How is a non-PO invoice approved?

Purchase Orders & 3-Way Matching Vendor Management Invoice Processing
All 24 Invoice Processing questions