Invoice w/o reference to PO

[Former Member]

Hi,

What is thr difference if we create Invoice with and without ref to PO.

Is der any diff in config.

Also, what is the rational/use behind creating invoice w/o reference to PO

Thanks,

Manu

[Former Member]

Hi. An invoice without reference to a PO posts directly into finance, there is no impact in MM.

There is no posting to the GR/IR account, so there is no automatic accrual created by the goods receipt, as there is no goods receipt.

From an audit and finance point of view it is always better to have a PO, as this gives you authorisation up front, if there is no PO you do not get a chance to authorise anything until the invoice arrives, by which time it is probably too late to refuse it.

A PO also gives you an accrual and a commitment.

The basic rule is always use a PO if possible. There are some purchases where it is not possible, or adds no value, an example is perhaps for utility bills (electric, gas etc), where you have to pay it and are not sure how much it will be before the invoice arrives.

Regards,

Dave.