How to Create an Invoice from a Purchase Order and Match it


How to Create an Invoice in Precoro

In Precoro, there are two ways to create an Invoice:

Advantages of Creating Invoices from Purchase Orders

Creating an Invoice from a Purchase Order provides you with the following advantages:

  • Tracking of the discrepancies between the Order and the Invoice 
  • Smooth Purchasing workflow creation from Ordering to Payments and Receipts
  • Reduced late or early payments.

How to Create an Invoice from a Purchase Order

  1. Go to the Invoices list page and press the Create from PO button.
    The red number on this button shows how many Orders are pending for the Invoice.
  2. Select the Supplier.
  3. Select the relevant Purchase Order and fill out the required data.

4. Check the original paper or electronic Invoice from the supplier. Is the invoice amount different from the order amount? If yes, you have some discrepancies that you need to reflect in your Invoice in Precoro. Look through the items and change them accordingly if there are discrepancies. If you have new items, add them to your Invoice, or delete the items you do not have from this document.

5. Once all changes are done, press the Confirm button.

6. Precoro will calculate the delta between the Purchase Order and Invoice at this stage. The document will go to the PO initiator for the Matching process if the Invoice to PO % difference is greater than the allowed Tolerance Rate

    Please note that the matching process will not be initiated when you change the Exchange Rates. Also,  in case the amount exceeds the limited budget, you will not be able to save the invoice.

    7. The Purchase Order initiator will receive an email notification regarding any required approval changes and then should go to this very PO and review the changes.

    Once revised and accepted, the Purchase Order will be sent for approval again to confirm the changes.

    Once Invoice changes are accepted and approved, Precoro will change the prices in the PO depending on the last Invoice and increase quantities if that is the case.

    8. The Invoice approval process starts when the Purchase Order approval process ends.

    How to Create Multiple Invoices for one Purchase Order Item

    Creating multiple Invoices for one item will be useful for you if your supplier

    • makes multiple deliveries; 
    • delivers the goods in a piecemeal fashion, on different days. 

    In this case, the supplier will provide you with two or more invoices for one product. You can change the number of goods in the Invoice and pay only for part of the Order. Later, you can pay for the remaining goods with another invoice.

    How a Requester Can Get Complete Information on Purchase Order Items from an Invoice

    For this function to work, the Invoice should have a related Purchase Order. A requester can get full information on the Purchase Order and its items by using the Show Purchase Order button:

    You will see the general Order information and complete information on the Items:

    To avoid Invoice and Purchase Order matching for most cases, we recommend you to

    • get a catalog from the supplier with the correct SKU;
    • ask your supplier to refer each Invoice to the relevant PO #;
    • add your suppliers to the Precoro Suppliers Portal.