Learn how to easily create an invoice from a purchase order and match it to ensure accurate payments and simplify your workflow.
TABLE OF CONTENTS
2 Ways You Can Create an Invoice in Precoro
In Precoro, you can create an invoice in two simple ways:
- From scratch: This option is ideal for situations where there’s no PO, like smaller or service-related purchases. If you want to learn how to create an invoice from scratch, follow this link.
- From an existing PO or SO: This method lets you create a purchase order invoice easily. It automatically fills in the relevant details from the purchase order, which reduces manual entry and helps you quickly spot any differences between what you ordered and what is being billed.
How to Create an Invoice from a Purchase Order
To create a purchase order invoice, please follow these simple steps:
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Navigate to the Invoice Management page and click the Create from PO button. The red number indicates how many POs are pending for invoicing.
- Select the supplier by clicking the plus button on the right.
- Choose the purchase or service order for which you want to create the invoice.
- Select the items to add to the invoice and click Next Step.
- Fill out the invoice details and click Create.
- Review the original invoice from the supplier. If the amount differs from the order, adjust the quantities in Precoro by adding new items or removing any that weren’t received.
- Once all changes are complete, click Confirm.
The Invoice Due Date is automatically filled based on the Invoice Issue Date, Supplier, and your Payment Terms settings. This applies whether you create a single invoice or one from a PO. Learn how to manage Payment Terms.
How to Create Multiple Invoices for One Purchase Order Item
Sometimes, suppliers may issue multiple invoices for a single purchase order item, especially in cases where deliveries are made in batches. In Precoro, you have the flexibility to adjust the quantity of goods on each invoice and pay only for the portion of the order received. Here is how to create multiple purchase invoices for one product:
- Follow the steps to create an invoice from the purchase order as outlined in the previous section.
- Select the item on the invoice and adjust the quantity to reflect the amount received.
- Click Save and then confirm the invoice to complete the process.
- Repeat this process for any additional items in the purchase order.
How to Match a PO with an Invoice
Once you confirm the invoice, Precoro automatically compares it to the PO for any differences, such as price or quantity. If the discrepancy exceeds the specified Tolerance Limit, the system flags both the PO and invoice with a Matching status and sends the purchase order for review to the PO initiator.
To learn more about setting up tolerance limits, refer to this article.
The PO initiator will receive an email notification and must review and approve any necessary changes within the PO. Once the changes are approved, Precoro updates the PO to reflect the new invoice details, including any price or quantity adjustments.
💡 Please note that the invoice approval workflow only begins after the PO approval process is fully completed.
How to Create Payments for an Invoice
Once an invoice is approved, you can enter payments directly within the invoice document under the item line or within the related purchase order document. If you opt for the former, the payment information will be automatically recorded in the PO and displayed under Previous Payments in the associated invoice.
Alternatively, you can click the Payments button in the top panel on the Invoice page to enter payments. For a detailed step-by-step guide on the payment process, please refer to this article.
Frequently Asked Questions