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:

  • From scratch without the Purchase Order. Follow the link to see how it works.
  • From an existing PO.

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.

2. The red number on this button shows how many Orders are pending for the Invoice.
Select the Supplier.

3. Select the relevant Purchase Order and fill out the required data.

Please note you can select the Service Order type as well.

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 exceeds the allowed Tolerance RateYour settings for the Tolerance Limit will, in turn, affect whether the document will be re-approved after the manual changes made in the document or whether the re-approval process will be triggered after the Matching.

    Please go to the Matching Process article to learn all the cases for triggering it in documents.

    If you have created several Invoices, their Matching will be sequential. First, you must approve one, and then you will be able to proceed to another.

    You can create Invoices from PO with the document on Approved, Matching, or Pending statuses.

    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.

    Invoice Payment

    After you have approved the Invoice document you can proceed with entering payments.

    You can pay the Invoice on its page. If your Supplier has a Credit Note balance you can choose it in the Payment Type field.

    You can also make a payment from the Purchase Order page and the payment information will be recorded in the Purchase Order and displayed in the Previous payments in the Invoice.

    More information about Credit Note types of payment can be found here.

    Invoice Without Receipt Blocking Functionality

    You can block the document’s Invoice Confirmation without Receipt. After the Receipt creation, the Invoice will be automatically forwarded to the next Step in your Workflow.

    More information on how to set up and use this functionality to your fullest advantage can be found here.

    With this functionality activated, the matching process of the invoiced items will remain the same. After creating and approving the invoiced amount, this information will be automatically updated and displayed in the related PO.

    On the Select Items to add to the Receipt page, we have added a Quantity in Pending Invoices column that displays information on how many items are currently in the Invoices that are waiting for Receipts to be created (Invoices with Pending Receipts Statuses).

    Please note that the Quantity in Pending Invoices displays information that is part of the Invoice Without Receipt Blocking Functionality. Without that functionality enabled, the Quantity in Pending Invoices column will display 0.

    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.