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

      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:

      1. Navigate to the Invoice Management page and click the Create from PO button. The red number indicates how many POs are pending for invoicing.

      2. Select the supplier by clicking the plus button on the right.
      3. Choose the purchase or service order for which you want to create the invoice.
      4. Select the items to add to the invoice and click Next Step. 
      5. Fill out the invoice details and click Create.
      6. 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.
      7. 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: 

      1. Follow the steps to create an invoice from the purchase order as outlined in the previous section.
      2. Select the item on the invoice and adjust the quantity to reflect the amount received.
      3. Click Save and then confirm the invoice to complete the process.
      4. 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: 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.
      payment
      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.

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      Frequently Asked Questions

      How can I make sure I only pay for items that have been delivered?

      In Precoro, you can easily avoid overpayments by blocking the confirmation of an invoice if there's no receipt for it. This means users must create receipts for each invoice. After the invoice is confirmed, Precoro will perform a 3-way match between the PO, the invoice, and the receipt to identify any discrepancies in quantities or prices.

      If you want to learn more about setting this feature up and how 3-way matching works, check out this article.

      How to get complete information on PO items directly from an invoice?

      To view related purchase order item details in an invoice, click the Show Purchase Order button above the item list. Please note that full details are only available if the invoice is linked to a PO.

      Does adding new item lines always trigger matching?

      You can control that by activating the Adding New Items Without Matching setting in the Configuration — Basic Settings — Documents Setup — Invoices.
      Here's how it works:

      • When you add new items, the matching process is not triggered as long as the total of the invoice changes within the tolerance limit.
      • Negative item lines are always added without matching.
      You can learn about matching in more detail here.
      How to track invoices?

      You can track invoices on the Invoice management page, where you can filter by status (e.g., paid, pending, or approved) to monitor their progress. Learn more about tracking invoices in this article.

      Can I pay an invoice with the credit note balance?

      Yes, you can pay an invoice using the credit note balance. In the Payment Type field, select the Credit Note option. Learn more about credit note payments in this article.