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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

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.
  • With Intelligent AP Automation: If your suppliers send invoices in physical format, Precoro processes them automatically, recognizing the data, matching it to the right purchase order, and adding the invoice to your AP Inbox. Learn more about Intelligent AP Automation here.
This article covers the second method.

How to Create an Invoice from a Purchase Order

To create an invoice from a purchase order:

  1. Go to the Invoices page and click Add from PO.

    If your company has custom forms set up for order-based invoices, choose the standard or a custom form from the list.

    The red number on the button shows how many POs are pending for invoicing.

  2. Choose the purchase or service order for which you want to create the invoice.
  3. Select the items to add to the invoice and click Next Step. 
  4. Fill out the invoice details and click Create.
  5. Compare the draft to the original invoice from your supplier. If the amount differs from the order, adjust the quantities in Precoro by adding new items or removing any that weren’t received.
  6. Once all changes are complete, click Confirm.

💡 Please note: 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.

Precoro lets you invoice and pay for only the portion of the item you've actually received.

To create multiple invoices for one item:

  1. Create an invoice from the purchase order as described above.
  2. Select the item on the invoice and adjust the quantity to reflect the amount received.
  3. Click Next Step and then confirm the invoice to complete the process.
  4. Repeat this process for any additional items in the purchase order.

💡 Please note: Shipping items work differently from regular items when creating partial invoices. Their Quantity is fixed at 1 and can't be changed.

Precoro tracks partial invoicing by shipping amount instead, showing how much has already been invoiced and how much is still Waiting. Learn more here.


How to Create One Invoice for Multiple Purchase Orders

You can create a consolidated invoice to pay for multiple orders at once. Give this feature a try to:

  • Correctly add consolidated invoices issued by your suppliers to Precoro.
  • Simplify the approval process by reducing the number of documents.
  • Speed up invoice processing to avoid delays and extra fees.

Here's how to do it:

  1. Press the Add from PO button on the Invoices page.

  2. Pick POs from the list. 

    Please note, you can create an invoice from POs that have the same type, supplier, currency, and budget. Once ready, press Next Step.

  3. Select the items to add to the invoice, then click Next Step.
  4. Enter invoice details and click Create.
  5. Review and confirm the draft. All related purchase orders will be displayed below general information.

 

When working with several invoice items, you can use mass editing to update the same option across multiple lines at once, or bulk save to save several manually edited items in a single request instead of one by one. Learn more in this article.

How to Match a PO with an Invoice

Once you confirm the invoice, Precoro automatically compares it to the related PO. If a discrepancy—in price, quantity, or a new item—exceeds your Tolerance Limit, both documents move to Matching status, and the PO initiator is notified to review the change.

To learn more about setting up tolerance limits, refer to this article.

See the Matching Process article for a full breakdown of what triggers matching, how tolerance limits apply, and how to read discrepancies on the PO page.

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 with the new invoice details.

 

💡 Please note: The invoice approval workflow only begins after the PO approval process is fully completed.

How to Create Payments for an Invoice

There are two ways to record a payment on an approved invoice, depending on how your company handles supplier payments:

1. Pay a supplier directly from the invoice. 

If your company uses Precoro Payments, click Pay on the invoice to send the payment without leaving Precoro. Find the details in this guide.

Paying this way keeps the payment and the invoice in sync automatically, so you can track its status, cancel it before it's sent to the bank, and download a receipt once it's complete.

pay-invoices

2. Mark the invoice as paid manually.

If the payment happened outside Precoro, click Mark as Paid instead. Enter the Payment Date and Amount, then click Pay to confirm. The invoice's status changes to Partially Paid or Paid, and the payment appears in the Payments table in the associated invoice.

To pay several invoices at once instead of one by one, or to cancel a payment, see the dedicated article for the full walkthrough.

mark-as-paid-invoices

Can’t Find a Feature? Suggest It in Our Roadmap

If you know a feature that would make working with Precoro easier, it may be in development or waiting to be requested. To see what's in store, please check out our Open Product Roadmap.

There, you can:

  • See what’s planned and in progress

  • Upvote ideas that matter to you

  • Leave comments to share your use case

  • Subscribe to announcements and follow relevant ideas

  • Submit new feature requests

To get started:

  1. Review existing ideas and upvote the ones that you find helpful.

  2. Log in or sign up using your business email to access full functionality.

  3. Submit new ideas and share insights with your peers in the comments.

Every suggestion counts—your feedback shapes what we build next. Refer to this article for more details on working with the product plan.

FAQs

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 purchase order number in the invoice's general information. This only appears 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 Invoices 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.

How to create an invoice for an order with split costs?

If you use split costs, learn more about creating related documents here.