Non-PO Backed invoices are invoices without a Purchase Order or a Contract for a backing document. These type of invoices work well for services and other ad-hoc invoices where there isn't time to set up a Purchase Order and the customer doesn't want to have to create and maintain a contract.
- What type of invoices do you currently receive? Goods/Services?
- Do you allow suppliers to send invoices without a Purchase Order? If not, how do you handle setting up a blanket purchase order (BPO)?
- If you are using BPO's, are they required for very small dollar high volume invoices?
- Are contracts being used?
The requirements ultimately drive the design, however from a best practices perspective, aim to get as close to:
- Always route non-PO invoices for approval either by setting the flag on the supplier record or creating an invoice tolerance.
- Allow suppliers to specify the requester on the invoice so the invoice can be directed to the person requesting the invoice. This also saves AP time trying to track down the owner.
- The recommendation is to send the invoice to the requester and then through the same approval matrix which other invoices breaking a tolerance follow.
- We should include an end to end process flow for inbound no PO invoices
Things to avoid
Do not allow non-PO invoices to auto-approve. Someone MUST always review a non-PO invoice.