What is PO based invoice?

Question

Accepted Answer

A PO based invoice is an invoice that is generated based on a purchase order issued by a buyer to a supplier.

A PO based invoice is created when a buyer places an order with a supplier and a purchase order is issued.
The invoice is generated based on the details mentioned in the purchase order.
It helps in ensuring that the goods or services received match the order placed.
PO based invoices are commonly used in business transactions to maintain proper documentation and control over purchases.
For example, if a company orders 100 units of a product from a supplier, a PO based invoice will be generated based on the purchase order.
The invoice will include details such as the quantity, price, and description of the product.
Accounts payable executives need to verify and process PO based invoices to ensure accurate payment to suppliers.

Accepted Answer

Po based invoice which is supported by specific po means we created and issued the po to vendor before getting the goods and invoice.

Top Sebros Industries Accounts Payable Executive interview questions & answers