What is po and non po based invoices?

Question

Accepted Answer

PO and non-PO based invoices are two different types of invoices used in accounting.

PO-based invoices are generated when a purchase order is issued by a buyer to a supplier before the goods or services are received.
Non-PO based invoices are generated when there is no purchase order involved, and the invoice is based on an agreement or contract between the buyer and supplier.
PO-based invoices require matching with the corresponding purchase order and goods receipt before payment can be made.
Non-PO based invoices do not require matching and can be processed directly for payment.
PO-based invoices provide better control and visibility over the procurement process, while non-PO based invoices offer more flexibility.
Example of a PO-based invoice: A company orders office supplies from a supplier and issues a purchase order. The supplier delivers the supplies, and an invoice is generated based on the purchase order.
Example of a non-PO based invoice: A company hires a consultant for a project and agrees on an hourly rate. The consultant submits an invoice based on the hours worked without a purchase order.

Accepted Answer

Po based is an invoice where material is involved a po is created before delivering of goods and services
 Non po based is an invoice where buyer get the services first and will pay for the bill that seller send it.

What is po and non po based invoices?

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