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Purchase Orders are documents issued from a Buyer (your organization) to a Seller (the vendor). They are an important tool for Buyers because they formalize requirements and pricing, and serve as legally binding documentation of the goods/services that were ordered.

As the name suggests, a non-PO invoice is one that doesn't have a corresponding purchase order. Such invoices are also known as expense invoices, and usually indicate any indirect purchases made by a business. Owing to the nature of indirect procurement, non-PO invoices are generally not pre approved.

A purchase order is an official document that forms an agreement between the customer and the vendor regarding the goods that the former wants to buy. It also includes the expected delivery date and any special requirements or conditions. On the other hand, an invoice is a record for goods or services provided.

Only POs are legally binding Contrary to what you may hear, an invoice is not a legally binding contract. The only thing an invoice can do is communicate a request for payment. A purchase order, on the other hand, becomes a legally binding document once a vendor accepts the order.

Anatomy of an invoice Include your business details (including tax number if you have one) Fill out the customer's name and address. Record the date you're sending the invoice. Create a unique invoice number (see below for more details) Add a job reference or purchase order (PO) number.

Sales orders are sent by suppliers to buyers after receiving a purchase order from the buyer - verifying details and the confirmation of the purchase. Invoices are sent by supplier to request a payment from a buying party once goods or services have been fully delivered by the supplier.

The journey of the PO from the moment it is created involves approval, dispatch, delivery of goods or services, invoicing, matching and closure. Once approved by the business and accepted by the vendor, the PO becomes a legally binding document.

?"Payment is due within thirty (30) days from the date of invoice. Failure to pay within this term will result in a late fee of [amount]. Please mention the invoice number [number] when processing payment. Any discrepancies should be reported within fourteen (14) days of receipt."