Understanding Purchase Order (PO) Invoice Transactions 0.5 CPE

The subject of Purchase Order (PO) invoices was covered at a high level in the course titled “A Deep Dive into The Responsibilities of Accounts Payable Operations.”  This course covers the flow of PO invoices, from the time they are received by a Company to the point they are ready to be paid. 

This course addresses the different types of Purchase Orders a Company may have as well as the different matching methods.  Special attention is given to those areas more prone to mistakes.  For examples, some inaccuracies can occur even before an Accounts Payable (AP) Processor is ready to enter the invoice into the system.  We learn how to recognize them.

The accounting transactions posted when a PO invoice is processed is covered, including the posting of freight and taxes that may be billed on an invoice. 

Prerequisites

It is recommended to take the following courses prior to completing this one: 

"Procure to Pay Work Stream" and "A Deep Dive into the Responsibilities of Accounts Payable Operations".

Learning Objective

• Recognize the difference between Purchase Order (PO) and Non-PO invoices.
• Explore the different types of Purchase Orders a Company may have.
• Discover the different invoice to PO matching methods.
• Identify the General Ledger accounts that are debited and credited when a PO invoice is processed.

Last updated/reviewed: March 28, 2024