Non-PO invoice is a term that often causes confusion, but understanding it is key to managing invoice distribution effectively. A non-PO invoice simply refers to an invoice that is not linked to a purchase order. These invoices usually arise from services or expenses that do not require a formal purchase order, such as utilities, subscriptions, or ad-hoc services.
What Is a Non-PO Invoice?
A non-PO invoice is different from other invoices because it lacks the reference to a purchase order number. This means the invoice is processed without the usual matching step between the invoice, purchase order, and goods receipt. Because of this, they often require additional checks for approval, which can slow down payment cycles if not managed properly.
Non-PO invoices are common in organisations that deal with recurring services or indirect expenses. They provide flexibility, but they also introduce challenges in terms of control and compliance. Without a purchase order, it becomes harder to verify whether the expense was authorised, so businesses need clear approval workflows to avoid errors or fraud.
Visionnez notre vidéo ci-dessous :
What Is the Term for an Invoice That Has Not Been Paid?
An invoice that has not been paid is typically called an outstanding invoice. This term signals that payment is due but has not yet been completed. Outstanding invoices can impact cash flow and supplier relationships if they remain unpaid for too long. Because non-PO invoices often require manual approval, they are more likely to become outstanding if the process is slow or unclear.
Why Managing Non-PO Invoices Matters
Effectively managing invoices without a purchase order reference is essential because delays in approval lead to late payments and strained supplier relationships. Automated workflows can help by routing invoices to the right approvers quickly and ensuring compliance checks are completed. Integration with finance systems also reduces errors and speeds up processing.
Best Practices for Non-PO Invoice Management
Here’s how you can manage your non-PO invoices to keep delays to a minimum and maintain the relationship with your suppliers:
- Establish clear approval rules: Define who can approve these types of invoices and set spending limits.
- Automate workflows: Use digital tools to route invoices for approval and track status in real time.
- Monitor outstanding invoices: Regularly review unpaid invoices to avoid late fees and maintain good supplier relationships.
The Bottom Line
Non-PO invoices are a normal part of business, but they require careful handling. By creating structured approval processes and leveraging automation, organisations can reduce delays and keep cash flow healthy. Managing these invoices well ensures transparency, compliance, and stronger supplier partnerships.
Need more information on a suitable, automated solution for your business? Contact us to find out more.