Head of Finance Solutions
A purchase order (PO) is a document you send to a supplier to order goods at agreed prices. An invoice is a bill the supplier sends you after delivery. The PO proves what was agreed; the invoice records what is owed; matching them against the receipt prevents overpayment.
A purchase order is issued by you (the buyer) to the supplier before goods arrive. It lists products, quantities, agreed prices, and delivery terms. A PO is a commitment: the supplier delivers against it and you pay against it.
An invoice is issued by the supplier after the goods or services are delivered. It tells you what is owed and the payment terms. The critical job is to check the invoice against the PO and the goods received — not to pay it on trust.
When an invoice arrives, you compare three documents: the PO (what you agreed), the receipt (what arrived), and the invoice (what you're billed). This is called three-way matching. Only when all three align do you approve payment.
Retten Work structures the whole flow: purchase orders are approved before sending, goods-in updates stock and creates receipts, and supplier invoices match against the PO and receipt.
Hold it. Compare quantities and prices line by line, then resolve the difference with the supplier. Paying an unmatched invoice means paying for goods you didn't order or at prices you didn't agree.
A purchase order is issued by the buyer to order goods at agreed prices. An invoice is issued by the supplier to bill for goods delivered.
No. A PO is a commitment to buy, not a payment. Payment happens against an approved invoice after goods are received.
Comparing the purchase order, goods-received note, and supplier invoice to ensure quantities and prices align before paying.
You can, but it risks overpayment and hides spending. Route every purchase through a PO to keep procurement auditable.
Your warehouse or procurement team, when goods arrive. Retten Work creates it automatically from the PO and updates stock.
