This is the vendor’s official request for payment and, just like the other documents in this process, can be physical or digital in format. Once a vendor fulfills your order, they’ll send along an invoice. This document, too, is part of another, later stage of the accounts payable process. This step is also where you can report issues like discrepancies in what you ordered versus what you received, issues in the shipping process, or any damages. Again, this document can be physical or digital, but it should include details such as: a list of everything you received, the quantity, shipping details like the delivery company, and the date you received the order. Next, when you finally get the goods or service you ordered, you should also get something called a receiving report or a goods receipt. POs will come into play in another stage of the accounts payable process. Please note that POs are different from invoices. Regardless of its format, the PO should include details like a line item description of what you’ve ordered, the date of the order, quantity, price, the date you need the order by (if applicable), etc. In some cases, the PO might be a physical document, and in others, the PO might be digital. For any service or goods that you order, you should send a PO to the supplying vendor to kick off the purchasing process. The first step in the accounts payable process is sending out a purchase order (PO).
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