Make Sure Your Supplier's Purchase Order Matches the Invoice
Question: Do I need to make changes to my supplier’s purchase order to match the supplier invoice?
Answer: Yes, and making this adjustment is a standard and absolute best practice in our industry.
The supplier’s invoice almost always differs from the original purchase order, and it is the final invoice numbers that need to be correctly recorded in your financial reporting and your order management.
Financially, the amounts entered in your supplier purchase order become the accounts payable on your profit and loss statement. Should you pay the invoice that is a different amount, the discrepancy is difficult to reconcile, and the purchase order will continue to show as open, which can result in your paying it twice.
Another issue can arise in your order management. Suppose the invoice includes one of those pesky charges, like color match, that was not part of your original purchase order. If this adjustment is not made, you would likely miss this charge again at time of reorder.
Yes, you need to adjust the supplier purchase order to match the supplier invoice.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant."
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.