Accounts Payable Terminology

 

Purchase Orders

Most Purchase Orders are very specific, and usually one invoice will complete the PO, but there are special titles attached to the specific, unique types listed below.

Blanket PO -  A PO is set up to allow the department to call in orders as needed.  The body or comments section of the PO will indicate if there are monetary limits for AP to follow.  If the invoice is in excess of that amount, AP cannot pay it.

Payment With Order PO - When a vendor requires payment with receipt of the PO, Purchasing provides AP with duplicates of the PO and all pertinent data.  The original copy of the PO and applicable documents are attached to the check and then mailed to the vendor.  The duplicate copy of the PO and attached documents are filed.

PO with a Change Order - Previously know as Altered POs - whenever a department needs to add/reduce a monetary value, products or services ordered, etc. a request must be sent to Purchasing.  If AP receives the invoice before the change order is done, payment cannot be made.  Whenever a change order occurs, an alpha character, beginning with A is added to the end of the PO number.  For example, an original PO number, 00338899, must be finalized/canceled, and all future payments will be made on the most recent Change Order PO, 00338899A.

Small Order PO - All POs issued for $5,000 or less.  Please note the preferred method of payment for purchases less than $5,000 is the LaCarte Card.

Standing Order PO - The PO is scheduled for order/delivery on specific dates.  The body or comments section of the PO will indicate if there are monetary limits for AP to follow.  If the invoice is in excess of that amount, AP cannot pay it.

 

Job Aid Topics:

How can I find payments made to a supplier or reimbursements to an employee?

How can I look up an invoice or payment and see attachments?

How can I look up payments made against a PO?