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 specific, unique types.  Examples follow:

• 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 attached. The original copy of the PO and attached documents are attached to check and mailed to vendor.  The duplicate copy of the PO and attached documents are filed.

• SMALL ORDER PO - A/P terminology used for all POs issued =/< $1,000.00. 

• STANDING ORDER PO - 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.

• BLANKET PO - PO is set up to allow the department to call in orders as needed.  Here again, 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.

• PO with CHANGE ORDER  (Previously known 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 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.  The original PO number (i.e. 00338899) must be finalized/canceled, and all future payments will be made on the most recent Change Order PO (i.e. 00338899A).