Make Sure Your Supplier's Purchase Order Matches the Invoice
Question: Do I need to make changes to my supplier’s PO 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 your questions to Harriet at Ask The Accountant.
QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business. Contact her at firstname.lastname@example.org.