How to - Manage and Update Purchase Orders and Invoices for Procurement Supplier Warehouse Stock Orders

Accounts Payable Procedure: PO to Payment

Systems Involved: Maropost (Neto), Xero, and Zendesk (Ticketing)..
 
 

Phase 1: Purchase Order Initiation & System Sync

1. PO Creation: Create the Purchase Order in Maropost.
2. System Export: Once booked, ensure the PO successfully exports to Xero.
3. Initial Landing: Locate the PO within the Draft Bills section of Xero.

Phase 2: Receipting & Data Entry

1. Invoice Arrival: When the supplier invoice is received, Mariel adds the PO Number, Order number, Invoice Number, Date Received, and Due Date to the PO in Maropost.
2. Order Receipt (Warehouse): Dean books the stock into Maropost.
   • Dean confirms the Invoice Number and dates are present.
   • Note on Splits: If a PO is split, Dean must change expected arrival date, to date of actual arrival
3. Xero Attachment: Manually attach the digital invoice file to the corresponding PO in Xero. Once uploaded, delete the loose matching invoice file to keep the workspace clean.

Phase 3: The Three-Way Match & Investigation

Perform a "Check" to ensure the Maropost PO, the Xero PO, and the Supplier Invoice align on quantities, descriptions, and pricing.
 
Match StatusAction Required

Successful

Move document to "Ready to Pay" status.

Unsuccessful

Initiate Discrepancy Resolution (See Phase 4).

CRITICAL RULE: We do not approve a PO for payment if the invoice and PO do not match. If the invoice is wrong, we do not pay until it is corrected.

Phase 4: Discrepancy Resolution & Troubleshooting

Scenario A: Supplier Pricing/Quantity Error

• Action: Mariel contacts the supplier immediately.
• Requirement: Request a revised/reissued invoice.
• Holding: Do not process for payment until the corrected document is received and attached.
• Price Breaks: If the supplier failed to include a price break/MOQ discount, request a new invoice with the correct pricing.

Scenario B: Internal Data Error (Pricing/MOQ)

If the PO price is wrong or the MOQ has changed:
 

• Update Systems: Fix the price/details in both Xero and Maropost.
• Product Maintenance: Update the DPP (Discounted Purchase Price) and the Primary Supplier in Maropost/Neto to ensure future orders are correct.
• Shipping: Ensure any missing freight or shipping fees are added to the PO in Xero at this stage.

Scenario C: Stock Discrepancies

• Missing Stock: If stock is on the invoice but not booked in, Mariel creates a Stocktake for Dean to action (include PO and Ticket numbers in the description).
• Damaged Goods: If items arrive damaged, Dean does not book them in. Dean creates a ticket for Mariel to notify her of the discrepancy.

Scenario D: One-off Bulk Buys

• Mariel updates the PO with the special price before sending it to the supplier.
• Add a note to the PO internal notes referencing the specific ticket/deal for future tracking.

Phase 5: Final Approval & Documentation

1. Naming Convention: Ensure the Bill title is uniform for easy searching using the following format: 

• PO number, order number, invoice number

   

• Internal Validation: 

  Mariel checks the bill and the PO match in DRAFT Status and then if correct 

  - attaches the invoice to the PO 

  - deletes the invoice and then submits the bill for approval in Xero once corrected

  Before she marks the Bill for approval Mariel may need to:

  - Check and update Supplier Pricing in Maropost if there has been a price change. 

  - Check and amend an order with the supplier for Bulk Buy Pricing 

  -Or go back to the supplier to get the invoice re-issued if it is incorrect. 

  - Or add the freight costs or discounts in to match the PO 

  IMPORTANT - No PO can be marked for approval UNTIL the two match and all steps including updating the DPP price (if required) in neto are done. 

   

• 2nd Validation:  

  Mel checks weekly on a Thursday the bills in Submitted for Approval for any errors. 

  - If there are no errors Mel - Submits as Approved and ready to pay

  - If there are errors she returns them to DRAFT and asks Mariel in a Ticket to Review them. In the Xero internal notes Mel adds the reason and the ticket number as a reference 

   

• Payment: Justine will be assuming that all bills in Approved for payment are: 

  - Correct - the product price, the bulk buy price, the shipping and discounts are all added and the invoice is attached and matches the PO exactly. 

• Updatec Draft Purchase Order Process Neto to Xero (1).pdf100 KB