Purchase Order Receiving – Best Practices

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    • #292505

      Tis the season for operational improvements! Here’s another request to benchmark on procurement fundamentals. We thank you in advance for your input. 

      This SIG Buy-side Member from the Telecommunications industry would like to benchmark with you on your best practices for handling purchase orders. 

      1. What is your industry? 

      2. Does your organization have a requirement for when goods/services need to be received once delivered? If yes, what is that requirement? 

      3. Does your organization use both 2-way and 3-way matching? If yes, what is your criteria for 2-way matching? 

       

      Thank you for your time and insights. 

       

    • #295132

      1. What is your industry? 

       – Health Insurance

      2. Does your organization have a requirement for when goods/services need to be received once delivered? If yes, what is that requirement?

       – For the invoice to be paid all requesters have to enter receipts into ERP to release payment. This holds true for both goods and service.

      3. Does your organization use both 2-way and 3-way matching? If yes, what is your criteria for 2-way matching? 

       – We use 3-way matching (PO, Receipt, Invoice)

      • #295133

        Thank you for taking the time to share your insights Danielle! 

    • #295134
      Anonymous
      Guest

      1. Non-profit

      3. we use both.  For the most part, we only require 2-way match.  However, there are a few suppliers/situation which we require 3-way.

    • #295138
      Anonymous
      Guest

      1. Automotive

      2. All good/services not captured on a 2 way match PO must be received in.

      3. Supplier invoices, plant champion for the supplier reviews charges and verifies qty and sum. Plant champion forwards recommendation to buyer associated with that supplier or project. Buyer creates PO from invoice, verifies total amount, and approves PO if everything matches.

    • #295139
      Anonymous
      Guest

      1. Education

      2. •Good receipting happens in SAP

      •Yes there needs to be confirmation that the goods have been received, confirmation is informally passed to the good’s receiptor, often via an email.

      •Good receiptors have KPIs linked to the POs they create, and have to follow up.

      •Our Creditors team also prompt this follow up if we have invoices that are received that are not goods receipted.

      •We do not have a service receipt, we use the goods receipt for this purpose, if there is to be partial payments on completion of work, multiple line POs are created.

      3. 

      •We do a three way match PO – GRV – Invoice.

      •Note not all suppliers issue goods receipt vouchers which they should do, we sometimes we sign the invoice prior to it going to Creditors.

       

    • #295140
      Anonymous
      Guest

      1. Financial Services 

      2. Supplies and services are to be receipted on receipt, occasionally they may need to be receipted in advance as payment needs making prior to delivery date e.g. training courses and conferences

      3. My current organisation uses 3 way matching I have worked in organisations that 2 way match. 2 way matching can be used for supplies/services where costs are unknown until the invoice is received e.g. utilities, phone bills, legal fees 

    • #295141
      Anonymous
      Guest

      1. Agriculture – Farming – Poultry

      2. Yes, a delivery note, intervention sheet or invoice to process the receipt

      3. Quantity delivered and Unit price

    • #295142
      Anonymous
      Guest

      1. IT enabled Platform company

      2. Yes, and few examples are Air Purifiers, Concentrators, soft seating’s, Laptops.

      3. Yes both 2 way and 3 way are used. The criteria of 2 way is the amount /quantity mentioned in the invoice matches the Purchase Order dispatched.

       

    • #295143
      Anonymous
      Guest

      1. Software and Collaboration tools

      2. Once the invoice sent by our vendor and received by our AP to process. Once AP processed the invoice, it will route to the invoice approver for him/her to confirm if the invoice is okay to get paid. Once approved, AP will initiate the payment process.

      3. Our AP do have 2-way matching

    • #295144
      Anonymous
      Guest

      This recent whitepaper may be of use to the SIG member.

      Best Practices for 2-way and 3-way Match

      Adam Fischer

      Optis Consulting

      Co-Founder and Managing Partner 

      604-837-4545

      [email protected]  

       

    • #295146
      Anonymous
      Guest

      Industry: health care fin tech

       

      Receipt requirement: as of 1/1 we are requiring all goods/services to be received in our Workday Procurement system. We do not have a time requirement for receipt but will not pay until it has been received. We will be requiring a PO for all goods/services > $2.5k with the exception of regular T&E expenditures on corporate credit cards.

      Matching: We are moving to a 3 way match as of 1/1. 

       

    • #295147
      Anonymous
      Guest

      1. Manufacturing OEM

      2. 24 hrs after ocean container hits our dock. Same day for Air. 

      3. Only 2-way since about 2014.  PO and invoice must have no more than a $5 dollar variance without a buyer approval. Buyers nor AP are allowed to approve payment of an invoice without a receipt record in the ERP

    • #295148
      Anonymous
      Guest

      1. Retail

      2. Yes – for most items there is a received requirement prior to approving invoices for payment.

      3. Yes we use both 2 and 3 way matching.  2 way is primarily for services, 3 way is for goods.  Some 2 way for goods has been triggered with a few suppliers from which we receive a large volume and have many different people requesting from that vendor (i.e. Amazon) because payments weren’t able to be released due to the high volume of people not indicating receipt

       

    • #295149
      Anonymous
      Guest

      1. Manufacturing (Industrial Materials)

      2. Yes, goods delivered by suppliers must be receipted into our ERP system (we have multiple) against the relevant PO (generally by our Receiving teams at our site docks, but in some instances by the Business Purchasers) as soon as possible (no set time frame) after physically receiving (and inspecting) the supplier’s delivery

      3. Yes, 3-way match of invoices against all goods-type POs and 2-way match of invoices against all services-type POs (this latter includes an invoice approval process collected by our AP team from the Business Requester designated on the relevant PO).

    • #295150
      Anonymous
      Guest

      1. Insurance

      2. Yes, for any PO over a $5k 

      3. 3-way matching is required for any PO/Invoice over $5K.  2-way match for everything else. 

    • #295151
      Anonymous
      Guest

      1. Higher Education

      2. No hard requirement for when goods/services need to be received across the entirety of the organization.  For select items that require receiving, receiving must happen within 30 days of invoice receipt or invoices are sent to match exception review.

      3. Yes.  2-way matching for goods under $1,000 autopay.  Goods between $1,000 and $5,000 require 2-way plus a department-level approval.  Goods over $5,000 require a three-way match.  All Services require both a 2-way match and a department approver.

    • #295152
      Anonymous
      Guest

      1. Healthcare 

      2. Goods require receipt within 24hrs; Services are approved through invoice workflow approval process meaning the invoice image is sent to the PO requester to ensure services were performed before releasing for payment

      3. 3way for goods; services  require invoice approval before payment 

    • #295153
      Anonymous
      Guest

      1.Electric Utility

      2.Goods within 24 hours, services within the period

      3.Currently only 3 way

       

    • #295154
      Anonymous
      Guest

      Industry

      Energy – Power Generation

       

      Receiving

      Any material delivered to the facility or destination shall be received in the system by close of business the it was delivered.  It is a violation of our internal controls to have material onsite, but not received in the system.

       

      2-way / 3-way match

      We utilize each depending upon the material or service purchased.  We use 2-way match for on-site and off-site services and 3-way match for all material, expensed and/or inventory.  In the event that we ship a piece of equipment off site for service, 2-way match is still used. 

       

    • #295155
      Anonymous
      Guest

      1. Chemicals

      2. They need to be if over a certain $ amount.

      3. We use both. Currently based on user selection.

    • #295156

      1 – Software

      2 – Not sure I understood, but if it is the time between receiving the goods from the supplier and then making it available for the internal user, see below:

      We do not have a formal time frame, but we try and make this available immediately, especially now that we are all working from home. The definition of wether this is possible or not is basically the location where the internal user is… if it is a big center where we have offices, our company sends it on the same day with our own transport. If they are on smaller cities, our logistics partners have specific schedules, so we follow these.

      3 – 3 way matching only.

       

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