Step 1
Prepare and approve the supplier order
Check the shortage and existing incoming orders before creating another purchase. Include clear product identifiers, quantities, units, agreed prices and a delivery destination. Decide who approves the order before it is sent.
- Confirm the supplier and delivery location.
- Specify items, units, quantities and agreed prices.
- Record the expected delivery date and approval reference.
Step 2
Receive what actually arrives
A purchase order is a request, not proof of receipt. Compare the delivery with the order and record quantities accepted, rejected or missing. If a supplier delivers in stages, retain the outstanding quantity instead of closing the entire order.
- Match received goods to the order reference.
- Check quantity, condition and unit conversions.
- Record partial deliveries and remaining quantities.
Step 3
Match the bill before payment
Compare the supplier invoice with the approved order and accepted receipt. Investigate differences in price, quantity, discounts or freight. Link any return or credit to the same purchasing record.
- Check ordered, received and invoiced quantities.
- Review agreed prices and additional charges.
- Resolve discrepancies and retain the matching documents.
Worked example
Example: a partial supplier delivery
You order 100 units and receive 70. The remaining order quantity is 30. If the invoice bills 100 immediately, review the supplier agreement and delivery records before treating all 100 as received stock.
Illustrative example; use your own transaction data.
Frequently asked questions
Does a purchase order increase physical stock?
The order records intended purchasing. Physical stock increases when goods are received and recorded, rather than merely when the order is prepared.
How do I handle a partial delivery?
Record the actual accepted quantity and keep the outstanding balance linked to the original order. Update the delivery expectation for the remaining items.