What should be the next step when an invoice is received without a purchase order?

When an invoice is received without a purchase order, the next logical step is to verify with the department that requested the goods or services. This confirmation is essential because a purchase order serves as an agreement that details the items or services procured and the terms of that transaction. Without it, there could be a lack of clarity on whether the goods or services were indeed authorized, the expected pricing, and any specific terms that may have been agreed upon.

By reaching out to the relevant department, you can ensure that the invoice corresponds to a legitimate transaction and confirm that what is being billed aligns with what was delivered and agreed upon. This verification helps uphold accountability, prevents potential financial discrepancies, and ensures that all purchases are compliant with the organization's procurement policies.

Processing the invoice immediately without this verification could lead to paying for items or services that were not approved or were not received. Similarly, returning the invoice to the vendor without further investigation could disrupt vendor relationships and may delay acquiring necessary products or services. Paying the invoice in full without verifying its validity could result in unwanted expenses, affecting the organization's financial health. Thus, confirmation with the requesting department is a critical step in maintaining order in the accounts payable process.