What to Check Before Routing a PO Invoice

1. PO validity: a purchase order exists, is open, and is not closed or cancelled. 2. Vendor and entity: the PO vendor and legal entity match the invoice. 3. Line matching: invoice line items, quantities, and unit prices agree with the PO. 4. Receipt matching: for three-way matching, goods or services were received in the billed quantity. 5. Tolerance: any price or quantity variance falls within accepted thresholds. 6. PO balance: the invoice does not bill beyond the remaining PO amount. 7. Tax and freight: non-PO charges such as tax or freight are handled per policy. 8. Inherited coding: GL account, dimensions, entity, and period carried from the PO are correct. 9. Duplicate check: the invoice number has not already been received or paid. 10. Documentation: supporting documents are attached and the exception, if any, is resolved.

The first step is confirming that a usable PO exists. The reviewer checks that the PO is open rather than closed or cancelled, that it belongs to the same vendor named on the invoice, and that it is tied to the correct legal entity.

When the PO referenced on the invoice does not exist or does not match, that is an exception, not a routing decision. The invoice may need a corrected PO number, or it may be a non-PO invoice that was billed against the wrong reference.

Matching is the core of PO invoice review. Two-way matching compares the invoice to the PO. Three-way matching adds the receiving document so the team can confirm that what was billed was actually delivered.

The reviewer confirms that each line item, quantity, and unit price on the invoice agrees with the PO and the receipt. Billing for more units than were ordered or received, or at a higher price than the PO, is a discrepancy that should be resolved before the invoice continues.

Most organizations set tolerances so minor variances do not stall processing. A small price difference or rounding gap inside the accepted threshold can route normally, while a variance outside tolerance is held as an exception.

The reviewer also confirms that the invoice does not exceed the remaining balance on the PO. Billing beyond the authorized amount signals either a PO that needs to be increased or a charge that was never approved.

A clean match does not mean the accounting is finished. The reviewer confirms that the GL account, dimensions, entity, and posting period inherited from the PO are correct for this invoice.

Tax and freight often appear as charges that were not on the original PO. These usually need their own treatment, so the reviewer confirms that tax is applied correctly for the jurisdiction and that freight or other added charges are coded to the right accounts.

Stampli supports PO invoice routing by performing two-way and three-way matching at the line level inside the accounts payable workflow. Stampli AI matches invoice lines to the PO and receipt and flags exceptions, while all suggested entries remain subject to human review and approval before posting to the ERP.

Because Stampli mirrors the chart of accounts, entities, dimensions, vendors, and approval logic from the ERP, the invoice is validated against ERP rules at the source. Coding inherited from the PO is checked before posting rather than corrected after, which reduces downstream cleanup.

When a match falls outside tolerance or a PO reference does not resolve, the exception surfaces in the workflow with the document, comments, and history attached. Approvers see the business reason, budget impact, GL and dimension context, vendor details, and supporting documents in one place, so the exception can be resolved before the invoice is routed.