The benefits are that the purchase order represents a clear instruction from us with a corresponding financial commitment. So, suppliers will always be paid in accordance with agreed terms and conditions provided that they comply with our no purchase order no pay policy.
Find out more about how we pay our suppliers.
A list of exemptions to the policy has been agreed with finance and procurement teams.
What you need to do
Ensure that you are meeting our financial regulations by creating purchase orders when you are buying goods and services and goods receipting them in good time before invoices arrive.
For further guidance on the routes to use when buying goods and services please review the 4 ways to buy guide.
Invoices without a purchase order number
Any invoice that is dated 1 August 2022 onwards, will be checked for a valid purchase order number. If it does not contain a valid purchase order, then the AP clerk will check if the goods or services are on the exemptions list. If the invoice matches an entry on the exemptions list, then it will be paid through the non-purchase order route of the Vendor Invoice Management (VIM) system and it will need to be coded and approved.
If the invoice does not relate to an entry on the exemptions list, then the invoice will be returned to the department requesting a retrospective purchase order number.
It is vital that any requests for the creation of retrospective purchase orders are actioned immediately. If they are not, then it will slow down our payments to suppliers who could then put us on stop or could result in us having to pay late payment charges.
It is also important that the shopper adds a note in the text to the vendor that the purchase order is a confirmation only purchase order and they should include the invoice number that it relates to. This will prevent suppliers providing duplicate orders.