There are always types of products and services bought where standard procedure is to deliver then bill, with no PO required. In many cases, this is OK.
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However, some internal customers engage in these types of arrangements to get around purchasing policies. To be able to put an end to this type of behavior, there are a few things needed:
- A written company policy on when it is and when it is not acceptable to pay an invoice submitted without a purchase order.
- Notification of all suppliers of the policy, including a statement saying that invoices submitted without a purchase order will not be paid (that should get their attention!).
- A process that makes it more cumbersome for the end user to break the rules than it is to follow the rules. An example would be that, to pay an invoice like this, the requester would have to fill out a special form with justification why the policy could not have been followed. Ideally, this form should require the signature of the boss of the end user and the head of the end user’s division (such as a vice president).