Question Anyone finding purchasing departments are recently changing their policy regarding purchase orders?

[rossmosh]

For the last 20 years, specifically dealing with municipalities, but it generally applies to everyone, the process has been Quote/Estimate -> Receive Purchase Order - > Invoice -> Deliver Goods -> Payment.

All of a sudden, several people I do business with are telling me they can't use a Quote/Estimate to generate a PO and they need an invoice. I know this is not accurate because an invoice means it's an order and it's not an order until I receive a PO. But they insist, they're right, so I go along with it.

Anyone else running into this nonsense? It's getting pretty annoying because not only is it not correct and difficult to keep track of who's following these new rules, but it's also annoying having to constantly check invoices as pending and finalized in the system.

 

[CanuckSigns]

Yeah I've noticed this as well, it doesn't make sense to me either, I try to explain but in the end I do what they tell me to do, on the plus side, their net 30 starts from the date the invoice was created, so that helps a bit.

 

[Notarealsignguy]

We had a large customer who runs all capex through a LOC and payment comes direct from their bank. Maybe this could have something to do with it? If we make an invoice in lieu of an estimate then void it until the order comes through or is completed. It sort of screws with your A/R and then technically you owe sales tax on the invoice as well.