Purchase Order Reconciliation Definition

A purchase order reconciliation is the process of comparing the total amount invoiced for a purchase order against the original purchase order amount. The purpose of this reconciliation is to ensure that the invoiced amount matches the original purchase order amount, and to identify any discrepancies between the two amounts.

Discrepancies can occur for a variety of reasons, including incorrect quantities being invoiced, prices being different than what was agreed upon, or errors in the purchase order itself. Reconciling discrepancies can be a time-consuming process, but it is important to do in order to avoid overpaying or underpaying for goods and services.