# Purchase Order Exception Resolution Pack ## 1. Exception Snapshot - Supplier: Northbridge Supplies - Invoice number: INV-4421 - Invoice amount: £6,200 - PO number: PO-1187 - PO value / remaining balance: £5,800, subject to confirmation of previous matches - Receipt status: No goods receipt recorded in the system - Approval status: Not confirmed - Exception type: Invoice exceeds PO value and missing goods receipt - Current payment status: Payment should remain on hold until the receipt and price/value difference are resolved - Urgency / business impact: Supplier is chasing payment; requester states goods arrived last week ## 2. Confirmed Facts and Assumptions Confirmed facts: - Invoice INV-4421 is for £6,200. - PO PO-1187 is for £5,800. - No goods receipt is currently recorded. - The requester says the goods arrived last week. - The supplier is chasing payment. Assumptions to confirm: - The full order was received and accepted. - The PO value has not already been partly used by another invoice. - The £400 difference is not explained by delivery, tax, additional quantity, substituted goods, or agreed variation. - The requester has authority to confirm receipt and acceptance. ## 3. Invoice vs PO vs Receipt Comparison | Check Area | Invoice | Purchase Order | Receipt / Acceptance | Exception | |---|---:|---:|---|---| | Document reference | INV-4421 | PO-1187 | Not recorded | Receipt missing | | Total value | £6,200 | £5,800 | Not recorded | Invoice exceeds PO by £400 | | Quantity | Not provided | Not provided | Requester says goods arrived | Need line-level check | | Unit price | Not provided | Not provided | Not recorded | Need PO/invoice line comparison | | Tax/VAT | Not provided | Not provided | Not applicable yet | Need tax check before clearance | | Acceptance | Supplier invoiced | PO raised | Verbal/requester statement only | System receipt or approved confirmation needed | ## 4. Likely Root Cause There are two linked issues. First, the goods may have been received but not recorded in the system. Second, the invoice value is £400 higher than the PO, so either the supplier invoiced more than agreed, the PO was raised for the wrong value, additional goods or charges were added, or there is a tax, delivery, or pricing difference. This should be treated as a receipt-side and price/value exception until the line-level details are checked. ## 5. Resolution Decision Tree 1. Do not release payment while the goods receipt is missing and the invoice exceeds the PO. 2. Ask the requester or receiving team to confirm what was received, when it was received, and whether it was accepted. 3. Compare invoice lines to PO lines to identify the £400 difference. 4. If the supplier has invoiced incorrectly, request a corrected invoice or credit note. 5. If the additional amount is valid and authorized, request PO amendment or additional approval in line with policy. 6. If only part of the goods were received, process only the valid matched portion where policy allows and keep the balance on hold. 7. Update the exception log with evidence requested, owner, deadline, and next review date. ## 6. Evidence Required Before Clearance - Copy of invoice INV-4421. - Copy or screenshot of PO PO-1187 including line description, quantity, unit price, tax, coding, and remaining balance. - Goods receipt, delivery note, signed acceptance, stores confirmation, or service acceptance record. - Requester confirmation that the goods received match the invoice and PO. - Explanation for the £400 difference. - Budget holder or procurement approval if the PO needs to be amended. - Duplicate invoice check by supplier, invoice number, amount, and date. ## 7. Internal Action Plan | Action | Owner | Deadline | Expected Outcome | |---|---|---|---| | Confirm receipt and acceptance of goods | Requester / receiving team | Same day | Evidence to support receipt entry or payment hold | | Compare invoice lines to PO lines | AP / procurement | Same day | Identify source of £400 variance | | Confirm whether PO amendment is valid | Budget holder / procurement | Within 1 working day | Approval or rejection of excess value | | Respond to supplier with status update | AP | Same day | Professional holding response | | Update exception log | AP | Same day | Clear audit trail | ## 8. Internal Message Drafts ### Message to requester / receiving team Subject: Receipt Confirmation Required — INV-4421 / PO-1187 Hi [Name], Northbridge Supplies has submitted invoice INV-4421 for £6,200 against PO PO-1187. The PO value is £5,800 and there is currently no goods receipt recorded in the system. Please confirm: 1. Whether the goods have been received. 2. Date received. 3. Whether the goods were complete and accepted. 4. Whether the invoice value of £6,200 is correct or whether it should match the PO value of £5,800. 5. Whether there is any delivery note, acceptance evidence, or other supporting documentation. Payment will remain on hold until the receipt and value difference are resolved. Thanks, [Name] ### Message to budget holder / procurement Subject: PO Value Exception — PO-1187 / INV-4421 Hi [Name], Invoice INV-4421 from Northbridge Supplies is £6,200, compared with PO PO-1187 at £5,800. Please confirm whether the £400 difference is valid and authorized. If valid, please confirm the reason and advise whether the PO should be amended in line with approval requirements. If not valid, AP will request a corrected invoice or credit note from the supplier. Thanks, [Name] ## 9. Supplier Message Drafts Subject: Invoice INV-4421 — Payment Query Under Review Dear Northbridge Supplies, Thank you for your follow-up regarding invoice INV-4421. The invoice is currently on hold because it does not fully match our purchase order records. The invoice value is £6,200, while PO PO-1187 is recorded at £5,800, and we are also waiting for the goods receipt / acceptance record to be completed internally. We are checking this with the requester and budget holder. If the invoice value is correct, we will arrange the required internal approval or PO update. If the invoice should match the PO value, we may need a corrected invoice or credit note. We will provide a further update by [date]. Kind regards, [Name] ## 10. Escalation Note Invoice INV-4421 from Northbridge Supplies is blocked because the invoice amount of £6,200 exceeds PO PO-1187 by £400 and no goods receipt is recorded. Supplier is chasing payment and requester indicates goods arrived last week. Receipt confirmation and explanation/approval of the £400 variance are required before AP can clear or reject the invoice. ## 11. Exception Log Entry INV-4421 / PO-1187 placed on hold. Invoice value £6,200 exceeds PO value £5,800 by £400 and no goods receipt is recorded. Requester asked to confirm receipt, acceptance date, and supporting evidence. Budget holder/procurement asked to confirm whether £400 variance is valid and authorized. Supplier sent holding response. Next review: [date]. Owner: [name]. ## 12. Prevention and Control Improvements - Ask suppliers to quote PO number and PO line references on every invoice. - Require receiving teams to record goods receipt promptly after delivery. - Review whether PO values are being set too tightly without allowance for agreed delivery charges or variations. - Use line-level matching to identify price, quantity, tax, and delivery differences quickly. - Remind requesters that verbal receipt confirmation is not enough where system receipt is required. ## 13. Disclaimer This resolution pack supports operational investigation and communication. It does not authorize payment, amend the PO, override approval controls, or replace finance, procurement, tax, legal, or delegated-authority review.