Authorization to pay

Authorization to pay happens in the form of a formal purchase order system that is assigned to the vendor for all purchases made. The purchase order must have an invoice number, date and signature of the authorized signer as examples of requirements needed. The purchase order should be released at the beginning of the purchase and follows the purchase transaction until it’s recorded, reconciled and paid.

Purchase order issued at the beginning of transaction regardless of whether it’s a part or service.
Once the transaction is complete, a copy of the signed invoice and completed signed purchase order for the total purchase is attached to the invoice and submitted to accounting.
For the AP Clerk verify the purchase order is complete with an authorized signer
Verify the purchase order is the same number notated on the invoice
The purchase order amount should match the total invoice amount
If a purchase order has to be modified, the change should occur in the Data Management System with an explanation for the modification.
The purchase order follows the invoice until it’s recorded, completed and at that time filed away manually or electronically for future reference.