PI from PO vs PI from GRN

PayInvoice Next allows you to create a Purchase Invoice from either a Purchase Order or a Goods Receipt Note. This page explains when to use each method.

When to Create PI from Purchase Order

Use this method when:

• The supplier invoices you before delivery (common for services, subscriptions, deposits)
• Goods receipt is not required for this purchase (GRN not applicable)
• You want to match the invoice directly to the order without waiting for goods receipt

When to Create PI from Goods Receipt Note

Use this method when:

• Goods have been physically received and inspected (GRN exists)
• You want the invoice to match the actually received quantity (not the ordered quantity)
• Your organization requires 3-way matching (PO quantity vs GRN quantity vs Invoice quantity)
• Provisional accounting was used on the GRN and needs to be reversed

TIP

For physical goods with quality inspection, always create PI from GRN. This ensures the invoice reflects what was actually received and accepted, not what was ordered.

Comparison

Aspect	PI from PO	PI from GRN
Quantities pre-filled	Ordered quantity	Received (accepted) quantity
Rejected items	Included (you must manually remove)	Excluded automatically
Provisional accounting reversal	Not applicable	Provisional entry reversed automatically
3-way matching	2-way match (PO vs PI)	3-way match (PO vs GRN vs PI)
Best for	Services, subscriptions, advance invoices	Physical goods with inspection

Related Pages

• Create a Purchase Invoice — Step-by-step for both methods
• Goods Receipt Note — How GRN works