When it comes to Accounts Payable (AP), one of the most common questions finance teams ask is: “What’s the difference between PO and Non-PO invoices — and does it really matter?” The short answer is yes, especially when you’re trying to scale efficiently, reduce risk, and gain better control of your spend.
At SoftCo, we’ve spent over 30 years helping enterprise AP teams across industries automate their invoice processes — and we’ve seen it all. In this blog, we’re breaking down six of the most common misconceptions about PO (Purchase Order) and Non-PO invoices, and what your finance team needs to know to operate more effectively.
1. Aren’t POs and invoices basically the same thing?
This is a common confusion, especially for companies that haven’t formalized procurement processes.
The truth: A Purchase Order is created by the buyer before a purchase is made — it’s a request and approval to spend. An Invoice is issued by the supplier after the product or service is delivered, requesting payment. One is proactive, the other reactive.
When organizations confuse the two, it leads to missing approvals, payment delays, and compliance risks. PO-based automation enables faster matching, fewer errors, and better control — especially for high-volume AP teams.
2. Aren’t POs only used for physical goods?
Not at all — and assuming so is a costly mistake.
While POs are commonly used for inventory or raw materials, they’re just as important for services, software licenses, marketing campaigns, and other non-tangible spend. In fact, many recurring expenses that fall outside procurement can still (and should) be brought into a PO-based process.
SoftCo customers often start with tangible goods and expand to include services over time — unlocking even more automation and auditability.
3. Isn’t it impossible to automate Non-PO invoices?
It might feel impossible — especially when you’re dealing with invoices that have no reference PO, unclear cost centers, or variable amounts — but it’s far from it.
Modern AP automation uses AI to intelligently route, code, and approve Non-PO invoices based on historical patterns, vendor profiles, and business rules. While these invoices may never be fully touchless, you can dramatically reduce the effort required to process them.
With SoftCo, customers are automating Non-PO invoices using dynamic approval chains and smart GL coding — reducing cycle times by up to 70%.
4. Do we really need purchase orders for small purchases?
Small purchases might seem harmless, but when repeated across departments, they quickly snowball into significant spend — often without oversight.
This is known as “maverick spend,” and it’s a common cause of budget overruns. Implementing light-touch or recurring POs for even low-value purchases allows for better forecasting and control without slowing teams down.
SoftCo enables flexible PO workflows — so approvals can be as simple or complex as your policies require.
5. Isn’t manual matching quicker than automation?
Manual matching might feel faster in the moment, but it’s rarely scalable — and it increases the risk of human error, duplicate payments, and audit issues.
Automated PO matching (2-way or 3-way) allows AP teams to process invoices with zero touch, freeing them up to focus on exceptions and higher-value tasks. It’s not just faster — it’s smarter.
Customers using SoftCo report a minimum of 90% straight-through processing on PO invoices three months after implementation.
6. Aren’t Non-PO invoices always one-off exceptions?
Not always. Many Non-PO invoices — think utilities, subscriptions, consulting — are predictable, recurring, or linked to existing contracts. The issue isn’t the invoice itself; it’s the lack of process behind it.
By introducing blanket POs, recurring POs, or even contract-based automation, companies can bring these costs under control without disrupting operations. It’s about shifting from reactive to proactive.
SoftCo’s solutions make it easy to handle both PO and Non-PO spend with consistency — no matter the complexity.
Final Thoughts
Understanding the difference between PO and Non-PO invoices isn’t just about semantics — it’s about control, compliance, and cost savings.
If your team is struggling with visibility, slow approvals, or invoice exceptions, it may be time to rethink your approach. With intelligent automation from SoftCo, you can streamline both PO and Non-PO invoice processing — and finally move away from the manual chaos.
