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Purchase Order - Delivery - Invoice Workflow

Demonstration of how the PO / Deliveries and Invoice workflow on Livecosts.com

Niall Brennan avatar
Written by Niall Brennan
Updated over 2 weeks ago

The Video below demonstrates the Purchase Order, Deliveries and Invoice Workflow, when you bring it all together.

Purchase Order Workflow in LiveCosts

Overview

This article explains the end-to-end Purchase Order (PO) workflow in LiveCosts, from creating a purchase order through delivery, invoicing, reconciliation, and automatic closure.

The workflow ensures costs are committed early, deliveries are tracked, invoices are matched correctly, and projects always reflect an accurate cost position.

Step 1: Creating a Purchase Order

To create a new purchase order:

  1. Go to Documents

  2. Select Purchase Orders

  3. Click New Purchase Order

When creating the PO:

  • Select the supplier

  • Choose the project

  • Assign the project phase / budget

  • Select the cost type (e.g. Materials)

  • Set a delivery date (optional)

  • Choose whether to track delivery (optional)

Step 2: Adding Line Items Using a Template

LiveCosts allows you to add items quickly using templates.

  • Select a line item template

  • The template automatically adds all predefined line items

  • This reduces manual entry and ensures consistency

Once complete:

  • Choose Mark as sent to create the purchase order

A PO number is generated automatically and can be searched or referenced throughout the system.

Step 3: Cost Commitment to the Project

Once the PO is created:

  • A cost commitment is immediately recorded against the selected project and phase

  • This commitment is visible within the project’s cost view

This ensures future spend is reflected before invoices arrive.

Step 4: Tracking Deliveries (Optional)

If delivery tracking is enabled, deliveries can be recorded in two ways:

Option 1: From Deliveries

  1. Go to Deliveries

  2. Click New Delivery

  3. Select the supplier

  4. Choose from a list of undelivered purchase orders

Option 2: From the Purchase Order (Recommended)

  1. Open the relevant Purchase Order

  2. Click PO Info

  3. Select Add Delivery

This view also shows the three key steps in the workflow:

  • Delivery

  • Invoice

  • Reconciliation

Step 5: Recording a Delivery

When adding a delivery:

  • The supplier and PO number are pre-filled

  • Enter the delivery date

  • Attach a delivery docket (optional)

  • Enter delivered quantities per line item

You can:

  • Fulfil individual line items

  • Mark all items delivered in one click

Once approved:

  • The delivery appears under Approved Deliveries

  • The PO status updates accordingly (e.g. Part Delivered or Delivered)

Step 6: Adding an Invoice

Invoices can be added in two ways:

Option 1: Create Invoice from the PO

  • From the Purchase Order, select Add Invoice

  • LiveCosts copies PO details into a new invoice

  • Best used when the invoice matches the PO exactly

Steps:

  • Enter the invoice number

  • Attach the invoice document

  • Save the invoice

Option 2: Import Invoice via Inbox

Invoices can also be added via the LiveCosts Inbox by:

  • Emailing the invoice

  • Dragging and dropping a PDF or image

  • Uploading directly from your computer

Supported formats include:

  • PDF

  • JPEG / image files

Step 7: Invoice Matching and Reconciliation

When an invoice is processed:

  • LiveCosts extracts the PO number from the document (if present)

  • The invoice is automatically:

    • Assigned to the correct PO

    • Linked to the correct project and phase

Reconciled Status

  • If the invoice total matches the PO value, the PO is marked as Reconciled

  • This indicates the committed cost and actual invoice match

Handling Invoice Variances

If an invoice value differs from the PO value:

Option 1: Edit the Purchase Order

  • Add or adjust line items on the PO

  • Increase or decrease the PO value

  • Return to the invoice to continue reconciliation

Option 2: Reconcile PO to Invoice

  • Accept the variance

  • LiveCosts automatically adds a balancing line item

  • The PO value is adjusted to match the invoice total

This is typically used for final invoices with small variations.

Step 8: Completing Deliveries

If additional items are delivered later:

  • Add a new delivery

  • Fulfil remaining quantities

  • Approve the delivery

Once all items are delivered, the PO delivery status updates to Delivered.

Step 9: Approving the Invoice

After review:

  • Approve the invoice

  • The invoice moves to Supplier Invoices

  • All invoice details remain visible, including:

    • Linked PO

    • Deliveries

    • Invoice value

    • Approval status

Step 10: Automatic Purchase Order Closure

A purchase order will automatically close once:

  • All deliveries are completed

  • All related invoices are approved

  • The PO and invoice values are reconciled

When these conditions are met:

  • The PO status updates to Closed

  • No further action is required

Summary

The Purchase Order workflow in LiveCosts ensures:

  • Costs are committed early

  • Deliveries are tracked accurately

  • Invoices are matched and reconciled correctly

  • Purchase orders close automatically once complete

This provides clear cost control, accurate project reporting, and a full audit trail from order to payment.

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