Updated 8/15/25
As an accounting professional, you know that efficiency in your procurement process directly impacts cash flow, vendor relationships, and operational agility. From the initial ordering of goods or services to invoice receipt and payment, every step matters, especially in accounts payable (AP).
To run your AP department at peak performance, it’s critical to understand how purchase order (PO) invoices and non-PO invoices differ, how they should be processed, and how modern automation solutions can turn a once tedious process into a competitive advantage.
What Are PO Invoices and Non-PO Invoices?
PO invoices are generated when a buyer places and approves an order with a seller. They include details such as quantities, prices, and agreed payment terms, and are tied directly to a pre-approved purchase order in your system.
Non-PO invoices, on the other hand, cover costs for products or services that don’t originate from a formal PO, common examples include utility bills, building maintenance, and professional services.
The key distinction: PO invoices are pre-approved before purchase, while non-PO invoices require approval after the fact, often creating more review cycles and risk exposure.
Real-World Example: Wood-Mizer’s Journey to 96% Efficiency
Take Wood-Mizer, a global leader in sawmill and wood processing equipment. Prior to AP automation, they processed invoices manually, relying heavily on outsourced labor. This approach was costly—$4,300 per month in outsourcing fees, and it slowed their ability to handle growing invoice volumes.
By implementing Mosaic’s AP automation with DocStar ECM and integrating it seamlessly with their Infor CSI ERP system, Wood-Mizer now processes 60,000 invoices annually at 96% efficiency.
- PO invoices are automatically matched against purchase orders, with the system flagging exceptions for quick review.
- Non-PO invoices trigger an automated routing workflow for approvals, ensuring they’re verified by authorized personnel before payment.
The result: fewer errors, faster processing times, and a dramatic reduction in operational costs.
Key Differences Between PO and Non-PO Invoice Processing
PO Invoices
- Automatically matched to approved purchase orders
- Minimal manual review unless exceptions occur
- Easier to track and report in ERP systems
Non-PO Invoices
- Require manual data entry or validation
- Must be routed for post-purchase approval
- More prone to delays and missed approvals
Automation Impact: In Wood-Mizer’s case, PO matching reduced exception handling time by 50%, while non-PO routing ensured compliance without bottlenecks.
How Integration Multiplies the Benefits
One of Mosaic’s key differentiators is the deep integration of our AP automation with popular ERP platforms, including Infor CSI, Microsoft Dynamics, Sage Intacct, and more.
For Wood-Mizer, this meant that every invoice, whether PO or non-PO, flowed directly into their Infor CSI system with full data synchronization. That seamless connection eliminated double data entry, reduced approval lag time, and gave finance leaders real-time visibility into liabilities and cash flow.
Quantifying the ROI of AP Automation
Replacing manual or outsourced invoice processing with AP automation delivers measurable results. As we outline in The Cost of Processing an Invoice, going paperless can significantly reduce per-invoice expenses while boosting efficiency. These savings show up in several key areas:
- 96% processing efficiency (Wood-Mizer benchmark)
- Elimination of $4,300/month in outsourcing costs
- Faster approval cycles by up to 70%
- Reduction in late payment penalties and duplicate payments
- Increased processing capacity without additional headcount
From Manual to Automated: An Implementation Roadmap
Transitioning from manual AP to a fully automated PO and non-PO workflow is easier than you think, especially with Mosaic’s proven approach.
Typical Steps:
- Process Audit – Identify current bottlenecks and inefficiencies.
- System Configuration – Tailor workflows for PO matching, exception handling, and non-PO routing.
- ERP Integration – Connect automation to your ERP for real-time data flow.
- Pilot Program – Run automation with a subset of invoices to ensure smooth adoption.
- Training & Rollout – Provide role-based training to AP teams and approvers.
- Performance Monitoring – Track efficiency gains and fine-tune processes.
Wood-Mizer’s smooth transition back to DocStar ECM shows that cultural adoption challenges can be overcome with a clear plan, hands-on training, and early wins that build confidence.
The Bottom Line
PO and non-PO invoices both play essential roles in the procurement cycle, but without automation, they can slow your business down and inflate costs.
By implementing AP automation, integrating directly with your ERP, and leveraging proven workflows like Wood-Mizer’s, you can:
- Increase accuracy
- Boost processing speed
- Reduce costs
- Improve visibility for smarter decision-making
Ready to see results like Wood-Mizer’s? Contact us today to schedule a demo and learn how Mosaic can streamline your AP processes.
