Modern companies are eliminating manual paperwork and adopting AI-powered document automation software like Makez.ai to streamline purchase orders, invoices, contracts, onboarding files, and compliance documents
This guide covers:
- What is a purchase order?
- What is an invoice?
- Key differences between PO and invoice
- Invoice processing workflow
- Purchase order approval workflow
- Challenges in manual invoice/PO processing
- Benefits of AI automation
- Why companies prefer Makez.ai for document automation
What is a Purchase Order?
A purchase order (PO) is a legally binding document generated by a buyer to authorize a purchase from a supplier. It ensures clarity in business transactions and prevents disputes.
Key details in a purchase order:
- PO number
- Buyer & supplier information
- Product or service description
- Quantity & price
- Delivery date & location
- Terms & conditions
- Payment terms
- Taxes & shipping details
Types of purchase orders:
- Standard PO
- Blanket PO
- Contract PO
- Planned PO
Purchase Order Management Software helps automate creation, approval, tracking, and compliance for enterprise procurement.
What is an Invoice?
An invoice is a billing document issued by a supplier requesting payment for goods or services delivered. It helps accounts payable (AP) and finance teams record expenses and release payments.
Key details in an invoice:
- Invoice number
- Vendor information
- PO reference
- Product or service details
- Total payable amount
- Tax details
- Payment instructions
- Invoice date & due date
Invoice processing software automates reading, verifying, and approving invoices.
Difference Between Purchase Order & Invoice
| Feature | Purchase Order | Invoice |
| Purpose | Buyer requests goods/services | Vendor requests payment |
| Issued by | Buyer | Supplier |
| Timing | Before order execution | After delivery |
| Document role | Authorization | Payment request |
| Workflow | Procurement | Accounts payable |
Invoice Processing Steps (Manual vs Automated)
Manual AP process:
- Receive invoice (email or paper)
- Validate supplier & PO
- Check line items & amounts
- Match with PO & goods receipt
- Get multi-level approval
- Enter data into accounting system
- Release payment
Manual handling leads to errors, delays, duplication, fraud risk, and disputes.
Automated invoice processing with AI (Makez.ai):
- AI OCR extracts invoice data
- Automatic PO matching & validation
- Vendor & tax verification
- Smart approval routing
- Digital signature & e-sign authentication
- Auto-posting to ERP/finance system
- Payment request triggered without manual input
Challenges in Manual PO & Invoice Processing
- Time-consuming paperwork
- High error rate in data entry
- Fraud and duplicate invoices
- Delayed approvals
- Hard to track audit trails
- Missing supporting documents
- Compliance risk
- Slow vendor payments
Benefits of AI-Powered Invoice & Purchase Order Automation
- Faster processing & approvals
- Zero manual data entry with OCR & AI extraction
- Real-time tracking & version control
- Secure digital signature authentication
- Vendor KYC & e-KYC validation
- Automated reminders & escalation workflows
- Audit-ready logs for compliance
- Scalable cloud storage for documents
- Supports PDF, images, scanned files, and uploads
- Integrates with ERP & accounting tools
Why Makez.ai is a Complete Document + Invoice + PO Automation Platform
Makez.ai helps companies automate document workflows with AI, OCR, e-signature, e-KYC, digital stamping, and automated approvals.
Key features of Makez.ai:
| Capability | Details |
| AI Document Processing | Extract data from PDFs, invoices, bills, forms, contracts |
| OCR + NLP | Reads scanned documents, tables, receipts, ID proof |
| Invoice Automation | PO match, vendor verification, approval routing |
| Purchase Order Workflow | Create, track, approve purchase orders digitally |
| e-Signature Platform | Sign PDFs, agreements, vendor forms securely |
| Digital Certificates | Legally compliant digital signatures |
| Document Management | Upload, share, track, versioning |
| e-KYC & AML | Identity verification, compliance checks |
| Audit Trail Logs | Timestamp, signer proof, access record |
| ERP Integration | Works with SAP, Tally, Zoho, copyright, Oracle |
Use Cases of Makez.ai for Businesses
| Industry | Workflow Automation |
| Finance | Invoice processing, PO & bill verification |
| Procurement | Vendor management, PO creation, contract signing |
| Banking & Fintech | e-KYC, document verification, agreement signing |
| Healthcare | Patient documents, insurance forms, compliance files |
| Legal | Contract signing, legal forms, document audit |
| Education | Student forms, admission docs, certificates |
| Real Estate | Lease agreements, property documents, KYC |
| Logistics | Delivery challans, freight bills, vendor invoices |
Keywords Embedded in This Article
Purchase order software, invoice automation software, accounts payable automation, e-signature platform, digital signature tool, PDF signing, vendor onboarding, KYC verification system, OCR document extraction, AI data capture, document workflow automation, invoice approval software, PO matching system, automated AP processing, finance workflow automation, procurement automation platform, e-KYC API, document verification AI, enterprise document management system.
Conclusion
Purchase orders and invoices are critical financial documents for business operations. Traditional paper-based management causes delays, errors, and compliance risks.
Makez.ai transforms document and invoice workflows with:
- AI extraction and OCR
- Automated PO matching
- Digital signatures and approvals
- e-KYC verification
- End-to-end document automation