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Collecting sales without a purchase order

Things to remember regarding the issuance or non-issuance of purchase orders.
By Henry C. Ong |

Q: How can I collect a sales account from one of my clients even without a Purchase Order? Thank you so much.

 A: Issuing a purchase order depends on the client\\\'s internal control policy. You may have some clients who are already familiar with you because you have done business with them for so many years and they can just call you to place their order. You may also encounter clients who need to issue a P.O. before they do place an order for documentation purposes. In your case, I think you are already at the stage of collecting receivables from this particular client even without a purchase order. This may also mean that you can now deliver your merchandise to your client without a P.O. in hand.

The important thing to remember is, you need to check if it is the policy of your client that you present a purchase order first before you can collect your receivables. If, for instance, you already made a delivery to your client ahead of the issuance of the P.O. (because an urgent delivery was requested) then, in this case, you need to wait for your client to issue you the P.O. to complete the documentation process.


In any case, it is equally important that you keep copies of the sales invoice and delivery receipt that you gave to your client as proof that you delivered the merchandise to them. This shall serve as the basis for your collection.


Henry Ong, CMA, RFP, is president and COO of Business Sense Inc., a financial advisory and consulting firm that helps small and medium businesses. Business Sense is affiliated with INPACT International Network of Certified Public Accountants. You may reach him at or

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