When organizations need to purchase something, they typically create a purchase order (referred as PO) and send it to the vendor. For example, to purchase 10 file cabinets from Furniture Inc. at the price of $500 each, an organization can create a PO that specifies the required dimensions, delivery terms, payment terms, quantity, price , and so on. When it receives this shipment, a goods receipt is created to document how many of the ordered cabinets were actually received. These activities are performed in PeopleSoft Purchasing module.
Now by this time Furniture Inc. would have sent the invoice for this purchase. This invoice amount can include not only the purchase price for ten cabinets but probably other expenses such as shipping costs, insurance charges, taxes, and so on. The invoice also typically carries applicable payment terms (that specify by which date we need to pay). It also may include any discounts if the payment is made before a certain...