AVL is strictly enforcing its policy that all goods and services ordered from our external suppliers must be based on an approved AVL purchase order (PO).

Accordingly, suppliers shipping goods or supplying services to AVL that will result in the submission of an invoice to our company, must ensure that they have a valid purchase order number issued by AVL purchasing prior to supplying those goods or services. The reference to a valid purchase order on an invoice to AVL is the condition to the issuance of payment by AVL.

To facilitate on-time payment to suppliers, AVL also strongly encourages the usage of electronic invoicing as the most efficient way of doing business.

How to proceed in case of non-compliance to the policy

Any invoice that does not contain a valid purchase order will be returned to the supplier unpaid by the accounts payable team receiving the invoice. The supplier will need to contact the person who requested the goods or services in order to initiate the proper PO-process and get a valid PO number. He will then need to state this PO number on the invoice and resend it to his known AVL invoice channel.

When a PO is approved internally at AVL, it will be sent to the contact provided by the supplier’s company (e-mail or EDI). It is the supplier’s obligation to ensure all contact and banking information are accurate. The supplier contact information should be properly maintained in the corresponding account on AVL’s supplier portal

Non-compliant processes are tracked and analyzed and can result in a supplier account being blocked due to repeated failure to obtain and provide a PO number.

Benefits of the policy

The No PO, No Pay policy offers significant benefits to both suppliers as well as AVL:

  • A purchase order ensures appropriate approval and full compliance with all applicable laws and AVL policies, which results in on-time payment, and strengthens our relationship with the supplier as important business partner.
  • There will be fewer payment delays as departments within AVL won’t have to raise a purchase order retrospectively.
  • Consistent purchase orders that have been reliably and properly agreed with our purchasing department make the supplier’s business and supply opportunities visible to our global organization.

Exceptions applied to the policy

The only exception to “No PO, no pay” can be the delivery of goods and services of the following supply categories:

  • Utilities (i.e. electric, gas, water, refuse)
  • Real estate rent
  • Travel expenses covered by AVL-internal official travel requests and approvals
  • Low risk value purchases mainly for invitations, gastronomy, urgent supplies for critical business operation

If invoices to these categories do not reference a PO number, they must be based on a frame contract or defined AVL internal order and/or invoice release.

We thank our suppliers for the support and adherence to this “No PO, No Pay” policy!

For any further questions, please get in touch with your contact person in procurement or accounts payable team at your AVL location.