Purchase Orders and Encumbrances

You are here

What is a Purchase Order?
  • A purchase order (PO) is a legally binding document created by a buyer and issued to a seller of goods or services.
  • A seller uses a PO number to invoice Lehigh for their goods/services.
  • A PO creates an encumbrance in Banner. These funds are set aside (committed) so they are available when an invoice is processed by Lehigh’s Accounts Payable team.
When do I need a Purchase Order?
  • POs have many applications but are most commonly used when Lehigh will be invoiced for goods or services
  • Purchase Order Types
    • Standard
    • Retrofit
    • Blanket
  • There is no minimum or maximum dollar amount for a PO; however, there may be cases where an invoice cannot be paid unless it is accompanied by a PO

Please view Guides and Tutorials for more information.