Document background
The Purchase Order On Invoice is a specialized commercial document used in German business transactions to streamline procurement processes by combining ordering and invoicing functionalities. This document type is particularly relevant when businesses require a formal procurement process with immediate invoicing capabilities, commonly used in established business relationships where credit terms have been pre-agreed. It must comply with German Commercial Code (HGB) requirements for purchase orders and German tax law requirements for invoices, including mandatory VAT information. The document is especially useful for businesses seeking to reduce administrative overhead while maintaining full legal compliance with German commercial and tax regulations. It can be used for both one-time purchases and recurring orders, providing a clear audit trail for both procurement and accounting purposes.
