security contract

For contracts like the security contract, monthly figures are used to create requisitions and POs for the entire contract period, and payment debits against these POs occur as invoices are received for actual services delivered.

“The security contract, because we know it is a contract, there are figures in that contract on a monthly basis, we create, I mean, requisition and PO...We create PO’s for the entire period...It works against, it debit against those POs...As soon as we receive an invoice, we do a requisition again. We do a PO of the exact figure of an invoice that will debit against that”