50 Top IT Project Management Challenges

CHALLENGE 29: VENDOR PAYMENT MILESTONE ISSUES

As part of the project’s financial management, a project manager is responsible for generating purchase orders for vendors and tracking the purchase order in terms of the invoice approval against a payment/delivery milestone.

For example, if your project is small, where only one vendor is involved and there is only one invoice per month, then it is easy to control purchase orders and invoices raised. If there are more than 20 vendor companies involved, each may have more than 10 purchase orders, which translates to over 200 invoices every month. Tracking them then becomes tedious.

In this situation, some vendors might have raised the invoice thinking that the payment milestone is already complete, ...