Article 1.3: Key Terms & Document Lifecycle Reference

Overview

This guide explains the five core documents, their numbering system, and how their status changes throughout their lifecycle.

Core Documents

Document	Who Creates It?	Purpose	Example Number
Purchase Order (PO)	Buyer	Official order placed with a supplier	PO-25-0042
Quotation (QT)	Seller	Pricing proposal for a buyer	QT-25-0015
Invoice (INV)	Seller	Bill for goods/services delivered	INV-25-0187
Received Note (RN)	Buyer	Confirmation of goods received	RN-25-0102
Credit Note (CN)	Seller	Refund or correction for an invoice	CN-25-0033

Document Status Lifecycles

Each document moves through specific statuses. Here's what they mean:

📄 Purchase Order (PO) Statuses

Status	Meaning
Draft	PO is being created but not yet submitted
Submitted	PO has been sent to the supplier
Partially Received	Some (but not all) goods have been received
Closed	PO is complete—3-way match passed
Canceled	PO was terminated before completion

Rules:

• You can only Close a PO after the 3-way match passes
• You can only Cancel a PO if no invoices or RNs are linked

💬 Quotation (QT) Statuses

Status	Meaning
Pending	Quotation is awaiting buyer's response
Approved	Buyer accepted the quotation
Rejected	Buyer declined the quotation

Rules:

• Once Approved or Rejected, the status cannot be changed

🧾 Invoice (INV) Statuses

Status	Meaning
Draft	Invoice is being created
Pushed to ZATCA	Invoice has been submitted to ZATCA for validation
Sent	Invoice was approved by ZATCA and sent to buyer
Rejected	ZATCA rejected the invoice (needs correction)
Paid	Buyer has paid the invoice
Void	Invoice has been canceled

Rules:

• Once Sent, the invoice cannot be edited—use a Credit Note for corrections
• Paid status is set manually by the seller

[Screenshot Placeholder: Invoice status flow diagram]

📦 Received Note (RN) Statuses

Status	Meaning
Draft	RN is being created
Submitted	RN has been recorded in the system
Closed	RN is finalized
Canceled	RN was voided

Rules:

• You can create multiple RNs for one PO (for partial deliveries)

🔄 Credit Note (CN) Statuses

Status	Meaning
Draft	CN is being created
Pushed to ZATCA	CN has been submitted to ZATCA
Open	CN is active and awaiting resolution
Closed	CN has been processed
Void	CN was canceled

Rules:

• Each CN must reference exactly one invoice
• Once Closed, the CN cannot be edited

Key Rules to Remember

✅ Documents can be created in any order (except Credit Notes, which need an invoice first)

✅ One PO can have multiple Invoices and multiple RNs

✅ Each Credit Note references exactly one Invoice

✅ You cannot edit documents after creation—use Cancel/Void + Recreate instead

✅ At PO Close, the buyer manually links all related documents for the 3-way match

What's Next?

Ready to start creating documents? Jump to:

• Section 2: Managing Contacts & Items
• Section 3: Creating Purchase Orders

➡️ Need more help? Contact Qawafel Support.