INTERNATIONAL BUSINESS LAW

Submitted by

Vinitha.T

18MIB051

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 FTL-LTD DOCUMENTATION
FTL Shipping

FTL shipping, or full truckload shipping, is often chosen when businesses have more than 10
pallets which they need to ship at one time, or when time is of an issue and the packages are
high-risk. Most shippers who can accommodate full truck loads cater businesses willing to
ship in bulk and the large number and amount of goods being shipped helps to offset the
transportation costs involved.

FTL shipping can be further characterized into Partial Shipping, wherein a business might
choose to transfer fewer products but in a dedicated truck.

Some key points about FTL include -

o Full truckload shipping is the best way to transport large shipments

o FTL is ideal when you need to transport fragile or high-risk items

o FTL shipments are ideal if you want your goods to reach from point A to point B in the fastest time possible

o FTL shipments generally weigh more than 10,000 pounds

o Full truck shipments help you save a lot of money by consolidating shipments

Benefits of FTL
 Best way to transport large shipments
 Ideal for high risk or delicate shipments
 Shipment remains in the same truck from point A to point B
 Faster than LTL; great for high consumer demand
o

2. LTL Shipping

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 Less than truckload shipping, or LTL shipping, is a big boon for businesses that need to transfer fewer goods at a
faster pace. Since LTL shipments are moved to truck to truck during transit, it is best to transport good which are
either hardy, or are well protected with pallets. Since LTL shipments typically combine multiple shipments for
multiple customers, there can be any number of reasons which can cause delays or holdups during the shipment
transfer. Some other salient points of LTL shipping include -
o Shipments between 150-10,000 pounds are generally sent through LTL shipping

o Trucks transferring LTL shipments make several stops and might perform several rounds of loading/unloading

o LTL shipping is ideal for small businesses

o LTL is one of the most cost-effective shipping methods

Benefits of LTL
 Cost effective freight transportation
 Ideal for small businesses
o

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 Truck Receipt

There are different types of official documents used in business entities and large organizations.
Receipts of various kinds and for various purposes are such official documents that are used on regular
basis. Truck Receipt is also a kind of a receiving acknowledgment from a truck company. This
document is a legal proof of the fact that a shipment has been received by a trucking company. The
goods are supplied by a supplier for the purpose of shipment or delivery to the customer. Common
heads used to provide information in the truck receipt template include the following:

 Date and time of Shipment

 Details of Supplier of Goods
 Details of Trucking company
 Information of the Goods supplied
 Destination to be shipped to
 Amount of charges
 Any other relevant data and information.

Like all other receipts of acknowledgment, a truck shipment delivery receipt is also a very useful document in
the commercial sense. It chalks out not only the important and obvious information such as the date, time,
location, name of the receiver, name of the delivery guy etc. but more importantly, also other valuable details
which are crucial to the delivery in question. These may include, for example, nature of the goods and their
details in terms of weight, quantity, packaging size etc. As a result, in plain and simple terms a truck shipment
delivery receipt can be easily taken and construed as an acknowledgment receipt between the parties.

The necessitation of these receipts can be gauged by imagining if they did not exist at all. In the absence of
such a receipt, the receiver and the delivery person or business will be simply on different tangents. Therefore,

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for a complete meeting of the minds between the two parties, not only in terms of commercial or contractual
concepts, such a truck shipment receipt acts a conduit between them by allowing both of them to raise
objections if need be. In other words, the receipt forms a receipt of approval or rejection.

Template

In general, a truck receipt template is utilized for producing a reporting sheet that contains the details of the
transaction including the truck number, loaded amount or quantity of goods, conditions, and state of the goods
or packages and some more information. A truck receipt is a very useful official document that can help secure
the commodities of the supplier against the risk of risk and theft.

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 WAYBILL

A waybill (UIC) is a document issued by a carrier giving details and instructions relating to the shipment of
a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment,
its destination, and route. Most freight forwarders and trucking companies use an in-house waybill called a house bill. These
typically contain "conditions of contract of carriage" terms on the back of the form. These terms cover limits to liability and other
terms and conditions.[1]

A waybill is similar to that of a courier's receipt which contains the details of the consignor and the consignee, and also the point
of origin and destination.[2]

SEA WAYBILL (SWB)

Also known as “Express Release Bill of Lading” or “Straight Bill of Lading,” a Sea Waybill is used when the
shipper decides to release ownership of the cargo immediately. This means that the goods can be delivered to the
person identified in the document, and they will simply have to verify their identity instead of presenting a document
to claim the freight.

It is important to mention that a Sea Waybill only plays an evidential function and does not give title to the goods
(nonnegotiable).

When the shipment is loaded, the shipper receives a SWB simply as a reference. In this case, neither the shipper nor
the importer are obligated to submit any additional documents to the carrier, and therefore the cargo is released as
soon as it is available at the port.

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AIRWAY BILL

The air waybill is the most important document issued by a carrier either directly or through its authorized agent. It is a non-
negotiable transport document that covers the transport of cargo from airport to airport. By accepting a shipment, an IATA cargo
agent is acting on behalf of the carrier whose air waybill is issued.

Air waybills have eleven digit numbers which can be used to make bookings, check the status of delivery, and a current position
of the shipment.

Air waybills are issued in eight sets of different colours. The first three copies are classified as originals. The first original, green
in colour, is the issuing carrier's copy. The second, coloured pink, is the consignee's copy. The third, coloured blue, is the
shipper's copy. A fourth brown copy acts as the Delivery Receipt or proof of delivery. The other four copies are white. [1]

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 LORRY RECEIPT

Lorry receipt is issued by the Transporter of goods, when goods are sent by road. Lorry receipt contains information
about the name and address of the transporter, name of the consignor (seller or sender of the goods) date of booking
of the goods for transport, name of the consignee, name of place of origin and destination, description of goods,
number of packages along with their total weight and freight charges.

LORRY RECEIPT FORM

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 RAILWAY RECEIPT

A Railway Receipt (R/R), like a bill of lading, is an acknowledgment of goods received by the
Railway Authorities for carriage to a specified place of destination mentioned therein. The property
in the goods covered by a railway receipt passes by endorsement and/or delivery.

The railway authorities are discharged by delivery of the goods to the consignee or the last endorsee
on surrendering the railway receipt (R/R). The terms and conditions of carriage are generally painted
on the back of the receipt.

RAILWAY RECEIPT FORM

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 CMR CONSIGNMENT NOTE

The international transport of goods by road is governed by the Convention on International Carriage of Goods by Road
(Convention relative au contrat de transport des marchandises par route) (CMR) signed in Geneva on May 19, 1956. The
CMR applies to every contract for the carriage of goods in vehicles by road for profit in which the place from which the
goods are taken and the place designated for delivery, as specified in the contract, are situated in different countries and at
least one is a contracting party, that is, a state which has ratified the CMR. The CMR does not require that both the
countries of dispatch and of destination be contracting parties; only one of these countries must be a contracting state. The
Convention applies regardless of the place of residence and the nationality of the parties. The Convention also applies
where the carriage is carried out by states or by governmental institutions or organizations. The CMR was ratified in
Turkey by Law no. 3939 and came into force on October 31, 1995.

The CMR provides for the confirmation of a contract of carriage by means of a consignment note, although such a note is
not essential to the performance of such a contract. This article describes "the content and functions of the consignment

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note" under the CMR. The consignment note is defined in Article 4 while the form, content and effects of it are arranged
between Articles 4 and 9 of the CMR.

1. The Concept of Consignment Note

A consignment note is a document regarding the carriage of goods by road which declares the contract of carriage and
includes the instructions given to the carrier and proves the contract of carriage. Article 4 of the CMR states that the
contract of carriage shall be confirmed by the drafting of a consignment note. Notwithstanding, the absence, irregularity or
loss of the consignment note shall not affect the existence or the validity of the contract of carriage, which shall remain
subject the provisions of this Convention.

The CMR does not require any specific form for the contract of carriage. However, Article 4 of the CMR does require the
issue of a consignment note, which functions as a receipt for the goods and as evidence of the contract of carriage but has
no role as a document of title.

2. The Format of the Consignment Note

Although no particular format of consignment note is required by the CMR, a format has been drawn up by the
International Road Union with the CMR in mind. Basic requirements regarding the format of the consignment note is set
out in Article 5. According to Article 5 of the CMR, the consignment note shall be made out in three (3) original copies
signed by the sender and by the carrier, the signatures may be printed or replaced by the stamps of the sender and the
carrier if the law of the country in which the consignment note has been made out permits, and the first copy shall be given
to the sender, the second shall accompany the goods and the third shall be retained by the carrier.

It is stated in the second paragraph of Article 5 that the sender or the carrier shall have the right to require a separate
consignment note be made out for each vehicle used, or for each kind or lot of goods when the goods which are to be
carried have to be loaded in different vehicles, or are of different kinds or are divided into different lots.

The consignment note may be issued in more than three (3) copies. In this case, the fourth and fifth copies are presented to
the banks and insurance companies.

The absence of a signature required by Article 5.1 does not invalidate the contract of carriage, but it may make it difficult
to show that the person who has not signed the consignment note is a party to the contract. However, in the absence of a
note or a signature, the court will consider other evidence that the carrier received the goods stated in the note and seek to
establish the relevant facts, as usual, balancing probabilities.

3. The Contents of the Consignment Note

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The matters that must be mentioned in the consignment note are listed in Article 6. There is a dinstinction drawn in Article
6 between two (2) types of matters. Matters which must be included in all cases are listed in Article 6/1, while matters
which must be included if applicable to the particular case are listed in Article 6/2, and matters which are optional are
listed in Article 6/3.

The matters which must be included in all cases are the following;

(a) The date of the consignment note and the place at which it is made out;

(b) The name and address of the sender;

(c) The name and address of the carrier;

(d) The place and the date of taking over of the goods and the place designated for delivery;

(e) The name and address of the consignee;

(f) The description, regarding common use, of the nature of the goods and the method of packing, and, in the case of
dangerous goods, their generally recognized description;

(g) The number of packages and their special marks and numbers;

(h) The gross weight of the goods or their quantity otherwise expressed;

(i) Charges relating to the carriage (carriage charges, supplementary charges, customs duties and other charges incurred
between the making of the contract and the time of delivery);

(j) The requisite instructions for customs and other formalities;

(k) A statement that the carriage is subject, notwithstanding any clause to the contrary, to the provisions of this
Convention.

The matters which must be mentioned if applicable to the particular case are as follows:

(a) A statement that trans-shipment is not allowed;

(b) The charges which the sender undertakes to pay;

(c) The amount of "cash on delivery" charges;

(d) A declaration of the value of the goods and the amount representing special interest in delivery;

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(e) The sender's instructions to the carrier regarding insurance of the goods;

(f) The agreed time limit within which the carriage is to be carried out;

(g) A list of the documents given to the carrier.

The parties may add any other particulars which they may deem useful to the consignment note.

Article 6/1 requires that the consignment note contain a statement that the carriage is subject, notwithstanding any clause
to the contrary, to the provisions of this Convention. That statement is known as the paramount clause. It promotes the
application of the provisions of the CMR, as the proper law of the contract or as the terms of the contract of carriage, in the
courts of non-CMR States. If the consignment note does not contain the statement specified in Article 6/1 paragraph (k),
the carrier shall be liable for all expenses, losses and damages sustained through such omission by the person entitled to
dispose of the goods under Article 7/3 of the CMR.

If the matters listed in Articles 6/1 and 6/2 in the consignment note are not listed, it is an irregularity of the consignment
note. An irregularity of the consignment note does not affect the existence or the validity of the contract of carriage as
provided for in Article 4. However, Article 7 assigns liability for the content of the consignment note to the sender.
Accordingly, the sender shall be responsible for all expenses, losses and damages sustained by the carrier because of the
inaccuracy or inadequacy of the particulars listed in Article 6/1, (b), (d), (e), (f), (g), (h) and (j), those listed in Article 6/2
and/or any other particulars or instructions given by the sender to enable the consignment note to be issued or to be entered
therein.

If ommissions cause loss, damage or delay, the sender may be liable under Article 7. Ommissions may reduce the
effectiveness of the note as a receipt for the goods or as a record of the contract. Court decisions suggest that collateral
terms may be proved and enforced even when not mentioned in the document.

Article 7/2 provides a limitation clause for the carrier related to his liability for the content of the consignment note, but
does not provide such a limitation for the sender. Thus the sender is liable for all expenses, losses and damage sustained by
the carrier. If the carrier drafts the consignment note in conformity with the information and instructions given by the
sender, he is assumed to draft the consignment note in the name of the sender and is not liable for any such declarations
included in the consignment note. Article 7/2 supports the view that it is more appropriate that the sender rather than the
carrier drafts the consignment note, though there is no explicit provision in the CMR concerning who should draft the
consignment note. Through Article 7/2, it appears that as a rule the sender must draft the consignment note. However, the
carrier also may draft it but in that case he/she is assumed to do so on behalf of the sender.

4. The Legal Character of the Consignment Note

The consignment note is neither a negotiable instrument nor a document of title. Hence the consignment note differs from
both the bill of lading and the consignment note set out under the Turkish Commercial Code.

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The consignment note is not a document of title in accordance with Article 1/5 of the CMR. As the duration of the carriage
is short, it is generally considered unnecessary to give the consignment note the function of representing the goods.

The CMR does not specify whether consignment notes are negotiable instruments. As the rights of the consignee are
arranged separately from the rights of the sender but not limited to the consignment note, the possession of the goods may
be transferred without the consignment note (Article 12 of the CMR), and the absence, irregularity or loss of the
consignment note shall not affect the existence or the validity of the contract of carriage (Article 4 of the CMR), the
consignment note appears not to be a negotiable instrument. Thus the transfer of the consignment note does not mean the
transfer of the title of the goods and the right to ask for the delivery of the goods is not bound to the consignment note.

5. Functions of the Consignment Note

5.1. Evidentiary Function

The consignment note shall constitute "prima facie evidence" for the existence of the carriage contract, terms and
conditions of the contract and acceptance of the goods by the carrier according to Article 9 of the CMR. It is presumed that
the goods and their packaging appeared to be in good condition when the carrier took them over and that the number of
packages, their marks and numbers corresponded with the statements in the consignment note.

The consignment note constitutes a crucial document of evidence in terms of claims by both the sender and the carrier
regarding the carriage contract and plays a facilitating role for proving such claims. This is because the consignment note
has the function of proving establishment and content of the carriage contract unless it is otherwise proved. For the
evidentiary function of a consignment note to take effect, a consignment note signed by the sender and the carrier must be
available.

Firstly, the consignment note is used to prove that the contract of carriage has been made between the sender and the
carrier within scope of the CMR and also is proof regarding the content of the contract. Secondly, a consignment note
signed by both the sender and the carrier shall also be considered a receipt for the goods taken over by the carrier.
Furthermore, the consignment note is used to prove that goods whose quantity, type, coding, etc is specified therein have
been delivered to the carrier and were in good condition during delivery unless the carrier inserts a reservation clause in
the consignment note.

The proving effect of the consignment note can be eliminated if the carrier has imposed a valid and justified reservation on
the consignment note as written in Article 8. Article 8 imposes an obligation on the carrier to check the goods and enter
reservations about their quantity and condition. The carrier shall check whether the goods are compliant with the records
available in the CMR consignment note, and if the carrier detects missing or damaged goods, the carrier shall impose a
reservation on the CMR consignment note accordingly. In the event that no reservation is imposed on the consignment
note, it shall be agreed that the goods were delivered to the carrier in good condition and any damage to the goods took
place after the goods were delivered to the carrier in good condition, during the period of the carrier's liability. However

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the content of the justification relating to the reservation mainly depends on whether the carrier expresses either the
impossibility of inspecting the goods (reservations out of ignorance), or finding a concrete deficiency in the goods
(specific reservations).

Article 8/2 gives the carrier a chance to avoid the presumption expressed in Article 9 by entering reservations in the
consignment note if the carrier is unable to fulfill the obligation to check the goods. In this case, the reservation imposed
on the consignment note shall be regarded as a justified reservation as long as the reason is indicated.

Article 8/3 extends the scope of the presumption to the contents of the packages. It can be said that the scope of the prima
facie arranged under Article 9/2 of the CMR can be expanded within the framework of the liability in relation to the
inspection specified under Article 8/1-b as "external condition of the goods and packing thereof." The term "condition"
regarding the goods in such an arrangement refers to facts that can be easily discovered as a consequence of the careful
inspection to be carried out externally or by means of an appropriate instrument by an average carrier.

Nonfulfillment of the obligation imposed on the carrier by Article 8/1 does not give rise to liability for breach of the
contract of carriage, but it affects the burden of proof in cases of loss or damage. However, the carrier may nontheless be
liable for failure to remedy defects that would have been observed if the carrier had made the checks recommended by
Article 8, liable not for breach of Article 8 but for breach of the basic duty of the carrier under Article 17.

5.2. Formative Effect of the Consignment Note

In some provisions of the CMR, as detailed below, the consignment note is assumed to have formative effect.

5.2.1. Article 12

The sender has the right to dispose of the goods, in accordance with Article 12/1 and Article 12/2, until the second copy of
the consignment note has been given to the consignee by the carrier or the goods have arrived at the destination and the
consignee has required delivery of the goods in accordance with Article 13. Thus the right of disposal is linked to the
possession of the consignment note. The production of the note proves a person's right of disposal; the note is not,
however, a negotiable instrument or a document of title. Failure by the carrier to issue a consignment note would deprive
the sender not only of the right of disposal but also of any right to stop carriage or change delivery instructions.

5.2.2. Effect of the Consignment Note on Raising the Limits on Liability of the Carrier in Case of
Loss of or Damage to the Goods

The limits on liability in case of loss of or damage to the goods imposed by Article 23 may be raised by contract in two
cases, as regulated by Articles 24 and 26, and only if both parties agree. The first case, regulated by Article 24, is that of a
declaration by the sender that the value of the particular cargo exceeds the limit which would otherwise apply. The value is
the actual value of the goods fixed in accordance with Article 23/2. The contract related to the increase of the limit of

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liability must be declared in the consignment note in order to be valid. The consignment note has founder effect to the
increase of the limit of liability because the related declaration is protective and cautionary for the carrier. Thus the party
who alleges that there is no contract related to the increase of the limit of liability in spite of the declaration in the
consignment note has the burden of proof.

Article 24 is a special reservation to Article 4, which provides that "the absence, irregularity or loss of the consignment
note shall not affect the existence or the validity of the contract of carriage" thus the limit of the liability of the carrier can
not be increased due to the lack of a consignment note or a declaration in the consignment note. Article 24 is not
applicable for the loss of or damage to the goods caused by delay.

The second case in which the limit of liability may be raised, regulated by Article 26, is that of a declaration by the sender
that he has a special interest in the arrival of the goods in accordance with the contract. If the sender declares a special
interest of this kind, there can be a claim for consequential loss. This is a loss of a kind for which the carrier would not
otherwise be liable, such as a loss of value at the destination, a case not contemplated by either Article 23 or Article 24.
According to Article 26 the sender may, against payment of a surcharge to be agreed upon, fix the amount of a special
interest in delivery in the case of loss or damage or of the agreed time limit being exceeded, by entering such amount in
the consignment note and if a declaration of a special interest in delivery has been made, compensation for the additional
loss or damage proved may be claimed, up to the total amount of the interest declared, independently of the compensation
provided for in Articles 23, 24 and 25.

5.2.3 Effect of the Consignment Note on Raising the Limits on Liability of the Carrier in Case of a
Delay in Delivery of the Goods

The limits on liability in case of delay imposed by Article 23 may be raised by contract in two (2) cases, and only if both
parties agree. The first case, where the consignment note has founder effect as regulated by Article 26, is that of a
declaration by the sender that he has a special interest in the arrival of the goods in accordance with the contract. However,
in case of a delay the function of Article 26 is different from its function in case of loss of or damage to the goods. In case
of delay, the limit of the liability of the carrier may be raised to the value declared in the consignment note.

5.2.4. Effect of the Consignment Note on Successive Carriage

The CMR provides in Article 34 that, if the carriage by road is governed by a single contract but performed by successive
road carriers, as far as successive carriage is concerned and as the general view in continental Europe there is a single
consignment note. In this case, each carrier shall be responsible for the performance of the whole operation, the second
and successive carrier(s) becoming a party to the contract of carriage under the terms of the consignment note by reason of
their acceptance of the goods and consignment note.

Article 34 requires the consignment note to enable that the successive carriers know that the carriage is subject to the CMR
and their situation, the condition of the goods, the content of the consignment note and any reservations entered in the

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consignment note. The consignment note is essential and required for the successive carriers to know the terms of the
carriage since by acceptance of the goods and the consignment note, each will become a party to the contract of carriage
under the terms of the consignment note.

Invoice processing

Invoice processing involves the handling of incoming invoices from arrival to payment. Invoices have many variations and
types. In general, invoices are grouped into two types:

1. Invoices associated with a company's internal request or purchase order (po-based invoices) and

2. Invoices that do not have an associated request (non-po invoices).

Most organizations have clear instructions regarding the way that they should process incoming invoices. It's common to have
one approach for PO-based invoices, and another for non-PO invoices. Some companies also have unique requirements based on
the type or dollar amount of a transaction.

In general, both types of invoices are processed by a company's accounts payable department. The process in which a supplier
invoice is validated and paid is also known as the purchase-to-pay cycle.

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Typical Process
The process usually begins when a supplier's invoice is received. Invoices can be sent via email, postal mail, fax, or EDI.

Once an invoice arrives, the accounts payable clerk must ensure that the document is indeed an invoice. Then the clerk classifies
and sorts the invoice into various categories (e.g., by vendor, by transaction type, or by department). The definition of invoice
categories is usually unique to a specific organization.

Once the invoice is classified, it's forward to the AP processor who is responsible for particular invoice. This is normally the
person who has placed that order. If there was a purchase order created during procurement, the invoice must then be matched
against the purchase order to confirm that the amount that's being paid is correctly stated on the invoice. (This helps protect
against fraud and unauthorized transactions.)

If the amount is right and the goods have arrived, the responsible person will have to approve the invoice by signing off on it. If
the amount invoiced exceeds a certain amount that is limited by the organization, the superior of that person may have to approve
the invoice as well. This, of course, also differs from organization to organization.

Once the invoice has been approved and there have been no variances, the invoice is posted into the accounting
system.[1][2][3][4] From there, a voucher can be created and the payment can be issued.

A manual invoice process can sometimes exceed 15 steps before the final posting is done.

Automatic Process
Technology has long enabled the automation of invoice processing from arrival to post. This means that at arrival of the invoice,
the same accounts payable clerk will only need to scan the invoice into an automation software. The automation software then
converts the invoice's scanned image into a text-researchable document. The different fields on an invoice can also be defined
into the software so that it remembers which fields it should capture and register into the ERP systems, for instance, the amount
purchase, the quantity, the supplier name, the supplier code, and so on. The benefits of an automatic processing work flow may
include reduced human error, on-demand reports, and data resilience. Most automation software today integrates into common
organizational ERP systems such as SAP, Microsoft, and Oracle.[5]

In an automatic process, once the data is extracted or captured from the invoice the data is sent into the system for automatic
matching against the purchase order. This matching process can compare just the invoice data with that shown on the purchase
order or be expanded to include a deeper level that looks at the receiving documents. Workflow steps can be configured such that
the responsible person will then receive an email alert so that he or she can approve the invoice. If there are other people involved
in the approval work flow, email alerts to them will also be automatically generated. [6] The typical workflow is a four step process
beginning with 1. Import of the images through scanning or email, 2. Identification of the vendor and business unit associated
with the invoice, 3. Data extraction, and 4. Export of the extracted data and images.

Automation Software
Accounts payable automation is a technology-driven approach to invoice processing. According to the Document Imaging
Report, issue no. 8-17-07, there are around 3757 invoice processing applications in the world.[7]

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Intelligent Data Capture (IDC) or learning systems enable end users to extract content from invoices without the system having to
learn the layout of the invoice. Some intelligent engines are able to correctly sort batches on the fly, locate data fields such as
invoice and PO number, as well as line item information, and then extract the desired content from those data fields. Intelligent
solutions do not require the coding of rules or design form templates. Rather the system learns by reviewing a relatively small
number of invoice samples. This helps the system scale to large invoice volumes and widely varying document layouts without
requiring a human operator to specify a template for each one, or explicitly create and tune an extensive library of keywords. [8]

Invoice processing automation software has emerged as what one consulting company has called a "disruptive innovation,"
whereby this new technological innovation has created a demand for a whole line of software products that previously did not
exist. Invoice processing software has produced tremendous labor savings to the extent that many companies have begun to
consider it an essential piece of their technology, much like word processing software.

Other advantages of accounts payable automation include:

 Up to an 80 percent reduction in a company's procure to pay cycle

 A reduction in duplicate invoice payments and invoice entry errors

 The ability to assign GL codes to invoices without direct access to a company's accounting platform.

Comprehensive invoice process management

The typical approach towards invoice management processes involve process start from the arrival of a supplier invoice.
Depending on the process design, the invoice should be identified, categorized, filed and matched against a PO by the person
who was responsible for the order. After these steps the invoice is usually transferred to the financial department and the sum is
paid. The problem with this process is the lack of comprehensive cost management, which should involve the following
checkpoints and controlling points:

· Was the person who ordered item eligible to place the order?

· Was the PO approved by a responsible person?

· Can the PO or invoice be linked to an existing supplier contract?

Comprehensive invoice management processes therefore shall involve the above mentioned checkpoints in order to ensure that
no fake suppliers can issue an invoice and get paid. This has happened to tech giants Facebook and Google with a total sum of
100 million US dollars, hence the danger is real and shall not be overlooked. [9]

Objectives
 To understand the differences between standard invoices and speed invoices
 To revise unposted and posted invoices
 To post invoices to the general ledger
 To understand how to enter and process recurring invoices
 To locate customer ledger information

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 About Invoice Processing
Generally, you create an invoice before you receive payment from the customer. Effective management of invoice processing is
fundamental to your accounts receivable department.

Invoice processing consists of:

 Working with invoice entry controls

 Understanding fiscal date patterns
 Working with standard invoices
 Working with other types of standard invoices
 Entering speed invoices
 Reviewing and approving invoices
 Understanding the post process
 Posting invoices
 Revising posted invoices
 Printing Invoice Journal Information
 Locating customer ledger information
 Working with recurring invoices

Invoice processing is one example of three-tier processing. All JD Edwards World systems use three-tier processing to manage
batches of transactions. The term three-tier refers to three standard steps you perform.

The following graphic illustrates the concept of three-tier processing.

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 Types of Invoices

Depending on your needs, you can choose to enter the following types of invoices:

 Standard invoices. These invoices give you the most flexibility and options.
 Speed invoices. These invoices give you less flexibility and options than standard invoices. However, they provide a
quicker way of entering invoice and accounting information.

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