Professional Documents
Culture Documents
Invoice Processing
Invoice Processing
SESSION OBJECTIVES
• Vendor Set Up • Invoice Keying Quality Checks • Check Run • Customer Service
• Vendor Account • 3 Way Matching Duplicate Checks • Wire Payment • Remittance for
• Maintenance • Coding for NonPO Supplier Statement • EFT Payments
• Internal Approvals Invoices. Analysis
• Query
Management
Input Process Output
Invoices Is the invoice Yes Yes
received Sort, prepare Is the vendor
I, at Confianza raise
the Purchase Order
SCENAR
IO
Goods are purchased on credit from
Goods are shipped to
XYZ Inc., the vendor
cONFIANZA
Confianza Office
creates a GRN on receipt of
goods
XYZ Inc. raises invoice payable after 45 days
Documents needed to pay
To pay a vendor, it is important that there are
three documents in possession:
Usage One time buy of goods Long term supplier commitment Long term commitment for a
and/or services with varying goods/services fixed set of goods and/or
services
Creation Requestor creates Buyer sets up original contract Buyer sets up original blanket
based on requestor input based on requestor input
Requestor creates Standard including predefined line items
PO’s as required using supplier and pricing
site defined in contract Requestor creates releases and
selects from items from original
blanket PO
Approval Standard approval process Standard approval process Standard approval process
Does not require buyer Does not require buyer
intervention intervention
It indicates who received the purchase, when it was received, and whether all or a part of
the order was received.
In the United States of America, GRN is also known as a ‘Receiver’.
INVOI
An CE
invoice is a document that describes who has to be paid, what
has to be paid for, and the
amount due. It is provided by the vendor and is a mutual interest to
make prompt payment.
Note: If vendors have opted for paperless invoices, paper invoices are not
accepted!!!
TYPES OF PAPERLESS
INVOICES
Web Invoices
EDI
Benefits are:
Pros:
Cons:
Pros:
Accurate transactions
Faster payment (Waiting time for invoice to be received does not exist)
Able to handle a large number of transactions automatically.
Cons:
Cons
Invoice
Date and
Approval Number
Remit to
address
Account Code
Amount
due
HAS THE VENDOR BEEN
SET UP?
Input
Sort, prepare
and Is the invoice Yes
Is the vendor
Invoices scan invoice PO based?
received system?
No
Is
it approved?
MATCHING
VALIDATION
Input
Matching
Validation
3 WAY MATCHING
GRN PO Invoice
Order Quantity: 3
Unit Price: $850
Extended Price: $2550
Part Number: 238- 7
PO Number
Release Number
Part number
Line Number
Quantity
Shipment Number*
Input
Yes Process
Duplicate Invoice
Check
APPROVALS FOR NON-PO INVOICES
Input
and
Key invoice
PO based? set up in AP
Invoices
received
No
Set up
No
vendor
Is it approved?
Yes
Fix Matching Matching
No ancy
Discrep Validation
Process
Duplicate
Invoice
Check
REQUEST APPROVALS
Input
PO based? set up in AP
Invoices
received
No
Set up
No
vendor
No Is it approved?
Yes
Yes Fix Matching Matching
No ancy
Discrep Validation
Proces
Duplicate Invoice
Get Approval
Check
PROCESS
INVOICES
Input
PO based? set up in AP
Invoices
received
No
Set up
No
vendor
No Is it approved?
Yes
INVOICE
HOLDS
A HOLD indicates that the vendor’s payments are being held.
Procedure
Option 1: Approver will put the GL on the invoice while Approving the same
Step 1 – Invoice without any PO no. comes in Workflow. It has Cost code stamped / written on it with approval (Attach the invoice that
needs to be processed)
Step 2 – Process it as normal Non PO invoice
Option 2: Processing team has a list of GL codes to be put duly approved by GL team.
Step 1 – Invoice without any PO no. comes in Workflow. It does not have Cost code stamped / written on it with
approval (Attach the invoice that needs to be processed)
Step 2 – Agent has a list of expenses and the applicable cost codes duly approved by AP manager and GL team.
(Attach an example of list). Check the expense type from invoice and get the cost code from the list
Step 3 - Process it as normal Non PO invoice