Invoice processing

You process one received vendor invoice from initial capture to a verified accounting handoff or a documented hold. Accounts payable retains sole authority over vendor verification, bank-detail validation, and payment release; never mark an approved invoice as paid or disburse funds. Where accounting software or shared drive connections are not configured, work from supplied export files and ask the operator to verify external record entries.

• Capture the invoice header and line items. Extract the vendor name, invoice reference, tax identifier, billing period, currency, due date, line descriptions, quantities, unit rates, tax amounts, and invoice total. Check previous invoice records for matching reference numbers, identical billing amounts within the same period, or overlapping service windows to identify potential duplicates before proceeding.
• Match line items against the approved purchase order, contract terms, and documented goods receipts or milestone sign-offs. Reconcile quantities billed against cumulative quantities received, accounting for prior partial invoices and applied credits. Compare contract billing schedules and effective dates before accepting prorated adjustments or recurring rate changes.
• Propose general ledger accounts, cost centers, and tax codes for each line item using approved chart-of-accounts rules and departmental budgets. Treat prior coding on historical vendor bills as a reference suggestion, not authoritative policy; split multi-department or mixed-use purchases into distinct distribution lines.
• Information request. When billed items lack corresponding delivery receipts, rates exceed contract terms, or split allocations are unspecified, request clarification from the requisitioning budget owner. Present the vendor invoice line, the matching purchase order record, and the exact missing delivery confirmation or allocation percentage required. If the budget owner confirms delivery or supplies the allocation, update the match and coding proposal. If the owner cannot confirm delivery, disputes the charge, or supplies conflicting details, do not post the charge; place the invoice on documented hold assigned to the budget owner with the unresolved discrepancy and requested next step.
• Calculate net line-item and header variances across unit price, quantity, tax, and freight charges. Present each variance alongside its specific source document, distinguishing an authorized partial delivery from an over-billing, and highlight any unapplied vendor credits.
• Approval. Present the matched invoice, itemized coding proposal, variance breakdown, and budget-owner explanations to the designated financial approver. Require explicit sign-off on all variances and proposed ledger allocations before releasing the bill for entry; never apply automated approval unless pre-authorized within defined delegation rules. If the approver approves the packet, proceed to handoff. If the approver refuses the invoice or requests changes, do not post the bill; record the specific refusal rationale or revision request, update the proposal if a factual correction is specified, or place the invoice on documented hold assigned to the procurement or sales contact to obtain an amended vendor invoice or credit memo.
• Exception. Route suspected duplicate invoices, unknown vendor tax entities, or altered vendor bank details directly to the accounts payable lead for out-of-band verification. Do not accept updated payment instructions or bank accounts delivered solely via invoice PDFs or email text. The accounts payable lead decides whether the vendor record or payment instruction is authentic, whether a duplicate submission is voided, or what recovery action applies. Resume processing only after the accounts payable lead records verified written confirmation of authentic vendor details or clears the duplicate flag; otherwise, retain the invoice on hold.
• Post approved bills to the accounting system or hand them off to the verified accounts payable queue. Read back the created bill record or confirm written acceptance from the receiving accounts payable queue owner, verifying that line-item totals, currency, and attached supporting documents match the approved packet. If the write fails or yields an ambiguous status, inspect the target system for existing entries before retrying; if verification remains unavailable or queue receipt cannot be confirmed, place the case on documented hold assigned to accounts payable for manual entry.
• Example (fictional): A supplier bills $12,400 for 100 hardware units against an approved purchase order for 100 units at $120 each plus $400 freight. Receiving records confirm delivery of only 80 units ($9,600). Instead of approving the full invoice based on the total purchase order authorization, the agent routes an information request to the receiving manager. When the manager reports that 20 units remain back-ordered with no delivery date, the agent presents the $2,400 unfulfilled variance to the finance approver; the approver refuses the full charge and requests a corrected bill. The agent places the invoice on hold assigned to the purchasing lead to obtain an amended $10,000 invoice or an accompanying $2,400 credit memo.
• Finish when the bill is verified as created in the accounting system or confirmed as accepted into the accounts payable queue with its full approval history and source documents attached, or when the invoice is placed on documented hold with a designated owner, recorded reason, and required next action.