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Invoice Validation

Before you can pay or create accounting entries for any invoice, the Invoice Validation process must validate the invoice.
Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order, or changing the invoice tolerances. Then resubmit Invoice Validation to release the hold. In the Invoice Holds window, you can manually release certain invoice holds, even if you have not resolved the matching error condition.
Authorized users can always correct an invoice, even if you have validated, approved, paid, or created accounting entries for the invoice.
You can identify all invoices that Payables has not yet reviewed with Invoice Validation by submitting the Invoice Register and selecting the Unvalidated Invoices Only parameter. You can review the validation status of an invoice online in the Invoice Overview window or the Invoices window.
You can submit an invoice for validation in one of the following ways:
i) Online by using either the Validate or the Validate Related Invoices check box in the Invoice Actions window.
ii) Online by using the Validate button in the Invoice Batches window.
iii) Batch by submitting the Payables Invoice Validation program from the Submit Request window.

Validation Example
For example, Invoice Validation places three invoices on matching hold. The first invoice is on matching hold because the quantity billed exceeds the quantity received. The second invoice is on matching hold because the invoice price exceeds the purchase order shipment price. The third invoice is on matching hold because the quantity billed exceeds the quantity ordered.
Invoice 1. Your receiving department receives the goods and records the receipt information. Your invoice now matches the receipt and Payables releases the hold when you submit Invoice Validation.
Invoice 2. A supplier sends a credit to correct the amount due on a previous invoice. After you enter the credit and match it to the same purchase order, your invoice now matches the purchase order and Payables releases the hold when you resubmit Invoice Validation. Use the Validate Related Invoices option in the Invoice Actions window to submit Invoice Validation for both the credit and the original invoice.
Invoice 3. You increase your tolerance levels using the Invoice Tolerances window. Your invoice now matches your receipt and purchase order within your newly-defined tolerance levels and Payables releases the hold when you resubmit Invoice Validation.

Comments

  1. A low cost version of invoice discounting would enable invoice discounters to recruit huge numbers of customers that might otherwise use an overdraft or loan. Whilst the argument that "invoice discounting releases more funding than overdraft" is often true, the price premium often makes it unattractive to the customer.

    Invoice Finance

    ReplyDelete
  2. Thanks for sharing this great information.It is useful information for those who are looking for free invoice generator which helps in creating instant invoices.

    ReplyDelete
  3. I would like to thanks for sharing informative blog. Keep It sharing actually i was looking as same content.
    Factoring and Invoice Discounting

    ReplyDelete

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