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Step1
Check the description of work performed to be sure it reflects what was completed. Some vendors might invoice you for work that has not yet been completed. Even worse, you might find listed on one invoice work that was paid for from a different invoice.
Step2
Check with the project manager or department head to be sure the work was completed satisfactorily. If a vendor has botched an assignment, it is advisable to withhold payment until the work has been brought up to standard.
Step3
Look at the dates that appear in line items on the invoice. Check those dates against dates of past invoices in another effort to guard against being billed for the same work twice.
Step4
Look at the name, address and Tax ID number of the vendor to be sure it matches your contractor paperwork. If any of the information does not match, contact the vendor for an explanation. Any vendor name or address change is crucial data. An unrecognizable tax ID number may be a typo or reflect a change in vendor ownership. But there is always the chance that the vendor is involved in financial shenanigans. While it may not be your responsibility to take action in such an instance, it is best to be forewarned.
We have to check following things before payment approval.
1. Date of Invoice.
2. Name of Supplier. Check and verity if supplier is listed with our company.
3. Product Description, Quantity and Rate
4. If supply was made against a Purchase Order or Work Order, check the relevant Purchase Order / Work Order and ensure product description quantities and rates are correct.
5. If supply is made or work is done under a contract / agreement, then check and ensure compliance with relevant clauses of the contract / agreement.
6. Check with Goods Received Note / Work Track Document that goods mentioned in invoice and PO are received or services rendered as per WO/agreement.
7. Ensure that quality control has duly checked the products as per quality standards. Check product expiry date in case of goods with short life cycle.
8. Check that GST / VAT is correctly calculated and mentioned on the invoice and is claimable in the VAT /GST return.
9. Calculate and deduct withholding tax, at the applicable rate.
10. When all above things are checked then we can process payment for approval.
These steps also depend on the nature and size of the business.
1- compare reciving report and purchase order with invoice
2- revise the detail and terms of invoice
3- assure that there are not any advance to supplier
4- assure that the invoice has not paid before
5- assure that there are approval from quality managment
After accounting the invoice in ERP - we have to check whether there is any advance to be adjusted or any debit note to be issued or adjusted - availability of Cash flow & project has been done during the due day.
Once it has been clearing from the above data - Based on the availability of Cash flow & we can clear the payment of the supplier invoice.
When the invoice arrives,
- the bookkeeper will match the invoice to the order,
- checking the quoted order number on the invoice. If the invoice is a little different to the order, it needs to be queried with the person who placed the order.
- Once the purchase invoice matching is complete, highlight the total owing then place them back in the folder until you are ready to pay. You could double check that all the statements added up, match the total tally on your spread sheet
- Verify the invoice
- Avoid duplicate payment
- make the payment
I think we can summarize by saying (( Reconciled SOA )) to reach up for all details that documented in order when you set with the suppliers you can agree both of you about it to reach up for accurate balance.
We have see the Invoice details like , purchase order number, Invoice number , Date, Business code
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