Ground Rules for Incoming Invoice Processing


We predominantly have exchanged views on process and technique involved in sending invoice but hardly ever paid attention to the invoice processing carried out at the client’ end.  Let’s check-out the process related with incoming invoice.

Hard work has to get paid while hard-earned money has to be spent wisely. The key solution for both hard work and hard earned money is effective and streamlined invoice. This will ensure that business gets paid appropriately for its efforts and the client doesn’t drain the money.

Whether the client receives the invoice on paper or via electronic mode, archetypal invoice processing has to be carried out to ensure the bill received is valid and accurate. Before the payment is made, proper processing is performed at the client’s end.

Let us understand the process related to incoming invoice:

Step 1 – Once the invoice is arrived at the organization, the first thing to do is scrutinize the bill. The bill is usually verified by accounts payable department, bookkeeper or the business owner himself (in case of small business).

Step 2 – After the document is verified and confirmed to be invoice, it would be categorized. The invoice is classified into various categories.  Category of invoice varies according to the organization.

Step 3 – If the organization has acquired purchase order while placing the order then it must be cross-checked with the invoice and make certain the amount on the purchase order and invoice is same.

Step 4 – Once all these steps are followed and there is no issue then the accounts payable department will forward the invoice to respective person who has placed the order.

Step 5 – If the products and services are delivered properly, on time and the amount is charged correctly, the client would agree to make the payment by signing off the invoice.

Step 6 – Once the client agrees to make payment, the approved invoice will be finally posted into the accounting system.

If invoice is received in electronic form then the respective person will scan the invoice image and convert it into text researchable document and then follow the further steps. In online process, the invoice data will be automatically compared with the purchase order and if it matches, the invoice will be sent to the responsible person through email.  After the invoice is approved payment will be made.

Manual or automated, whatever is the means of invoicing, process should be executed step by step as it is money matter.

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