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Invoice Verification ​

Invoice verification ensures accurate vendor payments through systematic matching of purchase orders, receipts, and invoices. This guide covers the complete accounts payable process in Angage ERP.

Understanding Invoice Verification ​

Three-Way Matching ​

The foundation of invoice verification:

mermaid
graph TD
    A[Purchase Order] --> D{Three-Way Match}
    B[Goods Receipt] --> D
    C[Vendor Invoice] --> D
    D --> E{Match?}
    E -->|Yes| F[Approve for Payment]
    E -->|No| G[Investigation Required]

Verification Types ​

Automatic Matching ​

  • System compares documents
  • Within tolerance = auto-approve
  • No manual intervention
  • Fast processing

Manual Matching ​

  • Discrepancies found
  • Human review needed
  • Exception handling
  • Resolution required

Two-Way Matching ​

  • For services/non-PO items
  • Invoice vs receipt/contract
  • Simplified process
  • Different approval flow

Invoice Processing Workflow ​

1. Invoice Receipt ​

Electronic Invoices ​

  • Email with PDF
  • EDI transmission
  • Vendor portal upload
  • API integration
  • OCR scanning

Paper Invoices ​

  • Mail receipt
  • Manual data entry
  • Scan and attach
  • Archive original

2. Invoice Registration ​

  1. Navigate to Purchase → Vendor Invoices
  2. Click New Invoice
  3. Enter header information:
    • Vendor
    • Invoice number
    • Invoice date
    • Due date
    • Total amount
  4. Add line items:
    • Reference PO/receipt
    • Or enter manually
  5. Save as draft

3. Matching Process ​

System automatically:

  • Finds related POs
  • Matches receipts
  • Compares quantities
  • Checks prices
  • Calculates variances

How-To Guides ​

How to Process Standard Invoices ​

With PO Reference ​

  1. Create new invoice
  2. Enter PO number
  3. System populates:
    • Vendor details
    • Expected items
    • Received quantities
    • Agreed prices
  4. Enter invoice details
  5. Submit for matching

Without PO Reference ​

  1. Use Smart Matching
  2. System searches by:
    • Vendor
    • Date range
    • Amounts
    • Item details
  3. Select matching documents
  4. Verify and proceed

How to Handle Discrepancies ​

Price Variances ​

Within Tolerance

  • System highlights variance
  • Auto-approves if under limit
  • Documents reason
  • Processes payment

Outside Tolerance

  1. System blocks invoice
  2. Creates exception task
  3. Options:
    • Approve variance
    • Request credit note
    • Adjust PO price
    • Reject invoice
  4. Document resolution

Quantity Differences ​

Common scenarios:

  1. Invoice > Receipt

    • Check pending deliveries
    • Verify receipt accuracy
    • Request proof of delivery
    • Adjust if valid

  2. Invoice < Receipt

    • Verify partial billing
    • Check for credits
    • Confirm with vendor
    • Process as-is

Missing Documents ​

When PO/receipt missing:

  1. Investigation workflow
  2. Check:
    • Alternate PO numbers
    • Different locations
    • Service receipts
    • Direct deliveries
  3. Create missing documents
  4. Complete matching

How to Set Up Matching Rules ​

  1. Navigate to Settings → AP → Matching Rules

  2. Configure tolerances:

    • Price Variance: ±2%
    • Quantity Variance: ±5%
    • Amount Threshold: $100
    • Tax Differences: ±$10

  3. Set approval levels:

    • Auto-approve within tolerance
    • Manager approval: $100-$1,000
    • Director approval: $1,000+

How to Process Service Invoices ​

For non-goods invoices:

  1. Create service invoice
  2. Reference:
    • Service PO
    • Contract
    • Work order
    • Timesheet
  3. Verify completion
  4. Approve for payment

How to Handle Recurring Invoices ​

Setup ​

  1. Create invoice template
  2. Set recurrence:
    • Frequency
    • Start/end dates
    • Amount updates
    • Auto-approval
  3. Link to contract
  4. Activate schedule

Processing ​

  • System creates invoices
  • Auto-matches to contract
  • Applies approval rules
  • Schedules payment

How to Manage Credits and Debits ​

Credit Notes ​

  1. Link to original invoice
  2. Apply credit:
    • Against invoice
    • To vendor account
    • Request refund
  3. Update statements
  4. Adjust payments

Debit Notes ​

For vendor charges:

  1. Create debit note
  2. Reference issue
  3. Send to vendor
  4. Track acceptance
  5. Offset payments

Advanced Features ​

OCR and AI Processing ​

Document Scanning ​

  1. Upload invoice PDF/image
  2. OCR extracts data:
    • Vendor details
    • Invoice number
    • Line items
    • Amounts
  3. AI validates
  4. Human verification
  5. Process normally

Learning System ​

  • Improves accuracy over time
  • Learns vendor formats
  • Suggests GL coding
  • Identifies patterns

Approval Workflows ​

Standard Approval ​

Based on:

  • Invoice amount
  • Variance level
  • Vendor type
  • GL account
  • Department

Matrix Approval ​

Complex scenarios:

  • Multiple approvers
  • Parallel approval
  • Sequential steps
  • Conditional routing
  • Escalation rules

Payment Processing ​

Payment Terms ​

Manage various terms:

  • Net 30/60/90
  • 2/10 Net 30
  • End of month
  • Custom schedules
  • Early payment discounts

Payment Methods ​

  • ACH/Wire transfer
  • Check printing
  • Credit card
  • Virtual cards
  • Vendor credits

Vendor Portal ​

Self-service features:

  • Invoice submission
  • Status tracking
  • Payment visibility
  • Statement access
  • Dispute management

Best Practices ​

Invoice Management ​

  • Process promptly
  • Maintain documentation
  • Clear discrepancies quickly
  • Communicate with vendors
  • Archive properly

Control Measures ​

  • Segregation of duties
  • Approval hierarchies
  • Duplicate detection
  • Fraud prevention
  • Regular audits

Efficiency Tips ​

  • Use electronic invoices
  • Automate matching
  • Batch processing
  • Exception focus
  • Vendor collaboration

Month-End Processing ​

  • Clear pending matches
  • Process accruals
  • Review aged items
  • Reconcile statements
  • Close period

Configuration ​

AP Settings ​

Navigate to Settings → Finance → Accounts Payable:

  • Default Terms: Payment days
  • Matching Required: Yes/No
  • Tolerance Levels: Set by type
  • Approval Matrix: Configure
  • Payment Methods: Enable

Automation Rules ​

  • OCR confidence levels
  • Auto-coding rules
  • Duplicate detection
  • Workflow triggers
  • Payment scheduling

Integration Setup ​

  • Bank connections
  • Payment systems
  • Vendor portals
  • EDI configuration
  • API endpoints

Reports & Analytics ​

Operational Reports ​

  • Pending invoices
  • Matching exceptions
  • Approval queue
  • Payment due
  • Aging analysis

Performance Metrics ​

  • Processing time
  • Match success rate
  • Exception rate
  • Payment timeliness
  • Discount capture

Vendor Analysis ​

  • Spend by vendor
  • Invoice accuracy
  • Pricing trends
  • Term compliance
  • Issue frequency

Troubleshooting ​

Common Issues ​

Matching failures

  • Verify PO number
  • Check receipt status
  • Review tolerances
  • Compare details

Duplicate invoices

  • Check invoice number
  • Review amount/date
  • Verify vendor
  • Mark if valid

Approval delays

  • Check workflow status
  • Review delegations
  • Verify rules
  • Clear exceptions

Payment blocks

  • Check holds
  • Verify banking details
  • Review credit limits
  • Resolve disputes

Next Steps

Learn about Vendor Performance tracking to optimize your supplier relationships.

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