Accounts Payable - what documents are required before verifying invoice? what is the process if the supplier passes an

GeekInterview.com > Interview Questions > Accounting > Accounts Payable

Go To First | Previous Question | Next Question

Accounts Payable | Question 59 of 143

what documents are required before verifying invoice? what is the process if the supplier passes an invoice for more amount?

for ex: if the value of the goods is say Rs.5000,and the supplier sends the invoice for Rs.6000.

Total Answers and Comments: 3

Last Update: August 16, 2008 Asked by: ahamed azgar

Sponsored Links

Best Rated Answer

—

Submitted by: Sanju40148

In such a case its very important to compare the GR note and the PO order with the invoice. In other words three way match is very important.

If the supplier invoices more than $ 5000.00 in your example the invoice should not be paid. It is important to change the price in the PO in order to make the payment. Moreover its utmost imporant to check the arrival of the material in the plant.

To conclude you should not make the payment in case the price on the invoice is more than what was agreed and in order to pay the invoice is important to change the price in the PO.

Above answer was rated as good by the following members:
ramahirrao

May 07, 2008 05:17:43

Mary Schaeffer

Member Since: May 2008 Contribution: 1

RE: what documents are required before verifying invoice? what is the process if the supplier passes an invoice for more amount?

The traditional three way match would apply here. This means the accounts payable processor should compare the purchase order with the receiving document and the invoice. If all three match the invoice can be paid - although may organizations still insist that the invoice be approved. This approval is in addition to the matching process. If the invoice is for a larger amount it is considered discrepant and the discrepancy must be resolved - the sooner the better.

Mary Schaeffer
author The Controller & CFO's Guide to Accounts Payable (John Wiley & Sons) and twelve other business books
editorial director Accounts Payable Now & Tomorrow (www.ap-now.com)

Is this answer useful? Yes | No

May 20, 2008 08:04:27

thiru008

Member Since: May 2008 Contribution: 1

what type of tds ? and what is service tax ?

ggfgjfj

Is this answer useful? Yes | No

August 15, 2008 18:25:12

Sanju40148

Member Since: August 2008 Contribution: 3

RE: what documents are required before verifying invoice? what is the process if the supplier passes an invoice for more amount?

In such a case its very important to compare the GR note and the PO order with the invoice. In other words three way match is very important.

If the supplier invoices more than $ 5000.00 in your example the invoice should not be paid. It is important to change the price in the PO in order to make the payment. Moreover its utmost imporant to check the arrival of the material in the plant.

To conclude you should not make the payment in case the price on the invoice is more than what was agreed and in order to pay the invoice is important to change the price in the PO.

Is this answer useful? Yes | No

1 0

Overall Rating: +1

Go To Top

User Name		Remember Me?
Password

Question Bank