Invoice

Procure-to-Pay

Definition

A supplier's bill requesting payment for goods or services delivered, itemising what was supplied and the amount due.

Explanation

The invoice is the third leg of three-way matching and the trigger for payment. Accurate, matchable invoices flow straight through; mismatches are held. e-Invoicing removes manual keying and speeds the whole cycle.

Example

The supplier's invoice for RM4,320 is matched to PO #4471 and the GRN, then scheduled for payment.

Related terms

Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.
e-Invoicing — The exchange of invoices in a structured electronic format that can be processed automatically, without manual data entry.
Invoice Approval — The step of authorising a matched (or exception) invoice for payment, per policy and delegation of authority.
Accounts Payable (AP) — The function and ledger responsible for recording and paying what a business owes its suppliers.

Related concepts

Procure-to-Pay (P2P) — The end-to-end operational buying cycle — from requisition and approval to purchase order, receipt, invoice matching and payment.

Frequently Asked Questions

What is Invoice?

A supplier's bill requesting payment for goods or services delivered, itemising what was supplied and the amount due. The invoice is the third leg of three-way matching and the trigger for payment. Accurate, matchable invoices flow straight through; mismatches are held. e-Invoicing removes manual keying and speeds the whole cycle.

Can you give an example of Invoice?

The supplier's invoice for RM4,320 is matched to PO #4471 and the GRN, then scheduled for payment.

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