Invoice processing step-by-step
This chapter presents an overview of the key steps you will perform for invoice processing. You can find details about these concepts and procedures in these chapters.
| Step Number | Key Step | What happens? | For details, see... |
|---|---|---|---|
| 1 | Define Batches | Conditional. If you selected the batch release option for your company, you must define batches and specify and release invoices in those batches | Defining invoice batches |
| 2 | Specify Invoices | You specify invoices on one of several forms. Many fields on the entry form default values that you defined during setup. You can also make changes to unreleased invoices in these forms. | Specifying an expense invoice |
| 3 | Approve Invoices | Conditional. The invoice approval option lets you assign company-defined vouchers to invoices during entry and lets you control the release of invoices by requiring individual approval. You must use the invoice approval option if you use batch release and want to use payment approval. | Approving invoices for payment |
| 4 | Release Invoices |
You release invoices, making them available for payment. Any release or approval rules you defined for your company are applied here. If you use batch processing, or a combination of batch processing and approval, you will release your invoices in batches. If you do not use batches, you will assign authority codes to invoices and release them individually or in groups. |
Releasing invoices |
| 5 | Maintain Invoices | You can make some changes to released invoices before paying them. For example, you can change expense distributions and payment schedules. Because released invoices can no longer be viewed in the invoice entry forms, you use invoice adjustment forms to make these changes. | Maintaining released invoices |
| 6 | Select Invoices for Payment | During this step, the application determines which released invoices to pay. You provide an invoice payment date and the application reviews due dates, terms, and holds assigned to invoices to determine when it should be paid. The program that selects invoices for payment is called Cash Requirements. | Selecting invoices for payment |
| 7 | Generate Payments | In this step, you create the actual payments to your vendors. Often this means a check run, but you also create payment tapes and electronic payment transfer files at this time. | Performing a check run |
| 8 | Create a Payment Register | This step is optional, but is commonly performed. You can create a list of payments for your records. | Creating a cash payment register |
| 9 | Close the Payment Cycle |
The application performs several tasks when you close the payment cycle. Those tasks include:
|
Closing a cash payment cycle |
| 10 | Close Invoice Distributions | Conditional. Complete this step to transfer released in-balance distributions to the general ledger. You must complete this step at least once in an accounting period, but you can run it any time after you release the invoice. | Closing invoice distributions |
| 11 | Close a Period | Conditional. If you selected System Control in the General Ledger application, you will need to process period closing at the end of each accounting period. During this step, the application edits accounts payable transaction dates to ensure all transactions have been transferred to the general ledger for the period being closed. | Closing a period |
Related reports and inquiries
| To | Run |
|---|---|
| Track and report invoice entry statistics, match statistics, and canceled invoice statistics | Invoice Processing Statistics (AP295) |