What steps would you take before approving an Invoice for Payment.

Question

Accepted Answer

Before approving an invoice for payment, several steps should be taken to ensure accuracy and validity.

Verify the accuracy of the invoice details, such as the amount, date, and vendor information.
Check if the goods or services mentioned in the invoice were actually received or provided.
Confirm that the invoice complies with company policies and procedures.
Ensure that all necessary approvals and supporting documentation are attached to the invoice.
Review the payment terms and terms of any applicable contracts or agreements.
Check for any discrepancies or unusual items in the invoice, and investigate further if needed.
Perform a thorough reconciliation of the invoice with relevant purchase orders, receipts, and other financial records.
Confirm that the invoice has been properly authorized by the appropriate individuals.
Ensure that the invoice is coded correctly and allocated to the appropriate cost centers or accounts.
Perform a final review to ensure compliance with tax regulations and any applicable legal requirements.

Accepted Answer

The following are the important steps one should take before approving the payment.

* Check the Purchase Order issued.

* Check Goods Received Note (GRN) for having received goods / service as mentioned in the P.O

* Look at the name, address and Tax ID number of the vendor to be sure it matches your contractor paperwork, or PO.

* Refer the terms and conditions for making the payment ( any credit period)

* check the bank balance before approve the invoice for paymeny

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