Reconcile Invoices and Handle Exceptions

Reconciling invoices is required when there are discrepancies in 2-way or 3-way matching - between the invoice, the purchase order, and the receipt for an order.

See Documentation Topics:

Create Invoice and Invoices Grid

Invoice Reconciliation Rule Management

Receipts Import

Invoice Email Notifications

Overview

Invoices, once submitted, are on a course to reach the status of OK to Pay. OK to Pay status means that either there were no exceptions or that all invoice exceptions have been handled and that the Invoice is ready to be paid. 

Exceptions are triggered by reconciliation rules or result from discrepancies between invoice, purchase order, and receipt. They can be at the header or line level.

Reconciliation rules vary as set up in the Admin Control Panel.

Invoice reconciliation is necessary to review and resolve exceptions. Discrepancy resolution typically uses a process called 3-way matching, comparing the invoice, purchase order, and receipt. If receipts are not created or used in the transaction, 2-way matching is used, where the purchase order and invoice are compared. 

In order for invoices to be reconciled, Accounts Payable and the supplier must agree on pricing, charges, and any discrepancies during the receiving and invoicing process. Once all issues have been addressed, the invoice status transitions to Ok to Pay.

View Invoice Status

Reconciliation starts with review of invoice status. Depending on permissions and roles, Invoices can be viewed from the Accounts Payable Dashboard, the Invoice Grid or the Reconcile Invoice Grid.

Users with Global Invoice Search permission may view Invoices, Exceptions, and Purchase Orders and Save as PDF. 

Access from the Accounts Payable Dashboard

The Accounts Payable Dashboard affords a central hub offering access to all invoice information and tasks. Invoices can be searched for quick reference and status review, in addition and AP staff may monitor invoices needing action.

1. Search for a specific invoice using the Search box.
2. Access a grid of Invoices needing Reconciliation by clicking on Reconcile Invoices.
3. View a list of Overdue Invoices by specifying the number of days overdue and clicking on the arrow. 
4. View a list of Unapproved Invoices Due by specifying the number of days due and clicking on the arrow. 
5. View a list of Invoices Due by specifying the number of days due and clicking on the arrow. 

Access Invoices from the Main Menu

Access the Invoice Grid to review status from the Main Menu.

Select an invoice for viewing from the Invoice Grid by clicking on View Invoice in the ACTIONS column.

Invoice Details

Reconcilers can view the details of an invoice during reconciliation and approval in addition to navigating to the Invoice Reconciliation page to review and handle exceptions. 

Options available in the Invoice Details page are: 

1. Reconcile or Save as PDF
2. View Related Records
3. View additional Details: Shipping, Billing, and Accounting. 
4. Submit a Comment
5. Invoice History 
   Note

   Invoice Reconciliation tasks may be transferred from a user to another by an Administrator and will be listed in the document history.
   When tasks have been transferred to a different user, the History section indicates that the reconciler role has been updated.
   For a description of Transferred Tasks, see the topic User Management.

Reconcile Invoices Grid

A list of invoices needing the user's reconciliation is listed in the Reconcile Invoices Grid, available from Reconcile Invoices in the Main Menu or the Accounts Payable Dashboard. 

The Invoice Reconciliation Grid may also be configured as a Home Page Widget to be directly viewable and accessible from the Marketplace Home Page.
See UI Management: Home Page Widgets. 

A reconciler will see all the Invoices needing their review and reconciliation in the grid. 

From the Reconcile Invoices Grid you are able to: 

1. Search by Invoice or Purchase Order Number. 
2. Use the Filters to locate an Invoice. 
3. View or Reconcile an Invoice from the ACTIONS menu.

Invoice Reconciliation Process

Video: BuyerQuest's Involce Reconciliation Page

View this short video for an overview of the Invoice Reconciliation Page features.

Reconcile an Invoice

When a reconciler views an invoice, and chooses the Reconcile option in either the Grid or the Invoice Details page, the Invoice Reconciliation page displays showing the invoice information with Exceptions, providing status information and the means for the user to view and reconcile the invoice.

The 3-way match requires matching the Invoice, the Purchase Order and any Receipts during the matching and reconciliation processes. When viewing any one of the three documents, the Related Documents link provides access to the other related documents for viewing.

Invoice exceptions will be either Header or Line Level Exceptions or both. Line Level Exceptions show errors in the invoice lines while Header Level Exceptions list errors at the invoice header level. 

When there are exceptions, they must be addressed and reconciled before the Invoice reaches the OK to Pay status. Until they are reconciled, the status of the Invoice will display as  Reconciliation Required and the exceptions must be reviewed and handled by reconcilers. 

The Invoice Reconciliation page offers the following actions and information for the reconciler.

Please note that any relevant Credit Memos are included for reference during reconciliation. 

1. Use Related Records to access the documents related to the Invoice, such as Purchase Order or Receipts for purposes of matching. 
2. Invoice Information that may be referenced here includes Invoice #, Supplier, Supplier Invoice #, in addition to a listing of the number of Exceptions along with Due Date and Total. 
3. The number of Header and Line Exceptions are listed. 
4. Header or Line Exception Details are displayed, where applicable. The Description of the Exception is included underneath the title in red. 
5. Exception Status shows either Pending Approval (for the reconciler to approve) or Approved. 
6. ACTIONS offer the options of Approve (green checkmark), Deny (red X), or Reassign (blue arrow) when clicked.
   Clicking Reassign allows assignment of the exception to another user in the Approver's Content Group.
   When denying the exception, the reconciler is able to add an optional reason for denial.
7. A new Approver is chosen using the Search/Select box. 
8. Reassign to the selected user.
   Note: Reassignment of exception reconciliation makes the Invoice available to the user identified in the Reassignment. 
9. The The Invoice Line Exceptions section is included when there is at least one line level exception. This section includes the Document # in the BuyerQuest system, Subtotal, Shipping, Handling, Tax, Discount, Total, Date Created, and Status.
   Clicking on any Document # in the list will open its Details Page.
   The first row of the Line Details is populated with the Purchase Order followed by any Receipts or Credit Memos submitted against the Purchase Order and current Invoices submitted against the Purchase Order. 
   Please note that shipping, handling, tax and discount are not supported for Purchase Orders or Receipts.
10. The Line Exception Description is displayed in red. The EXCEPTION STATUS and ACTIONS  are the same as for Header Level Exceptions. 
11. Attachments and Comments may be added.
12. The Reconcile Invoice page may also be Saved to PDF for future reference. 

Reassign Invoice Exception Reconciler

An Invoice reconciler may reassign reconciliation of an exception to another person within their Content Group from the Invoice page.

1. For each Exception listed, the user may Reassign by clicking on the blue arrow. 
2. The new reconciler is chosen using the search/select box
3. Click Reassign for the exception to be assigned to the chosen new reconciler. 

Reassignment results in the Invoice being displayed to the new reconciler in the Reconcile Invoices grid and also sends an email notification to the new reconciler along with an update to the Invoice History. 

Confirmation of Exception Reassignment

When the reassignment is for an invoice with a single exception, the user sees  a confirmation message.

When one of multiple exceptions for an invoice, has been assigned, the Invoice displays the reassignment:

The Invoice History is also updated when an exception has been reassigned. 

Reconciliation - Deny an Exception

The reconciler may deny an Exception by clicking on the red X and may then provide a reason for the denial.

1. Clicking on the red X will deny the Exception.
2. The Reconciler may enter a reason for the denial.
3. Clicking on Deny will save the reason and deny the exception.
   The reason for denial will be sent in the Email Notifications alerting buyer and supplier to the denial.

Example: Invoice History Entry for Invoice Denial

Reconciliation - Exceptions May be Set to Auto Clear

Invoice Exceptions may be set to auto clear when an event is triggered that clears an exception.
Auto clearance is provided for in the configuration of Invoice Reconciliation Rules. A Rule may be configured to be re-evaluated under specific conditions:

1. Purchase order is updated (either manually or via cXML);
2. Invoice is denied; or
3. Credit Memo or a Receipt is created.

When the configuration is set for Auto Clear or Auto and Manual Clear, the reconciliation rule will be re-evaluated for all related Invoices that have the exception triggered. 

When Auto Clear Only is selected the exception may not be manually cleared. 

Auto clearing an exception results in the exception being removed and the Invoice History reflects the auto clearance of the exception. An email is sent to the reconciler.  

When there are no further exceptions for the invoice, the invoice is removed from the Reconciler's Reconcile Invoices grid. 

For details, see the documentation topic: Invoice Reconciliation Rule Management.

Example: History Entry Regarding Auto Clearance of Invoice Exception

Invoice Exception Reconciliation Actions 

The following are the Invoice Exception actions and results for exception reconciliation.