All 24 Invoice Processing questions
More in Invoice Processing
What is the difference between a PO and a non-PO invoice? What key data fields must be captured from a supplier invoice? What is invoice coding? What does 'three-way match' mean in one sentence, and why does invoice processing depend on it? What is the difference between an invoice and a receipt? What is a self-billing invoice? Walk through the journal entry when a supplier invoice is recorded. What is a duplicate invoice and how do you prevent duplicate payments? How does electronic invoicing (e-invoicing) and OCR improve AP processing? What are invoice exceptions and how are they handled?
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Accounts Payable & Receivable › Invoice Processing

What is invoice processing in accounts payable?

Beginner

Answer

Invoice processing is the end-to-end handling of a supplier invoice from receipt through to payment: capturing the invoice, validating it against purchase orders and receipts, coding it to the correct general ledger accounts, obtaining approval, and posting it for payment. Accurate processing ensures suppliers are paid correctly and on time and that expenses hit the right period.
Real-world example An AP clerk receives 300 supplier invoices a month and processes each through capture, matching, coding, approval, and posting before the payment run.

Common follow-ups: What are the main steps of the AP invoice cycle? | What is a PO vs non-PO invoice?

Purchase Orders & 3-Way Matching Payment Runs Vendor Management
All 24 Invoice Processing questions